Global Statistics Representing Clinical Nutrition Market Scenario
Clinical nutrition is a practice of ensuring the intake of adequate amounts of nutrients for maintaining good health. It also involves a medical nutrition therapy that uses a clinical approach in managing certain chronic conditions. Clinical nutrition is broadly categorized into enteral nutrition, parenteral nutrition, and infant formula. Rising prevalence of chronic diseases, growing awareness about clinical nutrition, and increasing consumers’ spending on nutritional products are majorly driving the demand for such products. Apart from this, the market is witnessing a considerable surge in the growth on account of the increasing number of preterm births and rising middle-class population in the developing economies. It is estimated that the middle-class population in the low- and middle-income countries would rise from 5% in 2005 to 25% in 2030. China alone is expected to add over 1 billion people by 2030. Rising investments for nutrition also support market growth. For instance, the Power of Nutrition Initiative aims to generate funding of USD 1 billion by 2022 to fight undernutrition.\
In 2017, ischemic heart diseases, stroke, and chronic obstructive pulmonary disorders caused about 1 million death each. Therefore, the importance of clinical nutrition is growing in the dietary management of chronic conditions such as for overweight and obesity, cardiovascular diseases, cancer, and diabetes. The annual economic burden of medical treatment of obesity on the U.S. economy is estimated at around USD 147 billion. Dietary interventions have proven an effective way in the clinical management of obesity, which helps in reducing the cost of medical treatment of obesity significantly. For instance, the dietary intervention can reduce obesity-related costs by up to USD 84.9 billion until 2030.
What Factors are Leading the Market Growth?
Shifting trend towards preventive care is also boosting the demand for various clinical nutrition interventions. Rising awareness pertaining to the disease management of chronic illness has increased the adoption of clinical nutrition products. Manufacturers are striving to increase awareness regarding clinical nutrition. In November 2019, Abbott launched a new television ad film campaign ‘#StrongerTogether’ emphasizing the importance of their proprietary formula to keep in check the muscle loss and strength in the population aged over 40. According to Abbott citing, people over 40, lose 8% of their muscle every decade. This population is also at significant risk of facing disabilities in performing everyday tasks.
The clinical nutrition market, as a whole, is going through a growth phase of the product lifecycle. In the last five years, these products have witnessed a tremendous growth in the adoption, which, in turn, added more value to generating revenues.
Key Categories of Clinical Nutrition
Enteral nutrition, parenteral nutrition, and infant formulas are the primary segments of clinical nutrition.
Infant Formula is the leading contributor to the overall revenue of the clinical nutrition market where it accounts for about 41% share. Rising awareness about infant formulas, growing concerns regarding lactose intolerance, and the rising number of women experiencing new motherhood are the key factors driving the demand for infant formulas. The percentage of lactose intolerance is also high globally. Nearly, 70% of the population is lactose intolerant.
In the last few years, the market has experienced growth in the demand for milk formulas because of heavy ad campaigns. China is among the largest markets for infant formulas in terms of revenue. In September 2019, Nestle announced that, in spite of the falling birth rates in China, its infant formula segment grew by about 5% in the first half of 2019. The company experienced stronger demand for its premium, offering S-26 gold and Illuma. In the same period, the country witnessed a high demand for imported milk formulas. In 2008, the domestic tainted milk scandal had led to the death of several infants due to the addition of chemical melamine to the milk formula. Moreover, increasing spending on infant nutrition is further driving the demand for the product in China. Companies like Nestle are consistently running new ad campaigns to increase awareness regarding the nutritional benefits of their milk formulas.
Enteral Nutrition is another significant category of clinical nutrition in terms of revenue share and market growth. It has been witnessing high investments in the development of new formulas and new products. In March 2017, B. Braun Medical Ltd launched a nutrition drink range called ‘Nutricomp Drink Plus’ in four flavors. The newly launched enteral nutrition is to be prescribed for the dietary management of malnutrition. Similarly, in June 2018, Otsuka Pharmaceutical Factory launched Racol-NF for enteral use. It is a mixture of major nutrients carbohydrates, fats, proteins, minerals, trace elements, and vitamins.
Parenteral Nutrition is also one of the promising fields of clinical nutrition. Growing initiatives supporting the growth of parenteral nutrition and new product launches are increasing the adoption of parenteral nutrition products. In 2018, Baxter collaborated with the American Society for Parenteral and Enteral Nutrition (ASPEN) through SmartPN to reduce the incidences of malnutrition with the appropriate use of parenteral nutrition. In 2018, Baxter, one of the market leaders in parenteral nutrition announced the addition of OLIMEL 7.6% to its olive oil-based parenteral nutrition portfolio. The product is ready to use a solution intended for high-stress patients. The product approved in Canada is available in the standard and triple chamber bag and it combines the highest protein and the lowest glucose concentrations. The market for parenteral nutrition is majorly driven by the rising rate of premature births.
Growing Focus on the Marketing Campaigns to Increase Awareness About Clinical Nutrition Among Adults
By age of consumers, the market is segmented into the geriatric population, adults, children, and infants.
Adults are the leading consumers of clinical nutrition, among others. A large portion of the population of this age group (19–64) relies on clinical nutrition because of their high spending power and rising awareness of clinical nutrition. As per World Bank estimates, nearly 65% of the total population globally falls in the age group of 15–64 and the prevalence of chronic conditions such as diabetes, cancer, and cardiovascular diseases are the highest in this population subset.
Infants Segment to Witness Lucrative Growth
The rising number of marketing campaigns for infant formulas, word of mouth, and aggressive product placement strategies in the offline sales channel are driving the demand for clinical nutrition products, especially infant formula. The popularity of various infant formulas is rising among new parents by social media. Moreover, stores strategically position their products in such a way that it is appealing to the children below 6, which increases the sales of the products.
Analyzing Various Geographies for Clinical Nutrition
The global market is categorized into four geographies: Americas, Europe, Asia Pacific, and the Middle East and Africa (MEA).
North America is dominating the global clinical nutrition market on account of the strong presence of various organizations—such as the American Society for Nutrition and Critical Care Nutrition— focused on increasing awareness about clinical nutrition and the high adoption of enteral formulas in the dietary management of chronic diseases. The prevalence of malnutrition among the older adults in the geriatric care facilities in the developed countries is estimated at 25–60% and 35–60%. Numerous initiatives are being taken to tackle the growing concerns about malnutrition in this population. Moreover, with the increase in life expectancy, the geriatric population among developed regions is expected to grow from 9% in 2010 to 19% by 2050. This is further expected to increase the demand for clinical nutrition.
Europe is one of the prominent markets for clinical nutrition as the region has considerable presence end-users and manufacturers such as Nestle and Fresenius Kabi. The key market players are undertaking certain initiatives to drive market growth. One such notable initiative is ‘United for Clinical Nutrition’ established by Fresenius Kabi in 2019 in Europe. This initiative focuses on assessing the nutritional balance and focus on functional outcomes among critically ill patients across 100 hospitals in 11 European countries namely, Belgium, Austria France, the Czech Republic, Germany, Poland, Hungary, Italy, the U.K, Sweden, and Spain. Nestle is another prominent market player in this region that strives hard to increase awareness about its clinical nutrition products.
Growing geriatric population, rising prevalence of chronic conditions, increasing spending power, and high adoption of infant formulas in China are the primary factors giving impetus to the regional market growth. The number of older adults in the Asia Pacific is projected to almost double from 535 million in 2015 to 1.3 billion by 2050. The region is also witnessing a considerable surge in the prevalence of chronic diseases such as cancer and diabetes. In addition to this, rising disposable income and growing spending on healthcare are further driving the demand for products used in the dietary management of chronic conditions. Despite declining fertility rates in countries like China, the market for infant nutrition is booming, sustaining the product demand.
In spite of the high prevalence of malnutrition and a high burden of chronic diseases in Africa, the adoption of clinical nutrition is the lowest in the region, owing to low spending on healthcare and poor economic conditions. However, with the growing government’s initiatives to tackle the burden of malnutrition, the demand for various enteral nutrition products is expected to rise in Africa. On the other hand, most of the counties in the Middle East are spending heavily on healthcare, but the awareness about clinical nutrition is low. Nevertheless, growing investments in the healthcare sector and the entry of various pharmaceutical and medical device manufacturers in this region is likely to change the regional market dynamics in the coming years.
In terms of market competition, the market is moving towards consolidation. Large established players are acquiring smaller players to expand their portfolio and increase their market share. One of the notable mergers in infant nutrition is between Mead Johnson and Reckitt Benckiser. In 2017, the companies completed their merger that was intended for the geographic expansion of Mead Johnson and the expansion of consumer care portfolios of Reckitt Benckiser. The market is consolidated with the presence of Abbott, Nestle, Baxter, Fresenius Kabi, Reckitt Benckiser, and B Braun. Collaborations, marketing campaigns, and the launch of new products are some other strategies adopted by the market players to increase their market shares.
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