Nutraceutical Products Market Research Report: Forecast (2023-2028)

Market Definition

Nutraceutical Products are fortified food supplements that, besides providing the basic nutrients, also promote life expectancy, delay the aging process, and prevent chronic diseases. A nutraceutical comprises nutrient-rich or medicinally active food, such as garlic or soybean. It may also be a specific food component, such as the omega-3 fish oil derived from salmon and other cold-water fish.

Market Insights

The Global Nutraceutical Product Market is projected to grow at a CAGR of around 7.2% during the forecast period, i.e., 2023-28. The growing inclination of consumers toward functional foods owing to their increasing health consciousness is the primary aspect driving the nutraceutical industry worldwide. Moreover, the mounting global prevalence of chronic illnesses and stringent norms about food fortification by the governments of different countries further accelerate the market. The development of dietary supplements is anticipated to be sparked by a swift inclination toward medical nutrition owing to the growing applications in treating cardiovascular disease and malnutrition. Other than this, the rising geriatric population, increasing healthcare costs, changing lifestyles, and food innovation have positively influenced industry growth in the past few years.

Moreover, the investments by well-established players in new product development and start-ups are key factors leading to wide competition in the industry. For instance, in 2019, Kraft Heinz announced an investment of 100 million USD in the start-up 'New Culture,' which would make animal-free cheese made of Casein Protein. Additionally, Conagra announced to build of an innovation center in Chicago. In 2019, Amway India launched Nutrilite Cal Mag D Plus to strengthen its nutrition portfolio. However, the considerable side effects, coupled with the higher cost associated with the nutraceutical product, are likely to pose a threat to the nutraceuticals market and may impede industry growth in the coming years.

Market Dynamics

Key Driver: Transcending burden of lifestyle disorders

The widespread use of processed and junk food is the primary cause of the prevalence of lifestyle disorders like obesity, diabetes, etc. The use of packaged foods and beverages with high-calorie counts together with little to no physical activity has led to such kind of lifestyle crisis. However, the integration of nutraceutical goods into the general population's everyday routine has been fueled by expanding awareness of leading a healthy lifestyle, rising use of nutritional supplements for immunity building, boosting internal organ functions, etc.

Possible Restraint: The Lower Affordability of Raw Materials

The challenges producers confront during the production process are a barrier to the nutraceuticals business. As a result of the difficulty in extracting the ingredients needed to manufacture nutraceuticals, which frequently yield a relatively small quantity of the substance, the cost of making them is sometimes very high. Besides, although nutraceuticals offer a range of health benefits, it also has proven instance of side effects. According to the U.S. Food and Drug Administration (FDA), rashes, shortness of breath, diarrhea, severe joint or muscle pain, slurred speech, and blood in the urine are the possible side effects that can result from supplement use. Backed by these aspects, the industry for nutraceuticals may face a downturn in the coming years.

Growth Opportunity: Intensifying Inclination for A Fit and Lean Physique

Over the past few years, the demand for dietary supplements, including energy bars, protein bars, non-carbonated energy drinks, and sports supplements, has been fueled by the rising trend of fit & lean bodies among adults. In addition, the COVID-19 pandemic outbreak has encouraged clients to join physical training facilities, gyms, sports clubs, and others. Consequently, people have become more health conscious in order to attain concrete immune systems.

Key Trend: Augmenting demand for Customized nutraceuticals

Trends like customization and personalization of these components are quickly gaining popularity as consumers become more aware of the availability and health benefits of nutraceuticals. Nutraceuticals created specifically to support people's health and meet their unmet nutritional needs are in high demand due to people. Numerous customers are also expressing interest in tailored products, including supplements, diet plans, and workout regimens. A continuous expansion of the nutraceuticals market will be aided in the coming years by the need for and acceptance of nutritional supplements, which are becoming an increasingly important intervention in predictive & proactive health.

Market Segmentation

Based on Source,

• Probiotics
• Prebiotics
• Vitamins
• Minerals

Here, Probiotic products are likely to acquire a sizable market share in the forecast period due to their versatility in treating lifestyle-related diseases. The production of probiotic supplements for different illnesses, such as cardiovascular disease, hypocholesterolemia, bone health, oral health, etc., has paved the way for advancements in research and development, which is likely to fuel the expansion of the nutraceuticals supplement industry in the coming years.

Based on Distribution Channel,

• Conventional Stores
• Specialty Stores
• Drug Stores
• Pharmacies

Of them all, the Conventional Stores held a considerable revenue share in the Global Nutraceutical market during the historical period, owing to conventional consumer buying behaviors & the rising number of supermarkets & hypermarkets across the globe. End users in developed countries like the US, UK, and Canada has already shown massive inclination towards conventional stores due to the easy availability of several vendors under one roof. Likewise, Middle Eastern countries also project a strong market presence in the coming years. For instance, SPAR UAE inaugurated its first supermarket in Dubai with developmental plans to launch 30 more multi-store format supermarkets across the UAE, further strengthening the industry across the world.

Regional Projection

Geographically, the Global Nutraceutical Product Market expands across:

• North America
• South America
• Europe
• Middle East & Africa
• Asia-Pacific

North America region currently dominates the Global Nutraceutical Product market as the countries in the region, primarily the U.S., Canada, and Mexico, are highly health-conscious and aware of the benefits of nutrients in the body. Besides, the growing awareness about the availability & perks of nutraceuticals instigates local manufacturers to increase their production & distribution capacities and cater to the ever-increasing demand throughout the American continent. Moreover, the rising growth of the retail sector in the countries is contributing to the market as the expansion of retail stores results in new store openings.

Recent Developments in the Global Nutraceutical Product Market

• In December 2022, Kellogg’s introduced three all-new flavors in its Special K series, namely Special K Oat Crunch Honey, Special K High Protein, and Special K Zero.
• In December 2021, Hain Celestial, the food and beverages company with brands including Garden Veggie Chips, Alba Botanica, Terra, Sleepytime Tea, Greek Gods Greek Yogurt, and more, announced the acquisition plans for ParmCrisps and Thinsters Brands.

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