The global health ingredients market is poised for significant growth, with an expected compound annual growth rate (CAGR) of 7.8% from 2022 to 2027. The market is projected to increase from $100.5 billion in 2022 to $146.3 billion by 2027. This growth is driven by evolving consumer preferences and technological advancements in personalized nutrition, which have made it possible to develop more targeted and need-based products. These ingredients offer a range of functional benefits, such as supporting the immune system, aiding digestion, promoting mental health, enhancing beauty, and improving cardiovascular health.
How are consumer preferences for clean-label products
influencing the demand for plant-based herbal supplements and botanicals?
One of the key trends in the health ingredients market is
the growing shift towards plant-based alternatives. As consumers move away from
animal proteins, the demand for plant protein ingredients is rapidly expanding.
This shift is not only impacting the protein segment but is also driving the
growth of plant-based herbal supplements and botanicals. Consumer interest in
plant extracts is being influenced by the desire for clean-label products,
sustainability concerns, and an increasing need to avoid allergens.
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Furthermore, the market for herbal supplements is broadening
beyond vegans to include flexitarians—those who are adopting more plant-based
diets but are not entirely vegetarian. This change in consumer preferences
presents significant growth opportunities in the health ingredients market,
particularly for products that cater to plant-based and clean-label demands.
Probiotics: A Fast-Growing Segment
Among the various product categories in the health
ingredients industry, probiotics are expected to achieve the highest
CAGR in terms of value. Probiotics offer significant health benefits,
particularly for gut health and immune support. As preventative healthcare
gains traction, consumers are increasingly turning to probiotics to strengthen
their immune systems and prevent diseases.
A survey conducted in May 2020 by DuPont Nutrition &
Biosciences in collaboration with the Natural Marketing Institute revealed a
surge in probiotic use across key global markets. In the U.S., probiotic usage
rose by 66%, with 25% of supplement users incorporating probiotics into their
routine—up from just 15% six months earlier. Similar trends were observed in
Italy and China, with the number of probiotic users increasing by 188% and
108%, respectively. This heightened interest, particularly during the pandemic,
signals continued growth for probiotics in the long term, as consumers in these
markets expect to maintain or increase their use of probiotics.
Plant-Based Foods Driving Market Growth
Plant-based foods are emerging as a primary growth driver
within the health ingredients market. Several factors, including the rise of
vegan culture, increased health awareness, and concerns about animal welfare,
are contributing to the popularity of plant-based
diets.
According to the Good Food Institute’s 2021 report,
plant-based food sales have outpaced overall food sales in both dollar and unit
growth for the past three years. In fact, plant-based food sales have increased
by 54%, while total food sales have grown by just 2%. This growth is a key
indicator that plant-based foods are driving retail expansion in the health
ingredients sector, and this trend is expected to continue through the forecast
period.
Asia-Pacific to Lead the Market
The Asia-Pacific (APAC) region is expected to capture the
largest health
ingredients market share during the forecast period. A major
factor contributing to this growth is the large millennial population in the
region. According to the World Economic Forum, Asia is home to 1.1 billion
millennials, making up 24% of the region’s population. This demographic is
highly active and increasingly health-conscious, seeking innovative products
that align with their fitness and wellness goals.
As millennials and Gen Z become key consumers of dietary
supplements, particularly in countries like China and India, the demand for
health ingredients in APAC is set to rise significantly. This demographic shift
is expected to fuel market expansion in the region, driving both value and
volume sales of health ingredients in the coming years.
Top Health Ingredients Companies and Their Role in Market
Innovation and Expansion
The health ingredients market is highly competitive, with
several prominent players dominating the landscape. Key health
ingredients companies include Archer Daniels Midland Company
(ADM), Associated British Foods, Kerry Group, DSM, BASF, Cargill, Ingredion,
Arla Foods, Tate & Lyle, Lonza, Glanbia, CHR Hansen Holdings, and Probi.
These companies are focusing on strategic partnerships, expansions, and new
product launches to strengthen their market presence and capitalize on emerging
trends.
In conclusion, the health ingredients market is on track for
substantial growth, driven by consumer demand for functional foods and
supplements that cater to specific health needs. The market’s expansion is
fueled by the increasing shift towards plant-based diets, the growing
popularity of probiotics, and the rise of health-conscious consumers in key
regions such as Asia-Pacific. As these trends continue, the market presents
significant opportunities for companies that are able to innovate and meet evolving
consumer demands.
The Road Ahead: Market Opportunities
As the health ingredients market continues to expand, there
are numerous opportunities for growth. Companies must stay ahead of emerging
trends to secure their place in this competitive landscape. Here are some key
questions companies can consider as they navigate the evolving market:
- What
are the known and unknown adjacencies impacting the health
ingredients market?
- What
new revenue sources can be tapped into?
- Who
will be your top customers, and what will drive them to choose your
product over competitors?
- How
can you defend your market share or win over your competition?
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