The global nutraceuticals market is consolidated in nature in which just a few companies account for almost about half of the share in the market. The top companies operating in the market are Groupe Danone S.A., BASF SE, Nestle S.A., and Royal DSM N.V. They mostly manufacture functional food, functional beverages, and nutritional supplements.
The degree of competition is high and the market is price-sensitive. Astute players in the global market for nutraceuticals are have been resorting to mergers and acquisitions and strategic collaborations to grow their market share.
A report by Transparency Market Research, forecasts the global market for nutraceuticals to expand at a healthy CAGR of 7.3% during the period from 2015 to 2021 to attain a value of US$278.96 bn, by the end of 2021 from US$165.62 bn in 2014.
Highly Health Conscious Population Thrusts North America Market to the Forefront
At present, functional food grosses maximum revenue in the global market for nutraceuticals, finds the TMR report. In 2014, for example, it held a substantial 31.0% share in the market. This is because of the continued rise in demand for functional food products such as fortified food, branded wheat flour, probiotics, branded ionized salt, omega fatty acid fortified food, etc. in the past couple of years. The growing crop of consumers keen on a healthy diet, the growing pool of elderly, and the spiking healthcare prices have driven the demand for functional foods mainly. Asia Pacific accounts for most of the sales of functional beverages at present owing to its people preferring dairy-based beverages.
Geographically, the key segments in the global market for nutraceuticals are Asia Pacific, North America, Europe, and the Rest of the World. Among them, North America leads the market owing to a large number of health conscious people looking for nutritious alternatives for consumption. The U.S. and Canada are the two primary drivers of growth in the region. The TMR report uncovers that the region held a share of more than 39.6% in terms of value in 2014.
Prevalence of Non-communicable Diseases Stokes Market Growth
The demand for nutraceuticals is predicted to increase substantially in the near future because of the rising occurrence of non-communicable chronic ailments and the increasing healthcare expenditure. According to the lead analyst of the report, “Developing nations of Japan, China, and India demonstrate a comparatively greater prevalence of non-communicable diseases (NCDs), namely lung disorders, cancer, diabetes, and cardiovascular ailments. Hence, demand for nutraceuticals will be primarily driven by these nations. The increase in healthcare expenditure will also propel demand for nutraceuticals in developing nations.”
Demand for Milk and Meat Drives Market
Apart from that, another trend bolstering the global market is the high demand for milk and meat which has egged animal feed manufacturers across emerging economies to add nutraceuticals to animal feed. Increasing demand for a nutritional diet and natural beauty products in developed are also serving to bolster the market. People living in such developed nations have become aware these days about the side-effects associated with the most popular pharmaceuticals. Hence, they are supplanting synthetically produced food and food products with those derived from natural ingredients.
Countering the growth in the market, on the other hand, is the rising cost of nutraceuticals and the dearth of awareness about them.
This review is based on the findings of a TMR report, titled, “Nutraceuticals Market (Product Type – Functional Food (Probiotics Fortified Food, Omega Fatty Acid Fortified Food, Branded Ionized Salt, and Branded Wheat Flour Market); Functional Beverages (Fruit and Vegetable Juices and Drinks, Dairy and Dairy Alternative Drinks, and Noncarbonated Drinks); Dietary Supplements (Proteins and Peptides, Vitamins and Minerals, and Herbals); and Personal Care and Pharmaceutical) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2015 - 2021.”
Global Nutraceuticals Market, by Product Type
- Functional Food
- Probiotics Fortified Food
- Omega Fatty Acid Fortified Food
- Branded Ionized Salt
- Branded Wheat Flour Market
- Others (nuts, grains, garlic)
- Functional Beverages
- Fruit & Vegetable Juices and Drinks
- Dairy & Dairy Alternative Drinks
- Noncarbonated Drinks (bottled water, tea and coffee)
- Other (herbal tea, sports drinks, energy drinks)
- Dietary Supplements Segment
- Proteins & Peptides
- Vitamins & Minerals
- Herbals ( Ayurvedic extracts, plant extracts, algal extracts, phytochemicals)
- Other (fatty acids, fiber)
- Personal Care and Pharmaceutical
Global Nutraceuticals Market, by Geography
- North America
- Rest of Europe
- Rest of Europe
- Rest of the World (RoW)
- Latin America
- Middle East
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