Evolving Consumer Preferences and Growing Affinity toward Natural Ingredients to Accelerate Market Growth
Over the past couple of decades, significant research has been carried out within the food industry to find food products and ingredients that offer the desired levels of nutrition and have no negative effects on the body. Furthermore, evolving consumer interests, tectonic shift toward a healthier lifestyle, and surge in consumer consciousness are some of the factors that have led to the growing demand for niche food products, including nutritional oil powder. The nutritional oil powder market is gradually maturing into a full-fledged industry across the world, as food manufacturers and other stakeholders in the value chain are launching different variants of nutritional oil powder to fulfill the ascending consumer demand, particularly in North America, Europe, and APAC.
Over the past few years, nutritional oil powder are increasingly being used in sports nutrition, cosmetic & personal care products, nutraceuticals, animal nutrition, and the food processing industry. Consumer affinity toward sustainable and natural products and ingredients is another factor that is expected to enhance the adoption of nutritional oil powder during the forecast period (2019-2027). Thus, demand for natural food products is expected to drive the nutritional oil powder market, which is projected to reach a value of ~US$ 2.1 Bn by 2020.
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Nutritional Oil Powder Gains Popularity among Vegans
The shift toward veganism and vegetarianism is a growing trend across the world. The number of vegans and vegetarians has increased at a rapid pace in the past few years, owing to growing consumer awareness pertaining to the ill effects of meat consumption, environmental concerns, and animal cruelty. While vegan and vegetarianism continue to gather traction, consumer trends suggest a substantial surge in the adoption of soybean oil powder. This growth can be primarily attributed to the appropriate blend of protein and high fat content in soybean.
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In recent times, the demand for soybean oil powder has increased at a rapid pace. In 2019, ~92,371 metric tons of soybean oil powder was consumed worldwide, and it is projected that ~133,362 metric tons of soybean oil powder will be consumed by the end of 2027. Moreover, non-vegan consumers are also exploring the potential benefits of other alternatives, including palm oil powder, coconut oil powder, and fish oil powder. Palm oil powder and soybean oil powder are expected to account for a collective market share of ~50 % in 2020, a trend that is expected to continue during the forecast period.
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Stakeholders Expand Product Portfolio of Nutritional Oil Powder
Witnessing a significant surge in consumer demand for healthier and natural food products, stakeholders in the nutritional oil powder market are expected to expand their product portfolio to gain an edge in the current market landscape. Furthermore, participants in the nutritional oil powder market are also formulating effective and impactful marketing strategies to improve their brand value. Manufacturers have identified these two strategies as an effective approach toward expanding their footprint in the nutritional oil market. For instance, in August 2018, Archer Daniels Midland Company expanded its health and wellness product portfolio by introducing Onavita™ algal DHA powder. With the addition of this powder, the company aims to expand its existing product offerings, which include vitamins, botanical extracts, nutritional oils, etc. The newly developed powder can be used in an array of fortified food products and dietary supplements, including powdered beverages and nutritional bars.
Despite increasingly being used across the food processing industry, the adoption of nutritional oil powder in nutraceutical formulations is on the rise. After investing a significant amount of resources on research and development, food manufacturers are venturing into the production of nutraceutical products that offer the required nutritional balance, mouthfeel, stability, and taste, among others. With a market share of ~17%, the nutraceuticals end use segment is expected to account for the second-highest share of the nutritional oil powder market in 2020. Stakeholders are expected to closely monitor evolving consumer interests and develop products in tune with these preferences.
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The nutritional oil powder market is expected to grow at a healthy CAGR of ~6% during the forecast period. The growth of the market can be primarily attributed to evolving consumer preferences, shift toward a healthier lifestyle, research and development, and soaring demand for food products made from natural ingredients. Stakeholders operating in the nutritional oil powder market should focus on their marketing and promotional strategies by leveraging the benefits of digital and social media marketing.
Furthermore, as the e-Commerce sector continues to expand its footprint across the world, companies should promote the functional aspects of their products on these platforms to gain a competitive edge in the nutritional oil powder market.
Nutritional Oil Powder Market: Overview
- TMR has conducted a research on the nutritional oil powder market according to which, the market is estimated to reach ~ US$ 2 Bn in 2019, in terms of value, and is anticipated to reach ~US$ 3.2 Bn by 2027, at a CAGR of ~6%
- Unhealthy eating habits and increasing consumption of fast food increases the risk of chronic disorders. Diabetes, heart problems, cancer, asthma, and other chronic ailments are prevalently occurring around the world. Given the scenario, the importance of a healthy and nutritious diet and superfood is increasing and the trend of health and wellness is rising among urban population. This has resulted in a rise in demand for the nutritional oil powder, serving to the nutritional elements and components.
- The consumer goods sector is expanding due to research and development enabling production and launch of innovative products. Nutraceutical and sports nutrition have seen revolting changes in recent years and their demand is expected to propel in the future, creating significant opportunities for nutritional oil powder producers.
Nutritional Oil Powder: Market Frontrunners
- In terms of product type, the soybean oil powder segment is leading the nutritional oil powder market. As of 2019, it accounts for ~24% of the market share and is expanding at a CAGR of ~5% to emerge dominant with ~27% of the market share by the end of the forecast period
- The conventional nature segment of the nutritional oil powder market is expected to emerge dominant in 2019, in terms of value and volume. The conventional segment accounts for 97.8% of the market share, in terms of value.
- The market is witnessing maximum application in the food processing industry. This end use segment alone accounts for 57% of the market share, while the rest of the market share is held by nutraceutical, animal nutrition, cosmetics & personal care, and sports nutrition segments. The food processing industry comprises bakery and confectionery, meat and seafood, dairy products, beverages, infant formulas, and other sectors.
Nutritional Oil Powder Market: Trends
- The food & beverages industry is currently witnessing high demand from millennials. Consumers nowadays are looking for convenient, healthy, nutritious, and premium products and goods.
- The nutritional oil powder market is experiencing a surge in demand for organic and natural products. Gradual change in the lifestyle of consumers has created awareness about long-term hazardous impact of synthetic ingredients on health. As a result, natural products and ingredients are gaining traction from consumers, fueling the demand for organic and natural nutritional oil powder.
Nutritional Oil Powder Market: Strategies
- Key companies operating in the nutritional oil powder market are adopting new methods of production in order to reach sustainability by expanding their research and development activities
- Manufacturers are trying to penetrate into new and emerging geographies to generate revenue by increasing sales of the products. Business strategies, such as joint ventures, partnerships, and merger & acquisitions are strongly impacting revenue growth of companies, subsequently enabling growth of the market.
Nutritional Oil Powder Market: Regional Overview
- In terms of value, Asia Pacific is expected to lead the nutrition oil powder market with 35.5% share by 2019, in terms of consumption. It is likely to remain strong and retain its position during the forecast period.
- The nutrition oil powder market in Asia Pacific is projected to grow at the highest rate during the forecast period. This market in Latin America is expected to witness strong growth, expanding at a CAGR of ~7%.
Nutritional Oil Powder Market: Players
- Key players operating in the nutritional oil powder market, as profiled in the study, include
- Connoils LLC
- ABITEC Corporation
- Crestchem Ltd.
- Bioriginal Food
- Science Corporation
- Arjuna Natural Pvt Ltd.
- Stepan Company
- The Green Labs LLC
- SMS Corporation
- Alsec Alimentos Secos SAS
- Custom Food Ingredients Sdn Bhd
- Ming City Biotechnology Ltd.