Nutraceuticals Market - Global Outlook & Forecast 2023-2028

INDUSTRY OVERVIEW

The global nutraceuticals market was valued at USD 425.57 billion in 2022 and is expected to reach USD 693.06 billion by 2028, growing at a CAGR of 8.47% during the forecast period. The market witnessed significant growth due to the increasingly educated consumer base becoming more health-conscious. In addition, the rising awareness for a healthy life and preference towards personalized diet have favored the growth of the nutraceuticals market. These factors have the potential to drive the industry growth substantially. Vendors can focus on the personalized nutritional approach of people and continuously changing consumer behavior.

Nutraceutical is a product that has medicinal and general health benefits; such benefits have led to increased consumption of these products in every corner of the world. These products are derived from natural resources or developed in lab-controlled conditions after extensive research and development and have proven to have satisfactory health benefits. In recent years, the industry has become more advanced and more accessible. Also, nutraceuticals products are getting more popularity. The nutraceuticals market is highly attractive because of the tremendous changes, trends, opportunities, and drivers it offers. Furthermore, it is notable that the U.S. is the world’s leading market for nutraceuticals, with high expenditure, consumption, and awareness about nutraceuticals benefits.

MARKET TRENDS & DRIVERS

E-Commerce Will Be the Revolutionary Sales Channels for Vendors
E-commerce channels improve the sale of nutraceuticals in both B2B and B2C business models. Post-pandemic, the majority of vendors in the global nutraceuticals market are shifting their sales to e-commerce, based on the understanding that online sales not only increase sales of the products but also deliver the marketing, promotional, and revenue generation opportunities in a short period without spending as much capital as traditional marketing and promotional activities.

Shifting Preference for Non-pill Nutraceuticals Products
Nutraceuticals are available in several forms, such as tablets, liquid, and powder, which have gained high popularity in the past several years. But behind this form, some emerging forms of nutraceutical products format gained high attention and changed the sudden market landscape. The changing landscape from only tablet and liquid format-based nutraceuticals is offering high consumer attention in the nutraceuticals market. Gummies and effervescent format are easy and most preferred nutraceuticals nowadays. In the pediatric population, gummies are becoming more popular, and in the older population, gummies are becoming popular due to aversion to swallowing tablets and capsules or struggle to do so.

Rising Demand for Nutraceuticals in Health Management
Nutraceuticals have a broad history in the healthcare industry, but the momentum shift towards nutraceutical uses in preventive health management has gained high industry growth in the past few years. The factors behind increased attention towards preventive care with nutraceutical use are the rapidly changing lifestyle of people, rising awareness about preventive healthcare check-ups and intake of vital supplements, and rising per capita income in health management.

Presence of Potential Consumer Base
Globally, a significant number of people suffer from chronic disease and several other general to severe health conditions. Chronic disease causes millions of deaths globally. Millions of people started using various nutraceutical products such as functional food, vitamins, supplements, and many more in preventive care and management, which propels the nutraceuticals market growth.

High Demand for Personalised Nutrition
Worldwide, the significantly changed personal care and management environment among all individuals shifted people towards personalized care preference. Millennials and Gen-Zs are most interested in personalized nutrition, and around 30% prioritize their health compared to previous decades (2022).

SEGMENTATION INSIGHTS

INSIGHTS BY PRODUCTS
The functional food products segment is projected to dominate the global nutraceuticals market in 2022. Functional food is highly nutritious and associated with several advantages. Also, functional food has achieved significant popularity among health and wellness enthusiasts. On another side, the functional beverages segment is expected with a high growth rate during the forecast period. The increasing preference for energy drinks, sports drinks, and healthy and herbal juices among people is accelerating the sale of the functional beverages segment. The broad consumer base, such as athletes, sports persons, gym athletes, and others, is offering lucrative segmental growth opportunities. Also, vendors can collaborate with sports centers, clubs, gyms, cardio centers, and others where functional beverages are in high demand. Also, functional beverages are easy to consume and effective compared to functional food, which is expected to deliver high revenue growth in upcoming years.

INSIGHTS BY SALES CHANNELS
Supermarkets and hypermarkets sales channels segment accounted for the higher share in the global nutraceuticals market in 2022. Both the sales channels experience that consumers tend to trust established brands, whereas supermarkets and hypermarkets offer a broad selection of reputable brands with discounts, affordable prices, and gifts. However, the rapidly growing online sales channels such as e-commerce channels, vendors' own online sales websites, and e-pharmacies offering direct contact and sale of nutraceutical products to each corner of the world are projected to grow rapidly during the forecast period. The wide distribution network and attention of consumers for easy purchasing and affordable prices with e-commerce channels offer high nutraceutical industry growth opportunities. On another side, developing markets such as Latin America, and Middle East & Africa are emerging regions that witnessed high sales of nutraceutical products through supermarkets & hypermarkets, and pharmacies.

INSIGHTS BY CONSUMERS
The global nutraceuticals market by consumers is segmented into adults and pediatric, of which the adults segment accounted for the highest industry share in 2022. In the adult population, the high awareness and preference towards preventive care and high expenditure are key elements that drive higher segmental growth. Moreover, the prevalence of chronic diseases among adults is significantly higher compared to the pediatric population, which requires a daily intake of additional nutrients. On another side, the pediatric population witnessed high malnutrition prevalence, which accelerated the pediatric segmental growth in the nutraceuticals industry.

GEOGRAPHICAL ANALYSIS

North America accounted for the largest share of the global nutraceuticals market, accounting for over 32% in 2022. The factors governing the industry growth in the region are high awareness and high expenditure. The majority of people in North America consume nutraceutical products such as functional food. Behind those vitamins and dietary supplements is a highly growing segment across the region and the global industry. Furthermore, the increasing utilization of functional food and beverages by young adults and baby boomers is the leading factor propelling significant industry growth in the region.

During the forecast period, APAC is projected to grow rapidly and witness the highest CAGR growth rate in the global nutraceuticals market. In APAC, consumers are shifting towards functional food, beverages, and dietary supplements to support cognitive health and mental well-being. The consumer group in the region is becoming more proactive about their health, supporting the industry's growth. Furthermore, more than 89% of people across 24 countries who participated in the Herbalife Nutrition Company survey stated that they are taking steps towards improving their health, which included less unhealthy food intake, more exercise, and the addition of nutraceutical products such as vitamins and dietary supplements in their routine. Also, the survey revealed that Latin America accounted for more than a 7% share in the global dietary supplement industry, which is part of nutraceutical products, of which Brazil, Mexico, and Argentina accounted high industry share, respectively.

VENDOR LANDSCAPE

Competitive rivalry is significantly high across the global nutraceuticals market. Nutraceutical products are sold and promoted as medicinal food, which witnessed high competition from the pharmaceutical and food industry. In addition, across the nutraceutical industry, several domestic, national, and international vendors are present across the world, which shows highly competitive rivalry. Further, several companies operates as food company or pharmaceutical companies that the part of nutraceuticals. In recent years, several pharma and food companies have slowly shifted toward the nutraceutical industries. Some of the key players in the global nutraceuticals market include BASF, Herbalife, International Flavors & Fragrances Inc. (IFF), Nestlé, and Meiji Holdings. Nestlé is one of the leading industry players, which is present in more than 120 countries and generates around USD 16 billion in total revenue. In 2022, the company offer 129.2 billion fortified products serving affordable nutritional products.