In recent years, the health ingredients market has witnessed significant growth, driven by consumers' changing lifestyles, shifting demographics, and increasing nutrition and health concerns. The demand for health ingredients, such as omega-3, vitamins, omega-6, and probiotics, is rapidly expanding as consumers focus more on fitness, well-being, and holistic nutrition. According to market research, the market for health ingredients was estimated at USD 100.5 billion in 2022, and it is projected to grow at a compound annual growth rate (CAGR) of 7.8% to reach USD 146.3 billion by 2027.
Protein Supplements: Leading the Market
Among the different types of health ingredients, protein supplements are projected to have the highest market share in terms of value throughout the forecast period. The intake of protein supplements has grown significantly, especially due to the COVID-19 pandemic, as people aim to strengthen their immune systems. A survey conducted by Glanbia PLC in the US revealed that a higher percentage of respondents reported consuming protein bars to maintain their health and boost their immune systems. The demand for protein continues to rise, driven by its versatile and functional properties.
Plant-Based Health Ingredients on the Rise
The plant-based segment is expected to dominate the health ingredients market during the forecast period. Changing consumer preferences from meat-based products to plant-based alternatives is one of the key factors driving this trend. Plant-based health ingredients offer a rich source of vitamins, proteins, and other essential nutrients for vegans and individuals with allergies to animal-derived ingredients. The investment in the alternative protein market has surged in recent years, with billions of dollars invested in plant-based meat, dairy-free products, fermentation, and cultivated meat. This shift towards plant-based products further contributes to the growth of the health ingredients market.
Pharmaceutical Products: Harnessing the Power of Health Ingredients
In the application segment, pharmaceutical products are projected to achieve the highest CAGR throughout the forecasted period. Health ingredients are widely incorporated into pharmaceutical products to provide a range of benefits, including antioxidant action and cell protection, blood sugar level control, osteoporosis prevention, heart health support, stress reduction, beauty enhancement, and weight management.
Asia Pacific: A Lucrative Market for Health Ingredients
The Asia Pacific (APAC) region is expected to account for the highest market share in the health ingredients market during the forecast period. With 1.1 billion millennials living in the region, comprising 24% of the population, APAC stands out in terms of its millennial population. The Association of Southeast Asian Nations (ASEAN) is projected to have 75% of its consumers as millennials and Gen Z by 2030. This population is known for its active engagement in fitness and a continuous quest for innovative products. As a result, millennials play a pivotal role in driving the consumption of dietary supplements in the region, aiding them in achieving optimal nutrition. This demographic factor significantly contributes to the growth and value sales of health ingredients in the Asia Pacific region.
Key Market Players: Driving Innovation and Expansion
Several key players dominate the health ingredients market. These players 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). These market leaders have adopted strategic partnerships as their dominant approach, followed by expansions and new product launches. These strategies have helped them expand their presence in different regions and industrial segments, driving further growth and innovation in the health ingredients market.
