Nutraceutical ingredients are chemical, natural bioactive compounds that possess disease preventing, health promoting and medicinal properties. These are primarily used in functional foods and dietary supplements. Nutraceutical ingredient market is rising with increased health awareness in people and growing health concerns, increasing demand for healthy food, personal care products and safe animal nutrition products. Health benefits of nutraceuticals and their application in food, beverages, dietary supplements, pediatric and adult nutrition preparation supports the use of nutraceutical ingredients. Consumers have shifted their focus from mere hunger satisfaction to meeting nutritional needs.
Increasing aging population and rising incidence of chronic diseases and changing lifestyle are the major factors that drive the global nutraceutical ingredients market. However, high price of these products remains a major restraint.
Nutraceutical ingredients market analysis by Type
Nutraceutical ingredients type market is segmented into Prebiotics, Probiotics, amino acids, Peptides& Proteins, Omega 3 & structured lipids, Phytochemical & Plant extracts, Minerals, Vitamins, Fibers & specialty carbohydrates, carotenoids & Antioxidants and Others. Fibers and specialty carbohydrates are most widely used ingredients.
Nutraceutical ingredients market analysis by Application
Nutraceutical ingredient application market is segmented into Functional Food, Functional Beverages, Dietary Supplements, Animal Nutrition and Personal Care. The application segment is dominated by dietary supplements.
Nutraceutical ingredients market analysis by geography
Geographically, Nutraceutical ingredient market is segmented into North America, Europe, Asia Pacific, and LAMEA. Asia pacific forms the dominant market with highest growth rate and share. This is due to growing population and urbanization in various developing nations of the regions. India, China, Brazil, and Russia are the potential nations of the region.
DuPont, Royal DSM, Cargill, BASF, ADM, Lonza, Tate and Lyle, National starch food are the major players. Strategic analysis of the company reveals that companies are adopting product launch, merger & acquisitions and research & development as major strategies for future growth. Merger and acquisitions is the important strategy followed by the major players in the Nutraceutical ingredients market. BASF acquired Equateq Ltd., manufacturer of Omega-3 products, to extend its portfolio of Omega-3 fatty acids.
Porter’s five forces analysis reveals that the bargaining power of suppliers is less due to low switching cost and low threat of backward integration lowers the bargaining power of buyers. Threat of new entrant is less due to high investment required for a new set-up. Health awareness in people and growing health concerns support the growth of nutraceutical ingredients market. Key players and their strategies are analyzed for developing business strategies for market entry and expansion.
Nutraceutical ingredient market is segmented based on type, application and geography.
MARKET BY TYPE
MARKET BY APPLICATION
MARKET BY GEOGRAPHY
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