Nutraceutical Market 2020 and Forecast 2021-2027

                                          
Report Overview: Global Nutraceutical Market


The global nutraceutical market size was valued at USD 271.40 billion in 2020 and is expected to expand at a CAGR of 7.2% over the forecast period 2021-2027. Favorable outlook towards medical nutrition in light of the increasing application for the treatment of cardiovascular disorders and malnutrition is likely to stimulate the growth of dietary supplements. Rising healthcare costs, coupled with the growing geriatric population across the world, are anticipated to assist the growth of the global functional food industry over the forecast period.


Growing consumer interest in a healthy diet has led to a thriving food and beverage market in the recent past and the trend is expected to continue over the forecast period. Demand for functional foods is on the rise as they are believed to impart exceptional health benefits owing to their nutrient content. This is further expected to increase the growth of the market for nutraceuticals.

Positive attitude of the consumers towards functional foods mainly on account of the added health and wellness benefits offered by these nutraceutical products is fueling the market growth. Growing geriatric population, increasing healthcare costs, changing lifestyles, food innovations, and expectations regarding their higher prices have aided the overall growth of the nutraceuticals industry. It has been reported that nine out of ten adults consume 55% minerals and over 50% vitamins in their daily diets.

Asia Pacific accounted for the major market share of 31.01% in 2019 and is likely to maintain its lead over the forecast period. Rising levels of disposable income, changing lifestyle, and shift in preferences for healthier dietary intake in emerging economies are expected to generate the demand for nutraceuticals in Asia Pacific. Brazil, China, and India are likely to expand at the fastest CAGR over the forecast period.

The global nutraceuticals industry has been witnessing key developments in terms of product innovation and portfolio expansion over the past few years. Public companies have been proactive in initiating strategies to gain a competitive advantage in the nutraceuticals industry. In the short term, privately-held market participants are expected to follow suit.

Product Insights: Global Nutraceutical Market

With respect to product, the global nutraceutical market is categorized into dietary supplements, functional beverages, and functional foods. The functional beverages segment led the overall market for nutraceuticals in 2019, followed by functional foods and dietary supplements. Technological upgradation, coupled with product development, is projected to drive the functional beverage industry over the coming years.

For ingredient formulation, particle size reduction and microencapsulation techniques have extended the product offerings of the nutraceutical manufacturers. Advancement in the manufacturing of novel ingredients to cover the unpleasant taste of omega-3 fatty acids and amino acids has also had a major impact on this segments growth.

Sports drinks are gaining popularity among athletes and individuals involved in energetic physical activities. The millennial generation exponentially drives the sports drink market due to their high buying capacity, willingness to pay for health products, acute interest in sports, and growing inclination towards fitness activities.

The omega-3 fatty acids-based functional foods industry size is expected to reach USD 38.76 million by 2027, expanding at a CAGR of 9.3% from 2021 to 2027. Omega -3 is considered a heart-healthy fat that reduces the risk of heart diseases. According to the statistics provided by America’s Health Rankings, over 40% of the U.S. citizens are not meeting the recommended requirement, thereby increasing the risk of heart diseases.

Regional Insights: Global Nutraceutical Market

Asia Pacific emerged as the key region in the market for nutraceuticals in 2019 on account of growing health concerns among consumers and increasing awareness regarding nutraceuticals. Additionally, growth in the aging population, changing spending patterns on healthcare products, and changing lifestyles has enhanced the growth of the nutraceutical industry in Asia Pacific. Vast product portfolio and government regulations on nutraceutical products are a few factors suppressing the nutraceuticals industry growth. However, the growing trend of food fortification with nutraceutical products is anticipated to create a growth opportunity for the nutraceuticals industry.

Rising awareness regarding nutritional enrichment in China and India is expected to remain a favorable factor for the nutraceuticals industry growth. Furthermore, expansion of the retail market in countries, including China, Indonesia, Malaysia, and India, in light of regulatory support to promote investments is expected to increase the accessibility to buyers over the forecast period, thereby driving the market for nutraceuticals.

Varying lifestyle, along with rapid urbanization, has also led to consumer inclination towards healthy diet options, which is positively impacting the market growth for nutraceuticals. Vitamins are considered to be integral for the proper functioning of the human body and they also help in wound healing and prevention of various diseases. Additionally, a large vegetarian population of Asia Pacific prefers quality plant sources of proteins, subsequently fostering the growth of soy products.

Increasing awareness pertaining to nutritional enrichment among working professionals of the U.S. and Canada for maintaining balanced nutrition in the human body is expected to promote the consumption of dietary supplements in North America over the next few years. In addition, the high adoption of herbal medicines among individuals in U.S. and Canada on account of rising concerns over hazardous effects associated with conventional pharma drugs is expected to expand the nutraceuticals industry size over the forecast period.

Demand for dietary fibers and minerals is likely to increase in North America owing to high awareness regarding their benefits in overall health and bodily maintenance. Fibers tend to foster easier bowel movements while providing critical cleansing of internal organs, whereas minerals contribute to higher retention and passage of nutrients into cells, thus promoting blood clotting and other functions.

Nutraceutical Market Share Insights: Global Nutraceutical Market

The nutraceuticals industry is characterized by the presence of key international players. Key industry participants include

 	
Cargill
 	
Incorporated
 	
Archer Daniels Midland Company
 	
DuPont
 	
Nestle S.A
 	
Danone
 	
General Mills
 	
Innophos
 	
WR Grace
 	
Amway Corporation.

Strategic divestments, mergers and acquisitions, and new product launches are some of the key strategies taken by the nutraceutical manufacturers to expand their customer base. For instance, in October 2018, the Coca-Cola company, along with Coca-Cola Amatil, jointly acquired a 45% interest of Made (Aust) Pty Ltd, an Australian beverage manufacturing company.

Acquisition and mergers have facilitated the companies to expand their product reach and improve their product quality. Moreover, introducing new products has supported the companies to offer better quality products and meet the changing consumer demand across the nutraceuticals industry.
This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Trusted Business Insights has segmented the global nutraceutical market report based on product and region:

Product Outlook (Revenue, USD Million, 2016 - 2027)

 	
Dietary Supplements
 	
Functional Foods
 	
Functional Beverages

Dietary Supplements Product Outlook (Revenue, USD Million, 2016 - 2027)

 	
Vitamins
 	
Botanicals
 	
Minerals
 	
Proteins & Amino Acids
 	
Fibers & Specialty Carbohydrates
 	
Omega Fatty Acids
 	
Others

Functional Foods Product Outlook (Revenue, USD Million, 2016 - 2027)

 	
Carotenoids
 	
Dietary Fibers
 	
Fatty Acids
 	
Minerals
 	
Prebiotics & Probiotics
 	
Vitamins
 	
Others

Functional Beverages Product Outlook (Revenue, USD Million, 2016 - 2027)

 	
Energy Drinks
 	
Sports Drinks
 	
Functional Juices
 	
Others