Nutraceutical excipients are ingredients that are added to supplements including vitamins, minerals, amino acids, botanicals, and fatty acids to facilitate drug delivery and pharmaceutical formulation. They are used in various applications such as binders, disintegrants, antacids, stabilizers, and others. Nutraceutical excipients help improve the solubility, taste, texture, stability, and bioavailability of supplements.
The global nutraceutical excipient market is estimated to be valued at US$ 2680.29 Mn in 2023 and is expected to exhibit a CAGR of 3.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
There is a growing demand for customized formulations with specific health benefits. This has prompted manufacturers to focus on development of innovative delivery systems and excipients. Developing multifunctional excipients that can facilitate targeted and controlled release designed for specific health conditions is an area of focus. Novel excipients that help mask unpleasant tastes and improve bioavailability offer significant growth potential. Moreover, the use of nanotechnology in development of innovative excipients for enhancing solubility and bioavailability of nutraceutical ingredients provides lucrative opportunities.
Porter’s Analysis
Threat of new entrants: Low capital requirements and established customers make it easy for new players to enter the market. However, presence of major players and regulatory compliance poses a challenge.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and standardized products. Their needs can be easily met by other players.
Bargaining power of suppliers: Suppliers have high bargaining power owing to requirement of specialized raw materials and need to adhere to stringent purity and safety standards. This makes it difficult for buyers to switch suppliers.
Threat of new substitutes: New substitutes pose medium level threat as excipients work in synergy with other actives. Switching would require reformulation posing high costs.
Competitive rivalry: Fierce due to presence of global & regional players offeringsimilar products. Industry players differentiate through innovation, quality & service.
SWOT Analysis
Strengths: Growing health awareness. Superior functionality in delivering bioavailability and stability.
Weaknesses: Regulatory compliance increases costs. Supply chain disruptions affecting timely delivery.
Opportunities: Personalized nutrition trend driving demand. Scope in emerging markets of Asia Pacific and Latin America.
Threats: Stringent regulation delays product approvals. Supply shortage due to pandemic affecting production.
Key Takeaways
The global nutraceutical excipient market is expected to witness high growth over the forecast period supported by increasing health and wellness trend.
Regional analysis: The Asia Pacific region provides lucrative opportunities and is expected to grow at a high CAGR during the forecast period. This is attributed to increasing healthcare expenditure, rapid urbanization, and growing middle class in populous countries like India and China accepting western lifestyle. However, lack of regulatory framework is a challenge.
Key players related content: Key players operating in the nutraceutical excipient market are 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.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it