Nutritional Oil Powder Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Nutritional Oil Powder Market is projected to expand from USD 3.12 Billion in 2025 to USD 4.79 Billion by 2031, achieving a CAGR of 7.41%. These powders consist of functional lipids, such as medium-chain triglycerides or omega-3 fatty acids, that are converted into free-flowing particles via microencapsulation to inhibit oxidation and facilitate use in dry mixtures. The market's momentum is largely sustained by the rising consumer appetite for convenient, shelf-stable formats in sports nutrition and the need for adaptable ingredients in functional foods. Compared to liquid oils, these powders provide enhanced solubility and easier handling, significantly simplifying their addition to protein blends, baked goods, and ready-to-mix drinks.

However, the industry encounters substantial hurdles due to the high operational costs and technical intricacies involved in encapsulation, which can raise end-product prices and restrict broader adoption. A major technical difficulty lies in maintaining lipid stability during high-temperature drying processes. According to the Global Organization for EPA and DHA Omega-3s, the total global volume of omega-3 ingredients reached 131,183 metric tons for the 2024 year as noted in 2025. This statistic emphasizes the strong demand for essential raw materials, even as processing complexities pose a threat to wider market development.

Market Drivers

The growth of the sports nutrition and performance supplement industry serves as a major driver for the nutritional oil powder market, especially as consumers increasingly opt for ketogenic and performance-oriented products. Manufacturers are employing microencapsulated lipids, such as Medium-Chain Triglycerides (MCTs), to produce clean, scoopable powders that blend effortlessly into protein shakes and pre-workout formulas, avoiding the mess and separation problems common with liquid substitutes. The strength of this functional powder consumption is reflected in the financial results of top brands; for instance, Glanbia PLC reported in February 2025 that their Optimum Nutrition brand achieved a 7.5% revenue growth on a constant currency basis for the full year 2024. This performance highlights the essential function of stable lipid powders in satisfying the changing dietary needs of active consumers.

Concurrently, the rising demand for plant-based and vegan nutritional components is altering raw material procurement, leading to a transition from marine-sourced omega-3s to algal and seed-oil powders. This evolution enables brands to provide sustainable, allergen-free lipid profiles that meet clean-label standards while preserving oxidative stability via sophisticated spray-drying methods. Growth in this sector is evident in the ingredient supply chain; Corbion’s August 2025 interim statement noted that their Health & Nutrition segment, a supplier of algae-derived omega-3 DHA, saw a 5.0% volume and mix increase in the first half of the year. Additionally, the wider demand for specialized ingredient blends is accelerating, as shown by Glanbia PLC in 2025, reporting a 14.0% revenue rise for their Nutritional Solutions division in the previous fiscal year.

Market Challenges

The substantial operational costs and technical difficulties inherent in the encapsulation process pose a major restriction on the global nutritional oil powder market. Transforming functional lipids into dry powders requires energy-intensive techniques like spray drying, which inherently raises the cost structure relative to liquid options. These processing expenditures render the resulting ingredients too costly for budget-conscious applications, effectively confining their usage to premium nutritional products rather than high-volume functional foods. Consequently, manufacturers often have to absorb these costs or transfer them to buyers, a situation that suppresses demand in broader mass-market sectors where affordability is essential.

Furthermore, the technical difficulty of preserving lipid stability during thermal processing increases financial risks for manufacturers. Oils are prone to oxidation during drying, which can result in product degradation and expensive waste, a particularly damaging outcome given the high price of base ingredients. According to the Global Organization for EPA and DHA Omega-3s, the global value of omega-3 ingredients increased by over 10 percent to hit 2.38 billion U.S. dollars in 2024. Such elevated raw material valuations imply that any yield loss resulting from technical processing failures leads to significant financial losses, further deterring manufacturers from aggressively expanding their production capacities.

Market Trends

The industry is experiencing a distinct move toward high-quality lipid powders within the infant formula and early life nutrition sector. Producers are increasingly adopting microencapsulated DHA and ARA powders to guarantee accurate nutrient delivery and oxidative stability in dry-blend formulations, effectively substituting liquid oils that complicate production. This specific requirement for premium, shelf-stable lipids in specialized nutrition is creating substantial value for ingredient providers. As reported by FrieslandCampina in July 2024, their Specialised Nutrition business group, which encompasses infant nutrition, posted a revenue rise of 4.8% to 608 million euros for the first half of the year, supported largely by robust results in the Chinese market.

At the same time, the market is growing through the extensive fortification of general functional foods and beverages, moving beyond the niche sports supplement category. Food technologists are utilizing advanced encapsulation methods to incorporate functional oils into bakery goods, dairy items, and ready-to-drink beverages without negatively affecting taste or shelf life. This widened scope of application is driving revenue increases for firms focused on encapsulation and delivery systems. According to Balchem Corporation’s October 2024 financial results, the Human Nutrition and Health segment realized sales of 152.3 million U.S. dollars, a 5.4% increase over the previous year’s quarter, bolstered by improved sales in the food and beverage sectors.

Key Players Profiled in the Nutritional Oil Powder Market

• Ming City Biotechnology Ltd.
• SMS Corporation
• Custom Food Ingredients Sdn Bhd
• Alsec Alimentos Secos SAS
• The Green Labs LLC
• Stepan Company
• Arjuna Natural Pvt Ltd.
• Science Corporation
• Bioriginal Food
• Crestchem Ltd.

Report Scope

In this report, the Global Nutritional Oil Powder Market has been segmented into the following categories:

Nutritional Oil Powder Market, by Type:

• Canola Oil Powder
• Soybean Oil Powder
• Sunflower Oil Powder
• Coconut Oil Powder
• Palm Oil Powder
• Flaxseed Oil Powder

Nutritional Oil Powder Market, by Application:

• Food Processing
• Nutraceutical
• Animal Nutrition
• Cosmetic and Personal Care
• Infant Formula
• Others

Nutritional Oil Powder Market, by Distribution Channel:

• Online
• Offline

Nutritional Oil Powder Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Nutritional Oil Powder Market.

Available Customization

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• Detailed analysis and profiling of additional market players (up to five).

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