The global bioactive ingredients market is valued at USD XX Mn in 2019 and is estimated to grow at a CAGR of 6.4% over the forecast period to reach USD XX Mn by 2027.
Bioactive ingredients are substances that have a biological effect on living organisms. These ingredients are derived from various sources such as plant, food, animal, marine or microbial sources. Bioactive ingredients are added to the food and feed products to enhance the consumers' physical and physiologic health. Bioactive ingredients are widely used in functional foods and beverages, dietary supplements and infant nutrition. These ingredients are useful for the prevention of cancer, heart disease, and other diseases. Bioactive ingredients are widely used in various industries such as food & beverages, pharmaceuticals & nutraceuticals, personal care products, and the animal feed industry. Bioactive ingredients such as carotenoids, essential oils, antioxidants are used in functional foods to enhance their sensory properties and nutritional properties.
The demand for bioactive ingredients is increasing with the rising consumption of functional foods & beverages worldwide. The consumption of functional foods & beverages has increased with the growing awareness regarding their health and nutritional benefits. According to the National Center for Biotechnology Information (NCBI) survey, around 90% of American adults are aware of functional foods' benefits. This has resulted in boosting the sales of functional foods & beverages across the globe. According to the Institute of Food Technologists (IFT), total sales of functional foods were USD 247 billion worldwide in 2018. The United States is the leading consumer of functional foods. Europe and Asia are also witnessing an increase in the number of people preferring functional foods & beverages.
The bioactive ingredients market is classified based on the product type as the prebiotics, probiotics, amino acids, peptides & proteins, omega 3 & structured lipids, phytochemicals & plant extracts, minerals, vitamins, fibers & specialty carbohydrates, carotenoids & antioxidants, and others.
The prebiotics segment is expected to witness a significant growth over the forecast period due to the rising demand for the prebiotics comprising the bioactive ingredients due to their health benefits, such as reducing cancer risk and increasing the absorption of calcium and magnesium among humans. Prebiotics are short-chain carbohydrates that are non-digestible by digestive enzymes in humans. Prebiotics are effective in enhancing the activity of some groups of beneficial bacteria.
Market Dynamics
Drivers
- Growing Consumption of the Functional Foods & Beverages
- Technological advancement for extraction of bioactive ingredients
Restraints
- High price of bioactive ingredient
Growing Consumption of the Functional Foods & Beverages
Functional food and beverage manufacturers deploy fortification of bioactive ingredients such as omega-3 fatty acids, fibers, vitamins, minerals, and others in their product offerings. The primary motive of incorporating the additives above in the food and beverage industry is to increase the nutritional content of food items.
Bioactive ingredients such as omega-3 and probiotics are highly used in fish oils and yogurt to decrease the risk of cardiovascular diseases and enhance intestinal microflora quality. Such a trend is expected to drive the market over the forecast period. Growing domestic consumption of functional food and beverages to expand the retail network, new product launches, and population growth are expected to promote growth in BRICS countries. In addition, regulatory support for facilitating Foreign Direct Investments (FDI) at the domestic level in BRICS on account of political change, particularly in India and China, aimed at increasing the manufacturing output, is expected to amplify growth..
The market share in developed nations is captured by health-conscious people, such as guardians of infants, pregnant women and the older population, as they are essentially aware of functional food and beverage benefits. With customers now increasingly aware of the health indications associated with soft drinks, concerned drinkers frequently ignore vilified categories, like carbonates and juices, to support healthier choices, such as probiotics, soymilk and other functional drinks. These factors will drive the market growth in the forecast period.
Geographical Analysis
The North America bioactive ingredients market is valued at USD XX Mn in 2019 and is estimated to grow at a CAGR of 7.0% over the forecast period to reach USD XX Mn by 2027. North America is estimated to account for a share of approximately 28.13% of the bioactive ingredients market by 2019 and is anticipated to grow to 29.34% by 2027. North America has the highest share in the bioactive ingredients market and is expected to witness a healthy growth rate in the forecast period. The bioactive ingredients are used widely in North America for alcoholic beverages manufacturing, such as natural brewing, distilling or winemaking of beer, lager, cider, high strength pre-mixes, liqueurs, sprit and wine.
The growing prevalence of stress, obesity, diabetes, and high blood pressure has increased the acceptance of the pharmaceutical industries' bioactive ingredients to counteract these diseases in the region. There is raising awareness regarding the nutritional benefits of bioactive ingredients. Several companies are producing bioactive ingredients-based food and beverage commodities with low calorific value. These bioactive ingredients-based beverage and food products are rich in nutrients, including minerals, vitamins, proteins, and fibers. There are rising trends of cosmeceuticals containing bioactive ingredients, and personal care has accelerated the market growth in the U.S.
The growing demand for nutraceuticals with pharmaceutical benefits is one of the significant determinants driving the bioactive ingredients market growth. They contain probiotics, antioxidants, and polyunsaturated fatty acids, which assist and manage health issues like obesity, CVD, cancer, cholesterol, arthritis, and diabetes. As per the American Heart Association Research Report 2018, cardiovascular disorders account for 1 in 7 deaths in the U.S. Coronary heart disease is the principal cause (43.8%) of deaths attributable to cardiovascular disease in the U.S., followed by stroke (16.8%), high blood pressure (9.4%), heart failure (9.0%), diseases of the arteries (3.1%), and other cardiovascular diseases (17.9%). This situation is leading to a higher demand for bioactive ingredients.
However, the biggest issue faced by bioactive ingredients companies operating in North American countries is complying with the rigorous health regulations. Unlike the many nations worldwide, these nations have very rigorous regulations governing the trade of dietary supplements. As Canadians face rising healthcare costs; many are considering the link between health and diet. The functional food industry is seizing the opportunity with product innovation and market expansion.
Functional food growth in Canada is prognosticated as in sodium substitutes, trans fat replacements, sugar alternatives, free-from allergens (in particular, gluten-free foods), whole foods, clean labels, and naturally sourced foods bioactive, nutrigenomics, protein boosters, and new technologies. Thus the growth in the consumption of functional food will drive the bioactive ingredients market growth in the country.
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