Health Ingredients Market by Type (Vitamins, Minerals, Probiotics starter culture, Prebiotics, Nutritional Lipids, Functional Carbohydrates, Plant and Fruit Extracts, Enzymes, Proteins), Application, Source, Function and Region - Global Forecast to 2027
The health ingredients market size is predicted to grow at a CAGR of 7.8% between 2022 and 2027, reaching a value of $146.3 billion by 2027 from a projection of $100.5 billion in 2022. Food industry personalized nutrition trends and nutrigenomics have enabled the market to manufacture need-based products. These products offer functional purposes such as immune system support, digestion aid, mental health promotion, beauty, and cardiovascular health, among others.
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Health Ingredients Market Dynamics
Driver: Increasing instances of chronic diseases
Globally, the prevalence of chronic illnesses and conditions is increasing. These common and expensive long-term health issues are steadily on the rise due to the aging population and changes in societal behavior. Furthermore, the middle class is expanding, and people are adopting a more sedentary lifestyle as urbanization picks up speed. Consequently, more people are becoming obese and developing diseases such as diabetes. Since developing countries are expected to see the greatest population expansion, emerging markets will be the hardest hit.
According to the CDC's National Center for Chronic Disease Prevention and Health Promotion (NCCDPHP) 2022, 6 in 10 adults in the US have a chronic disease. According to an article titled Commentary on Chronic Disease Prevention 2022 published by the National Association of Chronic Disease Directors, nearly 60% of American adults suffer from at least one chronic disease. The major causes of death in the US include chronic diseases like diabetes, cancer, and cardiovascular disease. Heart disease, cancer, stroke, chronic obstructive pulmonary disease, and diabetes together account for more than two-thirds of all deaths.
Restraint: Pricing complexities related to newly introduced health ingredients
The development and commercialization of health ingredients are complicated, costly, and uncertain. Technological conditions, market demand, and legislative regulatory framework are all factors that influence product development success of the health ingredients market. Significant investment is required for the research and development of a strain that will be utilised to produce new ingredients such as probiotics.
Probiotic strains and products are developed and manufactured in accordance with international food regulations. In addition, highly sterilised and technically advanced equipment and processes are required for the manufacturing and extraction of numerous other ingredients. The final product's price is high due to the high cost of production. Marketing and distribution raise the price of the product. Although customers are aware of the health benefits of these costly ingredients, their high pricing restricts them from purchasing the product, posing a challenge for manufacturers.
Opportunity: Shift towards plant-based health ingredients
The market for plant protein ingredients is expanding rapidly, as consumers shift away from animal proteins and toward plant-based proteins. This is quite likely to drive customers toward plant-based herbal supplements and botanicals, generating even more opportunities for the herbal supplements market to grow: Consumer preference for plant extracts is being influenced by a desire for clean-label products, concerns about sustainability, and an urgent need to avoid allergens. The population of these herbal supplements is expanding from vegans to flexitarians, showing shifting customer preferences, which will create opportunities in the health ingredients market.
Challenge: Adherence to stringent international quality standards and regulations
The health ingredients industry faces a legal obligation to abide by the norms and standards of various regulatory standards. International bodies such as the National Food Safety and Quality Service (SENASA), Argentina; Canadian Food Inspection Agency (CFIA), Canada; Food and Drug Administration (FDA); World Health Organization (WHO); and Committee on the Environment; Public Health and Food Safety (EU) are associated with food safety and quality regulations. These organizations control the use of different chemicals, raw materials, and ingredients used in food processing directly or indirectly.
There are different food labeling and packaging guidelines followed by different regional food safety authorities and regulatory bodies. Manufacturers need to adhere to these varied and stringent regional legislations for the manufacturing and packaging of food materials and ingredients. These numerous legislations and regulations make it challenging for new entrants to enter the health ingredients market as the R&D investment is high, and profitability margins are low.
The Probiotics starter culture is projected to achieve the highest CAGR in terms of value
Probiotics, when consumed in sufficient quantities, have desirable effects on the body, such as improved gut health and reduced intestinal inflammation. Probiotics play an important role in preventive healthcare since they strengthen the immune system and so help to prevent disease. According to a survey of 3,000 consumers conducted in May 2020 by DuPont Nutrition & Biosciences (Wilmington, DE), in collaboration with the Natural Marketing Institute, the use of probiotics among consumers in the US, Italy, and China surged during the pandemic. The results show that the number of Americans who use probiotics increased by 66%, accounting for 25% of all supplement users (up from 15% six months earlier).
Among these, Americans who used probiotics daily or more frequently accounted for 61% (up from 37%). Probiotic supplement use among Italian consumers increased by 188%, estimating 26% of all supplement users (up from 9%), while weekly compliance increased by 83%. Probiotic use among Chinese consumers increased by 108%, amounting to 48% of all supplement users (up from 23%). In the long term, consumers surveyed in the US and Italy stated they expect to take probiotics more frequently in the following six months compared to the six months before the pandemic.
Plant-based foods, by source is estimated to achieve the highest market share in health ingredients market during the forecast period
Plant-based diets are becoming more popular as a result of a variety of factors, including vegan culture, increased health awareness, and concerns about animal welfare. These factors have contributed to the expansion of the market for plant-based food ingredients. According to Good Food Institute 2021 report, For the past three years, plant-based foods have exceeded total foods in both dollar and unit sales growth. Over the last three years, overall plant-based food sales increased by 54 percent, while total food sales increased by only 2 percent. Plant-based food unit sales increased by 6% over the last three years, while total food unit sales remained unchanged, indicating that plant-based foods are a primary driver of retail growth of the health ingredients market.
The Food segment, by application, is estimated to achieve the highest market share during the forecast period
Health ingredients are food ingredients that are combined with food products during manufacture to provide relatively healthier food products that increase consumer functionality. The ingredients in food can also be customized based on the nutritional needs of different consumers who work out every day and have differing needs for proteins, carbohydrates, and other vitamins. With the increasing preference for palatable and convenient food that is also healthy, manufacturers of bakery products are using various ingredients in their products. For instance, in the Asia Pacific region, George Western Foods (Australia), a subsidiary of Associated British Foods (UK) widely, uses omega-3 fatty acids in bakery products under its Tip Top brand.
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APAC is projected to account for the highest CAGR in health ingredients market during the forecast period
Asia-Pacific region is one of the world's largest markets for health ingredients, owing to the region's rapid urbanisation, which has resulted in a majority of the population suffering from vitamin and mineral insufficiency, providing an opportunity for major manufacturers of dietary supplements and functional foods and beverages to expand their footprints and strengthen their position as regional market leaders. Increasing incidences of chronic illnesses such as diabetes, cardiovascular diseases, osteoporosis, and arthritis were reported in the Asia Pacific region.
According to Indian statistics data for 2020, obesity rates have increased by 20%, and cardiovascular diseases (CVDs) are responsible for 40% of deaths in the country. India is projected to become the diabetes capital of the world by 2030, with 67 million diabetic patients and 30 million in pre-diabetic conditions. These factors are projected to drive the demand for health ingredients products in India. Major players such as Amway, Dabur, Novartis, and Aventis Pharma focus on providing various products to fulfill the consumer demand for dietary supplements.
Top Companies in the health ingredients market
The key players in this market include Archer Daniels Midland Company (ADM) (US), Associated British Foods PLC (UK), International Flavors & Fragrances Inc. (US), Kerry Group PLC (Ireland), DSM (Netherlands), BASF SE (Germany), Cargill Incorporated (US), Ingredion (US), Arla Foods (Denmark), Tate & Lyle (UK), Lonza (Switzerland), Royal FrieslandCampina N.V. (Netherlands), Glanbia PLC (Ireland), CHR Hansen Holdings A/S, (Denmark), and Probi (Sweden).
Strategic partnerships were the dominant strategy adopted by the key players, followed by expansions and new product launches. These strategies have helped them to increase their presence in different regions and industrial segments. These players in this market are focusing on increasing their presence through agreements and collaborations. These companies have a strong presence in North America, Asia Pacific and Europe. They also have manufacturing facilities along with strong distribution networks across these regions.
Scope of the Health Ingredients Market Report
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Report Metric |
Details |
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Market valuation in 2022 |
USD 100.5 billion |
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Revenue forecast in 2027 |
USD 146.3 billion |
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Progress rate |
CAGR of 7.8% from 2022 - 2027 |
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Market size estimation |
2022–2027 |
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Base year considered |
2021 |
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Driving factors of the health ingredients market |
Increasing instances of chronic diseases across the globe |
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Opportunities |
Growing shift towards plant-based health ingredients |
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Largest growing region |
Asia Pacific |
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Companies studied |
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Health Ingredients Market Report Segmentation
The study categorizes the market based type, application, source, function and region
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Aspect |
Details |
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By Type |
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By Application |
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Health Ingredients Market By Source |
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By Function |
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By Region |
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Recent Developments in the Health Ingredients Market
- In August 2022, ADM announced a partnership with Benson Hill, a food technology company, to scale innovative soy ingredients to meet the demand for plant-based proteins. This partnership will serve a variety of plant-based food & beverage markets. Through an exclusive North American licensing partnership, ADM will process and commercialize a portfolio of proprietary ingredients derived from Benson Hill Ultra-High Protein (UHP) soybeans. This partnership will expand the brand's product portfolio.
- In July 2022, BASF SE announced the expansion of vitamin A formulation capacities at its Verbund site in Ludwigshafen. Increasing capacities for vitamin A powder in line with higher vitamin A acetate production capacity. This expansion would increase the company revenue and market share for vitamin A in animal nutrition.
- In Feb 2022, International Flavors & Fragrances Inc. announced that it has agreed to acquire Health Wright Products, LLC, which manufactures custom formulations and delivers encapsulation and packaging for probiotic products. This strategic acquisition will bring the ability to formulate capabilities to IFF's Health & Biosciences probiotics, natural extracts, and botanicals businesses.
- In November 2021, Kerry announced the launch of naturally sourced, soluble dietary fiber, Emulgold Fibre, for the white bread manufacturing market. It is made of a natural resin from the acacia tree and delivers a high concentration of soluble dietary fiber (minimum of 85%). This product would expand the company's product portfolio.
Frequently Asked Questions (FAQ):
Who are some of the key players operating in the health ingredients market, and how intense is the competition?
The key players in this market include Archer Daniels Midland Company (ADM) (US), Associated British Foods PLC (UK), International Flavors & Fragrances Inc. (US), Kerry Group PLC (Ireland), DSM (Netherlands), BASF SE (Germany), Cargill Incorporated (US), Ingredion (US), Arla Foods (Denmark), Tate & Lyle (UK), Lonza (Switzerland), Royal FrieslandCampina N.V. (Netherlands), Glanbia PLC (Ireland), CHR Hansen Holdings A/S, (Denmark), and Probi (Sweden). Strategic partnerships were the dominant strategy adopted by the key players, followed by expansions and new product launches. These strategies have helped them to increase their presence in different regions and industrial segments. These players in this market are focusing on increasing their presence through agreements and collaborations. These companies have a strong presence in North America, Asia Pacific and Europe. They also have manufacturing facilities along with strong distribution networks across these regions.
What are the potential challenges to the health ingredients market?
The health ingredients industry faces a legal obligation to abide by the norms and standards of various regulatory standards. International bodies such as the National Food Safety and Quality Service (SENASA), Argentina; Canadian Food Inspection Agency (CFIA), Canada; Food and Drug Administration (FDA); World Health Organization (WHO); and Committee on the Environment; Public Health and Food Safety (EU) are associated with food safety and quality regulations. These organizations have control over the usage of different chemicals, raw materials, and ingredients used in food processing directly or indirectly. There are different food labeling and packaging guidelines followed by different regional food safety authorities and regulatory bodies. Manufacturers need to adhere to these varied and stringent regional legislations for manufacturing and packaging food materials and ingredients. These numerous legislations and regulations make it challenging for new entrants to enter the health ingredients market as the R&D investment is high, and profitability margins are low.
What are the key market trends in the health ingredients market?
The increase in the number of health-conscious individuals around the world, as well as the rise in the incidence of immune deficiency, has driven the expansion of the health ingredients market.
What are the key development strategies undertaken by companies in the health ingredients market?
Strategies such as new product launches, investments into expansion and development, and research initiatives are the key strategies being used by large players in order to achieve differential positioning in the global market.
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The study involved four major steps in estimating the size of the health ingredients market. Exhaustive secondary research was done to collect information on the market, as well as the parent market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both the top-down and bottom-up approaches were employed to estimate the complete market size. After that, market breakdown and data triangulation were used to estimate the market size of segments and subsegments.
Secondary Research
In the secondary research process, various sources such as the Food and Agriculture Organization (FAO), United States Department of Agriculture (USDA), Animal Feed Manufacturers Association (AFMA), Food Safety Council (FSC), Food and Drug Administration (FDA), European Food Safety Authority (EFSA), Food Standards Australia New Zealand (FSANZ), Dietary Supplement Health and Education Act (DSHEA), and Organisation for Economic Co-operation and Development (OECD) were referred to, to identify and collect information for this study. The secondary sources also include annual reports, press releases, investor presentations of companies, white papers, certified publications, articles by recognized authors and regulatory bodies, trade directories, and paid databases.
Secondary research was mainly used to obtain key information about the health ingredients markets's supply chain, the total pool of key players, market classification & segmentation according to industry trends to the bottom-most level, and geographical markets. It was also used to obtain information on the key developments from a market-oriented perspective.
Primary Research
The market comprises several stakeholders in the supply chain, including suppliers, manufacturers, and end-product manufacturers. Various primary sources from both the supply and demand sides of both markets were interviewed to obtain qualitative and quantitative information. The primary interviewees from the demand side include key opinion leaders, executives, vice presidents, and CEOs of the food, beverage, animal nutrition, personal care, and pharmaceutical industries. The primary sources from the supply side include research institutions involved in R&D, key opinion leaders, and health ingredient manufacturing companies.
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Health Ingredients Market Size Estimation
Both top-down and bottom-up approaches have been used to estimate and validate the total size of the market. These approaches have also been used extensively to determine the size of the various subsegments in the market. The research methodology used to estimate the market size includes the following details:
- The key players in the industry and market have been identified through extensive secondary research.
- The health ingredients value chain and market size in terms of value and volume have been determined through primary and secondary research.
- All shares, splits, and breakdowns were determined using secondary sources and verified through primary sources.
- All macroeconomic and microeconomic factors affecting the growth of the health ingredients market were considered while estimating the market size.
- All the possible parameters that affect the market covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
The following sections (bottom-up & top-down) depict the overall market size estimation process employed for the purpose of this study.
Bottom-Up
- In the bottom-up approach, health ingredients for type, application, source, and region were added to arrive at the global and regional market size and CAGR.
- The bottom-up procedure has been employed to arrive at the overall size of the health ingredients market from the revenues of key players (companies) and their product share in the market.
Market Size Estimation Methodology: Bottom-Up Approach
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Top-Down
In the top-down approach, the overall market size was used to estimate the size of individual markets (type, source, application, and region) through percentage splits from secondary and primary research. To calculate specific market segments, the most appropriate and immediate parent market size was used, implementing the top-down approach. The data obtained was further validated by conducting primary interviews with industry experts, key suppliers, and manufacturers of health ingredients.
Health Ingredients Market Size Estimation Methodology: Top-Down Approach
Data Triangulation
After arriving at the overall market size from the market estimation process explained above, the total market was split into several segments and subsegments. To complete the overall health ingredients market and arrive at the exact statistics for all segments, data triangulation and market breakdown procedures were employed wherever applicable. The data was triangulated by studying various factors and trends from both the demand and supply sides. Additionally, the market size was validated using both top-down and bottom-up approaches.
Health Ingredients Market Report Objectives
Market Intelligence
- Determining and projecting the size of the market based on type, application, source, function, and region over a five-year period ranging from 2022 to 2027
- Identifying the attractive opportunities in the market by determining the largest and fastest-growing segments across the key regions
- Analyzing the demand-side factors based on the following:
- Impact of macro- and microeconomic factors on the market
- Shifts in demand patterns across different subsegments and regions
- Providing detailed information about the key factors influencing the growth of the market (drivers, restraints, opportunities, and industry-specific challenges)
Competitive Intelligence
- Identifying and profiling the key market players in the health ingredients market
- Providing a comparative analysis of the market leaders based on the following:
- Product offerings
- Business strategies
- Strengths and weaknesses
- Key financials
- Understanding the competitive landscape and identifying the major growth strategies adopted by players across the key regions
- Analyzing the value chain and regulatory frameworks across regions and their impact on prominent market players
- Providing insights into the key investments in product innovations and technology in the health ingredients market
Available Customizations
With the given market data, MarketsandMarkets offers customizations according to the company’s specific scientific needs.
The following customization options are available for the report:
Geographic Analysis
- Further breakdown of the Rest of the European health ingredients market into the Netherlands, Finland, Denmark, Norway, Belgium, and Russia
- Further breakdown of the Rest of Asia Pacific market into Indonesia, South Korea, Malaysia, Singapore, Australia & New Zealand, and Vietnam
- Further breakdown of the RoW market into South American, Middle Eastern, and Sub-Saharan African countries
Application Analysis
- Further breakdown of the application by country
Generating Response ...
Growth opportunities and latent adjacency in Health Ingredients Market