Date : July 30, 2022
Share on :

Providing exceptional health benefits to consumers, nutraceuticals are expected to gain higher momentum in the global market by 2027.

Providing exceptional health benefits to consumers, nutraceuticals are expected to gain higher momentum in the global market by 2027.
A nutraceuticals is a substance that is either a food or a component of a food that has medicinal or health benefits, such as illness prevention and treatment. There are many types of nutraceuticals products available in the markets that are used for varied applications. These nutraceuticals products contains fortified nutrients like calcium, zinc, CoQ10, omega-3, taurine, and antioxidants that promote consumers' overall health. These nutrients also help to prevent medical problems like heart disease, hypertension, diabetes and allergies. Nutraceuticals are becoming increasingly popular as customers' digestive and immunological systems improve, and their cognitive behavior improves. They also contain naturally occurring compounds like garlic, ginseng, and other herbal goods like photochemical produced from plants, in addition to vitamins. Fibers, both soluble and insoluble, are also included. Nutraceuticals sales have been continuously increasing, and this trend is projected to continue as more aggressive marketing initiatives are introduced. Nutraceutical products can be considered non-specific biological therapies used to promote general well-being, control symptoms, and prevent malignant processes. The rising demand for nutraceuticals with medicinal benefits is one of the major factors driving the market.

According to the research report title “Global Nutraceuticals Market Outlook, 2027”, published by Bonafide Research, The market size was more than $ 400 billion in 2021. By region, North America & Asia-pacific covers majority of nutraceuticals market share in 2021, followed by Europe. The USA and Japan is the main contributor to this industry. The rise in healthcare costs, combined with an increasing older population, is said to be the primary driver of the functional food industry's expansion in Japan. Over the years, the high obesity rates in these countries have spurred the market for healthy foods and nutritional supplements. Apart from these, additional rising economies where the trend of nutraceuticals intake is progressively gaining popularity include Venezuela, Colombia, Argentina, and Chile.

The high mortality rate coupled with growing consumer awareness about health-beneficial products is the central force that is driving the nutraceutical market in the Asia-Pacific region. The rapidly ageing demographic profiles of various economies in the Asia-Pacific region, such as Japan, India, Australia, and China, have provided a huge opportunity for the nutraceutical industry to gain higher revenues. From the obtained data, it has been estimated that the Asia-Pacific region has been one of the forerunners in the nutrition supplement market. There has also been an increase in the number of nutrition care professionals such as nutritionists and dietitians, which has resulted in accelerated awareness related to functional food products and dietary supplements. The population across the continent has been constantly leaning towards a healthier lifestyle option through the higher adoption of nutraceutical products. The rise in per capita disposable income in the region’s various economies has resulted in increased spending on functional food and dietary supplements. Also, consumers in the region are becoming increasingly conscious about their diets, propelling the growth of the nutritional supplement market.

As for the North America region, increasing consumer awareness regarding their health and food habits is fuelling the market growth for the nutraceutical industry. Further, North America's nutraceutical market growth is primarily driven by an increase in demand for non-carbonated products owing to accelerating demand for gluten-free, clean, and low-calorie drinks. In recent years, consumer interest in a balanced diet has resulted in a booming food and beverage industry across many developing economies. From the research, it is estimated that in the North America region, nutraceutical demand is heavily increasing among baby boomers, millennial, and women. Needs for fiber, antioxidants, heart-healthy ingredients, vitamins and minerals, omega-3 fatty acids, vitamin D, calcium, and whole grains are being fulfilled by nutraceutical products. The concept of nutraceuticals is very widespread across the North American region, with more than 60% of the population living in the US and Canada claiming themselves to be regular users of nutraceutical products. Also, the revenues of the North American nutraceutical market have been strengthened by the ageing problem.

The USA is the most preferred destination for the trade of nutraceuticals across the globe and is a major exporter as well as importer of such products. The US nutraceutical market is expected to register increasing growth during the upcoming timeframe, owing to the rising efforts of the market players to spread awareness amongst people about the additional benefits of nutraceutical products. In addition to that, the higher market growth in the USA will largely be driven by the functional food and beverages segment, whose popularity is anticipated to increase by 2027. Many internationally renowned beverage manufacturers, such as PepsiCo and Coca-Cola, are headquartered in the USA. Further, many companies are attempting to broaden their product lines and incorporate a higher number of natural substances into their offerings, which is expected to boost the demand for nutraceuticals across the country.

The global nutraceuticals market is mainly categorized into three types i.e. functional food, functional beverages and dietary supplements. Functional food is described as, the food that provides nutrition and medicinal support in order to reduce the risk of diseases. A functional beverage is a liquid food that is promoted to highlight specific product elements or supposedly provide health benefits. Dairy beverages, sports and performance drinks, energy drinks, ready-to-drink teas, "smart" drinks, fortified fruit drinks, plant milks, and enriched water are examples of functional beverages. The functional food segments captured the largest market share in the year 2021. Basically, there are two types of functional foods. The conventional functional foods are natural and are rich in antioxidants, vitamins, minerals and probiotics etc. nutrition factors. On the other hand, to enhance a food's beneficial properties, it has been fortified with additional components such as vitamins, minerals, probiotics, or fibers. Functional foods include nutrient-dense foods like fruits, vegetables, and legumes, as well as fortified meals like juice, eggs, and cereal.

Further, for the European region, the concept of nutraceuticals arose first in the UK, Germany, and France, where diets were rated higher by consumers. However, the European nutraceutical market is highly competitive with the presence of numerous international and domestic players. Also, the European nutraceutical industry is focusing on innovation and new product development. Significant changes in consumer lifestyle driven by continuous enhancement in the functional food industry are creating myriad growth opportunities. Germany has around 82 Million consumers, which makes it the largest food and beverage retail market across the European region. Furthermore, consumers in Germany demand high-quality products, including organic, health, and wellness food and beverage products. Also, the nutraceutical market in Germany is benefitted by the strong economy and low unemployment rate. According to the Agricultural Market Information Company (AMI), in 2018, organic product demand has grown by around 8% in Germany.

By functional beverages type, the energy drinks market has the highest share around 40% in 2021 and it is going to be dominated in the forecast period. The other functional beverages are sports drink, dairy & dairy alternative drinks and fortified juices. The dairy & dairy alternative segments is going to be fastest growing segments in upcoming year. The dietary supplements type includes vitamin & mineral, amino acid or proteins, botanical and probiotics. Self-caring is very common trend nowadays and this factor will boost up the market growth for dietary supplements. The dietary supplements cover a wide range of application like cardiac health, diabetes, bone & joint pain relief, weight-energy management and digestive health.

By functional foods type, the market is classified as bakery & cereals, dairy products, meat, fish & eggs, soy products and fats & oils. Among them, the soy products segment is growing with the fastest CAGR in up-coming years. The bakery and cereal industries invest much in developing helpful and nutritional products, thus there are constant advancements. Because of the growing awareness of the nutritional benefits and acceptability of nutraceuticals supplements, the usage of nutraceuticals by athletes and sportsmen is rapidly increasing. The most popular nutraceuticals supplement among athletes is branched-chain amino acids (BCAA). With a large number of participants, the global baked food and cereal market is fragmented. These nutraceuticals products are distribute at different channels like supermarkets &hypermarkets, convenience stores, drug and pharmacies, online retail stores and other distribution channels. Consumers can easily reach any near physical shop, which offer products at reasonable pricing are the reason for convenience stores sales.

On the other hand, the South American population has a history of high prevalence of chronic diseases such as diabetes, hypertension, and metabolic diseases. As per the WHO (World Health Organization), more than 60% of the male and female population is overweight or obese across the South American region. Also, the South American region has the highest prevalence of nonalcoholic fatty liver disease (nearly 31%). These factors are creating higher demand for alternative medicine, which can provide health benefits. South America is considered the fourth largest market for functional/healthy foods and nutraceuticals in the world. The population of South America is relatively young and growing. This next generation of South Americans is being raised in a "globalized" world, which means they are aware of global trends and are participating in global economies as consumers and producers. The rising cost of healthcare, the number of entrepreneurs in the nutraceutical industry and the introduction of innovative and effective products are some of the driving factors for the South American nutraceutical market. A shift is observed from synthetic supplements to natural or organic ingredients across various emerging economies in the South American nutraceutical market. From the research, it has been found that 3 out of 4 people in Peru have been including immunity-boosting supplements in their diet.

The growth of the nutraceutical market in the Middle East & Africa region is attributed to the growing number of retail and pharmacy chains. In addition to that, self-medication is a widely adopted concept across the region. Based on that, many consumers avoid visiting healthcare professionals for minor ailments. This trend has contributed to the spread of knowledge about nutraceutical products across the region. Further, the higher enhancement in product offerings by various market players present in the region is one of the major drivers for the nutraceutical market. In GCC, nutraceutical products are highly consumed by the age group of 0–10 years in order to attain proper growth of the developing body. However, the ageing population across the region also increases demand for these products due to additional health benefits.

The global nutraceuticals market is highly competitive with the presence of numerous international and domestic players. Players, such as PepsiCo, Nestle, The Kellogg Company, Herbalife, and Nature's Bounty Inc. are the leaders in the industry as consumers continue to focus on their health; it is becoming increasingly important for retailers and manufacturers to understand consumers' shifting needs in the nutraceuticals industry. The prime factors determining the market players and their positions in the concerned market are the ingredients used, target consumers, and the target market segment.

Bonafide Logo

Providing exceptional health benefits to consumers, nutraceuticals are expected to gain higher momentum in the global market by 2027.

  • Share on :

Contact usWe are friendly and approachable, give us a call.