The nutraceutical ingredients market is estimated to be valued at USD 227.96 Bn in 2025 and is expected to reach USD 373.54 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 7.3% from 2025 to 2032.
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The rise in the nutraceutical ingredients market is driven by growing consumer awareness around preventive healthcare and the health benefits of functional foods. Increasing lifestyle-related diseases and demand for natural, plant-based ingredients further fuel the market growth.
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Artificial Intelligence (AI) is playing a transformative role in the nutraceutical ingredients market by accelerating product innovation, enhancing ingredient discovery, improving supply chain efficiency, and enabling personalized nutrition. For instance, Brightseed, a biotech company, uses its AI platform Forager® to identify bioactive compounds NCT and NFT, which have both been shown in pre-clinical studies to support gut health. It also predicts the presence of these compounds in more than 80 plants and identifies hemp hull as the most naturally enriched source.
The dry segment is expected to contribute 82.8% share of the nutraceutical ingredients market in 2025, due to advantages in shelf life and storage convenience. Dry ingredients such as vitamins, minerals, proteins, and amino acids can be stored at room temperature for extended periods without degradation, making them more suitable for inventory management and transport. This is a major advantage over liquid ingredients which often require refrigeration and have a more limited shelf life. The dry form is also preferred for dietary supplements since tablets and capsules allow for precise dosing and uniform mixtures. Complex dry blends can be formulated to deliver multiple ingredients in a single dosage. This multipurpose functionality streamlines supplement manufacturing and inventory needs. The stable shelf life also ensures product freshness right up to the expiration date. From a consumer perspective, dry supplements tend to have a more convenient dosage form compared to liquids.
Tablets and capsules are compact and portable, making it effortless to consume supplements on the go or while traveling. This fosters higher user compliance. The absence of a liquid carrier also enables the inclusion of water-soluble and insoluble ingredients within the same formula. Overall, the advantages in storage, transport, manufacturing, and user experience have cemented dry ingredients as the dominant mode of delivery in the nutraceutical industry. Emerging portable lifestyles and the need for precise dosing will continue spurring preferences for this segment. In November 2024, DSM-Firmenich introduced Dry Vit A Palmitate, a clean-label functional ingredient for early-life nutrition. It enhances infant formula’s vitamin A content while addressing common stability challenges. This is further accelerating the nutraceutical ingredients market growth.
Within the product ingredients segment, vitamins are expected to contribute 33.8% share in 2025, owing to their profound role in human nutrition and overall wellness. The growing awareness about how specific vitamins impact health has boosted their demand for dietary supplements and functional foods. Vitamins such as vitamins C and D are recognized for their immune-boosting and bone health properties. Rising pollution and indoor lifestyles have intensified vitamin D deficiencies.
Fat-soluble vitamins A, D, E, and K also experienced increased uptake to support heart and vision health. Multivitamin supplements targeting general wellness remain hugely popular as a holistic approach to nutrition. Their usage has expanded from the elderly to young working professionals as a preventive health measure. Manufacturers reinforce the vital role of vitamins through brands focused on anti-aging, beauty from within, and prevention of lifestyle diseases. For instance, Miduty an Indian nutraceutical brand offers a range of products including Vitamin B12, magnesium, and Vitamin ADK formulations.
The functional beverages segment is expected to account for a 32.7% share of the application segment in 2025, owing to rising preferences for healthy and convenient on-the-go nourishment. Longer working hours and increasingly mobile lifestyles have boosted the popularity of beverages infused with nutraceuticals over pills or packaged foods. Protein-enriched waters and shakes address the need for portable muscle-building options. They are ideal for active individuals to refuel after a workout or stay energized through long days when traditional meal breaks may not be feasible. Waters and juices infused with antioxidants, vitamins, minerals, or plant extracts also provide a simple hydration-plus-nutrition solution.
Milk enriched with probiotics and prebiotics caters to digestive health-oriented consumers. RTD tea and coffee blends fortified with B vitamins, omega-3, and botanicals deliver functional benefits alongside daily rituals. Their normalized usage helps wean people away from regular versions onto healthier habit changes. Manufacturers leverage diverse flavors and formulations to introduce functionality across different beverage categories from sodas to juices. Novel formats like on-the-go powders and sticks further augment the segment's convenience appeal. This has made functional beverages a routine rather than a premeditated purchase for many. Sustained momentum in this segment will be guided by continued lifestyle shifts favoring portable indulgences. In March 2025, Benefit Juice launched a range of functional beverages targeting women’s health across all life stages, including menstruation, pregnancy, and menopause. This is further contributing to the nutraceutical ingredients market share.
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North America has been dominating the global nutraceutical ingredients market over the past few years owing to high health consciousness and increased adoption of healthy lifestyles among consumers in the region. The region is expected to account for 46.3% of the market share in 2025. Countries like the U.S. and Canada have seen a significant rise in the consumption of nutritional supplements and functional food products. This has encouraged major nutraceutical brands and supplement manufacturers to strengthen their presence in the region. The region is also home to some of the largest nutraceutical companies globally which are continuously investing in product innovation and new product development.
For instance, Abbott Laboratories, a U.S. company, expanded its product line with Ensure Plant-Based Protein supplement. Ensure® brand also offers plant-based protein options, focusing on both muscle and digestive health, while also being vegetarian and vegan-friendly. This is further contributing to the nutraceuticals ingredients market share.
The Asia Pacific region has emerged as the fastest-growing market for nutraceutical ingredients globally. Rapidly changing consumer eating habits, increasing health expenditures, and a growing focus on preventive healthcare are the major factors driving demand. Countries like India, China, Japan, and South Korea are anticipated to offer lucrative opportunities with their growing middle-class populations and rising disposable incomes. The region has also witnessed the proliferation of local nutraceutical brands in the past few years that rely on imports to fulfill their requirements. This dependence on imports is gradually decreasing with local suppliers improving their capabilities.
The development of native plant sources and investments in extraction technology by regional players will further help Asia Pacific become a dominant sourcing hub. Strong governmental support through initiatives focused on herbal medicines and traditional ingredients also ensures a positive outlook for nutraceutical suppliers targeting this high-potential market. Overall, Asia Pacific's favorable industry ecosystem and rising health-conscious consumer base make it an attractive investment destination for global nutraceutical players. For instance, Japanese company Ajinomoto Co., Inc. formed a strategic partnership with biotech startups, particularly those focused on amino acid and protein sciences, to boost innovation in nutraceutical ingredients, especially amino acid-based products. This is positively influencing nutraceuticals market revenue.
The rise in the U.S. Nutraceutical market is driven by increasing consumer awareness about preventive healthcare and wellness. Growing demand for functional foods, dietary supplements, and fortified beverages is further fueling market expansion. Additionally, advancements in ingredient innovation and personalized nutrition are enhancing product appeal and market penetration. For instance, the U.S. company Pharmachem Innovations, LLC leading provider of nutraceutical products and solutions, launched as an independent company following the acquisition of the company from Ashland, Inc.
The Indian nutraceutical market is witnessing rapid growth due to increasing health awareness, a rising burden of lifestyle-related diseases, and a growing preference for preventive healthcare. Urbanization and higher disposable income are driving demand for functional foods and dietary supplements. For instance, Crius Life Sciences an Indian company Crius Life Sciences launched oil-infused gummies in June 2024, offering a new format for supplement consumption. The Oil-infused gummies are set to transform the global nutraceutical industry by combining wellness benefits with convenient, appealing formats. This innovation is reshaping how consumers approach dietary supplements. This is further contributing the nutraceutical ingredients market share in India.
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Nutraceutical Ingredients Industry News
| Report Coverage | Details | ||
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| Base Year: | 2024 | Market Size in 2025: | USD 227.96 Bn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2025 to 2032 CAGR: | 7.3% | 2032 Value Projection: | USD 373.54 Bn |
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| Companies covered: |
BASF S.E., BioNeutra Global Corporation, Botaneco Inc., Cargill Inc., Ceapro Inc., DowDuPont Inc., GrainFrac Inc., Ingredion Incorporated, InovoBiologic Inc., Jamieson Laboratories Ltd., Koninklijke DSM N.V., Lallemand Inc., Radient Technologies Inc., and SunOpta Inc. |
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The adoption of healthy lifestyle habits among consumers across the globe has been on a steady rise over the past few years. People are paying more attention to their diet and making an active effort to consume food products that are beneficial for their health and well-being. There is a growing awareness about the importance of maintaining optimum nutritional levels through the regular intake of various vitamins, minerals, proteins, fibers, and other nutritious components. This change in attitudes and behaviors has driven up the demand for functional ingredients that enrich foods and beverages.
Nutraceutical ingredients are popular choices owing to their scientifically proven health benefits. Many consumers prefer fortifying their regular diet with supplements containing these ingredients to fulfill their bodies' nutritional requirements and lower the risk of illnesses. The trend is particularly strong among the aging population who wish to remain active and prevent age-related diseases or conditions.
Nutraceutical ingredients are not only limited to regular supplements anymore. Innovative food and beverage manufacturers have found highly versatile applications for various functional ingredients across many consumer product categories. For instance, probiotic yogurt drinks and energy bars fortified with vitamins, minerals, proteins, and fibers are gaining wide acceptance. Similarly, herbal extracts and prebiotics are being incorporated into healthy snacks, cereals, juice,s and dairy alternatives. This allows companies to grab market share through novel offerings for health-conscious shoppers. Even traditional packaged food and beverage segments are recognizing emerging opportunities and incorporating nutraceutical ingredients to enhance their products' nutritional profiles and appeal to modern lifestyles.
Untapped emerging markets present a huge opportunity for growth in the global nutraceutical ingredients market. These emerging economies have large, young populations with increasing disposable incomes and a growing focus on health and wellness. Countries such as India, Brazil, Indonesia, and others in Southeast Asia, Latin America, and Africa are expected to see strong economic development and expansion of middle-income consumers in the coming years. As awareness about preventative healthcare rises and diets shift to include more nutritious foods, demand for supplements containing nutraceutical ingredients will surge.
*Definition: The nutraceutical ingredients market involves the production, processing, and marketing of ingredients that are derived from food sources and are sold as supplements with medicinal properties. These ingredients may include vitamins, minerals, probiotics, prebiotics, amino acids, enzymes, essential fatty acids, and fibers. Companies in this market supply nutraceutical ingredient products to manufacturers who incorporate them into supplements for distribution to health food stores, pharmacies, mass retailers, and direct-to-consumer online channels.
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About Author
Pankaj Poddar is a seasoned market research consultant with over 12 years of extensive experience in the fast-moving consumer goods (FMCG) and plastics material industries. He holds a Master’s degree in Business Administration with specialization in Marketing from Nirma University, one of India’s reputed institutions, which has equipped him with a solid foundation in strategic marketing and consumer behavior.
As a Senior Consultant at CMI for the past three years, he has been instrumental in harnessing his comprehensive understanding of market dynamics to provide our clients with actionable insights and strategic guidance. Throughout his career, He has developed a robust expertise in several key areas, including market estimation, competitive analysis, and the identification of emerging industry trends. His approach is grounded in a commitment to understanding client needs thoroughly and fostering collaborative relationships. His dedication to excellence and innovation solidifies his role as a trusted advisor in the ever-evolving landscape of not only FMCG but also chemicals and materials markets.
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