Global Nutritional Oil Powder Market Size, Share and Trends Analysis Report – Industry Overview and Forecast to 2033

Nutritional Oil Powder Market Size

• The global nutritional oil powder market size was valued at USD 2.79 billion in 2025 and is expected to reach USD 4.46 billion by 2033, at a CAGR of 6.0% during the forecast period
• The market growth is largely fueled by the increasing consumer focus on health, functional foods, and fortified dietary supplements, leading to higher adoption of nutritional oil powders across food, nutraceutical, and infant nutrition applications
• Furthermore, rising demand for plant-based, clean-label, and microencapsulated oil powders that provide stability, convenience, and enhanced bioavailability is driving manufacturers to incorporate these solutions in diverse product formats. These factors are accelerating the uptake of nutritional oil powders, thereby significantly boosting the industry’s growth

Nutritional Oil Powder Market Analysis

• Nutritional oil powders, offering concentrated sources of essential fatty acids, plant-based oils, and micronutrients in free-flowing and stable forms, are becoming critical ingredients in food processing, nutraceuticals, infant formula, and functional beverages due to their ease of handling, extended shelf life, and formulation flexibility
• The escalating demand for nutritional oil powders is primarily fueled by rising health awareness, increasing consumer preference for fortified and functional products, and technological advancements in microencapsulation and spray-drying methods that preserve nutrient potency and improve solubility across applications
• Asia-Pacific dominated the nutritional oil powder market with a share of 34.5% in 2025, due to rising consumption of fortified and functional foods, increasing demand for infant nutrition products, and the presence of key oilseed processing hubs across the region
• North America is expected to be the fastest growing region in the nutritional oil powder market during the forecast period due to robust demand for functional foods, nutraceuticals, and fortified infant formulas
• Conventional segment dominated the market with a market share of 65.7% in 2025, due to its lower production cost, stable supply chain, and extensive usage across mass-market food and animal nutrition applications. Food manufacturers favor conventional oil powders for their consistent quality and scalability in high volume processing. Strong penetration in emerging economies further reinforces the dominance of this segment

Report Scope and Nutritional Oil Powder Market Segmentation       

Nutritional Oil Powder Market Trends

Rising Demand for Microencapsulated and Plant-Based Oil Powders

• A significant trend in the nutritional oil powder market is the growing preference for microencapsulated and plant-based oil powders, driven by the increasing need for functional, stable, and easy-to-use ingredients across food, beverage, and nutraceutical applications
  • For instance, FrieslandCampina Ingredients launched Biotis DHA FlexP 15 and Biotis DHA FlexP 20, algae-based microencapsulated omega-3 powders designed for adult nutrition, addressing solubility and sensory challenges while providing high vitamin content for immune support. Such innovations are enabling manufacturers to meet rising consumer demand for plant-based, functional, and clean-label products
• The demand for tomato-based oil powders and other phytonutrient-rich powders is also increasing as consumers seek products supporting healthy aging, cardiovascular health, and overall wellness. Lycored’s Lycomato6 Beadlets 5% introduces a microencapsulated tomato oil powder that can be easily used in gummies, capsules, and powdered beverages, reinforcing the adoption of stable, functional oil powders in the market
• Nutritional oil powders are increasingly being incorporated into infant formulas, dietary supplements, and fortified foods due to their convenience, free-flowing nature, and enhanced bioavailability. This is promoting innovation in formulation and packaging, enabling manufacturers to create nutrient-dense, consumer-friendly products
• The market is witnessing growth in plant-based omega-3 and specialty lipid powders as consumers adopt vegan and vegetarian diets, creating opportunities for sustainable and alternative oil powder sources. Companies such as dsm-firmenich are leveraging their POWDER LOC encapsulation technology to deliver stable algae-based omega-3 powders for gummies, addressing flavor masking and high-dose delivery challenges
• Overall, the rising adoption of microencapsulated and plant-based oil powders is shaping the market toward more functional, clean-label, and convenient solutions, with manufacturers innovating to meet consumer and regulatory expectations globally

Nutritional Oil Powder Market Dynamics

Driver

Growing Adoption of Functional Foods and Fortified Products

• The rising consumer focus on health, immunity, and balanced nutrition is driving the demand for functional foods and fortified products, which increasingly rely on nutritional oil powders as key ingredients. These powders provide concentrated sources of omega-3 fatty acids, essential lipids, and plant-based nutrients that improve product nutritional profiles while maintaining taste and texture
  • For instance, Cargill supplies soybean and coconut oil powders extensively used in bakery, confectionery, and powdered beverage applications, enabling manufacturers to enhance nutrient density and meet clean-label requirements. Such products are helping companies respond to rising health-conscious consumer demand and regulatory emphasis on fortified and functional foods
• Increasing adoption of powdered oil formats in infant nutrition and nutraceutical sectors is creating additional demand, as these powders allow precise dosage, improved stability, and easier integration into dry mixes. This is supporting market growth and innovation in product development
• The trend toward plant-based diets and vegan-friendly products is also encouraging manufacturers to incorporate algae, flaxseed, and other plant-derived oil powders into functional foods and supplements. Companies such as FrieslandCampina Ingredients and dsm-firmenich are actively developing plant-based, microencapsulated powders to meet this growing demand
• The widespread integration of nutritional oil powders into food, beverage, and supplement portfolios is strengthening the position of manufacturers capable of providing bioavailable, clean-label, and stable powder solutions. The combined impact of health-focused trends and technological advancements is substantially driving market expansion

Restraint/Challenge

Complex Processing and Dependence on High-Quality Raw Materials

• The nutritional oil powder market faces challenges due to the technical complexity involved in producing stable, free-flowing powders through microencapsulation, spray-drying, and other advanced processing techniques. These processes require precise control of temperature, moisture, and encapsulation methods to maintain nutrient integrity and functionality
  • For instance, CoreFX Ingredients’ acquisition of Connoils LLC enabled the integration of advanced powder delivery systems, but also highlights the technical expertise required to maintain oil potency during production. Companies must invest heavily in research, equipment, and skilled labor to ensure consistent quality
• The reliance on high-quality oil sources such as soybean, flaxseed, coconut, and algae introduces supply-side vulnerabilities due to seasonal availability, price volatility, and quality fluctuations. This dependence can affect production planning, cost stability, and scalability for manufacturers
• Maintaining functionality, solubility, and oxidative stability during storage and transport further complicates manufacturing and distribution. These constraints require continuous innovation in encapsulation, antioxidant incorporation, and packaging solutions
• Overall, while demand for nutritional oil powders is growing rapidly, the challenges of complex processing and raw material dependency continue to impact production efficiency, cost management, and widespread market adoption

Nutritional Oil Powder Market Scope

The market is segmented on the basis of type, nature, applications, and distribution channel.

• By Type

On the basis of type, the nutritional oil powder market is segmented into canola oil powder, soybean oil powder, sunflower oil powder, coconut oil powder, palm oil powder, and flaxseed oil powder. The soybean oil powder segment dominated the market with the largest revenue share in 2025, supported by its cost effectiveness, wide availability, and balanced fatty acid profile suitable for large scale food processing. Manufacturers prefer soybean oil powder due to its functional stability, neutral taste, and compatibility with multiple formulations. Its extensive use in bakery, snacks, and processed foods further strengthens its dominant position across developed and emerging markets.

The flaxseed oil powder segment is anticipated to register the fastest growth from 2026 to 2033, driven by rising demand for omega-3 enriched and functional nutrition products. Increasing consumer awareness regarding heart health and anti-inflammatory benefits supports its rapid adoption. The growing use of flaxseed oil powder in nutraceuticals, sports nutrition, and premium functional foods is accelerating segment expansion.

• By Nature

On the basis of nature, the nutritional oil powder market is segmented into organic and conventional. The conventional segment accounted for the largest market revenue share of 65.7% in 2025 due to its lower production cost, stable supply chain, and extensive usage across mass-market food and animal nutrition applications. Food manufacturers favor conventional oil powders for their consistent quality and scalability in high volume processing. Strong penetration in emerging economies further reinforces the dominance of this segment.

The organic segment is expected to witness the fastest growth during the forecast period, fueled by increasing consumer preference for clean label, non-GMO, and chemical free ingredients. Rising demand for organic infant formula, nutraceuticals, and premium food products supports growth. Expanding organic certification frameworks and higher disposable incomes are accelerating adoption.

• By Applications

On the basis of applications, the nutritional oil powder market is segmented into food processing, nutraceutical, animal nutrition, cosmetic and personal care, infant formula, and others. The food processing segment dominated the market in 2025 owing to extensive use of oil powders in bakery, confectionery, sauces, and ready-to-eat products. Oil powders improve shelf life, handling efficiency, and uniform fat distribution, making them highly preferred by food manufacturers. High consumption of processed foods globally continues to support segment leadership.

The nutraceutical segment is projected to grow at the fastest rate from 2026 to 2033, driven by increasing focus on preventive healthcare and functional nutrition. Oil powders enriched with omega fatty acids are widely used in capsules, sachets, and powdered supplements. Rising demand for convenient dosage formats and health focused formulations is accelerating growth.

• By Distribution Channel

On the basis of distribution channel, the nutritional oil powder market is segmented into online, retail shops, hypermarket/supermarket, and convenience store. The hypermarket/supermarket segment held the largest revenue share in 2025 due to strong product visibility, bulk purchasing options, and established consumer trust. These channels offer a wide range of branded nutritional ingredients and facilitate impulse as well as planned purchases. Their dominance is supported by organized retail expansion in urban regions.

The online segment is anticipated to be the fastest growing during the forecast period, driven by increasing digital adoption and demand for direct-to-consumer purchasing. Online platforms provide access to niche, organic, and specialty oil powders with detailed product information. Convenience, wider product assortment, and competitive pricing continue to boost online sales growth.

Nutritional Oil Powder Market Regional Analysis

• Asia-Pacific dominated the nutritional oil powder market with the largest revenue share of 34.5% in 2025, driven by rising consumption of fortified and functional foods, increasing demand for infant nutrition products, and the presence of key oilseed processing hubs across the region
• The region’s cost-effective production capabilities, growing food processing infrastructure, and expansion of nutraceutical and functional food segments are accelerating market growth
• Availability of skilled labor, supportive government initiatives promoting food technology and health-focused products, and rapid urbanization in developing economies are contributing to increased consumption of nutritional oil powders in both food and nutraceutical sectors

China Nutritional Oil Powder Market Insight

China held the largest share in the Asia-Pacific nutritional oil powder market in 2025, owing to its strong food processing industry, large-scale oilseed production, and growing adoption of functional and fortified foods. Companies such as Cargill and Wilmar operate major oil extraction and powder production facilities in China, supporting domestic and international demand. The country’s favorable policies promoting food technology, combined with increasing consumer health awareness, are further boosting the market.

India Nutritional Oil Powder Market Insight

India is witnessing the fastest growth in the Asia-Pacific region, fueled by rising demand for infant formula, dietary supplements, and fortified food products. Government initiatives promoting nutrition, such as the National Nutrition Mission, along with investments from companies such as Adani Wilmar and Ruchi Soya Industries in oilseed processing and functional ingredients, are strengthening market expansion. Increasing exports of nutraceutical and food-grade oil powders also contribute to rapid growth.

Europe Nutritional Oil Powder Market Insight

The Europe nutritional oil powder market is expanding steadily, supported by stringent food safety regulations, high consumer demand for organic and clean-label ingredients, and growing adoption of fortified foods and supplements. Companies such as DSM Nutritional Products and Cargill are focusing on high-quality, plant-based oil powders tailored for food and nutraceutical applications. Rising investments in sustainable production and functional food innovation are further driving market growth.

Germany Nutritional Oil Powder Market Insight

Germany’s nutritional oil powder market is driven by its advanced food processing industry, strong focus on R&D, and adoption of premium and specialty oil powders for infant nutrition, bakery, and health supplements. Firms such as ADM and Südzucker are investing in encapsulation and microencapsulation technologies to maintain nutrient stability and improve shelf life. The country’s regulatory compliance and export-oriented production model support continuous innovation in functional ingredients.

U.K. Nutritional Oil Powder Market Insight

The U.K. market is supported by a mature food and nutraceutical sector, growing consumer preference for plant-based and fortified foods, and increasing focus on R&D in specialty oils and functional ingredients. Companies such as Tate & Lyle and DSM are actively expanding their portfolio of omega-3 enriched and powdered vegetable oils. Collaboration between industry and research institutions is enhancing product development and adoption across the food and supplement sectors.

North America Nutritional Oil Powder Market Insight

North America is projected to grow at the fastest CAGR from 2026 to 2033, driven by robust demand for functional foods, nutraceuticals, and fortified infant formulas. Increasing health awareness, growing vegan and plant-based product adoption, and technological advancements in spray-drying and encapsulation methods are fueling demand. Presence of leading suppliers and strong distribution networks are further supporting market growth.

U.S. Nutritional Oil Powder Market Insight

The U.S. accounted for the largest share in the North America market in 2025, underpinned by its expansive food processing and nutraceutical industries, advanced R&D infrastructure, and significant investments in functional and specialty oil powders. Companies such as Cargill, ADM, and Kerry Group are key players supplying soybean, flaxseed, and coconut oil powders. The country’s emphasis on regulatory compliance, clean-label ingredients, and innovation continues to reinforce the adoption of nutritional oil powders across multiple sectors.

Nutritional Oil Powder Market Share

The nutritional oil powder industry is primarily led by well-established companies, including:

• ABITEC (U.S.)
• Bioriginal Food & Science Corp (Canada)
• ARJUNA NATURAL PVT LTD (India)
• STEPAN COMPANY (U.S.)
• SMScor (U.S.)
• Ming Chyi Biotechnology Ltd. (Taiwan)
• Yantai Shuangta Food Co., LTD (China)
• Coconut Product Manufacturing (India)
• Shivam Castor Products Private Limited (India)
• Natural Biofresh (India)
• Pruthvi's Foods Private Limited (India)
• Mahalaxmi Industries (India)
• Arora Aromatics Pvt. Ltd. (India)
• Neo Sanjivani (India)

Latest Developments in Global Nutritional Oil Powder Market

• In October 2024, Lycored launched a new dry delivery format for its tomato-derived nutritional oil extract, branded as Lycomato6 Beadlets 5%. This product introduced a microencapsulated beadlet form of the company’s flagship phytonutrient complex containing lycopene and other tomato-based nutrients. The launch offers manufacturers a stable, free-flowing powder alternative to liquid oils, enabling easier incorporation into gummies, capsules, and powdered beverages. The development is expected to expand the use of tomato-based phytonutrients across functional foods and dietary supplements, enhancing Lycored’s presence in the nutritional oil powder market and addressing demand for clean-label, shelf-stable solutions
• In May 2024, CoreFX Ingredients completed the acquisition of Connoils LLC, a company specializing in nutritional oil powders and specialty oil distribution. This strategic move strengthened CoreFX’s technical capabilities by integrating Connoils’ expertise in advanced powder delivery systems, particularly microencapsulation that preserves nutrient potency during processing. The acquisition enhances CoreFX’s portfolio of bioavailable, clean-label lipid powders, enabling the company to meet the rising demand for functional and fortified food applications in the global nutritional oil powder market
• In March 2024, FrieslandCampina Ingredients introduced a new range of microencapsulated algae-based nutritional oil powders, branded as Biotis DHA FlexP 15 and Biotis DHA FlexP 20, targeting the adult nutrition segment. These powders provide high concentrations of plant-based omega-3 fatty acids while addressing formulation challenges such as sensory issues and solubility. By offering free-flowing, vitamin C-enriched powders suitable for vegan and vegetarian applications, FrieslandCampina is supporting the growing trend of plant-based and functional nutrition products in the global nutritional oil powder market
• In March 2024, dsm-firmenich announced a strategic collaboration with SCN BestCo to develop a high-dose omega-3 gummy format using their proprietary POWDER LOC encapsulation technology. The technology protects sensitive algae-based omega-3 oils within a double-shell powder matrix, enabling higher EPA and DHA concentrations while masking marine flavors. This innovation facilitates the expansion of omega-3-enriched gummy products, responding to consumer demand for convenient, functional, and palatable nutritional supplements
• In January 2024, Glanbia Nutritionals launched a new line of powdered omega-3 and medium-chain triglyceride (MCT) oil blends designed for functional beverages and meal replacement powders. Using advanced spray-drying and microencapsulation techniques, these powders offer improved solubility, oxidative stability, and nutrient retention. The development addresses the increasing demand for functional beverage formulations and fortified meal solutions, strengthening Glanbia’s position in the nutritional oil powder market and enabling manufacturers to innovate with high-performance, clean-label oil powders

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