Gummy Market

Gummy Market

The global gummy market is forecast to expand at a CAGR of 12.7% and thereby increase from a value of US$21.4 Bn in 2023, to US$49.4 Bn by the end of 2030.

Attributes	Key Insights
Gummy Market Size (2023E)	US$21.4 Bn
Projected Market Value (2030F)	US$49.4 Bn
Global Market Growth Rate (CAGR 2023 to 2030)	12.7%
Historical Market Growth Rate (CAGR 2018 to 2022)	12.2%

Market Introduction and Definition

Gummy supplements are chewable vitamins designed to resemble gummy candies, available in various colors, shapes, and sizes. The primary ingredients in their production include gelatin, sugar, water, cornstarch, and food colorings. These gummies are particularly popular among children and individuals who find it challenging to swallow or chew traditional pills. Some people prefer gummy vitamins over tablets due to their appealing flavor, lack of distinct odor, and ease of consumption. Gummy vitamin formulations typically include vitamins A, B, C, D, and zinc, with certain variants also containing trace amounts of omega-3 fatty acids.

The projected increase in demand for functional and fortified gummies, the availability of gummy supplements in a variety of flavors appealing to health-conscious consumers, the rising interest in natural products, and the growing demand for vegan gummies are anticipated to be key growth drivers in the forecast period. Additionally, gummies are seen as a convenient and user-friendly format for administering various active ingredients, such as vitamins, minerals, and supplements. This surge in the popularity of gummies as a preferred delivery format is identified as a major factor propelling the growth of the global gummy industry.

Market Growth Drivers

Growing Inclination Towards Preventive Healthcare Source

The increasing emphasis on road safety and catastrophe prevention is a major factor propelling the market for gummies. Healthcare expenses are notably elevated in various global regions, including the US, attributed to higher per capita and out-of-pocket spending within the healthcare sector. This pattern has prompted consumers to turn to health supplements. Moreover, individuals are increasingly adopting personalized healthcare approaches, investing in preventive products and services to address simpler metabolic disorders.

According to the Organization for Economic Cooperation and Development (OECD), Germany, and France witnessed per capita health expenditures of US$7,382.6 and US$6,114.9, respectively, in 2021. The European market is experiencing growth fuelled by a strong emphasis on preventive healthcare systems, robust endorsements, and lifestyle-enhancement products. Vegan and all-natural products are rapidly evolving categories, driven by their widespread popularity. Consumers worldwide exhibit a growing preference for supplements promoting improved gut health.

Market Restraints

Difficulties in Regulatory Approval

Obtaining regulatory approval poses a notable challenge for the global gummy supplements market. In the US, gummy supplement products are not regulated by the US FDA, leading to a lack of consumer confidence in product authenticity and potentially hindering market growth. Producers and distributors of gummy supplements and their components are prohibited from marketing tainted or misbranded goods.

To ensure compliance with the Dietary Supplement Health and Education Act (DSHEA), and other FDA regulations, businesses must thoroughly assess the safety and labeling of their products before market introduction. Failure to do so could result in product recalls, with instances of adverse reactions reported, particularly in the vitamin-related category supporting bone health. It has been observed that exceeding the recommended dosage of these gummy supplements can render them ineffective or trigger allergic reactions.

Risks Associated with Overconsumption of Gummy Supplements

Consumers globally turn to gummy supplements to meet their daily vitamin and mineral requirements, aiming to enhance overall health. These supplements have seamlessly integrated into dietary lifestyles, thanks to their appealing taste and easy consumption. However, the pleasant nature and taste of gummies may lead to unintended overconsumption, exacerbated by a lack of awareness regarding appropriate dosage, potentially impacting health adversely.

Overconsumption poses risks, particularly for individuals with diabetes, obesity, or hypercholesterolemia, and may result in micronutrient toxicity symptoms such as flushing, nausea, or vomiting. Moreover, the high content of sugar, dye, and filler ingredients in vitamins, especially gummy vitamins, raises concerns about the potential for children to suffer from gastrointestinal diseases if overconsumed. Therefore, the challenge of overconsumption of gummy supplements emerges as a significant hurdle for the market's growth.

Opportunities

Ballooning Aging Population

The World Health Organization (WHO) predicts that by 2030, one in six individuals worldwide will be 60 years old or older. At that time, an estimated 1.4 billion people will fall into this age group, marking an increase from 1 billion in 2020. The WHO also anticipates a substantial rise in the number of individuals aged 80 years or older, with an estimated 426 million more people falling into this category between 2020 and 2050.

While the demographic shift towards older ages initially began in high-income countries, such as Japan where 30% of the population is already over 60, the most significant shift is currently occurring in low- and middle-income nations. Projections indicate that two-thirds of the global population over 60 will reside in these regions by 2050. Gummies, known for their palatability and ease of swallowing and digestion, are enriched with vitamins, minerals, and fibers. Consequently, it can be inferred that the expanding aging population will contribute to the growth of the gummy supplements market.

Analyst’s Viewpoint

The global gummy market is anticipated to undergo substantial expansion and change. Amid the ongoing COVID-19 pandemic, manufacturers in the gummy market are diversifying their revenue streams through online shopping apps and eCommerce platforms. Concerns about sugar content in gummies are impacting sales, especially among women and MVP customers. To address this, manufacturers should consider developing gummies using real fruit juice and colors derived from plant-based sources to create low-calorie products.

Gummies with nutraceutical ingredients are gaining attention, particularly among customers dealing with hair and skin problems and vitamin deficiencies. Manufacturers are focusing on attractive packaging to enhance product sales and expanding the availability of market-testing products to broaden their revenue sources. There is a growing demand for gummy products enriched with B12 and D3.

Supply-side Dynamics

Several factors, including the increasing demand for functional and fortified gummies, and growing demand for natural products, all contribute to the dynamic and rapid expansion of the global Gummy market. Procaps Group, Santa Cruz Nutritional’s, Amapharm, Herbaland Canada, and Allseps Pty. Ltd. are market leaders in the manufacturing sector. The countries of Germany, Japan, China, France, and the US are significant producers of various goods. Local Chinese gummy candy brands like Golden Monkey, and Yake have broadened their product offerings and strengthened their market presence.

E-commerce platforms such as Alibaba's Tmall, and JD.com serve as popular channels for selling gummies, providing convenient online access for consumers. Fruit-flavored gummies, including strawberry, apple, and grape, are particularly favored by Chinese consumers, with a growing interest in exotic flavors. In the competitive market, eye-catching and innovative packaging is essential for gummy brands to distinguish themselves and attract consumer attention. Japanese gummies are recognized for their distinctive texture, characterized by a softer and more jelly-like consistency compared to gummies from other countries, which are typically chewier.

A prevalent trend in Japan is the preference for low-sugar and natural-ingredient gummies. Many gummy varieties in Japan are fortified with vitamins and minerals, aligning with the preferences of health-conscious consumers. Several corporations are allocating resources toward expanding their capacity to satisfy the increasing need for gummies. It is anticipated that these expansions will substantially alter the dynamics of the market, resulting in heightened competition, reduced prices, and an influx of innovative products.

Market Segmentation

What is the Top-selling Product Type Category?

Vitamins Represent the Bestseller Category, Worldwide Prevalence of Vitamin Deficiencies Fuel Growth

A substantial number of individuals experience vitamin deficiencies, particularly in Vitamin D and B12, often attributed to factors such as dietary choices and lifestyle. 50 percent of Americans are deficient in vitamin A, vitamin C, and magnesium. More than 50 percent of the general population is vitamin D deficient, regardless of age. Vitamin gummies provide a convenient and accessible means to supplement these essential nutrients. Notably, these gummies are gaining popularity among working professionals, contributing to metabolic health while regulating glycaemic index and folic acid levels in the human body.

Effective marketing strategies, including endorsements by health professionals and influencers on social media platforms, have significantly heightened awareness and demand for vitamin gummies. Illustratively, in April 2022, Nature's Truth, a wellness product manufacturer specializing in vitamins supplements, responded to the escalating popularity of vitamin gummies by introducing various options tailored for adults.

What is the Dominant Ingredient Type Category?

Versatility Earns the Largest Share for Gelatin

The dominance of gelatin in the market can be attributed to its texture, versatility, cost effectiveness, availability, stability, and compatibility with other ingredients. Manufacturers prefer gelatin for creating functional gummies with added health benefits due to its ability to seamlessly blend with a diverse range of ingredients, including vitamins, minerals, and flavors.

Which is the Dominant End User Segment?

Adults Remain the Top End User Category

The rise in the geriatric population, susceptible to vitamin deficiencies and bone-related diseases, contributes to this trend. Furthermore, as individuals age, challenges in swallowing traditional pharmaceutical forms like capsules and tablets arise, hindering the intake of essential vitamins. Consequently, gummy vitamins have become a preferred choice among the adult population globally due to their chewable nature, enhanced taste, and associated health benefits.

Which is the Prominent Distribution Channel?

Online Sales Bring in the Maximum Revenue, Fast Delivery Options Drive Growth

The surge in demand for gummy supplements is attributed to online vendors proactively enhancing the security and reliability of purchasing processes, seizing the growing opportunity to market these supplements through digital channels. Throughout the forecast period, the market is poised to benefit from major players leveraging online retail strategies to streamline costs and amplify profits. Prominent supplement manufacturers, such as Amway, NOW Foods, and Herbalife Nutrition, have turned to internet distribution channels as an effective means to enhance product sales.

The online channel's rapid growth is further fuelled by factors like convenience, cost-effectiveness, and the availability of one-day delivery options. Stringent global government regulations related to COVID-19 have resulted in the closure or reduced operating hours of many offline retail establishments. Consequently, the demand for nutritional and functional gummy supplements has notably surged through online retail channels, which continue to thrive under current market conditions.

North America to be the Prime Market as Functional and Fortified Gummies Continue to Sell High

As per information from the CDC and the US Department of Agriculture, around 80% of market consumers exhibit a deficiency in vitamin E, surpassing the rates of approximately 50% for deficiencies in vitamins A, C, and magnesium. Furthermore, data from the National Health and Nutrition Examination Surveys indicates that an estimated 31% of the population is at risk of experiencing one or more micronutrient deficiencies. In response, market participants deploy diverse strategies to capture and maintain market share.

In addition, Vitafusion, a leading gummy vitamin company, introduced six innovative products to the US market, including Irresistible Skin, Organic Prenatal Multi, Triple Immune Power, Apple Cider Vinegar, Kids Melatonin, and Teen Essential Multi. NBTY stands out as one of the top brand manufacturers, offering a variety of products under its brands. An independent study reveals that over 55% of Canadians use multivitamins and mineral supplements, indicating potential market growth for vitamin gummies in the country. This growth is attributed to their appealing taste and availability in various preferred flavors, textures, and shapes that are easy to consume.

Surge in Healthcare Spending to Advance Growth of Asia Pacific

The gummy supplement market in China is poised for promising growth, driven by increasing health awareness among urban residents and a surge in healthcare spending, particularly among the younger demographic. The demand for gummy supplements in China is propelled by a growing recognition of the importance of preventive healthcare, supported by several studies highlighting benefits for immunity, cognitive health, and skincare.

In Japan, a significant demographic and cultural shift, characterized by an aging population and declining birth rates, is expected to boost the demand for vitamin-based dietary supplements in gummy form. Meanwhile, NutriBears Gummies, a company specializing in healthy gummy vitamins, has expanded its online presence in India. The NutriBears Gummies flavors, including multivitamins, and Calcium + Vitamin D are now available on leading Indian e-commerce platforms and the NutriBears website.

Competitive Intelligence and Business Strategy

Prominent organizations, including Procaps Group; Santa Cruz Nutritional; and Amapharm, are at the vanguard of this sector, providing inventive solutions by capitalizing on their technological prowess and vast experience in the Gummy Supplement industry. Organizations operating within this sector prioritize technological advancements, strategic alliances, and user experience improvement. These businesses make substantial R&D investments to create innovative gummy flavors that differentiate their products.

To distinguish themselves in this highly competitive market, these businesses strive to differentiate their products. They achieve this by providing unique flavors, innovative formulations, appealing packaging, and incorporating health-conscious ingredients.

Key Recent Developments

New Product Launch

In March 2023, Goli Nutrition Inc. introduced a 3-in-1 probiotic gummy that combines prebiotics, probiotics, and postbiotics. These gummies are designed to promote a healthy gut microbiome and enhance immune health.

Market Impact: The launch of Goli Nutrition Inc.'s 3-in-1 probiotic gummy, which integrates prebiotics, probiotics, and postbiotics, is anticipated to stimulate growth in the gummy market. This inventive product caters to the increasing consumer interest in holistic solutions for gut health. By including components that promote a balanced gut microbiome and boost immune health, Goli Nutrition Inc. is poised to capture a substantial share of health-conscious consumers, fostering elevated sales and contributing to the overall expansion of the gummy market.

In February 2022, Optibac Probiotics introduced vegan gummies designed for adults to enhance their immune and gut health. Crafted with real fruit purees, these gummies are free from added sugars, artificial flavors, and sweeteners. They are also vegan, gluten-free, and dairy-free.

Market Impact: The launch of Optibac Probiotics' vegan gummies tailored for adults, designed to enhance immune and gut health using real fruit purees and excluding added sugars and artificial components, is poised to stimulate growth in the gummy market. This offering responds to the rising consumer inclination towards health-conscious and plant-based choices, appealing to individuals seeking convenient and pleasurable methods to support their overall well-being. With its vegan, gluten-free, and dairy-free characteristics, Optibac Probiotics' gummies are in harmony with diverse dietary preferences, potentially broadening their customer base and contributing to the overall expansion of the gummy market.

Gummy Market Report Scope

Attribute	Details
Forecast Period	2023 to 2030
Historical Data Available for	2018 to 2022
Market Analysis	US$ Million for Value
Key Regions Covered	North America Latin America Europe South Asia & Pacific East Asia The Middle East & Africa
Key Countries Covered	United States Canada Germany United Kingdom France Italy Spain Russia China Japan South Korea India Thailand Malaysia Indonesia Australia New Zealand GCC Countries South Africa
Key Market Segments Covered	Product Ingredient End Use Distribution Channel Region
Key Companies Profiled	Procaps Group Santa Cruz Nutritionals Amapharm Herbaland Canada Allseps Pty. Ltd.
Report Coverage	Market Forecast Company Share Analysis Competition Intelligence DROT Analysis Market Dynamics and Challenges Strategic Growth Initiatives
Customization & Pricing	Available upon request

Gummy Market Research Segmentation

By Product:

• Vitamins
• Minerals
• Carbohydrates
• Omega Fatty Acids
• Proteins & Amino Acids
• Probiotics & Prebiotics
• Dietary Fibers
• CBD/CBN
• Psilocybin/Psychedelic Mushroom
• Melatonin
• Others

By Ingredient:

• Gelatin
• Plant-based Gelatin Substitutes

By End Use:

• Adults
• Kids

By Distribution Channel:

• Offline
• Online

By Region:

• North America
• Europe
• East Asia
• South Asia & Oceania
• Latin America
• Middle East & Africa

For report customisation and delivery information contact our sales representative.