Nutraceuticals Market 2023-2030 by Form (Capsules and Tablets, Liquid, Powder, Others), Type, (Functional Beverage, Functional Food, and Dietary Supplements), Sales Channel (Hypermarkets/Supermarkets, Specialty Stores, Pharmacies, and Online Channels) - Partner & Customer Ecosystem (Product Services, Proposition & Key Features) Competitive Index & Regional Footprints by MarketDigits
Industry : FMCG | Pages : 168 Pages | Published On : Jul 2023
The nutraceuticals market globally reached a valuation of USD 291.33 billion in 2022, and it is projected to exhibit a compound annual growth rate (CAGR) of 9.4% from 2023 to 2030. This growth is primarily driven by factors such as the emphasis on preventive healthcare, the rise in life-related disorders, and the increasing consumer focus on health-promoting diets. Furthermore, the growing purchasing power of consumers in high-growth economies is expected to contribute to the escalating demand for nutraceutical products. The shifting consumer preference towards self-directed care for life disorders like cardiovascular issues and malnutrition has also resulted in an increased demand for dietary supplements and nutraceuticals.
The adoption of nutraceuticals is driven by the perceived medical and health benefits they offer, leading to increased popularity among consumers worldwide. Rising healthcare costs and the expanding geriatric population globally are further anticipated to support the growth of the global nutraceutical industry in the forecast period. Consumers have shown a positive attitude towards functional foods due to the added health and wellness benefits associated with these products. Factors such as the growing geriatric population, increasing healthcare expenses, evolving lifestyles, food innovations, and higher price expectations have collectively contributed to the overall industry growth.
The demand for dietary supplements and functional foods has witnessed a significant surge in the aftermath of the COVID-19 pandemic. Immunity-boosting supplements have become mainstream, causing notable changes in consumer buying patterns and behavior. Moreover, preventive healthcare measures, including the consumption of dietary supplements, are expected to become integral parts of people's daily lives post the COVID-19 pandemic. Therefore, the global market for nutraceuticals has been strongly influenced by the COVID-19 pandemic.
Technological advancements in the nutraceuticals industry are poised to have a positive impact on consumer demand. The market's increasing innovation has led to the adoption of artificial intelligence (AI), enabling the provision of personalized solutions based on consumers' dietary and health data. As a result, AI is expected to play a pivotal role in the global growth of the nutraceuticals industry.
Regarding the ingredient segment, probiotics held a prominent position in the market in 2022, accounting for a share of 26.47%. This can be primarily attributed to changes in dietary patterns and consumer preferences for probiotic-based dairy foods and supplements due to the increasing global awareness of gut health. The rising prevalence of gut health issues and food sensitivities has fostered a positive outlook towards probiotic supplements, which are also beneficial for immunity and preventive healthcare. As a result, the probiotics segment is expected to exhibit the fastest growth rate of 14.0% during the forecast period. However, the requirement for refrigeration throughout the distribution channel poses a potential challenge to the growth of the probiotics segment.
In terms of applications, the weight management and satiety segment dominated the market in 2022, with a revenue share of 20.04%. This is driven by the growing emphasis on fitness and nutrition among health-conscious consumers, particularly in response to changing working environments and socioeconomic factors. The rising demand for sports nutrition products, driven by increased awareness of muscle improvement among athletes, is expected to fuel the demand for nutraceuticals for weight management, including beverages like energy drink-mix powders.
In 2022, the weight management and satiety segment emerged as the dominant force in the market, capturing a revenue share of 20.04%. This can be attributed to the growing focus on fitness and nutrition among health-conscious consumers. The evolving working environment and socioeconomic changes have prompted individuals to continually upgrade their dietary patterns. Moreover, the increasing awareness of muscle improvement among athletes has led to a rising demand for sports nutrition products, driving the demand for nutraceuticals aimed at weight management. This trend is expected to contribute to the growing popularity of beverages like energy drink-mix powders in the near future.
Weight management is a critical application area, driven by the escalating rates of obesity resulting from life changes. This has created significant demand for dietary supplements. According to the Trust for America's Health’s (TFAH) 19th annual report, 19 states in the U.S. recorded obesity rates exceeding 35% in 2022, up from 16 states in 2021.
In 2022, the functional foods segment emerged as the market leader, capturing a revenue share of 37.78%, and it is expected to maintain its dominant position in the forecast period. The industry's progress in technological advancements and product development is set to drive the growth of the functional foods sector in the upcoming years. Sports drinks are experiencing increased popularity among athletes and individuals engaged in energetic physical activities. The millennial generation, known for its high purchasing power, willingness to invest in health products, keen interest in sports, and growing inclination towards fitness activities, is a key driver of the sports drinks market.
The adoption of new technologies like microencapsulation is driving innovative developments within the functional foods industry. Microencapsulation technology plays a significant role in enhancing the taste of the final functional food product. For instance, omega-3 fatty acids, which typically have an unpleasant odor, can be improved in terms of fragrance and taste through encapsulation techniques. This improvement contributes to a more enjoyable and appealing product for consumers. Such advancements align with evolving consumer preferences and are expected to propel the growth of functional food products.
In 2022, North America emerged as the market leader, capturing the largest revenue share of over 35.50%. The region's market growth is primarily driven by growing health concerns among consumers and increasing awareness regarding nutraceuticals. Factors such as an aging population, spending patterns on healthcare products, and evolving lifestyles have further contributed to the expansion of the nutraceutical industry in North America. However, the market is restrained by factors like a wide product portfolio and government regulations related to nutraceutical products. On the other hand, the growing trend of fortifying food with nutraceutical products presents a significant growth opportunity in this market.
The market in North America is positively influenced by several factors, including rising healthcare costs in the U.S., recent regulations on functional food, and increased research and development in the field of functional food. Poor dietary habits, long working hours, and sedentary lifestyles contribute to health issues and associated healthcare expenses. Healthcare expenditure accounts for approximately 14% of the gross national product (GNP) in the U.S. economy. As a result, the escalating healthcare costs compel the population to prioritize preventive healthcare, leading to a shift towards the consumption of dietary supplements and functional foods.
Key Companies & Market Share Insights
The nutraceuticals market is characterized by a moderate level of fragmentation, with the presence of prominent international players. Market leaders such as Amway, Nestle, and General Mills have established their dominance due to their extensive and diverse product portfolios, as well as their robust distribution networks.
To maintain a competitive edge, companies have employed strategies like mergers and acquisitions, along with new product launches. Through acquisitions and mergers, companies have been able to expand their product reach and enhance product quality. Furthermore, the introduction of new products has allowed companies to offer high-quality products that align with changing consumer trends in the industry. For instance, in August 2022, following its acquisition by Jamieson Wellness Inc., the well-known dietary supplement brand Youtheory launched a line of new liquid dietary supplements. These supplements contain ingredients such as B12B6, K2D3, and ashwagandha, available in both liquid and capsule forms. This product launch reflects the increasing consumer demand for nutritional supplements in the United States. Notable players in the global nutraceuticals market include:
- Pfizer Inc.
- The Kraft Heinz Company
- The Hain Celestial Group, Inc.
- Nature's Bounty
- General Mills Inc.
- Tyson Foods
Global Nutraceuticals Market Report Segmentation
- Ingredient Outlook (Revenue, USD Million, 2017 - 2030)
- Aloe vera
- Amino acids
- Botanical Ingredients
- Cannabidiol (CBD)
- Food Color
- Other carotenoids (Zeaxanthin, Betacarotene)
- Cultures and fermentation starters
- Dairy ingredients
- Essential oils
- Fat replacers
- Fats and oils
- Fruit and vegetable products
- Glucosamine / Chondroitin
- Juices and concentrates
- Lipids / Fatty Acids
- Marine ingredients
- Marine Derived
- Others (Honey, sucrose, fructose, etc.)
- Vitamin A
- Vitamin B
- Vitamin C
- Vitamin D
- Vitamin E
- Vitamin K
- Whey proteins
- Product Outlook (Revenue, USD Million, 2017 - 2030)
- Dietary supplements
- Functional foods
- Functional beverages
- Application Outlook (Revenue, USD Million, 2017 - 2030)
- Allergy & intolerance
- Animal nutrition
- Healthy ageing
- Bone & joint health
- Cancer prevention
- Children's health
- Cognitive health
- Digestive / Gut health
- Energy & endurance
- Eye health
- Heart health
- Immune system
- Infant health
- Maternal health
- Men's health
- Oral care
- Personalised nutrition
- Post Pregnancy and reproductive health
- Sexual health
- Skin health
- Sports nutrition
- Weight management & satiety
- Women's health
- Regional Outlook (Revenue, USD Million, 2017 - 2030)
- North America
- The Netherlands
- Asia Pacific
- Australia & New Zealand
- South Korea
- Central & South America
- Middle East & Africa
- South Africa
- North America
Table and Figures
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