Global Bioactive Ingredients Market - Growth, Trend and Forecast (2020 - 2025)
Global bioactive ingredients market is projected to register a CAGR of 8.27% during the period of 2020-2025.
The consumers primarily in countries, like the United States, India, China, and Germany, among others, are increasingly seeking food and beverage products containing functional ingredients, such as probiotics, vitamins, and others to ward off illnesses or help with existing health issues. This, in turn, has paved the way for bioingredient manufacturers to penetrate the functional food and beverage sector with innovative bioactive ingredients.
Over recent years, consumers have increasingly become concerned about the quality of ingredients used in foods and beverages. In addition, the growing prevalence of risk factors, such as obesity, diabetes, stress, and high blood pressure, has increased the awareness about the need for a healthy diet to stay fit. These factors are encouraging vendors to introduce innovative products that have high nutritional value, thereby fueling the market growth of bio ingredients.
Apart from the growing adoption of health and wellness food products, the shift in demand from synthetic to natural beta-carotene and the increasing adoption of organic and natural ingredients, followed by the on-going trend of veganism, are some other major factors that will boost the market growth during the forecast period. Thus, the key market players are actively adopting various strategies to penetrate the plant extract segment, as it is perceived to be a promising market during the forecast periods.
In 2018, BASF and Mazza Innovation announced a long-term supply agreement to provide BASF with specific plant extracts to develop new solutions for cosmetic applications. Mazza produces the plant extracts using its patented PhytoClean technology. This unique, water-based extraction method concentrates bio-actives in a very eco-friendly way.
Key Market Trends
Rising Healthcare Cost and Focus on Preventive Healthcare
The global marketplace has witnessed a paradigm shift from curative practices to preventive management in healthcare, making it one of the prime growth factors for bioactive ingredients, such as probiotics, prebiotics, vitamins, omega-3, and others. The rising preference for dietary supplements/health supplements for controlling healthcare costs is also likely to consequence well for the market growth of bioactive ingredients. According to the United Nations population data, Europe and Japan are home to the largest aging populations in the world, where one in four of all Europeans is aged 60 years and over. Italy, Germany, France, Denmark, and Spain, among others, are some of the major European countries with the highest percentage of aging population. The diverse applications of bioactive ingredients, ranging from skin to bones, and increased awareness about their benefits among the consumers across the globe have played key roles in meeting the daily nutritional requirement of the consumers who seek to maintain their health through supplements and fortified food and beverages. This, in turn, has significantly accelerated the growth of the market studied. Furthermore, various government initiatives are being taken to increase the consumption of fortified food and beverages, especially in the developing countries, like China and India, which in turn, will eventually accelerate the growth of the market studied.
Asia Pacific Emerges as the Fastest Growing Market
The Asia Pacifc region provides a poetntial and prmoising market for bioactie ingredeinst, woing increasing demand for functional ingredeints for both human as well as human nutrition. In order to address the growing demand for functional ingredients, several bioactive ingredient manufacturers are expanding their product lines. For instance, the Chinese ingredient company, Shenzhen Qianhai Xiaozao Technology Co. Ltd, initiated the production of algae omega-3 with highly refined EPA ingredient, thereby expanding their bioactive ingredient offerings. Furthermore, in Asian countries like Japan with an increaing ageing population, the strong growth in fortifed/functional food and beverage as ell as dieatry supplement are one of the major driving the demand for bioactive ingredeints such as omega-3, vitamins, protein, probiotics and others. Thus, several Japanese bioactive ingredient suppliers are now engaging in partnerships and expansions, in order to consolidate their market positioning. For instance, Neptune Bioressources of Quebec has established a partnership with Japan’s Koyo Chemical to sell glucosamine (from Koyo) and krill oil (from Neptune) combination and to produce the supplement for joint health in Japan, as well as other markets. Leading cosmetic companies from countries, like Singapore, China, South Korea, and Japan, are producing biologically-infused products, owing to shift in consumer preferences toward naturally-sourced ingredient products.
The global bioactive ingredients market is highly competitive, with strong presence international players dominating the market studied. Key players, such as Cargill, Kerry Inc. Dupont, ADM, and BASF SE, among others, have vested a sumptuous amount of their revenue in research and development, which establishes novel product development, along with upbringing of communities, that signifies their presence in the market studied. Key market players have been increasingly relying on product innovation as a major strategy to increase its consumer base as its position in the market studied. Extensive investment in R&D was witnessed in the past years, which led to the introduction of numerous new products in the market studied. Owing to the increasing demand for functional ingredients across different end-user industries, such as food and beverage, animal nutrition, dietary supplements, and others, major players have been coming up with new products to suffice the market needs. Major companies, such as Dupont De Nemours Inc., along with Archer Daniel Midland Company, are among the active players that have been on the forefront, in terms of new product development. For instance, ADM, as of 2016, had introduced a new line of plant extracts that are used across variety of food, beverage and supplements products. ADM’s anthocyanin extracts originate from purple sweet potatoes, purple maize, purple carrots, beets, rhubarb, tomatoes, and red cabbage
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