Global Nutraceutical Excipients Market Size, Share & Trends Analysis Report By Product Source, By Formulation (Dry, Liquid, and Others), By Functionality Application, By End Product, By Functionality, By Regional Outlook and Forecast, 2023 - 2030

Global Nutraceutical Excipients Market Size, Share & Trends Analysis Report By Product Source, By Formulation (Dry, Liquid, and Others), By Functionality Application, By End Product, By Functionality, By Regional Outlook and Forecast, 2023 - 2030

The Global Nutraceutical Excipients Market size is expected to reach $6.9 billion by 2030, rising at a market growth of 7.4% CAGR during the forecast period.

Advancements in technology and formulation techniques have enabled the development of innovative nutraceutical products. Therefore, the flavoring agents and sweeteners segment captured $412.9 million revenue in the market in 2022. Flavoring agents and sweeteners are essential components in developing varied and palatable formulations, facilitating the broadening of product lines and catering to the changing demands of consumers. As a result, there will be increased demand in the segment.

Nutraceutical excipients are used to improve the stability of active ingredients in nutraceutical formulations. This is critical for maintaining the efficacy of these ingredients throughout the product's shelf life. The utilization of nutraceutical excipients can improve the bioavailability of active compounds, thereby facilitating enhanced absorption and utilization of the nutrients by the body. This is essential for optimizing the health benefits provided by the nutraceutical products. Additionally, Technological advancements enable the use of sophisticated formulation techniques in nutraceutical product development. Nutraceutical excipients are employed to optimize formulations, ensuring the proper integration of active ingredients and enhancing their stability. Nanotechnology and microencapsulation are cutting-edge techniques that allow for the delivery of bioactive compounds in a controlled manner. These processes employ nutraceutical excipients to encapsulate active constituents, enhancing their bioavailability and safeguarding against degradation. The development of high-quality pharmaceutical-grade excipients, driven by advancements in manufacturing processes, ensures the safety and efficacy of nutraceutical formulations. This is particularly important as the nutraceutical industry aligns with pharmaceutical standards. Therefore, these aspects will boost the demand in the market.

However, research and development in this requires substantial resources, including funding, skilled personnel, and specialized equipment. Smaller companies may face limitations in allocating such resources, slowing down their ability to innovate. Developing and introducing new excipients often involves a high initial investment in laboratory equipment, raw materials, and personnel. This upfront financial commitment can be a significant hurdle for smaller companies with constrained budgets. The uncertainty associated with the success of R&D efforts introduces a risk of investment failure. Smaller companies may be more cautious about allocating resources to potentially high-risk ventures, impacting their willingness to engage in extensive R&D activities. Hence, these aspects can limit the expansion of the market.

By Product Source Analysis

Based on product source, the market is segmented into organic chemical, inorganic chemical, and others. The organic chemical segment held the largest revenue share in the market in 2022. Consumers increasingly prioritize products with clean labels, seeking formulations with transparent and easily understandable ingredient lists. Organic chemicals derived from natural sources align with this clean-label trend, as they are perceived as more wholesome and freer from synthetic additives. Hence, the segment will witness increased demand in the coming years.

By Formulation Analysis

Based on formulation, the market is divided into dry, liquid, and others. In 2022, the liquid segment witnessed a substantial revenue share in the market. Liquid excipients contribute to enhanced bioavailability of active ingredients in nutraceutical formulations. The liquid form allows quicker and more efficient absorption in the digestive system, promoting a faster onset of action and increased efficacy of the delivered nutrients. This aspect aligns with consumer preferences for tangible and rapid health benefits products. Therefore, these factors will fuel the demand in the segment.

By Functionality Application Analysis

On the basis of functionality application, the market is divided into taste masking, stabilizers, modified-release, solubility & bioavailability, and others. The taste masking segment recorded a considerable revenue share in the market in 2022. Organizations in the nutraceutical industry diversify their product portfolios to encompass a wider range of formulations. The taste masking segment plays a pivotal role in enabling the development of diverse products, ranging from traditional tablets and capsules to innovative dosage forms such as chewable gummies, effervescent tablets, or oral dissolvable films. Thus, the segment will grow rapidly in the upcoming years.

By End Product Analysis

Based on end product, the market is divided into protein & amino acids, omega-3 fatty acids, vitamins, minerals, prebiotics, probiotics, and data protection & encryption. The protein and amino acids segment recorded the maximum revenue share in the market in 2022. The increasing preference for plant-based diets and vegetarian lifestyles has contributed to the rise of plant-based protein sources. Nutraceutical formulations adapt to this trend by incorporating plant-derived proteins and amino acids. This shift aligns with the broader consumer demand for sustainable and ethical nutritional choices. Hence, these factors will contribute to the growth of the segment.

By Functionality Analysis

On the basis of functionality, the market is divided into fillers & diluents, suspending & viscosity agents, coating agents, binders, flavoring agents & sweeteners, disintegrants, colorants & preservatives, emulsifying agents, and others. The fillers and diluents segment recorded a significant revenue share in the market in 2022. Significant demand has been observed for tablet formulations in the pharmaceutical and nutraceutical sectors. Fillers and diluents contribute to the tablet manufacturing process by providing the necessary bulk and ensuring the proper compression of active ingredients, leading to the production of tablets with desirable physical attributes. Therefore, these factors will boost the demand in the segment.

By Regional Analysis

By region, the market is segmented into North America, Europe, Asia Pacific, and LAMEA. In 2022, the Europe segment acquired a considerable revenue share in the market. European countries are known for their stringent quality and safety standards in the food and pharmaceutical industries, and Europe is home to a steadily increasing aging population, leading to a heightened focus on age-related health concerns. Nutraceuticals, formulated to address the specific health needs of the elderly, have witnessed a surge in demand. Hence, these factors will boost the demand in the segment.

The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions, and Partnerships & Collaborations.

Recent Strategies Deployed in the Market

• 2023-Sep: BASF SE introduced "PCFs (Product Carbon Footprints)". This would be available for vitamins, carotenoids, polymers used in beverage processing, feed enzymes, and feed performance ingredients, accessible upon customer request.
• 2023-Jul: Roquette Freres SA took over Qualicaps, Inc., a pharmaceutical company. Through this acquisition, Roquette Freres SA would enhance its position as a supplier of the pharmaceutical industry.
• 2023-Apr: Colorcon, Inc. introduced "label-friendly materials". This is tailored for tablets and capsules, are specifically crafted to fulfill the technical and commercial requirements of nutraceutical and supplement providers.
• 2023-Mar: Seppic S.A. came into partnership with Botalys, a health, wellness & fitness company. Through this partnership, Seppic S.A. would create novel ingredients for both the cosmetics and health sectors and establish distribution agreements across diverse markets and regions.
• 2022-Dec: Roquette Freres SA took over Crest Cellulose Private Limited, an Indian pharmaceutical company. Through this acquisition, Roquette Freres SA would enhance its global market presence for high-quality plant-based excipients.
• 2022-Apr: Kerry Group plc took over Natreon, Inc., a US-based botanical ingredients company. Through this acquisition, Kerry Group plc would advance, implement, and globally market innovative technology for promoting joint health in functional foods, beverages, and dietary supplements.

List of Key Companies Profiled

• Kerry Group plc
• Sensient Technologies Corporation
• Associated British Foods PLC
• BASF SE
• Roquette Freres SA
• Cargill, Incorporated
• Ashland Inc. (Ashland Global Holdings Inc.)
• IMCD N.V.
• Seppic S.A. (L’Air Liquide S.A.)
• Colorcon, Inc. (BPSI Holdings LLC.)

Global Nutraceutical Excipients Market Report Segmentation

By Product Source

• Organic Chemical
• Inorganic Chemical

By Formulation

• Dry
• Liquid
• Others

By Functionality Application

• Modified-Release
• Solubility & Bioavailability
• Taste Masking
• Stabilizers
• Others

By End Product

• Probiotics
• Protein & Amino Acids
• Omega-3 Fatty Acids
• Vitamins
• Prebiotics
• Minerals
• Others

By Functionality

• Coating Agents
• Emulsifying Agents
• Colorants & Preservatives
• Disintegrants
• Suspending & Viscosity Agents
• Binders
• Flavoring Agents & Sweeteners
• Fillers & Diluents
• Others

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA