Health Ingredients Global Market Report 2024

The health ingredients market size has grown strongly in recent years. It will grow from $105.6 billion in 2023 to $114.35 billion in 2024 at a compound annual growth rate (CAGR) of 8.3%. The growth observed in the historic period can be ascribed to factors such as cultural and ethnic health traditions, progress in nutritional science, heightened awareness of consumer health, an increasing demand for functional foods, and shifts in dietary patterns.

The health ingredients market size is expected to see strong growth in the next few years. It will grow to $157.25 billion in 2028 at a compound annual growth rate (CAGR) of 8.3%. The anticipated growth in the forecast period can be linked to factors such as increasing health consciousness, rising demands from an aging population, evolving consumer lifestyles, the expansion of the functional foods market, and responses to global health crises. Noteworthy trends expected in the forecast period include a rise in beauty-boosting ingredients, enhanced sports nutrition ingredients, the incorporation of antioxidant-rich ingredients, the utilization of ancient and traditional ingredients, and exploration of sustainable sources.

The anticipated growth in the health ingredient market is expected to be propelled by factors such as the increasing prevalence of heart diseases and obesity-related issues. Heart diseases encompass problems related to the heart and blood vessels, while obesity-related diseases result from having a body mass index of 30 or more. Integration of health ingredients, such as omega-3 fatty acids, into meals is seen as a preventive or curative measure against heart diseases by influencing the production of substances that contribute to such conditions. For example, the World Obesity Atlas 2022 report estimated that the global number of individuals with obesity (Class I, II, and III) ≥30kg/m2 is projected to rise to 892 million by 2025. Additionally, in the United States, heart disease claims approximately 697,000 lives annually, with around 805,000 Americans experiencing a heart attack each year, as indicated by data published by the New York government in December 2022. Of these, 605,000 are first-time heart attacks, while 200,000 are recurrent incidents. Thus, the increasing prevalence of heart diseases and obesity-related problems is a driving force behind the growth of the health ingredient market.

The health ingredient market is expected to witness growth due to the expanding reach of the food and beverage industry. The food and beverage industry encompasses activities related to the production, processing, distribution, and sale of food and drinks to consumers. Health ingredients play a crucial role in enhancing the nutritional composition of food and beverages, contributing to disease prevention, weight management, digestive health, immune system support, bone health, and allergen risk reduction. For instance, data shared by Common Thread Collective, a US-based e-commerce growth agency, highlighted that in 2021, global food and beverage sales amounted to $435.3 billion, increasing to $506 billion in 2022, and is projected to reach $857 billion by 2025. Consequently, the expanding scope of the food and beverage industry is a significant driver for the growth of the health ingredient market.

Product innovation stands out as a prominent trend gaining momentum in the health ingredients market, with major companies in the sector actively working on developing inventive products to maintain their market positions. For example, in August 2022, Youtheory, a US-based health, wellness, and fitness company, introduced a new range of liquid nutrient packets and capsules that featured K2D3, B12B6, and Ashwagandha. These user-friendly capsules and ready-to-drink sachets provide a daily serving to support overall mental and physical well-being. The B12B6 liquid mix, complemented by tablets, contributes to enhancing brain health and vitality in a convenient, portable packet suitable for busy lifestyles. Utilizing the clinically backed Ashwagandha, KSM-66 organic full-spectrum extract is incorporated into Youtheory Ashwagandha liquid and pill formulations. Youtheory K2D3 aids the body in utilizing calcium effectively for various processes involved in regular metabolism, while K2 and D3 collaboratively support bone formation and cardiovascular health.

Major companies in the health ingredients market are directing their focus toward innovative products such as probiotic starter cultures to drive revenue growth. Probiotic starter cultures typically consist of diverse yeast strains and lactic acid bacteria (LAB) that facilitate fermentation and produce various metabolites enhancing the quality attributes of the end product. In September 2023, Royal DSM N.V., a Netherlands-based science-based company, launched delvo fresh pioneer, which has been proven to maintain an exceptionally stable pH for up to 60 days in cold storage. This makes it ideal for high-value recipes such as mild, reduced-sugar yogurts and smooth, creamy yogurts. Delvo fresh pioneer represents a new generation of starter cultures with remarkable pH stability throughout processing and shelf life. With noticeable and quantifiable reductions in post-acidification, these cultures offer dairy producers versatility to ensure a tasty, creamy, and smooth yogurt throughout its shelf life.

In February 2022, CSM Ingredients, a Luxembourg-based global ingredients research and production company, completed the acquisition of HI-Food for an undisclosed amount. This strategic move aligns with the company's industrial strategy in the food sector. HI-Food, based in Italy, specializes in developing plant-based value-added ingredients of natural origin.

Major companies operating in the health ingredients market report are Cargill Incorporated, Archer Daniels Midland Co., BASF SE, Evonik Industries AG, Associated British Foods PLC, Fonterra Co-operative Group Limited, DuPont de Nemours Inc., International Flavors & Fragrances Inc., Kerry Group PLC, Koninklijke DSM NV, Ingredion Inc., Ingredion Incorporated, Lonza Group AG, Roquette Freres SA, Glanbia PLC, Tate & Lyle PLC, Corbion N.V, FrieslandCampina Ingredients, Arla Foods Ingredients Group, AB Biotek, Aenova Holding GmbH, OmniActive Health Technologies, Athletic Greens, The Parabel Inc., Healthy Food Ingredients LLC, Nutracap Labs LLC, Biotron Laboratories Inc., BioThrive Sciences LLC.

North America was the largest region in the health Ingredients market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the health ingredients market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the health ingredients market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary types of health ingredients include vitamins, minerals, probiotic starter cultures, prebiotics, plant and fruit extracts, enzymes, nutritional lipids, functional carbohydrates, and proteins. Vitamins are organic compounds necessary in small doses for the growth and maintenance of higher animal life forms. They can be derived from various sources such as plants, animals, and microbes, serving purposes such as weight management, immunity enhancement, gut health management, joint health management, cardiovascular health management, eye health management, brain health management, among others. These health ingredients are distributed through various channels, including supermarkets, retail stores, and online sales, and find applications in food and beverages, pharmaceuticals, animal feed, and personal care products.

The health ingredients market research report is one of a series of new reports that provides health ingredients market statistics, including health ingredients industry global market size, regional shares, competitors with a health ingredients market share, detailed health ingredients market segments, market trends and opportunities, and any further data you may need to thrive in the health ingredients industry. This health ingredients market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The health ingredients market consists of sales of soy proteins, beta-glucan, iron, calcium, and vitamin D. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.