1

Digitization: Multi-functionality and sector convergence – Consumers are increasingly seeking holistic, science-backed solutions that support physical, emotional and mental wellbeing. This demand continues to drive convergence across food, supplements, beauty and pharma, blurring traditional category lines.

Collagen, as an example, remains popular as a multi-functional nutraceutical, serving as a nutricosmetic that promotes “beauty from within” by enhancing skin and hair health, while also supporting gut and joint health as a nutritional ingredient.

2

Branded ingredients as a differentiator – As the market becomes more crowded, ingredient and extract processors are strengthening their B2B brands to ensure their nutraceuticals stand out. Discerning consumers (and therefore the pursuant supply chain of B2C brands and manufacturers) trust branded ingredients that provide greater assurance of superior efficacy, safety and transparency compared to commodity alternatives or lesser-known options.

3

Focus on sustainable sourcing – The industry continues its shift toward clean-label, plant-based and upcycled ingredients with sustainable and transparent supply chains. Developments include sustainably harvested marine collagen (from fish skins and scales), plant-based omega-3 sources (such as algal oil) and upcycled fruit and vegetable extracts derived from food industry by-products.

4

Continued innovations in bioavailability and delivery systems – Advances in bioavailability and delivery systems aim to enhance nutrient absorption and efficacy. Technologies such as nanoencapsulation, liposomal delivery and micelle formulations improve the stability and solubility of active ingredients, enabling targeted delivery and controlled release to optimize nutraceutical performance.

5

Increasing support from AI – Artificial intelligence is assisting the development of clinically backed nutraceutical ingredients by expediting ingredient discovery through rapid data mining, identifying bioactive compounds and predicting efficacy. In addition to shortening R&D cycles, AI supports clinical trials by recruiting qualified participants and analyzing results to uncover trends and measure success.

For investors, the nutraceutical ingredients industry presents promising opportunities for growth and consolidation. For industry players, embracing these themes can help capture market share and drive growth.

Lincoln International’s Consumer Group is uniquely positioned to support sponsors and management teams in navigating the evolving market landscape in 2025, whether seeking strategic acquisitions for growth or planning exit opportunities. Contact us today to explore your path to success in the second half of the year and beyond.

Contributors

Related Perspectives

Meet Professionals with Complementary Expertise in Consumer

Headshot of David Houser

David Houser

Managing Director

Chicago

Five Key Takeaways from Vitafoods Europe 2025

Lincoln International recently attended Vitafoods Europe 2025 in Barcelona, a flagship event bringing together professionals across the global nutraceutical sector which continues to attract significant investor interest and growth. During… Read More

Beauty Independent | Haircare is on the Up and Up

Originally published by Beauty Independent on June 12, 2025 The haircare market offers a high consumption rate and growing sales, leading to optimism about the sector’s future. Styling products and… Read More

The Grocer | Rise of Specialty Ingredients Attracts Investor Interest

Originally published by The Grocer on June 12, 2025  

Image of medical tools

Dental’s Global Sector Health in 2025

We believe the next four quarters are positioned to be a pivotal transactional period for the dental industry, as consolidation trends and technological advancements shape a dynamic and competitive landscape… Read More

Photo of downtown Los Angeles for Ryan O’Toole and Eric Cartier announcement

Lincoln International to hire Ryan O’Toole and Eric Cartier as Managing Directors and Co-Heads of Aerospace and Defense

Lincoln International, a global investment banking advisory firm, is pleased to announce that Ryan O’Toole and Eric Cartier will join in July as Managing Directors in the firm’s Global Industrials… Read More

Abstract graphic

Takeaways + Survey Results from bauma 2025

As a global leader in strategic advisory, Lincoln International joined over 600,000 visitors and 3,600 exhibitors from around the world at bauma 2025, the construction machinery sector’s premier event in… Read More

Image displays office desk tech setup

Tech Services: Pivotal Strategies Amid Tariff Disruptions in 2025

After two years of relative softness for tech services firms, investor optimism was building as 2025 began. Corporates and financial sponsors projected a more consistent growth trajectory for the technology… Read More

Headshot of Ray Usui

Ray Usui

Ray specializes in providing mergers and acquisitions (M&A) advisory services for Japanese companies. He holds deep experience in a wide range of domestic and cross-border transactions, including buy-side and sell-side… Read More

Image displays assorted packaged and manufactured medical devices

Medical Devices Outsourcing and Manufacturing Momentum

The outsourced medical device market continues to attract strong investor interest despite sector challenges, such as the destocking trends seen in 2023-2024 and persistent geopolitical uncertainty, slowing deal activity. High… Read More

image displays rows of product bottles

5 Key Takeaways from PLMA Europe 2025

Lincoln International recently attended the 2025 World of Private Label, hosted by the Private Label Manufacturer’s Association (PLMA). As the largest global gathering of private label professionals—drawing 32,000 attendees from… Read More

Industrial Software Spring 2025 Market Report

Disruptions in the global supply chain have highlighted the importance of high-impact, hard-dollar return on investment supply chain management (SCM) software tools that improve speed, cost, compliance and quality. In… Read More

Image of pets playing.

Key Takeaways from ZOOMARK

Lincoln International recently attended ZOOMARK 2025, the leading international trade show for pet food and pet care. This pivotal event attracted more than 30,000 attendees from 120 countries and over… Read More

Abstract graphic

Ti Insight | Food Logistics: Opportunities for Growth at Scale in a Challenging Marketplace

Published by Ti Insight on May 22, 2025 Food & Beverages: Logistics Market Size Ti forecasts that the global food and beverages logistics market size will grow by 5.9% year-on-year, to… Read More

Headshot of Stefan Urosevic

Stefan Urosevic

Stefan provides mergers and acquisitions (M&A) advisory services to private equity firms, founder-owned businesses and publicly held corporations across the healthcare sector. With a focus on building deep relationships to… Read More

Lincoln International Adds Byron Griffin as Senior Director to Focus on Business Services in Europe

Lincoln International, a global investment banking advisory firm, is pleased to announce the addition of Byron Griffin as Senior Director in its Business Services Group. Based in London, Byron will… Read More

Headshot of Byron Griffin

Byron Griffin

Byron provides mergers and acquisitions (M&A) advisory services to private equity firms and large corporations on both buy-side and sell-side M&A mandates. He has over three decades of experience supporting… Read More

DVZ | Financial Investors Build on the Lego Principle

Published by Deutsche Verkehrs-Zeitung on May 13, 2025 Dirk Engelmann, Managing Director in Lincoln International’s Business Services Group, recently shared his insights with DVZ on the growing consolidation pressures in… Read More

Packaging Quarterly Review Q1 2025

In a major shift toward a more protectionist trade policy, the U.S. administration has announced the implementation of new reciprocal tariffs, including a baseline 10% tariff on all imports (at… Read More

Image displays active nutrition products

Active Nutrition: Trends Shaping the Sector in 2025

In 2024, key trends drove category activity in the active nutrition sector. Now, Lincoln International’s Consumer Health experts have identified key factors poised to influence the active nutrition sector in… Read More

Headshot of Constantijn Crans

Constantijn Crans

Constantijn providers mergers and acquisitions (M&A) advisory services to private equity firms, corporations and entrepreneurs. He has extensive experience executing sell-side and buy-side M&A transactions, as well as corporate carve-outs, capital… Read More

Women’s Wear Daily | Beauty High Stakes: Sell, Shut Down or Keep?

Published by Women’s Wear Daily on April 18, 2025 Ashleigh Barker, Director and head of beauty and personal care in Lincoln’s Consumer Group, recently shared her insights into strategies for… Read More

Abstract graphic

Strategic Shifts in the UK Wealth Management Market: A Deep Dive into Recent Trends and Future Outlook

  The UK’s addressable wealth management market is valued at over £2 trillion, with approximately 30% serviced through the financial advice sector.[1] Despite its considerable size, the industry is still… Read More

Image displays cyber graphic.

Cyber Roadmap: 2025 and beyond

Athletech | Inside the New Fitness Economy

Published by Athletech News on April 8, 2025 Kyle Perreira, Director and leader of Lincoln’s outdoor, fitness and experiential sector, recently provided insights for brands and fitness operators in an… Read More

Image of fitness equipment

State of the Fitness Market: 2025 Edition

2025 Fitness Market Update The fitness industry enters 2025 with strong tailwinds, building on multiple years of sustained growth and transformation. Following the pandemic-era disruptions and inflationary headwinds, 2024 marked… Read More