Global Nutraceuticals Market
Consumer’s view of nutritional products as the key to managing health has been driving the global nutraceutical industry. The global nutraceutical market was valued at around USD 383.06 billion in 2016 and is expected to reach around USD 561.38 billion by 2022, at a CAGR of 6.8% from 2017 to 2022.
Lifeway introduced a new supplement range of Women’s Radiant Health, Traveler’s Defense + Immunity and Balance Gut Health.
PepsiCo. introduced Sting, an energy drink, in India. Sting is priced lower than Red Bull, which gives it an advantage in the market.
The current consumer trend is to be preventive rather than react to the health issues, which involve huge healthcare costs in developed countries. There is a shift in the consumer preference from synthetic ingredients to natural and organic ingredients and foods that are obtained from non-GMO (Genetically Modified Organism) extracts. Consumers prefer the nutraceutical foods to pharmaceutical drugs.
Developing nutrients based on an individual’s genetics and lifestyle changes would help in developing customized functional foods and beverages, based on the genetic segment.
Major food and pharma companies are using M&A route to acquire pure-play nutraceutical companies to enter the nutraceutical market. Although, not a major revenue booster, the pharmaceutical companies find higher margins through nutraceutical products.
The nutraceutical products industry is also seeing major changes in its operations in order to meet the FDA's new Dietary Supplement Current Good Manufacturing Practices (DS CGMPs). The severely limited consumer awareness in developing countries of the nutraceutical ingredients needs to be taken up by manufacturers to spread awareness about products, as people buy benefits and not ingredients.
Nutraceuticals Market Segmentation
The nutraceutical market mainly constitutes functional foods and beverages and dietary supplements. Dietary supplements are present in the form of tablets, capsules and liquids. The nutraceutical ingredients include pre-biotic and pro-biotic vitamins, minerals, fibers, proteins, omega 3 and structured lipids, amino acids and various other ingredients. Foods fortified with omega fatty acids are expected to grow by 6.8% during the forecast period.
Nutraceutical ingredients find application right from cereals, grains, nuts, vegetables, fruits, dairy products, poultry products, sea food and confectionery items to non-alcoholic beverages like juices, energy drinks, sports drinks, etc. Few examples of functional foods are yogurts with pro-biotics, drinks with herb blends, soya beverages rich in proteins, etc. The functional food category is seeing the highest growth in energy drinks, healthy snacks and breakfast products.
The spear heading nations in the global nutraceutical market are the United States, Japan, Israel and Germany. Rising consumption of dietary supplements among the baby boomer generation and booming food and beverages market is driving the US nutraceutical market. The United States is still expected to dominate functional food market followed by Asia-Pacific. 47% of the Japanese population consumes nutraceutical products, which can be contributed to the growing aging population.
Nutraceuticals Market Segmentation I frame
Germany, the Netherlands and Sweden have emerged as the key nutraceutical innovation hubs in Europe, while the United Kingdom and Spain have emerged as the key test markets for new products, with the European consumers demanding energy providing products that promote healthy teeth, strong bones, prevent digestive health issues, boost immune system and lower cholesterol.
Factors Driving the Nutraceuticals Market
Growing affluent middle -class populations with their increasing disposable incomes in developing countries.
Women and senior citizens preferring a good digestive health.
Physiological benefits of functional foods, which reduce the risk of chronic diseases related to cardiovascular problems and diabetes.
Lower R&D and regulatory burdens for pharmaceuticals in their nutraceutical segment, when compared to their prescription and OTC drugs.
Opportunities for the Nutraceuticals Companies
Most companies see growth opportunities in targeting the consumers below the age group of 40 years, with about 60% interested in raising their protein intake to get through their busy day, having a firm and healthier body, meeting their weight goals, and for a balanced diet.
Consumers aged above 60 years are unaware of the health benefits provided by nutraceutical foods and nutraceutical drinks. Companies targeting this segment can grow in this niche category.
Food products with labels of gluten-free, free from artificial additives and preservatives are the strategies being adopted by food companies to drive customers to make healthier lifestyle choices, thus increasing sales.
Brands such as Activia and Yakult are targeting women and aged citizens for their probiotics dairy products to improve digestive health. In the United States, functional food market is dominated by global players such as Coca-Cola Co., Dean Foods, General Mills Inc., Kellogg Co., Kraft Foods, Nestle S.A. and Pepsi Co.
Key Deliverables in the Study
Market analysis for the global nutraceuticals market, with region-specific assessments and competition analysis on global and regional scale.
Market definition along with the identification of key drivers and restraints.
Identification of factors instrumental in changing the market scenario, rising prospective opportunities and identification of key companies that can influence this market on a global and regional scale.
Extensively researched competitive landscape section with profiles of major companies along with their market share.
Identification and analysis of the macro and micro factors that affect the global wearable medical devices market on both global and regional scale.
A comprehensive list of key market players along with the analysis of their current strategic interests and key financial information.
A wide-ranging knowledge and insights about the major players in this industry and the key strategies adopted by them to sustain and grow in the studied market.
Insights on the major countries/regions where this industry is blooming and to also identify the regions that are still untapped.