Bioactive Ingredients Market

Rising Awareness Towards Health Benefits of Plant And Marine Ingredients

Plant and marine ingredients are gaining the desired traction and are resonating with consumer preferences in light of their rare essential constituents. Demand for unique protein and fat content outside of their daily routine is increasingly setting the eyes of consumers upon marine ingredients. The changing customer preferences have showcased an increasing consumer shift approaching modifying to a higher nutritional diet centered on a more sustainable lifestyle and lower dependence on proteins from animals.  A substantial percentage of the millennial community in Western nations has adopted their dynamic food habits as customers move from traditional animal-based products to plant and marine products.

In recent years, the choice of plant-based food & beverages amongst customers has been growing due to the broader scope of improved product developments, product availability, and innovation into plant-based proteins and a broader range of available choices and substitutes. With the rising resonance of consumers for organic marine ingredients, multinational players and new entrants are heavily expanding in their production structure to get ‘organic’ certified. Plant and marine ingredients have applications in the nutraceutical, medicinal and cosmetics industries as these constitute bioactive ingredients. The globally increasing popularity has driven the growth of the market in the forecast period.
 

Growing Nutraceuticals Industries Will Drive The Market Growth

Globally, nutraceuticals are growing in importance and are shifting a part of the consumer’s daily diet. The prime reasons for this shift are the rising prevalence of lifestyle disorders and people consciously using preventive healthcare measures. Developed markets, like Europe & United States, are exploring the untapped growth of customized commodities based on health claims. Bioactive ingredients are the largest shareholding constituent in the products. Favorable outlook towards medical nutrition in light of the increasing application for cardiovascular disorders and malnutrition is likely to stimulate the growth of nutraceuticals which ultimately drive the bioactive ingredients market. 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 awareness about the need for a healthy diet to stay fit.  These factors encourage vendors to introduce nutraceuticals products that have high nutritional value, thereby fueling the market growth of bio ingredients.

For instance, in 2018, BASF and Mazza Innovation announced a long-term supply agreement to give BASF specific plant extracts to produce new solutions for cosmetic uses. Mazza provides the plant extracts using its patented PhytoClean technology. This unique, water-based extraction process concentrates bio-actives in a very eco-friendly way.

Growing Funding & Investment Is Expected To Boost The Market Growth

Several companies are raising the investment and funding for the development and expansion of bioactive ingredients.  For instance, in July 2020, Geltor had closed the USD 91.3M Series B financing for the global expansion of its ingredients-as-a-service platform. This funding would meet the rising demand from the global CPG companies for sustainable, functional, and 100% animal-free bioactive ingredients. In July 2020, The Smarter Food Company had raised £1 million (US$1.25 million) to accelerate the development of food products with health benefits. This investment would be used to develop delicious food products comprising natural bioactive ingredients for health-conscious consumers. 

In December 2017, Nuritas, a biotechnology company that is revolutionizing the discovery and use of bioactive peptides through artificial intelligence (AI) and genomics, closed the US$20 million Series A funding round led by Chicago-based Cultivian Sandbox Ventures. This funding would support the growth of the company in the United States. In January 2018, Nuritas had closed the €16M Series A funding round to support its innovation in bioactive peptides for personal care and health applications

Covid-19 Impact Analysis

The unexpected impact of COVID-19, the market has observed a surge in demand for products that provide immune health, which is likely to positively impact the bioactive ingredients market. There are vital product launches to cater to the increasing demand. In Asia-Pacific, India has grown in the highest number of new drinks, food,  and supplements that carry immune system-boosting claims launched in the last five months, followed by Australia and Indonesia. The rise in food product launches and the need to introduce claims that feature better-for-you traits leads bioactive ingredient manufacturers to reposition their offerings according to the need constantly. In consideration, manufacturers, such as Ingredion and Sensus BV, have come up with innovative sweetener options, such as FOS, which significantly reduce the sugar content in prepared food and beverages.

The COVID-19, in addition, has produced the generation of opportunities for companies of health-oriented products, particularly dietary supplements. Following the trend, researchers and companies link the potential advantages of bioactive ingredients in fighting coronavirus disease, which is supposed to push the industry among other prospective medicines amidst the lack of a vaccine or treatment. 

Several organizations, institutes, associations, and companies explore the potential of the bioactive ingredients derived from plants, animals, and microorganisms for COVID-19 infection. Studies have shown the antiviral properties of bioactive ingredients against the COVID-19. Bioactive ingredients have demonstrated the therapeutic, toxicological and immune-stimulating activity for COVID-19 infection. For instance, according to the research conducted by The Hashemite University, Jordan, Prebiotics may also have an excellent potential effect against COVID-19 by enhancing probiotics growth and survivability. Furthermore, prebiotics could directly affect GI symptoms caused by COVID-19 via blocking the ACE enzymes.

Furthermore, the COVID-19 also lays a foundation stone of the start of the end of poor nutrition, wrong claims, and creative marketing claims phrases that possibly misled the consumers. For instance, in India, ICMR and FSSAI have now been on non-negotiable terms with the claims and are demanding clinical validation of the products. ICMR has rolled out a large clinical study on Ayush ingredients for immunity, which has been tested on over 10,000 police personnel.

Hence, the pandemic has highlighted the proper use of bioactive ingredients as a preventive cure. In the future, the global bioactive ingredients industry is expected to get its rightful place in the global healthcare and medical space, with significant growth in the market.

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