Nutraceuticals are increasingly being used as functional foods and dietary supplements for their health benefits. Nutraceutical excipients are ingredients used in these formulations to act as fillers, binders, coating materials and disintegrants to enhance efficacy, stability and palatability of the product. They ensure homogenous mixing of active ingredients and facilitate tablet formation, dissolution and disintegration. Commonly used nutraceutical excipients include microcrystalline cellulose, hydroxypropyl methylcellulose (HPMC), carrageenan and dicalcium phosphate amongst others. Their selection depends on technical performance criteria as well as compatibility with other ingredients.
The global nutraceutical excipient market is estimated to be valued at US$ 2680.29 Mn in 2024 and is expected to exhibit a CAGR of 3.4% over the forecast period 2024-2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends witnessed in the nutraceutical excipient market is the rising popularity of clean label and organic ingredients. Consumers are increasingly demanding products made from recognizable ingredients sourced responsibly and free from artificial compounds and GMOs. This has propelled nutraceutical formulators to replace conventional excipients with natural alternatives such as rice bran, palm oil and acacia fiber that are considered clean and sustainable. Furthermore, multi-functional excipients that can deliver synergistic technological and nutritional benefits are gaining ground. For instance, microcrystalline cellulose combined with prebiotic fiber acts as a multifunctional carrier as well as promotes gut and digestive health. Continuous innovations to develop such advanced delivery solutions supporting multiple health aspects will further fuel the growth of nutraceutical excipients market during the forecast period.
Porter's Analysis
Threat of new entrants: Low barriers to entry exist due to less complex production processes and many suppliers can fulfill demands. However, large incumbents dominate distribution channels making it difficult for new players.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and undifferentiated nature of products. However, buyers prefer established suppliers creating switching costs.
Bargaining power of suppliers: Large suppliers like Arkema and Evonik have significant bargaining power due to their established infrastructure and economies of scale in production. Supply contracts and long term relationships reduce opportunism.
Threat of new substitutes: Substitution threat is low as nutraceutical excipients require specialized formulation Know-how and compliance with stringent regulations limiting use of alternatives.
Competitive rivalry: The market is consolidated with top players accounting for majority share. However, regional players intensify competition based on service differentiations and cost efficiencies.
Key Takeaways
The global nutraceutical excipient market is expected to witness high growth driven by increasing consumer health awareness and customization demands in food supplements.
Regional analysis: North America leads due to high per capita health supplement consumption and frequent product launches. Asia Pacific is expected to rise at fastest pace due to improving lifestyle diseases, regulatory support for herbal derivatives, and contract manufacturing shifts.
Key players operating in the nutraceutical excipient market include Arkema S.A., Evonik Industries A.G., Solvay S.A., Mitsubishi Gas Chemical Company Inc., Kemira Oyj, Thai Peroxide Limited (TPL), Taekwang Industrial Co. Ltd., PeroxyChem LLC, Hansol Chemical, and Nouryon. These players focus on new product developments, capacity expansions and mergers to strengthen their global positions.
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