Nutraceuticals Market

Nutraceuticals Market

The global Nutraceuticals market is forecast to expand at a CAGR of 5.8% and thereby increase from a value of US$418 billion in 2023 to US$620.3 billion by the end of 2030.

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Market Introduction and Definition

Nutraceuticals, also known as bioceuticals, represent a category of products positioned at the intersection of food and medicinal applications. Derived from food materials and extracts, these products serve various purposes and applications. Despite being considered food supplements or additives, they often lack stringent regulations in many regions globally.

The market for Nutraceuticals is experiencing rapid growth, driven primarily by increasing awareness of their health benefits and supplements. Furthermore, heightened participation of athletes in national and international sports is anticipated to fuel demand for functional beverages. Factors contributing to market expansion include a growing urbanized population, increased expenditure on health-related products, and the rising incidence of cardiovascular, chronic, and obesity-related diseases. Functional foods, being rich sources of omega fatty acids, play a role in weight management and blood circulation control.

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Market Growth Drivers

Increasing Prevalence of Chronic Diseases and Increasing Popularity of Nutrient Enriched Diets

The escalation of chronic diseases such as diabetes, cardiovascular diseases, cancer, and obesity has become a significant global concern. According to the World Health Organization (WHO), approximately 74% of annual mortality results from chronic illnesses, with 17 million individuals succumbing to these conditions before reaching the age of 70. A notable 86% of premature deaths occur in low- and middle-income countries. Cardiovascular diseases (CVD) claim the highest number of lives annually at 17.9 million, followed by cancers (9.3 million), chronic respiratory diseases (4.1 million), and diabetes (2.0 million, including kidney disease deaths caused by diabetes). Collectively, these diseases contribute to over 80% of all premature deaths due to chronic conditions. With the persistent increase in chronic diseases, consumers are turning to nutraceuticals as a preventive or complementary healthcare strategy. The perceived safety and fewer side effects of nutraceuticals compared to conventional pharmaceuticals contribute to their growing popularity in managing chronic conditions.

The enhancement of healthcare opportunities, a reduction in death rates, and a willingness among consumers to invest in health and wellness have resulted in a growing regional population. This trend has propelled the global growth of the nutraceuticals sector. According to a 2017 report by the International Food Information Council (IFIC), nearly two-thirds of U.S. adults consider healthfulness a significant factor in their food and beverage purchase decisions. The changing consumer preferences towards functional foods and beverages have also played a role in bolstering sales performance.

Absence of Standardized Safety Assessments

While nutraceuticals offer a plethora of expanding benefits, there are inherent safety concerns that warrant attention. A primary safety consideration revolves around ingredient safety. Nutraceuticals encompass a diverse range of ingredients, including herbs, botanicals, vitamins, minerals, and other bioactive compounds. However, not all ingredients used in nutraceuticals are universally safe, with some triggering allergic reactions. Dosage levels, manufacturing processes, and the absence of standardized safety assessments further contribute to safety concerns. Inappropriate or excessive use of nutraceuticals can lead to adverse effects, and variations in manufacturing practices and quality control standards may impact product quality and safety. Moreover, the absence of standardized safety assessments introduces uncertainties regarding safety profiles and potential interactions. Effectively addressing these concerns by establishing precise dosage guidelines, implementing rigorous quality control measures, and adopting standardized safety assessments is imperative to ensure the safe consumption of nutraceuticals by consumers.

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Market Restraints

Complex Framework Regulations are Hindering the Nutraceuticals Market

Despite ongoing demand, the market is confronted with various factors limiting its growth. Notably, the complex and stringent regulatory framework for commercializing nutraceutical products emerges as a significant hindrance. The global markets lack harmonized provisions regarding the composition of these products. Harmonization efforts are essential to establish upper limits and conditions for the use of various botanicals, preparations, and bioactive substances. This task is complicated by differing opinions among several government agencies regarding the types and quantities of ingredients that should be permissible.

The industry grapples with substantial challenges due to intricate regulations and policies governing the commercialization of nutraceutical products. Stringent guidelines have been put in place to ensure the safety and quality of nutraceuticals. Product designers in the nutraceutical sector are required to provide substantial evidence supporting health-related claims for their products. Compounding the complexity, different countries have distinct regulatory policies. The European Food Safety Authority (EFSA) oversees Europe's regulatory landscape, while the Therapeutic Goods Administration (TGA) serves as Australia's regulatory body, responsible for the commercialization and distribution of nutraceutical products.

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Opportunities

Nutraceuticals in the Treatment of Prostate Cancer to Propose Great Promise

Prostate cancer, the predominant form of cancer among American males and the second leading cause of cancer-related deaths, poses challenges in terms of treatment resistance and disease advancement. Men of U.S. and African descent exhibit the highest mortality rates for prostate cancer. The American Cancer Society projects approximately 299,010 new cases of prostate cancer and 35,250 related deaths in the United States by 2024. Notably, the incidence rate has been increasing at a rate of 3% per year overall and approximately 5% per year for advanced-stage prostate cancer since 2014. Prostate cancer predominantly affects men aged 65 and older, with the average age of diagnosis around 67, and it is rare in men under 40.

While current treatment strategies demonstrate efficacy, there is a demand for non-toxic and efficient therapeutic approaches for managing and treating this disease. Nutraceuticals emerge as a promising avenue, providing safe and effective anti-prostate cancer agents. Leveraging nutraceuticals enhances precision in medicine design, mitigating the toxicities associated with chemotherapy and addressing resistance to disease progression. With the potential to treat both localized and advanced prostate cancer, nutraceuticals present a valuable opportunity in the market for managing and treating prostate cancer.

Analyst’s Viewpoint

The Nutraceuticals Market is anticipated to undergo substantial expansion and change. In the 21st century, the prevalence and severity of unhealthy lifestyles, particularly among the working population, have surged, leading to a multitude of health issues. The majority of individuals, especially those in office settings, face challenges in maintaining healthy eating habits and engaging in regular exercise. However, there is a growing awareness of these health concerns, prompting consumers to adopt healthier practices such as exercise and the incorporation of nutraceuticals into their routines. Nutraceutical products, with varying strengths and ingredient potencies, are designed for regular or intermittent consumption. These products often target specific aspects of health, such as vitamins, minerals, proteins, or amino acids. Some nutraceuticals can be easily integrated into other healthy foods, such as juices or smoothies, enhancing both nutrition and Flavors. The diverse range of flavors available in the market adds to the appeal of these products. As nutraceuticals are derived from food sources, they are generally considered safe for consumption and are not classified as pharmaceutical products. Moreover, in many countries, nutraceuticals face lighter regulatory scrutiny, contributing to their widespread availability.

Supply-side Dynamics

Several factors, including the increasing instances of lifestyle-related disorders, and rising consumer focus on health-promoting diets, all contribute to the dynamic and rapid expansion of the global Nutraceuticals market. General Mills Inc., The Nature’s Bounty Co. (NBTY), Amway Enterprises, Herbalife International, Inc., and Royal DSM NV are market leaders in the manufacturing sector. The countries of Germany, Japan, China, France, and the United States are significant producers of various goods. With approximately 108 million consumers, Germany stands out as the primary food and beverage retail market in Europe. The German consumer base exhibits a strong preference for high-quality organic products and those promoting health and wellness. Germany holds a pivotal position in the advanced nutraceuticals market, driven by widespread awareness of the importance of a balanced diet and a healthy lifestyle. In China and Japan, a higher proportion of elderly individuals contributes to an increased demand for functional foods and medicinal dietary supplements. According to 2021 data from the World Bank, Japan has a demographic in which 30% of its population is aged 65 or older. Suppliers of nutraceutical ingredients play a crucial role in the supply chain by ensuring a dependable source of high-quality ingredients

Several corporations are allocating resources towards expanding their capacity to satisfy the increasing need for Nutraceuticals. 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

Which Product Type Are Expected to Benefit the Most from Revenue Generation?

Extensive Sales for Functional Foods Due to Growing Inclination Toward Fitness Activities

Anticipated technological advancements and continuous product development are expected to propel the functional foods industry in the coming years. Sports drinks are gaining popularity, particularly among athletes and individuals engaged in vigorous physical activities. The millennial generation significantly contributes to the growth of the sports drinks market, driven by its high purchasing power, willingness to invest in health products, keen interest in sports, and a growing inclination toward fitness activities. In 2021, U.S. functional food/drink sales reached $83 billion, reflecting a 6.8% increase compared to 2020, as reported by the Nutrition Business Journal. A 2022 report from the Food Marketing Institute—The Food Industry Association highlights that health benefits play a significant role in the purchase decisions of six in 10 U.S. food shoppers. Additionally, the source of a product's ingredients influences 56% of consumers, while 51% are swayed by its dietary claims, according to the Food Marketing Institute.

Which Form to be Focused on the Most Regarding Sales?

Capsules Applications to Widen Footprint Due to Convenient and Easily Consumable Form

Capsules serve as a popular vehicle for delivering nutraceutical ingredients, providing a convenient and easily consumable form. Typically composed of gelatin or vegetarian/vegan alternatives, these capsules incorporate a diverse range of nutraceutical elements, including vitamins, minerals, herbal extracts, and various bioactive compounds. Their widespread preference is attributed to consumer advantages such as ease of use, accurate dosing, and the potential for controlled-release formulations.

Why are Indirect Sales/B2C to be Dominant Regarding Sales?

“Indirect Sales/B2C to Dominate Sales Owing to the Advent of E-commerce Platforms”

The dominance of indirect sales through B2C (business-to-consumer) channels has become a prominent trend in the nutraceutical market. The advent of e-commerce platforms has transformed the purchasing dynamics of nutraceutical products, offering consumers the convenience of buying from their homes and expanding the market's reach.

Top Regional Markets

Aging Population, and Evolving Healthcare Spending Patterns to Fuel Growth for Easier Market Adoption

The North American nutraceutical market is primarily driven by increasing health concerns among consumers and a heightened awareness of nutraceuticals. Factors such as the aging population, evolving healthcare spending patterns, and changing lifestyles contribute to the industry's growth in the region. According to a 2021 survey by the Council for Responsible Nutrition (CRN), 80.0% of Americans incorporated dietary supplements into their routines, marking a 7.0% increase from the previous year. The 2023 CRN Consumer Survey on Dietary Supplements further underscores the mainstream adoption of supplements, with 74 percent of U.S. adults taking dietary supplements, and 55 percent identified as "regular users." Despite a vast product portfolio and government regulations, the market faces some constraints, but the emerging trend of food fortification with nutraceutical products is expected to present significant growth opportunities.

What Opportunities Lie in Asia Pacific for Manufacturers?

Rising Popularity of Functional Foods to Advance Growth

The Asia Pacific market is experiencing growth, driven by the rising popularity of functional foods and beverages in several countries. In June 2020, the China Food Information Center (CFIC) released a survey report indicating that 70% of China's population recognizes the health benefits of probiotics. This increasing consumer interest in probiotics, aimed at enhancing gut health and preventing various chronic health conditions, is expected to contribute significantly to market growth.

Competitive Intelligence and Business Strategy

Prominent organizations, including General Mills Inc., The Nature’s Bounty Co. (NBTY), and Amway Enterprises, are at the vanguard of this sector, providing inventive solutions by capitalizing on their technological prowess and vast experience in the Nutraceutical 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 and effective nutraceutical products. Moreover, introducing new products to the market has supported the companies to offer better quality products, meeting the changing consumer trends across the industry.

To distinguish themselves in this highly competitive market, these businesses strive to differentiate their products. They achieve this by providing unique formulations, superior quality, and innovative health solutions.

Key Recent Developments

New Product Launch

In August 2022, following its acquisition by Jamieson Wellness Inc., the prominent dietary supplement brand, Youtheory, introduced a new line of liquid dietary supplements. The newly launched product includes a blend of ingredients such as B12B6, K2D3, and ashwagandha, available in both liquid and capsule forms. This strategic move aligns with the increasing consumer demand for nutritional supplements in the United States.

Market Impact: The launch of Youtheory's latest line of liquid dietary supplements, incorporating a mix of B12B6, K2D3, and ashwagandha to meet rising consumer demands, is anticipated to stimulate growth in the nutraceutical market. This innovative product caters to changing consumer preferences, offering a convenient and varied choice of nutritional supplements. The incorporation of well-known health-benefiting ingredients adds to the product's appeal, making it potentially attractive to a broader audience. This strategic introduction is in line with current trends in the nutraceutical market, fostering increased sales and overall market expansion.

In February 2022, PepsiCo's Rockstar Energy brand introduced a hemp-infused beverage in the United States named "Rockstar Unplugged." This energy drink incorporates hemp seed oil, B vitamins, spearmint, and lemon balm. Notably, it contains only 80 mg of caffeine, a significantly lower amount compared to the typical caffeine content in most Rockstar Energy drinks. With zero sugar and calories, the hemp-infused drink is set to be offered in three flavors: blueberry, passionfruit, and raspberry cucumber.

Market Impact: The introduction of PepsiCo's Rockstar Unplugged, a hemp-infused beverage enriched with B vitamins and herbal ingredients, is positioned to propel the nutraceutical market. This novel product is in harmony with the increasing consumer demand for functional and health-promoting beverages. The inclusion of hemp seed oil, renowned for its potential health advantages, coupled with lower caffeine content and no added sugar or calories, addresses the preferences of health-conscious consumers seeking diverse and healthier choices. The addition of distinctive flavors further amplifies its appeal, potentially expanding its consumer base and making a significant contribution to the overall growth of the nutraceutical market.

Nutraceuticals Market Report Scope

Nutraceuticals Market Research Segmentation

By Product Type:

• Functional Foods
• Functional Beverages
• Dietary Supplements

By Form:

• Soft-Gels
• Capsules
• Liquids
• Tablets
• Powder & Granules

By Sales Channel:

• On Direct Sales/B2B
• Indirect Sales/B2C

By Region:

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