Australia Nutraceuticals - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2025 - 2030)

Australia Nutraceuticals Market Analysis

The Australia nutraceutical market reached USD 6.22 billion in 2025 and is projected to reach USD 7.98 billion by 2030, growing at a compound annual growth rate (CAGR) of 5.11%. Australia represents a mature market characterized by steady growth, with an aging population increasingly focused on health maintenance driving purchasing patterns. The combination of population aging, higher disposable incomes, and increased emphasis on preventive healthcare maintains consistent demand, supported by the stringent oversight of the Therapeutic Goods Administration (TGA). While stricter regulations increase compliance requirements, the market presents sustained opportunities as consumers demonstrate willingness to pay premium prices for products with scientific validation and B-Corp certification. Functional foods dominate consumption patterns as consumers integrate nutritional benefits into their daily diet, while dietary supplements experience growth through digital platforms and personalized dosing options. While exports continue to perform well, increased competition from German and New Zealand manufacturers requires Australian companies to focus on scientific innovation for market differentiation.

Australia Nutraceuticals Market Trends and Insights

Growing Consumer Preference for Natural, Organic, and Plant-Based Products

The Australian food market is undergoing a fundamental transformation, driven by changing consumer preferences as evidenced by 79% of the population actively reducing their meat consumption . This significant shift has opened substantial market opportunities in the botanical supplements and functional foods segments. CSIRO's breakthrough in developing nutrient-dense vegetable powders, currently distributed through Coles supermarkets across Victoria, demonstrates the market's innovative response while addressing food waste challenges by diverting more than 200 tons from landfills . The regulatory environment, managed by Food Standards Australia New Zealand, continues to facilitate this transition through established pathways for novel plant-based ingredients, though their recent implementation of green tea extract restrictions reflects their priority on consumer safety. Market participants like v2food are responding to this evolution through strategic acquisitions in the ready meals category, aiming to capture emerging opportunities in the plant-based segment. This pronounced shift in consumer behavior is actively influencing product development strategies, with manufacturers adapting their packaging to prominently feature botanical ingredients, directly addressing the growing demand from health-conscious consumers.

Increasing Health Consciousness and Preventive Healthcare Focus

Australian consumers are increasingly embracing preventive healthcare approaches rather than solely focusing on treating illnesses. This significant shift in consumer behavior has revealed distinct health priorities, with consumers showing substantial interest in bones and joint health, followed closely by mental health concerns, and heart health maintenance. These evolving consumer preferences are directly shaping how companies develop products across various therapeutic areas. Blackmores' achievement of B Corporation certification across its product range demonstrates how sustainability credentials have become crucial in influencing consumer purchasing decisions. The Therapeutic Goods Administration's (TGA) regulatory framework continues to strengthen market confidence through comprehensive pre-market approval processes and Good Manufacturing Practices, enabling Australian brands to establish and maintain strong competitive positions in international markets.

Perceived Taste or Flavor Challenges Especially in Functional Foods and Beverages

Sensory acceptance remains a significant challenge for functional food adoption, as manufacturers invest in flavor masking technologies and palatability enhancement to address consumer preferences. This challenge is particularly evident with botanical extracts and high-potency formulations, where therapeutic dosages can affect taste profiles, especially in children's supplements and elderly nutrition products. Companies are responding through new delivery formats, as demonstrated by Star Combo's TGA-licensed gummy production facility, which serves global markets by providing alternatives to traditional tablets and capsules. The industry's development of texture-modified foods for elderly consumers with dysphagia shows adaptation to specific demographic needs, though research on optimal formulation strategies is still developing. Companies must also navigate TGA labeling requirements, balancing therapeutic claims with consumer-friendly product descriptions while maintaining product palatability.

Other drivers and restraints analyzed in the detailed report include:

1. Expansion and Convenience of Online Retail Channels Facilitating Access and Product Variety
2. Innovations in Nutraceutical Product Formulations Enhancing Efficacy and Appeal
3. Product Shelf-Life and Storage Requirements Limiting Distribution Channels

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Functional foods dominate the market with a substantial 47.11% share in 2024, reflecting a significant shift in consumer behavior. Modern consumers demonstrate a clear preference for obtaining their nutritional requirements through everyday meals rather than relying on separate supplementation methods. This trend indicates a broader movement toward integrating health-conscious choices into regular dietary habits.

The dietary supplements segment demonstrates strong market dynamics, with anticipated growth projections of 5.92% CAGR through 2030. This growth trajectory is fundamentally supported by increasing demands from aging populations seeking health and wellness solutions, alongside the segment's strategic emphasis on therapeutic applications. The demographic landscape in Australia underscores this trend, with individuals aged 65 years and over representing 17.1% of the population in 2024, highlighting a sustained shift toward an aging demographic profile . The industry has successfully adapted to evolving consumer needs by developing and implementing personalized nutrition solutions, a strategy that has yielded positive results, as evidenced by Blackmores' notable performance with a 7.7% revenue increase in Q1 2025.

The Australia Nutraceuticals Market Report is Segmented by Product Type (Functional Food, Functional Beverage, and Dietary Supplements), and Distribution Channels (Supermarkets and Hypermarkets, Convenience Stores, Specialty Stores, Online Retail, and Others). The Market Forecasts are Provided in Terms of Value (USD).

List of Companies Covered in this Report:

1. Herbalife Nutrition
2. Kellanova
3. General Mills
4. PepsiCo
5. Nestlé
6. Pure Harvest Pty Ltd
7. Remedy Drinks
8. Frucor Suntory Australia Pty Ltd
9. Health & Happiness (H&H) Group
10. Pharmacare Laboratories Pty Ltd
11. Bayer Australia Ltd
12. GSK Consumer Healthcare Australia
13. Blackmores Limited
14. Swisse Wellness Pty Ltd
15. Star Combo Pharma Ltd
16. Vitaco Health Group Ltd
17. Melrose Health Group Ltd
18. The Chia Co
19. Body Science International
20. Nutritional Growth Solutions

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support