Consumer’s view of nutritional products as the key to managing health has been driving the global nutraceutical industry. The global nutraceutical products market was valued at around USD 205.39 billion in 2016 and is expected to reach around USD 294.79 billion by 2022, at a CAGR of 6.3% from 2017 to 2022.
The current consumer beta glucan market global trends is to be preventive rather than react to the health issues, which involves huge healthcare costs in developed countries. There is a shift in the consumer preference from synthetic ingredients to natural and organic ingredients and foods that are obtained from non-GMO (Genetically Modified Organism) extracts. Consumers prefer the nutraceutical foods to pharmaceutical drugs.
Developing nutrients based on an individual’s genetics and lifestyle changes would help in developing customized functional foods and beverages, based on the genetic segment.
Major food and pharma companies are using M&A route to acquire pure-play nutraceutical products companies to enter the nutraceutical market. Although, not a major revenue booster, the pharmaceutical companies find higher margins through nutraceutical products.
The nutraceutical products industry is also seeing major changes in its operations in order to meet the FDA's new Dietary Supplement Current Good Manufacturing Practices (DS CGMPs). The severely limited consumer awareness in developing countries of the nutraceutical ingredients needs to be taken up by manufacturers to spread awareness about products, as people buy benefits and not ingredients.
Nutraceuticals Market Segmentation
The nutraceutical market mainly constitutes functional foods and beverages and dietary supplements. Dietary supplements are present in the form of tablets, capsules and liquids. The nutraceutical ingredients include pre-biotic and pro-biotic vitamins, minerals, fibers, proteins, omega 3 and structured lipids, amino acids and various other ingredients. Foods fortified with omega fatty acids are expected to grow by 6.8% during the forecast period.
Nutraceutical ingredients find application right from cereals, grains, nuts, vegetables, fruits, dairy products, poultry products, sea food and confectionery items to non-alcoholic beverages like juices, energy drinks, sports drinks, etc. Few examples of functional foods are yogurts with pro-biotics, drinks with herb blends, soya beverages rich in proteins, etc. The functional food category is seeing the highest growth in energy drinks, healthy snacks and breakfast products.
The spear heading nations in the global nutraceutical markets are the United States, Japan, Israel and Germany. Rising consumption of dietary supplements among the baby boomer generation and booming food and beverages market is driving the US nutraceutical market that is expected to reach USD 96 billion by 2022, at a 6% CAGR. The United States is still expected to dominate functional food market globally by 2022, with an expected CAGR of 8.8%. This is followed by Asia-Pacific. 47% of the Japanese population consumes nutraceutical products, which can be contributed to the growing aging population.
Germany, the Netherlands and Sweden have emerged as the key nutraceutical innovation hubs in Europe, while the United Kingdom and Spain have emerged as the key test markets for new products, with the European consumers demanding energy providing products that promote healthy teeth, strong bones, prevent digestive health issues, boost immune system and lower cholesterol.
Factors Driving the Nutraceuticals Market
Lower R&D and regulatory burdens for pharmaceuticals in their nutraceutical segment, when compared to their prescription and OTC drugs.
Opportunities for the Nutraceuticals Companies
Brands such as Activia and Yakult are targeting women and aged citizens for their probiotics dairy products to improve digestive health. In the United States, functional food market is dominated by global players such as Coca-Cola Co., Dean Foods, General Mills Inc., Kellogg Co., Kraft Foods, Nestle S.A. and Pepsi Co.
Some of the major players in the nutraceutical ingredients market included in the report are –
Key Deliverables in the Study