Nutritional Oil Powder Market Size and Outlook 2031

Report Description

Forecast Period	2027-2031
Market Size (2025)	USD 3.12 Billion
CAGR (2026-2031)	7.41%
Fastest Growing Segment	Online
Largest Market	North America
Market Size (2031)	USD 4.79 Billion

Market Overview

The Global Nutritional Oil Powder Market will grow from USD 3.12 Billion in 2025 to USD 4.79 Billion by 2031 at a 7.41% CAGR. Nutritional oil powders are functional lipids, such as medium-chain triglycerides or omega-3 fatty acids, transformed into free-flowing particles through microencapsulation to prevent oxidation and enable integration into dry formulations. The market is primarily driven by the growing consumer demand for shelf-stable, convenient delivery formats in sports nutrition and the necessity for versatile ingredients in functional foods. These powders offer superior solubility and handling properties compared to liquid oils, substantially streamlining their incorporation into protein blends, bakery products, and ready-to-mix beverages.

However, the sector faces a significant challenge regarding the high operational costs and technical complexities associated with the encapsulation process, which can elevate final product prices and limit mass-market adoption. Ensuring lipid stability during high-heat drying remains a critical technical hurdle for manufacturers. According to the Global Organization for EPA and DHA Omega-3s, in 2025, the total global volume of omega-3 ingredients reached 131,183 metric tons for the 2024 year. This data highlights the robust demand for core raw materials, even as processing difficulties threaten to impede broader market expansion.

Key Market Drivers

The expansion of the sports nutrition and performance supplement sector acts as a primary catalyst for the nutritional oil powder market, particularly as consumers increasingly favor ketogenic and performance-focused formulations. Manufacturers utilize microencapsulated lipids, such as Medium-Chain Triglycerides (MCTs), to create clean, scoopable powders that integrate seamlessly into protein shakes and pre-workout blends without the mess or separation issues associated with liquid alternatives. This surge in functional powder consumption is evidenced by the robust financial performance of leading brands; according to Glanbia plc, February 2025, in the 'Full Year 2024 Results', their flagship Optimum Nutrition brand delivered a revenue growth of 7.5% on a constant currency basis. Such growth underscores the critical role of stable lipid powders in meeting the evolving dietary requirements of the active lifestyle demographic.

Simultaneously, the growing preference for plant-based and vegan nutritional ingredients is reshaping raw material sourcing, driving a pivot from marine-based omega-3s to algal and seed-oil powders. This shift allows brands to offer allergen-free, sustainable lipid profiles that align with clean-label demands while maintaining oxidative stability through advanced spray-drying techniques. The momentum in this segment is visible in upstream ingredient supply; according to Corbion, August 2025, in the 'H1 2025 Interim Management Statement', the Health & Nutrition segment, which supplies algae-derived omega-3 DHA, recorded a volume and mix growth of 5.0% for the first half of the year. Furthermore, the broader demand for specialized ingredient blends continues to accelerate, as evidenced by Glanbia plc, in 2025, which reported that their Nutritional Solutions division achieved a revenue increase of 14.0% for the prior fiscal year.

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Key Market Challenges

The high operational costs and technical complexities associated with the encapsulation process act as a significant restraint on the global nutritional oil powder market. Converting functional lipids into dry powders involves energy-intensive methods such as spray drying, which inherently increases the cost structure compared to liquid alternatives. These processing expenses make the final ingredients prohibitively expensive for price-sensitive applications, effectively limiting their use to high-end nutritional products rather than high-volume functional foods. Manufacturers must often absorb these costs or pass them on to consumers, a dynamic that dampens demand in broader mass-market segments where affordability is paramount.

Moreover, the technical challenge of maintaining lipid stability during thermal processing amplifies financial risks for producers. The susceptibility of oils to oxidation during drying can lead to product degradation and costly waste, which is particularly detrimental given the premium cost of the base ingredients. According to the Global Organization for EPA and DHA Omega-3s, the global value of omega-3 ingredients rose by over 10 percent to reach 2.38 billion U.S. dollars in 2024. Such high raw material valuations mean that any yield loss due to technical processing errors results in substantial financial setbacks, further discouraging manufacturers from aggressively scaling up production capabilities.

Key Market Trends

The sector is witnessing a pronounced shift toward high-quality lipid powders within the infant formula and early life nutrition segment. Manufacturers are increasingly utilizing microencapsulated DHA and ARA powders to ensure precise nutrient distribution and oxidative stability in dry-blend formulas, effectively replacing liquid oils that complicate the manufacturing process. This specific demand for premium, shelf-stable lipids in specialized nutrition is generating significant value for ingredient suppliers. According to FrieslandCampina, July 2024, in the 'Half-year report 2024', their Specialised Nutrition business group, which includes infant nutrition, reported a revenue increase of 4.8% to 608 million euros for the first half of the year, driven largely by strong performance in the Chinese market.

Simultaneously, the market is expanding through the widespread fortification of general functional foods and beverages, distinct from the niche sports supplement category. Food technologists are leveraging advanced encapsulation technologies to integrate functional oils into bakery items, dairy products, and ready-to-drink beverages without compromising sensory profiles or shelf life. This broader application scope is fueling revenue growth for companies specializing in encapsulation and delivery systems. According to Balchem Corporation, October 2024, in the 'Third Quarter 2024 Financial Results', the Human Nutrition and Health segment achieved sales of 152.3 million U.S. dollars, marking an increase of 5.4% compared to the prior year quarter, supported by higher sales in food and beverage markets.

Segmental Insights

The online distribution segment is recognized as the fastest-growing category within the global nutritional oil powder market, driven by the increasing consumer preference for digital convenience and product accessibility. This growth is primarily fueled by the ability of e-commerce platforms to offer a wider variety of specialized formulations compared to physical retail stores. Furthermore, online channels provide extensive product information and ingredient transparency, which empowers health-conscious buyers to make informed purchasing decisions. This shift is supported by improvements in global logistics and the rising trend of direct-to-consumer sales models.

Regional Insights

North America holds the leading position in the Global Nutritional Oil Powder Market, primarily driven by heightened consumer awareness regarding health and wellness. The region exhibits strong demand for functional ingredients such as Omega-3 and MCT oil powders, which are utilized extensively in dietary supplements and sports nutrition products. This dominance is further supported by a mature industrial infrastructure that employs advanced encapsulation technologies to ensure product stability and high quality. Additionally, the rising preference for plant-based and clean-label ingredients has accelerated market adoption across the United States and Canada, reinforcing the region's commercial authority.

Recent Developments

In October 2024, Lycored launched a new dry delivery format for its tomato-derived nutritional oil extract, branding the product as Lycomato6 Beadlets 5%. This product launch introduced a microencapsulated beadlet form of the company's flagship phytonutrient complex, which contains lycopene and other tomato-based nutrients known for supporting healthy aging and cellular wellness. The development of this beadlet technology was designed to offer manufacturers a stable, free-flowing powder alternative to traditional liquid oils, facilitating the incorporation of these oil-soluble nutrients into a wider range of applications such as gummies, capsules, and powdered beverages.
In May 2024, CoreFX Ingredients announced the acquisition of Connoils LLC, a company specialized in nutritional oil powders and specialty oil distribution. This strategic move was aimed at expanding CoreFX's technical capabilities in the Global Nutritional Oil Powder Market by integrating Connoils' expertise in powder delivery systems. The acquisition provided CoreFX with access to advanced encapsulation technologies that minimize heat during processing to preserve the potency and nutritional value of active oil ingredients. This consolidation significantly bolstered the company's portfolio of bioavailable, clean-label lipid powder solutions for the health and nutrition industry.
In March 2024, FrieslandCampina Ingredients launched a new range of microencapsulated algae-based nutritional oil powders designed to serve the adult nutrition market. The new products, branded as Biotis DHA FlexP 15 and Biotis DHA FlexP 20, were developed to provide a high load of plant-based omega-3 fatty acids while overcoming common formulation challenges such as sensory issues and solubility. The company utilized its proprietary microencapsulation technology to create these free-flowing powders, which include a high vitamin C content for immune support and are suitable for vegan and vegetarian applications in the food, drink, and supplement sectors.
In March 2024, dsm-firmenich announced a strategic collaboration with SCN BestCo to introduce a new high-dose omega-3 gummy format utilizing advanced powder technology. The partnership involved the commercial application of dsm-firmenich's life’sOMEGA O33-P10, an algae-based nutritional oil, which was encapsulated using the company's proprietary POWDER LOC technology. This innovation allowed for the protection of the sensitive omega-3 oil within a double-shell powder matrix, enabling the delivery of higher concentrations of EPA and DHA in a gummy format while maintaining stability and masking the flavor profile typically associated with marine oils.

Key Market Players

Ming City Biotechnology Ltd.
SMS Corporation
Custom Food Ingredients Sdn Bhd
Alsec Alimentos Secos SAS
The Green Labs LLC
Stepan Company
Arjuna Natural Pvt Ltd
Science Corporation
Bioriginal Food
Crestchem Ltd.

By Type	By Application	By Distribution Channel	By Region
Canola Oil Powder Soybean Oil Powder Sunflower Oil Powder Coconut Oil Powder Palm Oil Powder Flaxseed Oil Powder	Food Processing Nutraceutical Animal Nutrition Cosmetic and Personal Care Infant Formula Others	Online and Offline	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Nutritional Oil Powder Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Nutritional Oil Powder Market, By Type:

Canola Oil Powder
Soybean Oil Powder
Sunflower Oil Powder
Coconut Oil Powder
Palm Oil Powder
Flaxseed Oil Powder

Nutritional Oil Powder Market, By Application:

Food Processing
Nutraceutical
Animal Nutrition
Cosmetic and Personal Care
Infant Formula
Others

Nutritional Oil Powder Market, By Distribution Channel:

Online and Offline

Nutritional Oil Powder Market, By Region:

North America

United States
Canada
Mexico

Europe

France
United Kingdom
Italy
Germany
Spain

Asia Pacific

China
India
Japan
Australia
South Korea

South America

Brazil
Argentina
Colombia

Middle East & Africa

South Africa
Saudi Arabia
UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Nutritional Oil Powder Market.

Available Customizations:

Global Nutritional Oil Powder Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

Detailed analysis and profiling of additional market players (up to five).

Global Nutritional Oil Powder Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1. Product Overview

1.1. Market Definition

1.2. Scope of the Market

1.2.1. Markets Covered

1.2.2. Years Considered for Study

1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market

3.2. Overview of Key Market Segmentations

3.3. Overview of Key Market Players

3.4. Overview of Key Regions/Countries

3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Nutritional Oil Powder Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Type (Canola Oil Powder, Soybean Oil Powder, Sunflower Oil Powder, Coconut Oil Powder, Palm Oil Powder, Flaxseed Oil Powder)

5.2.2. By Application (Food Processing, Nutraceutical, Animal Nutrition, Cosmetic and Personal Care, Infant Formula, Others)

5.2.3. By Distribution Channel (Online and Offline)

5.2.4. By Region

5.2.5. By Company (2025)

5.3. Market Map

6. North America Nutritional Oil Powder Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Type

6.2.2. By Application

6.2.3. By Distribution Channel

6.2.4. By Country

6.3. North America: Country Analysis

6.3.1. United States Nutritional Oil Powder Market Outlook

6.3.1.1. Market Size & Forecast

6.3.1.1.1. By Value

6.3.1.2. Market Share & Forecast

6.3.1.2.1. By Type

6.3.1.2.2. By Application

6.3.1.2.3. By Distribution Channel

6.3.2. Canada Nutritional Oil Powder Market Outlook

6.3.2.1. Market Size & Forecast

6.3.2.1.1. By Value

6.3.2.2. Market Share & Forecast

6.3.2.2.1. By Type

6.3.2.2.2. By Application

6.3.2.2.3. By Distribution Channel

6.3.3. Mexico Nutritional Oil Powder Market Outlook

6.3.3.1. Market Size & Forecast

6.3.3.1.1. By Value

6.3.3.2. Market Share & Forecast

6.3.3.2.1. By Type

6.3.3.2.2. By Application

6.3.3.2.3. By Distribution Channel

7. Europe Nutritional Oil Powder Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Type

7.2.2. By Application

7.2.3. By Distribution Channel

7.2.4. By Country

7.3. Europe: Country Analysis

7.3.1. Germany Nutritional Oil Powder Market Outlook

7.3.1.1. Market Size & Forecast

7.3.1.1.1. By Value

7.3.1.2. Market Share & Forecast

7.3.1.2.1. By Type

7.3.1.2.2. By Application

7.3.1.2.3. By Distribution Channel

7.3.2. France Nutritional Oil Powder Market Outlook

7.3.2.1. Market Size & Forecast

7.3.2.1.1. By Value

7.3.2.2. Market Share & Forecast

7.3.2.2.1. By Type

7.3.2.2.2. By Application

7.3.2.2.3. By Distribution Channel

7.3.3. United Kingdom Nutritional Oil Powder Market Outlook

7.3.3.1. Market Size & Forecast

7.3.3.1.1. By Value

7.3.3.2. Market Share & Forecast

7.3.3.2.1. By Type

7.3.3.2.2. By Application

7.3.3.2.3. By Distribution Channel

7.3.4. Italy Nutritional Oil Powder Market Outlook

7.3.4.1. Market Size & Forecast

7.3.4.1.1. By Value

7.3.4.2. Market Share & Forecast

7.3.4.2.1. By Type

7.3.4.2.2. By Application

7.3.4.2.3. By Distribution Channel

7.3.5. Spain Nutritional Oil Powder Market Outlook

7.3.5.1. Market Size & Forecast

7.3.5.1.1. By Value

7.3.5.2. Market Share & Forecast

7.3.5.2.1. By Type

7.3.5.2.2. By Application

7.3.5.2.3. By Distribution Channel

8. Asia Pacific Nutritional Oil Powder Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Type

8.2.2. By Application

8.2.3. By Distribution Channel

8.2.4. By Country

8.3. Asia Pacific: Country Analysis

8.3.1. China Nutritional Oil Powder Market Outlook

8.3.1.1. Market Size & Forecast

8.3.1.1.1. By Value

8.3.1.2. Market Share & Forecast

8.3.1.2.1. By Type

8.3.1.2.2. By Application

8.3.1.2.3. By Distribution Channel

8.3.2. India Nutritional Oil Powder Market Outlook

8.3.2.1. Market Size & Forecast

8.3.2.1.1. By Value

8.3.2.2. Market Share & Forecast

8.3.2.2.1. By Type

8.3.2.2.2. By Application

8.3.2.2.3. By Distribution Channel

8.3.3. Japan Nutritional Oil Powder Market Outlook

8.3.3.1. Market Size & Forecast

8.3.3.1.1. By Value

8.3.3.2. Market Share & Forecast

8.3.3.2.1. By Type

8.3.3.2.2. By Application

8.3.3.2.3. By Distribution Channel

8.3.4. South Korea Nutritional Oil Powder Market Outlook

8.3.4.1. Market Size & Forecast

8.3.4.1.1. By Value

8.3.4.2. Market Share & Forecast

8.3.4.2.1. By Type

8.3.4.2.2. By Application

8.3.4.2.3. By Distribution Channel

8.3.5. Australia Nutritional Oil Powder Market Outlook

8.3.5.1. Market Size & Forecast

8.3.5.1.1. By Value

8.3.5.2. Market Share & Forecast

8.3.5.2.1. By Type

8.3.5.2.2. By Application

8.3.5.2.3. By Distribution Channel

9. Middle East & Africa Nutritional Oil Powder Market Outlook

9.1. Market Size & Forecast

9.1.1. By Value

9.2. Market Share & Forecast

9.2.1. By Type

9.2.2. By Application

9.2.3. By Distribution Channel

9.2.4. By Country

9.3. Middle East & Africa: Country Analysis

9.3.1. Saudi Arabia Nutritional Oil Powder Market Outlook

9.3.1.1. Market Size & Forecast

9.3.1.1.1. By Value

9.3.1.2. Market Share & Forecast

9.3.1.2.1. By Type

9.3.1.2.2. By Application

9.3.1.2.3. By Distribution Channel

9.3.2. UAE Nutritional Oil Powder Market Outlook

9.3.2.1. Market Size & Forecast

9.3.2.1.1. By Value

9.3.2.2. Market Share & Forecast

9.3.2.2.1. By Type

9.3.2.2.2. By Application

9.3.2.2.3. By Distribution Channel

9.3.3. South Africa Nutritional Oil Powder Market Outlook

9.3.3.1. Market Size & Forecast

9.3.3.1.1. By Value

9.3.3.2. Market Share & Forecast

9.3.3.2.1. By Type

9.3.3.2.2. By Application

9.3.3.2.3. By Distribution Channel

10. South America Nutritional Oil Powder Market Outlook

10.1. Market Size & Forecast

10.1.1. By Value

10.2. Market Share & Forecast

10.2.1. By Type

10.2.2. By Application

10.2.3. By Distribution Channel

10.2.4. By Country

10.3. South America: Country Analysis

10.3.1. Brazil Nutritional Oil Powder Market Outlook

10.3.1.1. Market Size & Forecast

10.3.1.1.1. By Value

10.3.1.2. Market Share & Forecast

10.3.1.2.1. By Type

10.3.1.2.2. By Application

10.3.1.2.3. By Distribution Channel

10.3.2. Colombia Nutritional Oil Powder Market Outlook

10.3.2.1. Market Size & Forecast

10.3.2.1.1. By Value

10.3.2.2. Market Share & Forecast

10.3.2.2.1. By Type

10.3.2.2.2. By Application

10.3.2.2.3. By Distribution Channel

10.3.3. Argentina Nutritional Oil Powder Market Outlook

10.3.3.1. Market Size & Forecast

10.3.3.1.1. By Value

10.3.3.2. Market Share & Forecast

10.3.3.2.1. By Type

10.3.3.2.2. By Application

10.3.3.2.3. By Distribution Channel

11. Market Dynamics

11.1. Drivers

11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)

12.2. Product Launches (If Any)

12.3. Recent Developments

13. Global Nutritional Oil Powder Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry

14.2. Potential of New Entrants

14.3. Power of Suppliers

14.4. Power of Customers

14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. Ming City Biotechnology Ltd.

15.1.1. Business Overview

15.1.2. Products & Services

15.1.3. Recent Developments

15.1.4. Key Personnel

15.1.5. SWOT Analysis

15.2. SMS Corporation

15.3. Custom Food Ingredients Sdn Bhd

15.4. Alsec Alimentos Secos SAS

15.5. The Green Labs LLC

15.6. Stepan Company

15.7. Arjuna Natural Pvt Ltd

15.8. Science Corporation

15.9. Bioriginal Food

15.10. Crestchem Ltd.

16. Strategic Recommendations

17. About Us & Disclaimer

Report Description

Table of content

Figures and Tables

Frequently asked questions

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