The demand for vitamins, and consequently for vitamin ingredients, has been on a continuous rise over the past two decades, primarily on account of radical changes in lifestyles and diet patterns. Vitamin deficiency can also occur because of genetic disorders and modern food processing techniques. The number of vitamin deficiency cases is on the rise and will likely lead to an increase in health disorders, and, subsequently, in the consumption of vitamin supplements.
Technavio analysts have narrowed down three key factors that are driving growth in the vitamin ingredients market at a CAGR of 5.3 percent:
Increased Awareness of Lifestyle Diseases
There has been a considerable shift in the lifestyles and diet habits of people over the past two decades. Urbanization and consumerism drove this shift, leading to a rapid rise in the consumption of artificial and synthetic food products. The sedentary lifestyles and a lack of balanced diet have resulted in the increased incidence of lifestyle diseases.
However, people are becoming aware of these problems and, as a result, gradually moving toward functional foods, which are promoted as being beneficial beyond basic nutrition; these products are purported to provide optimal nutrition and reduce the risk of disease occurrence.
The market for functional foods is on a rapid rise with more players entering into this space with various value-added offerings. These functional foods require fortification with various minerals and vitamin ingredients and are branded accordingly. We expect the continuous increase in lifestyle diseases to lead to demand for functional foods and further contribute to the growth of the market over the forecast period.
Use of Vitamin Ingredients in Animal Feed
Animal feed additives represents the largest end-use segment in this market. It contributes a significant share, almost 44%, to the market. Adequate supply of vitamins is essential for animal nutrition and to help them to fight against pathogens.
Demand for meat and poultry products has been growing over the past two decades. Animal products and meat are sources of many amino acids and vitamins that cannot be supplied by plant foods or be synthesized by our bodies. The total meat trade across the globe is expected to expand by 25% over the next decade, primarily driven by markets such as India and China, which together account for about 40% of the global trade.
Increase in demand for quality meat and poultry products warrants nutritious animal feed and therefore drives the demand for animal food supplements. Vitamin ingredients are widely used in the production of feed for poultry and pet animals; hence, growth in the consumption of meat and poultry products will drive the demand for vitamin ingredients.
Growing Application in Cosmetics Industry
The cosmetics industry, despite constituting only 12% of the global vitamin ingredients market, has huge potential in terms of application. The rising disposable incomes of people in emerging economies such as India, Brazil, and China is enabling an increase in discretionary spending, including that on cosmetic purchases.
Vitamins are used in a variety of cosmetic applications, such as skincare, haircare, and scar treatment. Various concentrates of plant and animal-based substrates act as sources for vitamins in cosmetics. The most commonly used vitamins in the cosmetics industry are vitamins A, C, and E; the use of vitamins B3, B5, B6, and K is gaining prominence rapidly.
Consumers perceive cosmetics fortified with vitamins as effective and are ready to pay premium prices. As a result, most cosmetic brands consider the manufacture of vitamin-fortified cosmetics as an attractive business proposition. Another significant driver is the considerably liberal nature of regulations governing the cosmetics industry.