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Global Nutritional Food Ingredients Market size is estimated to reach $78.6 billion by 2027. Furthermore, it is poised to grow at a CAGR of 6.9% over the forecast period of 2022-2027. As the name implies, nutritional food ingredients provide a variety of nutritional health benefits to consumers. Fibers, Vitamins & Minerals, Starches, antioxidants, and others are included under nutritional food ingredients. They are used as natural flavorings, natural sweeteners, and emulsifiers. Fibers, for example, are used as a filler in food products. They are plant components that withstand the digestive enzymes of humans. Incorporating these types of health food ingredients not only attracts customers but also helps producers reduce the cost of creating these items. Obesity has become one of the world’s biggest health concerns, resulting in a rise in demand for fiber-rich and healthful dietary products. This element has a direct positive impact on the demand for Nutritional Food Ingredients, particularly in Western countries which are driving the market growth.
Global Nutritional Food Ingredients Market Segmentation Analysis- By Type
Based on Type, the Probiotics segment in the Global Nutritional Food Ingredients market held a dominant market share in the year 2021 and is predicted to increase significantly and continue to dominate the market over the forecast period of 2022-2027. This is mainly attributed to the rising customer awareness of their direct link to digestive health benefits, as well as an increase in demand for nutritious food and high-quality animal feed products. Many American market players are seeking to diversify their product ranges by including a greater number of nutritional food ingredients. Manufacturers have started developing software to track client behavior in order to improve their products. For example, in 2019, Medtate released FemVita, a new product developed with nutraceutical food supplements ingredients such as probiotics and vitamins to help enhance nails, teeth, and the immune system. Consumer pressure in the United States, where many people are health-conscious and demand nutritional food ingredients in the items they buy, has prompted the market expansion.
However, Protein segment of the Global Nutritional Food Ingredients market is expected to grow at the fastest rate, with a CAGR of 7.1% over the forecast period of 2022-2027 owing to the growing use of pea protein in the food industry as well as advancements in plant-based protein extraction methods. Furthermore, rising protein isolate demand is expected to open up new growth opportunities for the product demand. Isolates are the purest form of protein products, with a higher protein concentration. According to a survey conducted by the International Food Information Council, 28 percent of consumers in the United States consume more protein from plant sources each year as a result of growing awareness about the health benefits of plant proteins, such as a reduced risk of cardiovascular disease and easier digestion, which is positively impacting the growth of the Nutritional Food Ingredients Market.
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Global Nutritional Food Ingredients Market Segmentation Analysis- By Source
Based on Source, the Natural segment in the Global Nutritional Food Ingredients market held a dominant market share in the year 2021, and is predicted to increase significantly and continue to dominate the market over the forecast period of 2022-2027 with a CAGR OF 7.5%. The natural segment is being propelled by consumer knowledge of the health benefits of natural-based products. Natural nutritional food ingredients are being substituted for synthetic chemicals, partly owing to customer desire and partly due to a trend toward more sustainable raw materials. This trend is described in the CBI trends study on natural cosmetic ingredients. Retail sales of natural food and beverage products are growing at a much faster rate than the total food and beverage market, according to SPINS’ 2019 State of the Natural Industry study. This indicates that there is a growing demand for natural nutritional food ingredients, which is driving market expansion.
Global Nutritional Food Ingredients Market Segmentation Analysis- By Geography
North America dominated the Global Nutritional Food Ingredients market in 2021, accounting for 35% of the market. This is mostly owing to the presence of key market players in this region. Moreover, the food business has been spurred to boost new food R&D activities by-products that target health and emotional well-being. It frames the context of a rapidly increasing market in the major North American countries, including the United States and Mexico, despite the uncertainty of present rules. Protein and other nutritional food ingredients are still in high demand in North American food and beverage products. Soy and dairy are the most popular protein-fortification components in the world, according to the American Dairy Products Institute (ADPI), followed by pea, wheat, potato, and rice. Furthermore, leading market players are expanding their R&D and expenditures in this sector, which is propelling the industry forward. In August 2019, Cargill, Incorporated announced a strategic investment in Puris, a plant-based ingredients company based in the United States. A total of $75 million was spent to meet the growing demand for pea protein ingredients in the U.S. market, boosting the region’s nutritional food ingredients industry growth.
The Asia-Pacific area, on the other hand, is expected to be the fastest-growing throughout the forecast period of 2022-2027. Food and beverages that are less processed, have more natural and organic ingredients, and are environmentally friendly are becoming increasingly popular in this region. The newest nutritional food trends in Japan are products containing gamma-aminobutyric acid (GABA), indigestible dextrin, and omega-3. For example, Ezaki Glico, a Japanese chocolate maker, has reported great demand for its Mental Balance Chocolate GABA for Sleep, which is labelled as a functional food (FFC). The product is the company’s most recent addition to their GABA line, and it was released in 2019, such product innovations by market players are boosting the market growth.
Global Nutritional Food Ingredients Market Drivers
Rising demand for clean label ingredients is driving the market growth:
Natural/organic food products have seen a significant increase in customer demand in recent years. Consumers are becoming increasingly aware of the harmful health effects associated with the consumption of some synthetic or artificial food ingredients as a result of various research programmes and government prohibitions. According to a 2019 research conducted by the Food Marketing Institute, 86 percent of customers say that food goods or brands that provide comprehensive and “easy to understand” ingredient lists on their labels have a higher level of trust. By focusing on new formulations, the market’s major players have been working on product development and expansion. In October 2018, Kerry Group purchased Fleischmann’s Vinegar Company Inc. (FVC), a USDA-certified all-natural specialty ingredient producer, reinforcing Kerry’s taste and clean-label approach in a number of European Union countries.
Growing demand for probiotics as a nutritional ingredient is boosting the market growth:
Nutritional food ingredients demand is being driven by the increased usage of probiotic ingredients in nutraceuticals, such as fortified food and beverage products and dietary supplements. Probiotics are gradually becoming one of the most popular supplements to include in people’s diets. These nutrients have been demonstrated to aid digestion, emotional well-being, and cardiovascular health. Probiotic component supplement sales are on the rise, as a growing number of customers see supplements as a convenient option. It’s also possible to conclude that, unlike their elders, young Americans do not want to suffer in old age. As a result, they’re taking steps to avoid the health issues that plagued them when they were younger. As a result, probiotic supplement manufacturers are attempting to control sales by leveraging the application, formulation, and therapeutic expansion of probiotic supplements to other health benefits outside of the mainstream. As a result, probiotics are increasingly being used in foods and beverages.
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Global Nutritional Food Ingredients Market Challenges
Complexity in the development and distribution of nutritional food ingredients, as well as a high price tag:
The creation and delivery of nutritional food ingredients are time-consuming, expensive, and uncertain. Product development success is influenced by a variety of factors, including technological conditions, market demand, and legislative and regulatory background. A large investment in R&D is necessary for a strain to be used in the creation of new nutritional food ingredients components like probiotics. In the development and production of probiotic strains and products, international food regulations are observed. Other useful compounds require highly sanitised and technologically advanced equipment and processes to manufacture and extract. Because of the high cost of producing ingredients, the price of the finished product is similarly expensive. The price of a product includes the cost of marketing and distribution. Despite the fact that customers are aware of the health benefits of these costly nutritional food ingredients, their high prices deter them from purchasing them, which is considered to have a detrimental impact on the market’s growth.
Global Nutritional Food Ingredients Industry Outlook
Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the market. Global Nutritional Food Ingredients top 10 companies include:
Tate & Lyle
DuPont Nutrition & Biosciences
Archer Daniels Midland
In 2021, Kellogg Company introduced a new cereal product, Kellogg’s Little Debbie Cosmic Brownie Cereal, which translated a popular childhood pleasure into cereal.
In 2020, Danone launched a new Oikos Pro range, which includes single-serve dairy cups and drinks with up to 25 grams of protein. The new line of products claims to be a good source of calcium and free of artificial tastes and colors.
In August 2021, Arla Foods Ingredients has introduced a novel whey protein constituent to assist in satisfying the increasing demand for high-protein yogurts with health credentials and a premium placement. Nutrilac FO-7875 permits makers to establish yoghurts (both spoonable and drinkable) with greater protein content than conventional products, which typically range from 5% to 9%. For instance, it can be utilized to build a drinking yoghurt with 11% protein and 0.8% fat.
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One of the key factors driving the Nutritional food ingredients market is rising awareness of the benefits of healthy foods, as well as rising organic food consumption.
Other factors driving market growth include rising disposable income, rising demand for fortified and convenience foods, and rising consumer adoption of modern lifestyles.
The rising prevalence of chronic diseases like cardiovascular disease, heart attacks, diabetes, obesity, joint pain, and cancer drives the market for nutritional food ingredients.
The Global Nutritional Food Ingredients Market research will give a detailed analysis of the market’s leading players’ strengths, weaknesses, and chances.
A. Specialty Food Ingredients Market
B. Multifunctional Food Ingredients Market
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