The global nutraceutical ingredients market was valued at USD 87.76 billion in 2024 and is expected to grow from USD 94.07 billion in 2025 to USD 161.82 billion by 2032, reflecting a CAGR of 8.06% during the forecast period. In 2024, Asia Pacific led the market, accounting for 40.34% of the total share.

Nutraceuticals are products derived from plant or animal sources that provide essential human nutrition while promoting overall well-being. These products fall into three main categories: dietary supplements, functional food, and functional beverages. They play a vital role in enhancing immune response, combating diseases, and addressing issues such as mental stress and obesity.

However, a lack of standardized regulations regarding the efficacy of certain nutraceutical ingredients, particularly botanical extracts, poses a challenge. The absence of clear guidelines hinders regulatory bodies from establishing specific regulations for their use in new product formulations.

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Segments

Rising Demand for Protein and Amino Acids Drives Segment Growth

The market is segmented by ingredient type into protein and amino acids, vitamins and minerals, botanical extracts, probiotics, carbohydrates, and others. The protein and amino acids segment holds the largest market share due to increasing consumer demand for protein-based supplements. The essential role of protein and amino acids in muscle and overall body development is fueling the expansion of this segment.

Powder Segment Leads Market Due to Versatile Applications

Based on form, the market is categorized into powder, liquid, and others. The powder segment dominates, as powdered products are widely preferred and manufactured for their convenience in meeting daily nutritional needs.

Functional Beverages Segment Gains Traction with Rising Demand for Low-Calorie & Sugar-Free Options

By application, the market is divided into dietary supplements, functional food, and functional beverages. Functional beverages lead the segment, driven by the growing demand for low-calorie and sugar-free drinks. These beverages support digestion and weight management, contributing to their increasing popularity.

The global market is further segmented into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

Report Coverage

This market research report provides a detailed analysis, covering key aspects such as the competitive landscape and major product categories. Additionally, it highlights market trends, significant industry developments, and various factors driving recent market expansion.

Drivers and Restraints

Growing Preference for Clean-Label Natural Ingredients to Drive Market Growth

The increasing global adoption of nutraceuticals has led to a heightened demand for clean-label natural ingredients, preferred by both manufacturers and consumers for their health benefits. Rising investments in research and development (R&D) are addressing the need for efficient and advanced product delivery. Additionally, growing health concerns related to processed food consumption, lifestyle changes, and obesity are boosting the sales of natural ingredients. The widespread adoption of wellness trends further supports market growth.

However, challenges related to product quality management remain a key restraint, limiting demand for nutraceutical ingredients.

Regional Insights

Asia Pacific Leads Market Growth Due to Strong Presence of Herbal Ingredient Manufacturers

In 2023, the Asia Pacific market was valued at USD 32.94 billion, driven by the strong presence of top herbal ingredient manufacturers. The increasing use of herbs and spices in traditional Chinese and Ayurvedic medicine is expected to propel market growth in the region.

North America's market growth is fueled by the rising consumption of dietary supplements in the U.S. Consumers are increasingly opting for vitamin- and mineral-enriched food and beverages to improve gut health and strengthen immunity, further driving demand for nutraceutical ingredients.

Competitive Landscape

Leading Companies Leverage Innovative Production Techniques for Market Advantage

The presence of both regional manufacturers and international corporations is expected to drive market share growth. Key players such as Cargill Incorporated, BASF SE, and ADM are at the forefront of the industry. Leading nutraceutical ingredient manufacturers are adopting innovative production techniques to develop value-added products and gain a competitive edge.

Key Market Players

• Herbalife (U.S.)
• Cargill, Incorporated (U.S.)
• Royal DSM N.V. (Netherlands)
• BASF SE (Germany)
• Evonik Industries AG (Germany)
• DuPont de Nemours, Inc. (U.S.)
• Glanbia plc (Ireland)
• AMCO Proteins (U.S.)
• Roquette Frères (France)
• Döhler (Germany)

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Key Industry Development

• May 2023: BENEO expanded its product portfolio with Beneo-scL85, a dietary fiber-based ingredient designed to replace sugar and improve food products. This innovation enhances the nutritional profile of final products and supports manufacturers in achieving front-of-pack nutrition labeling solutions.