Nutraceutical ingredient is a combination of the terms „nutrition“ and „pharmaceutical“ ingredients. It is often used interchangeably with functional foods. They are food ingredients which contain properties that add health-improving value to food over and above its usual nutritional value. These ingredients can be a portion of food, or food on the whole, having a health or medical benefit, which aid in the prevention, diagnosis, and treatment of several chronic diseases like obesity, cancer, high blood pressure, and diabetes.
Increase in chronic diseases due to fast paced lifestyles of consumers globally, rise in the number of non-communicable diseases and demand for longer life span, thereby increasing preference for nutritional diets are key factors expected to fuel growth for the global nutraceutical ingredients market. Other factors affecting the growth of this market are wide applications of nutraceutical ingredients such as functional food & beverage, animal nutrition, and personal care products; increasing demand for preventive healthcare; growth in the aging population and high preference for natural ingredients. Rising adoption of nutraceutical ingredients in the pharmaceutical drugs due to its effective properties such as anti-aging is also another factor driving growth of global nutraceutical ingredients market during the forecast period.

However, high investments in R&D activities as the process lab to market pipeline for such product is usually time consuming, adds to the cost of production and high price of raw material are major restraints that hamper growth of global nutraceutical ingredients market

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The Asia-Pacific region was the largest market for nutraceutical ingredients in 2016. Developing countries such as China and India are prominent users of nutraceutical ingredients for the manufacture of various functional food & beverage and pharmaceutical products. With hectic lifestyles and increase in disposable incomes, the demand for fortified nutritional food & beverage products is growing in the region. The market here is driven by the increase in consumer awareness and growing incidences of chronic diseases. Japan is the fastest-growing country in the Asia-Pacific region, due to its rapidly aging population.

Top players in the global nutraceutical ingredients market are, Cargill, E. I. du Pont de Nemours and Company, BASF SE, Archer Daniels Midland Company, Associated British Foods plc (U.K)., Koninklijke DSM N.V., Ingredion Incorporated, Ajinomoto Co., Inc., Arla Foods, and Tate & Lyle PLC

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