Top 5 Emerging Opportunities in the Global Health Ingredients Market in 2028

The global health ingredients market, valued at USD 103 billion in 2023, is rapidly gaining attention as consumer preferences shift toward functional foods, dietary supplements, and personalized nutrition. Health ingredients like probiotics, plant-based proteins, and omega-3 fatty acids have become central to this transformation. The rising awareness of preventive healthcare, advancements in biotechnology, and the growth of the nutraceutical industry are creating new opportunities for businesses in this thriving setor. In this blog, we’ll explore the market’s current status, top emerging opportunities, and actionable strategies to capitalize on them.

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Current Market Status

The global health ingredients market is witnessing robust growth, driven by consumer demand for health and wellness products and advancements in nutrition science.

• Market Size and Growth: Valued at USD 103 billion in 2023, the market is projected to grow significantly over the next five years.

• Key Players: Companies like DSM, ADM, Cargill, Kerry Group, and BASF SE dominate the market, leveraging innovation, acquisitions, and strategic partnerships. For instance, DSM’s acquisition of Glycom for $830 million in 2023 underscores the growing focus on early-life and functional nutrition.

• Regional Insights: North America leads the market due to strong consumer purchasing power, advanced healthcare infrastructure, and supportive government initiatives like the U.S. FDA’s Nutrition Innovation Strategy. The Asia-Pacific region is emerging as a key growth area, driven by increasing health awareness in countries like China and India.

Top 5 Emerging Opportunities

1. Personalized Nutrition

Advancements in biotechnology are driving the development of personalized health ingredients tailored to individual needs.

• Why It’s Growing: Consumer demand for tailored solutions based on genetic, microbiome, and lifestyle data is on the rise.

• Supporting Data: By 2028, the personalized nutrition market is expected to grow significantly, with companies like DSM and Nestlé Health Science investing in this trend.

• Future Potential: Personalized probiotics and functional foods designed for specific health goals (e.g., gut health, immunity) will dominate this space.

2. Plant-Based Proteins

The shift toward plant-based diets is creating demand for sustainable protein sources.

• Why It’s Growing: Rising concerns about sustainability and increasing interest in meat alternatives are key drivers.

• Supporting Data: In 2024, ADM invested $250 million to expand its protein production facilities in response to growing demand.

• Future Potential: Innovations in plant protein extraction and fermentation will enhance taste, texture, and nutritional profiles, opening new avenues for product development.

3. Probiotics and Digestive Health

Consumer interest in gut health continues to grow, making probiotics a top-performing category.

• Why It’s Growing: Probiotics are widely recognized for their role in supporting immunity and overall wellness.

• Supporting Data: Probiotics accounted for the largest market share in 2023, with companies like Yakult and Danone leading the way.

• Future Potential: Probiotics will see increased application in beverages, snacks, and personalized health products.

4. Omega-3 Fatty Acids and Heart Health

Omega-3s remain a vital ingredient for cardiovascular and brain health.

• Why It’s Growing: Rising awareness of chronic disease prevention fuels demand for omega-3-rich products.

• Supporting Data: Algae-based omega-3s are gaining traction as a sustainable alternative, with R&D investments by companies like BASF SE.

• Future Potential: Expanding applications in infant nutrition, functional foods, and pharmaceuticals.

5. Functional Beverages

Health ingredients are transforming the beverage industry, with innovations in functional drinks.

• Why It’s Growing: Demand for convenient, health-boosting solutions is driving this trend.

• Supporting Data: The food & beverage segment led the market in 2023, driven by fortified drinks and clean-label products.

• Future Potential: The rise of kombucha, protein shakes, and immunity-boosting drinks will continue to expand this segment.

Barriers to Entry

1. Regulatory Hurdles

Strict regulations, such as the EFSA’s requirements for health claims, make market entry challenging.

• Solution: Invest in scientific research to meet regulatory standards and collaborate with experienced regulatory consultants.

2. Supply Chain Disruptions

Raw material shortages and geopolitical tensions pose challenges.

• Solution: Diversify supply chains and invest in sustainable, alternative sources like algae-based omega-3s.

3. High R&D Costs

Developing innovative health ingredients requires significant investment.

• Solution: Form strategic partnerships to share costs and leverage AI for efficient product development.

Actionable Insights

1. Innovate for Personalization: Leverage biotechnology to create personalized health ingredients that cater to specific consumer needs.

2. Invest in Sustainability: Focus on sustainable sourcing and production methods to meet consumer demand for eco-friendly products.

3. Collaborate and Partner: Strategic collaborations, like ADM’s protein expansion or DSM’s acquisition of Glycom, can accelerate innovation and market access.

4. Leverage AI and Data: Use AI to optimize formulations, predict market trends, and develop targeted marketing strategies.

Conclusion

The global health ingredients market presents immense opportunities in personalized nutrition, plant-based proteins, and functional beverages. Businesses that innovate, prioritize sustainability, and overcome regulatory hurdles will thrive in this growing market.