In 2022, the health ingredients market is estimated to be worth USD 100.5 billion and is expected to grow at a CAGR of 7.8% to reach USD 146.3 billion by 2027.
The demand for health ingredients such as omega-3, vitamins, omega-6, and probiotics is rapidly expanding due to consumers' changing lifestyles, shifting demographics, and expanding nutrition and health concerns. The protein supplements segment is projected to have the highest market share in terms of value throughout the forecast period, with demand increasing due to the COVID-19 pandemic and the rise in fitness and nutrition focus.
Functional Purposes and Benefits of Health Ingredients
Health ingredients play a pivotal role in the food industry, offering a wide range of functional purposes and benefits. These ingredients contribute to various aspects of human health, including immune system support, digestion aid, mental health promotion, beauty enhancement, and cardiovascular health, among others. By incorporating health ingredients into food products, manufacturers are able to cater to consumers' specific nutritional needs and preferences, promoting overall well-being.
Plant-Based Foods: A Growing Market Share
Among the diverse sources of health ingredients, plant-based foods are anticipated to achieve the highest market share during the forecast period. Several factors have contributed to the surging popularity of plant-based diets. The influence of vegan culture, increased health awareness, and concerns about animal welfare have driven the demand for plant-based food ingredients. According to the Good Food Institute's 2021 report, plant-based foods have witnessed remarkable growth in both dollar and unit sales over the past three years. While overall food sales increased by only 2 percent during this period, plant-based food sales saw a significant 54 percent increase. This data suggests that plant-based foods are a primary driver of retail growth in the health ingredients market.
Health Ingredients in Food: Customization and Application
Health ingredients find their application in various segments of the food industry, with the Food segment estimated to achieve the highest market share during the forecast period. These ingredients are combined with food products during the manufacturing process to create healthier food options that enhance consumer functionality. Moreover, health ingredients can be customized to meet the nutritional needs of different individuals, particularly those who engage in regular physical activity and have varying requirements for proteins, carbohydrates, and other essential vitamins. The increasing preference for convenient, palatable, and healthy food has led to the utilization of various health ingredients in bakery products. For example, George Western Foods, a subsidiary of Associated British Foods (UK), widely incorporates omega-3 fatty acids into bakery products under its Tip Top brand, catering to the growing demand for healthier alternatives.
Key Players in the Health Ingredients Market
Key market players include Archer Daniels Midland Company (ADM), Associated British Foods PLC, International Flavors & Fragrances Inc., Kerry Group PLC, DSM, BASF SE, Cargill Incorporated, Ingredion, Arla Foods, Tate & Lyle, Lonza, Royal FrieslandCampina N.V., Glanbia PLC, CHR Hansen Holdings A/S, and Probi. The dominant strategy adopted by these players is strategic partnerships, followed by expansions and new product launches to increase their presence in different regions and industrial segments.