Health Ingredients Market Set to Surge to $146.3 Billion by

Chicago, June 09, 2023 (GLOBE NEWSWIRE) -- The health ingredients market was valued at US$100.5 billion in 2022, is anticipated to reach US$146.3 billion by 2027, growing at a CAGR of 7.8%. The emergence of personalized nutrition trends and advancements in nutrigenomics have enabled the health ingredients market to develop tailored products to meet specific needs. These products serve various functional purposes, including immune system support, digestion aid, mental health promotion, beauty enhancement, and cardiovascular health, among others.

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The health ingredients market has experienced substantial growth, due to the emergence of personalized nutrition trends and advancements in nutrigenomics. This has enabled the manufacturing of products tailored to individual needs and preferences. These need-based products serve various functional purposes, including immune system support, digestion aid, mental health promotion, beauty enhancements, cardiovascular health, and more. The ability to create customized nutritional solutions based on an individual's unique requirements has opened new opportunities in the health ingredients market.

Key Industry Development:

One of the key industry developments in the health ingredients market is the increasing focus on natural and clean-label ingredients. Consumers are increasingly seeking products that are free from artificial additives, preservatives, and chemicals. This has led to a growing demand for health ingredients derived from natural sources, such as plant-based extracts, herbs, and botanicals. Manufacturers are responding to this trend by incorporating these natural ingredients into their products to meet consumer preferences and provide healthier options.

Report Scope & Segmentation:

Report Metrics	Details
Forecast Period	2022-2027
Forecast Period 2022-2027 CAGR	7.8%
2027 Value Projection	USD 146.3 billion
Segments covered	Type, Source, Application, Function & Region
Regions covered	North America, Europe, Asia Pacific, and RoW

Key Takeaways:

Growing demand for functional and nutraceutical ingredients
Increasing preference for plant-based and natural ingredients
Emphasis on clean label and transparency in ingredient lists
Shift towards personalized and customized health products
Rise in the use of microbial ingredients and probiotics for gut health

Drivers and Opportunities:

Driver: Rising Incidences of Chronic Diseases

The global prevalence of chronic illnesses and conditions is experiencing a significant increase. These long-term health issues, which are common and expensive to manage, are on the rise due to several factors. Firstly, the aging population and changes in societal behavior contribute to this trend. Secondly, as the middle class expands and urbanization accelerates, people are adopting more sedentary lifestyles, leading to a higher incidence of obesity and related diseases such as diabetes. The impact of this rise in chronic diseases is expected to be most pronounced in emerging markets, where population expansion is anticipated to be the greatest.

According to the National Center for Chronic Disease Prevention and Health Promotion (NCCDPHP) of the Centers for Disease Control and Prevention (CDC) in 2022, six out of ten adults in the United States are affected by chronic diseases. Furthermore, a commentary published by the National Association of Chronic Disease Directors in 2022 revealed that nearly 60% of American adults suffer from at least one chronic disease. Chronic diseases like diabetes, cancer, and cardiovascular disease are major causes of death in the US. Together, heart disease, cancer, stroke, chronic obstructive pulmonary disease, and diabetes account for more than two-thirds of all deaths.

Opportunity: Rise in Demand for Plant-Based Health Ingredients

The demand for plant-based protein ingredients is experiencing rapid growth, driven by a shift in consumer preferences away from animal proteins towards plant-based alternatives. This shift presents a significant opportunity for the market of herbal supplements and botanicals to thrive. The increasing consumer inclination towards plant extracts is influenced by several factors, including a preference for clean-label products, concerns about sustainability, and the need to avoid allergens. What was once a market primarily driven by vegans is now expanding to include flexitarians, indicating a broader shift in customer preferences. This shift opens new opportunities in the health ingredients market.

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Segments:

The Probiotics starter culture is expected to experience the highest compound annual growth rate (CAGR) in terms of value.

Probiotics have beneficial effects on the body when consumed in sufficient quantities, such as improved gut health and reduced intestinal inflammation. They play a crucial role in preventive healthcare by strengthening the immune system and helping to prevent diseases. According to a survey conducted by DuPont Nutrition & Biosciences and the Natural Marketing Institute in May 2020, the use of probiotics among consumers in the United States, Italy, and China surged during the pandemic. The survey revealed that the number of Americans using probiotics increased by 66%, accounting for 25% of all supplement users, a significant rise from 15% six months earlier. Among these users, 61% reported using probiotics daily or more frequently, up from 37%. In Italy, probiotic supplement use increased by 188%, representing 26% of all supplement users, up from 9%, with an 83% increase in weekly compliance. Chinese consumers also showed a substantial increase of 108% in probiotic use, making up 48% of all supplement users, up from 23%. Long-term expectations from consumers in the US and Italy indicated a desire to take probiotics more frequently in the following six months compared to the six months prior to the pandemic.

Plant-based foods, categorized by their sources, are projected to achieve the highest market share during the forecast period.

Plant-based diets are gaining popularity due to various factors, including the rise of vegan culture, increased health awareness, and concerns about animal welfare. These factors have contributed to the growth of the market for plant-based food ingredients. According to a 2021 report by the Good Food Institute, plant-based foods have outperformed the overall food market in terms of both dollar and unit sales growth for the past three years. During this period, plant-based food sales increased by 54%, while total food sales only saw a 2% increase. Plant-based food unit sales also grew by 6%, while total food unit sales remained unchanged, highlighting the significant role of plant-based foods in driving retail growth within the health ingredients market.

The Food segment, in terms of application, is expected to achieve the highest market share during the forecast period.

Health ingredients refer to food ingredients that are incorporated into food products during manufacturing to create healthier options that enhance consumer well-being. These ingredients can be tailored to meet the nutritional needs of different consumers, including those who engage in regular physical exercise and have varying requirements for proteins, carbohydrates, and other vitamins. With the growing preference for palatable and convenient yet healthy food, manufacturers of bakery products, for example, are incorporating various health ingredients into their offerings. One such example is George Western Foods, a subsidiary of Associated British Foods, which extensively uses omega-3 fatty acids in bakery products under its Tip Top brand, particularly in the Asia Pacific region.

The Asia-Pacific (APAC) region is expected to have the highest compound annual growth rate (CAGR) in the health ingredients market during the forecast period.

The APAC region is a significant market for health ingredients, driven by rapid urbanization and a high prevalence of vitamins and mineral deficiencies among the population. This presents an opportunity for major manufacturers of dietary supplements, functional foods, and beverages to expand their presence and establish themselves as leaders in the regional market. The Asia-Pacific region has witnessed an increase in the incidence of chronic illnesses such as diabetes, cardiovascular diseases, osteoporosis, and arthritis. In India, for example, statistics from 2020 indicate a 20% rise in obesity rates, with cardiovascular diseases accounting for 40% of deaths in the country. It is projected that India will become the diabetes capital of the world by 2030, with an estimated 67 million diabetic patients and 30 million individuals in a pre-diabetic condition. These factors are expected to drive the demand for health ingredient products in India. Key players in the industry, including Amway, Dabur, Novartis, and Aventis Pharma, are focusing on offering a variety of products to meet the consumer demand for dietary supplements.

List of Key Players Mentioned in the Report: