The Report " Nutraceutical Excipients Market by Functionality (Binders, Fillers & Diluents, Coating Agents, and Flavoring Agents), End Product (Prebiotics, Probiotics, Proteins & Amino Acids, and Vitamins), Form (Dry and Liquid), and Region - Global Forecast to 2025", The global nutraceutical excipients market size is estimated to account for about USD 3.4 billion in 2020 and projected to reach a value of nearly USD 4.9 billion by 2025, growing at a CAGR of 7.3% from 2020 to 2025. The market for nutraceutical excipients market has been growing in accordance with the rise in demand and consumption for nutraceuticals, around the globe. The consumption of dietary supplements in the form of tablets and capsules has been witnessing an upsurge demand in recent times, owing to the growing awareness for health benefits offered by these products that helps to support the wellbeing of the consumers. The key driving factors of the nutraceutical excipients market include increasing consumer concerns regarding maintaining a balanced diet and growing consumer awareness about several diseases caused due to lack of intake of necessary nutrients as a result of imbalanced dietary lifestyles. Food fortification is one of the major trends, which is also fueling the nutraceutical excipients market in the functional food & beverage industry.
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“Impact of COVID-19 on the current market size and forecast.”
COVID-19 pandemic has led multiple operations to cease. The global nutraceutical excipients market is increasingly impacted due to the uncertain circumstances that have occurred worldwide. The effects of COVID-19 primarily affect the supply chain of final products, as well as raw material ingredients of global manufacturers. As its major applications are concentrated in products belonging to dietary supplements, followed by food & beverages, the market is projected to witness a slow-down until the local and national governments do not ease import and export regulations. Overall, this market is dominated by the global players that have manufacturing facilities in certain regions and operations/supply across countries.
The market for nutraceutical excipients in North America is projected to record high growth due to the increase in consumption and concentration of key players in the region. However, post-COVID-19, by the third or fourth quarter of 2020, the market for nutraceutical excipients will witness immense growth due to the high consumption of nutraceuticals in the daily dietary lifestyles of consumers. The North American market is projected to witness a substantial increase in demand, as a result of the rise in awareness pertaining to these health-benefiting supplements, as well as the number of cases and casualties, resulting in high demand for immunity boosters and other supplements. Thus, the growth rate is projected to decline during the ongoing pandemic but will increase two-folds after the projected quarters.
Challenge: Consumer skepticism associated with nutraceutical products due to rural and semi-urban consumer perception of dietary supplements as pharmaceutical drugs and their false claims.
The majority of the population is skeptical about the consumption of nutraceutical products, particularly the dietary supplement products. In addition, the increase in unawareness among rural and semi-urban consumers about dietary supplements and the lack of education regarding the same discourages key players from investing. This population contributes to a major share of the non-dietary supplement consuming population in the developing and non-developing countries. In addition, consumers perceive dietary supplements as medical drugs and are apprehensive about incorporating the same in their daily dietary lifestyles. Due to these factors, a number of manufacturers are focusing on developing different formulations of supplements, such as gummies, soft chews, and others, on mitigating the fear of consuming tablets and capsules as nutraceuticals. However, these formulations are still in the early stage of entering the global market. In contrast, tablets and capsules in the nutraceutical market already have a majority share, which hinders the growth of this market.
By form, the dry segment is estimated to account for the largest share in the market in 2020.
The dry form of nutraceutical excipients accounted for a larger market share, as compared to the liquid form. The popularity of the dry form can be attributed to its cost-effectiveness and convenience in multiple applications. An increase in demand for dry beverage mixes with additional nutrients, including customized mixes and consumer preference for fortified beverages are fueling the growth of the dry segment in the market.
North America dominated the global nutraceutical excipients market in 2019; however, Asia Pacific market is projected to grow at the highest CAGR during the forecast period.
North America accounted for the largest market share in 2019. The market in North America is dominating, owing to the concentration of the global players such as DuPont (US), Kerry (Ireland), Cargill (US), and Ingredion (US). The market for nutraceutical excipients here is mature, and hence, the growth is moderate compared to other regions. Other factors contributing to the growth of nutraceutical excipients in North American region include the busy lifestyle of consumers, prevalence of chronic diseases due to hectic lifestyles, and an increase in awareness among consumers regarding the health benefits of nutritional foods, including food supplements, which has driven the demand for functional food products. In addition, the use of technological advancements and new product launches have made excipients available for a wide range of applications in the fortified food & beverage, dietary supplements, and nutraceuticals sectors, which is projected to drive the growth of the market in the region.
The Asia Pacific region is projected to be the fastest-growing market for nutraceutical excipients from 2020 to 2025. The rise in income and purchasing power, rapid growth of the middle-class population, increase in consumer awareness about health & fitness, and rise in consumer demand for nutritional & healthy products provide promising prospects for growth and diversification in the region’s food sectors, such as nutraceuticals. The region is attracting investors for setting up production facilities due to the liberalization of foreign direct investments in the food sector, the ease of availability of raw materials, skilled labor, land, and equipment at a lower cost. Also, the market for nutraceutical excipients in the region is relatively not as mature as the market in the North American region, which further propels the growth prospects for the Asia Pacific region.
Key Market Players:
This report includes a study of marketing and development strategies, along with the product portfolios of the leading companies in the market. The key players in the market include The nutraceutical excipients market also consists of key start-up players, which include IMCD (Netherlands), Hilmar Ingredients (US), Innophos Holdings Inc (US), JRS Pharma (Germany), Biogrund GmbH (Germany), Pharma Line Int'l Corp (South Korea), Jigs Chemical (India), Panchamrut Chemicals (India), Azelis Chemical Ltd (Europe), and Daicel Group (Japan).
