Nutraceutical Ingredients Market

The nutraceutical ingredients market, which is currently valued at USD 105.2 billion in 2024 and is expected to grow at a CAGR of 5.3% to USD 136.1 billion by 2029, has seen transformative changes and innovations. As people become more and more health-conscious, they seek out products that can improve their overall well-being, leading to a surge in demand for fortified foods and beverages. According to a Global Alliance for Improved Nutrition (GAIN) article published in August 2022, food fortification is a "no regrets" investment. It also claims that food fortification is inexpensive, beneficial to large populations, and generates an average economic return of USD 27 for every dollar invested in improved health and productivity. This highlights the economic and health benefits resulting from the addition of nutraceutical ingredients to food products.

Moreover, along with growing chronic diseases and malnutrition in every part of the world, the need for nutraceuticals has increased. For instance, in India, malnutrition is still one of the major challenges nowadays. According to a Times of India article (2023), the stunted growth, which is an indicator of chronic malnutrition, still remains at 38.4 percent among children below the age of five. Deficiencies in micronutrients—iron, vitamin A, and iodine—are very common and could be a serious health threat.These factors underline the need for nutraceutical ingredients to help avoid nutrition deficiency and head toward better health conditions. With their growing application in animal feed for the development of health and productivity in livestock, demand for nutraceutical ingredients will continue to grow.

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Cargill, Incorporated (US)

Cargill, Incorporated manufactures specialty food and feed ingredients, and other industrial products, for use in various applications. The company operates through four business segments: animal nutrition & protein, food ingredients & applications, origination & processing, and industrial & financial services. Under its food ingredients & applications and animal nutrition & protein businesses, it manufactures various nutraceutical ingredients. These ingredients, which include proteins, omega-3 fatty acids, fiber, and prebiotics, assist food and beverage manufacturers, feed manufacturers, food service companies, and other retailers. Cargill, Incorporated operates in around 70 countries and sells in almost 125 countries, across all the geographies such as North America, Latin America, Asia Pacific, Europe, the Middle East, and Africa.

Cargill Incorporated's geographical presence has helped the company serve a diversified customer base efficiently. In 2023, it turned over revenue of USD 177 billion that exhibits the financial strength of the company and its market position. Having such a huge revenue base and wide geographical presence, Cargill Incorporated serves most of the markets efficiently and caters to the rising demand for nutraceutical ingredients. Further, to improve its market position in the nutraceutical ingredients category, Cargill Incorporated undertakes various strategies such as expansions, agreements, and partnerships. For instance, Cargill Incorporated opened its first European Protein Innovation Hub in France in September 2023. It is supposed to quickly prototype protein-rich menu strategy with the view of enhancing innovation and speed to market. This investment is aligned to the growth strategies of Cargill, Incorporated in the food sector and could impact its nutraceutical ingredients market offerings through a heightened focus on product development and customer outreach.

ADM (US)

ADM caters to multiple business segments such as food & beverage ingredients, industrial ingredients, biofuels, feed & feed ingredients, and naturally derived alternatives to industrial chemicals. The company has four major operating segments such Ag services & oilseeds, carbohydrate solutions, nutrition, and others. Its nutrition segment manufactures, sells, and distributes a variety of nutraceutical ingredients—derived from natural sources. ADM has a strong geographic presence globally, with over 62 different innovation centers, 327 processing plants, 520 crop procurement facilities, and distribution in close to 200 other countries in Europe, Asia Pacific, Africa, South America, and North America.

ADM's strong global presence and a well-established distribution network, has helped it in the efficient distribution of its wide range of nutraceutical ingredients all over the globe. Its broad product portfolio in nutraceuticals, such as proteins, probiotics, prebiotics, amino acids, carotenoids, plant extracts, and functional fats & oils, further help it command a competitive edge in the nutraceutical ingredients market. Through strategic initiatives such as new product launches, partnerships, and joint ventures, ADM has been able to gain more market share in the nutraceutical ingredients market. For instance, in June 2023, ADM announced a partnership with Brightseed to co-develop new synbiotic products that optimize the microbiome by decoding plant-microbe interactions using AI technology. This agreement for joint development is focused on the introduction of science-backed solutions during the course of 2025 in immune function, metabolic health, and mental wellbeing. This would, therefore, boost category innovation with precision health outcomes. With such strategy and technology in health and wellness, ADM aims to increase its portfolio of products by capitalizing on emerging trends.

Arla Foods amba (Denmark)

Arla Foods amba is one of the major global dairy cooperatives, owned by dairy farmers in six European countries. It manufactures a variety of nutraceutical ingredients such as proteins, minerals, carbohydrates derived from milk. Arla Foods amba markets those under various brands such as Lagprodan, Capolac, Nutrilac, Variolac, and Peptigen for applications in nutrition, baking, dairy, and medical industries. The company aims to provide affordable and nutritious food solutions that enhance texture, freshness, and yield for a variety of industries: bakery, beverage, clinical nutrition, infant nutrition, and more, with processing facilities covering the globe. It has a presence in Europe, North America, South America, Africa, the Middle East, and Asia Pacific regions—to meet the diversified market demand spread across the globe.

Arla Foods amba has a strong foothold in the European region with a wide range of product portfolio of milk based nutraceutical ingredients. In accordance with this, strategic agreements and expansions are some of the major strategies of the company to increase its market penetration. For instance, to further expand into very significant sectors like infant nutrition, performance nutrition, and food and beverages, Arla Foods amba entered an agreement with Zhongbai Xingye Food Technology Company, a Chinese company, in September 2023. The cooperation focuses on developing products to meet the rising demand of the Chinese consumer for nutritional ingredients of nutraceutical value, with a special focus on high-end nutritional products over more than 15 years. This is further underlined by a joint Beijing Innovation & Application Center, which serves product adaption to market needs at the local level and supports growth and innovation in the region. The agreement will enhance the potential of Arla Foods amba to meet increased consumer demand, adapt offerings to local tastes, and increase the competitive position by fostering its business in China.

Related Reports:

Nutraceutical Ingredients Market by Type (Proteins, Amino Acids, and Probiotics), Application (Food, Beverages, Animal Nutrition, Dietary Supplements, Food For Special Medical Purposes (FSMP)), Form, Function, & Region - Global Forecast to 2029

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