Global Statistics Representing Nutraceutical Products Market Scenario
Nutraceuticals are functional foods that offer physiological benefits and prevent chronic diseases. Their ability to meet the complete dietary and supplementary needs is what makes them highly popular as compared to most healthcare and medicinal products, which, on the contrary, are found to be less effective. Furthermore, the modern-day consumer, who is more health-conscious with the rising prevalence of chronic diseases and sedentary lifestyles, is likely to use nutraceutical products to meet his/her dietary needs. In today’s era of instant fixes and constant time crunches, the nutraceutical products market is expected to witness an exceptional growth rate.
Apart from fulfilling dietary needs, nutraceutical products are also consumed to cure allergies, cancer, diabetes, Alzheimer's, and eye and cardiovascular diseases. They are also viewed as an organic alternative for various other pharmaceutical products. The rise in affordable healthcare awareness about child healthcare because of various government initiatives have compelled manufacturers to offer nutraceuticals for babies. Nutraceuticals’ plethora of benefits and diverse applications drive the growth of the nutraceuticals products market.
Nutraceutical Products Market: Product Life Cycle
Rising health awareness has seen consumers become more conscious of the benefits of foods consumed. In developed economies, the increasing prevalence of chronic illnesses among the expanding geriatric populations is motivating manufacturers to focus on offering nutrient-rich products, which is aiding the growth of the nutraceutical products market.
The product life cycle of nutraceutical products has been broken down into the product life cycle of the various forms of products available in the market since their performance varies significantly.
Gummies, bars, and munchies are expected to be in the nascent stage; however, they are expected to record the highest CAGR owing to their high market attraction. Catchy packaging, availability in an array of flavors, competitive pricing, and attractive labeling are some of the aspects driving the segment’s growth. For instance, a Chinese company, Sirio Pharma Co., Ltd. manufactures nutraceutical gummies with attractive colors, flavors, and textures. The gummies have vitamins, omega-3s, and minerals and include non-GMO (Genetically modified organisms) ingredients that are favored by consumers.
The powder form of nutraceutical products is majorly used by professional athletes for muscle gain and supporting dietary needs. Gyms around the world are offering attractive schemes and mixing traditional and fun-to-do workouts to attract consumers of various age groups. As gym goers increase, the likelihood of the demand for powdered nutraceuticals also increases.
Multivitamin drinks and syrups are in the growth stage. Companies are investing significantly to expand their product lines to capture this market segment.
Baby Boomers & Millenials — Key Consumers in the Nutraceutical Products Market
Rapid changes in consumer lifestyle and consumer awareness regarding healthy living, especially in urban areas, are expected to act as tailwinds for the nutraceutical products market. Baby boomers and millennials are the key consumers of nutraceutical products. These sections of the demographic have high interests in sports and are likely to invest in safer health products, such as nutraceuticals, to extend life expectancy and maintain energy levels for daily activities.
Use of Nutraceutical Products in Energy Bars, Protein Powders, & Energy Drinks
In today’s era of time crunch and instant solutions, manufacturers are likely to focus more on energy bars, protein powders, and energy drinks to appeal to the millennial mindset. For instance, Amway has introduced the XS Sports Nutrition Line, a product line for energy drinks. In addition to this, aging consumers look at nutraceuticals as a natural way to rejuvenate traditional medicines. Nutraceuticals help these consumers even slow the aging process and feel younger by providing the necessary energy supplements.
Use of Nutraceutical Products in Pet Foods
Pets are gaining importance among the urban segment of the population, who demand products designed to provide healthy lives for their pets. Nutraceutical products for pets present a lucrative opportunity for market growth. For instance, in the U.S., nutraceuticals for pets are expected to contribute USD 1,600 million in revenues on a yearly basis. A majority of the demand for nutraceuticals for pets comes from horse owners.
Lack of Regulations to Hinder Growth of the Nutraceutical Products Market to Some Extent
The nutraceutical products market is unregulated and lacks product regulations that do not require dietary supplements to be tested with the U.S. Food and Drug Administration (FDA). For instance, nutraceutical products used for weight loss and bodybuilding have considerable side effects on the human body. This could hinder the growth of the nutraceutical product market. For instance, the ingredient yohimbine is used in fat burners and sports training and sports performance enhancers and has severe side effects such as irregular heartbeats, liver failure, and kidney failure. The use of such nutraceuticals is banned is certain countries and available only by doctor prescriptions.
Nutraceutical Products as Dietary Supplements
Nutraceutical products are often consumed as alternatives for traditional medicines. Functional foods such as cereals, dairy products, snack bars, and baby foods are the rapidly growing segment of the nutraceutical products market.
53% of the U.S. army consumes at least one dietary supplement, and 64% of students participating in athletics consume dietary supplements to improve their performance, as per the National Institute of Health. Functional beverages are an emerging market segment and include coffee beans, functional juices, ready-to-drink juices, energy beverages, and functional dairy beverages. Manufacturers are now focusing on manufacturing organic nutraceuticals owing to the rising demand for organic products, which is likely to bring in a change in the manufacturing processes.
Dietary supplements are available in different variations of vitamins, minerals, herbal supplements, and protein supplements. The retail sales of herbal supplements in the U.S. hit record growth, especially in the Ayurveda herbs and herbal dietary supplements segments. The increasing importance of herbal supplements has led to a trend where they are used as ingredients in popular food; for instance, Starbucks recently introduced the Golden Turmeric Latte. This trend is a positive indicator for herbal nutraceutical products and the overall nutraceutical products market.
The U.S. is the Largest Consumer of Nutraceutical Products in North America
The adoption of nutraceutical products is high in developed economies. In North America, the U.S. is the largest consumer of nutraceutical products, with more than half the households in the U.S. having members consuming these products. Consumers in the country consume nutraceuticals in the form of pills and are now turning towards other forms, such as powders, and syrups. Companies have extended their operations to the customization of nutraceutical products for consumers of each demographic segment in the U.S., which is creating growth prospects for the nutraceutical products market.
Key players in the market are mostly located in the U.S. and currently looking for natural ingredients to diversify their product lines. They are channeling efforts to develop new products to cater to the increasing demand for natural substitutes and functional foods and beverages.
There are a plethora of opportunities for nutraceutical products in Asia-Pacific due to the large demographic variations in the region. Japan has a sizable geriatric population, which drives the market growth in the country. According to the EU-Japan Center, the functional food ingredients market is expected to reach a value of USD 2,500 million in the year 2020.
Nutraceutical Products Market: Key Players
Nutraceutical Products Market Segmentation
By Distribution Channel
The Middle East
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