Nutraceutical Ingredients Market To Reach US$49 Billion
Tuesday, February 27th, 2018 | 774 Views
The global nutraceutical ingredients market is projected to grow at a compound annual growth rate (CAGR) of 7.5 percent between 2018 and 2023 and expected to reach US$49 billion by the end of the forecast period, according to market intelligence company ReportLinker.
The market is estimated at US$34.06 billion in 2018. The growth is attributed to rising health awareness and an increase in chronic diseases in the past few years.
Changing lifestyles, a rise in the number of government mandates regarding food and beverage fortifications in certain countries, and the growing demand for nutraceutical products in emerging economies are paving new opportunities for the nutraceutical ingredients market.
In 2017, the phytochemical and plant extracts segment is projected to grow at the highest CAGR in terms of value. Due to the rising global awareness with regard to the side-effects of chemical ingredients utilised in food processing, consumers are demanding nutraceuticals that utilise natural ingredients.
By application, the dietary supplements segment is estimated to dominate and grow at the highest rate in 2017. The large market share can be attributed to it being a cost-effective solution to customers and the availability of multiple nutrients to humans. The dietary supplements segment is projected to grow at a significant rate due to the prevalence of certain nutrient deficiencies, increase in the number of incidences of chronic diseases, and inclination of consumers toward the consumption of natural ingredients.
On the basis of form, the dry segment is projected to be a faster-growing segment in the nutraceutical ingredients market in 2017, and is projected to grow at a higher rate during the forecast period. The process of formulating dry ingredients is easier in terms of process, especially in high volume manufacturing. Dry ingredients are widely consumed owing to easy application and various other benefits associated with it. For instance, dry sweetener products retain all the desirable properties such as aroma and long shelf-life.
Asia Pacific is estimated to be the largest in the nutraceutical ingredients market in 2017. The application of nutraceutical ingredients is projected to grow at a high rate in the region due to increasing demand from consumers. Prebiotics is one of the rapidly growing segments in this region.
Key markets in the Asia Pacific region include China, India, Japan, and Australia. These countries have vast areas under agriculture and production of high-fibre plants and oilseeds, which are the primary raw materials for fibre and specialty carbohydrate ingredients. In addition, manufacturing companies also provide the cost advantage in terms of production and processing of nutraceutical ingredient products.