Nutraceuticals Market Report
Nutraceuticals Market by Product (Functional Foods, Functional Beverages, and Dietary Supplements), Distribution Channel (Supermarket & Hypermarket, Specialty Stores, E-commerce, and Others), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021–2028
Global Nutraceuticals Market Analysis
The global nutraceuticals market is predicted to garner $516.5 billion in the 2021–2028 timeframe, growing from $288.5 billion in 2020, at a healthy CAGR of 7.60%.
Strategic alliances among market players, along with growing demand for dietary supplement, are expected to accelerate the growth of the nutraceuticals market.
However, there are few side effects of health supplements along with high manufacturing cost of nutraceuticals, which is a growth-restricting factor for the market.
According to the regional analysis, the Asia-Pacific nutraceuticals market is anticipated to grow during the review period with revenue of $203.5 billion and CAGR of 7.60% due to increasing population that is fitness intent.
Nutraceuticals are the products that are made up of natural ingredients that have high health benefits comparative to food with basic nutritional value. There are different types of nutraceuticals such as dietary supplements that include energy pills or bars, gummies, drinks, protein powders, functional foods, and drinks.
Impact Analysis of COVID-19 on the Global Nutraceuticals Market
Though the novel coronavirus pandemic had a devastating effect on several industries, the nutraceuticals market experienced a significant growth during this period. Most of the people across the globe started adopting food habits that provided health benefits such as boosting the immunity of the body. Moreover, nutraceuticals such as dietary supplements include omega 3 polyunsaturated fatty acids, probiotics, zinc, vitamin C, and D. Therefore, the importance of nutraceuticals has skyrocketed, thus driving the growth of the market.
In addition to this, several researchers and scientist are motivating the society to recover from the chaotic situation with their strategic plans and steps. For instance, according to a research article by Harvard College, in April 2020, poor diet and nutritional status increases the risk COVID-19. The above-stated factors show that the pandemic may have generated substantial investment opportunities in the market during the pandemic.
Increasing Prevalence of Functional Foods to Surge the Market Growth
The global nutraceuticals industry is witnessing a massive growth mainly due to increase in demand for functional foods. Food and beverage producers are continuously deploying fortification of nutritional additives such as vitamins, minerals, omega-3 fatty acids, and fibers in different food products. The main aim of the companies is to incorporate additives to increase the nutritional content of the food items, thereby driving the adoption of functional foods.
The emergence of nutraceuticals is already leading market players to innovate strategies to attract customers. For example, in February 2021, ADM (Archer-Daniels-Midland Company), American based multinational food processing company, announced that they were going to acquire U.S.-based Deerland Probiotics & Enzymes. Deerland Probiotics & Enzymes is a global provider of dietary and probiotic supplements using enzyme, prebiotic, and probiotic technology. Some of the products are for sports nutrition, digestive health, women’s health, cellular repair, and cardiovascular health. These types of acquisition and initiatives from market leaders are also predicted to drive the growth of the market.
To know more about global nutraceuticals market drivers, get in touch with our analysts here.
High Investment Cost of Nutraceuticals to Restrain the Market Growth
The set up cost of nutraceutical industry is costly compared to other industry because nutraceuticals require high research and development, which increases the investment cost of nutraceuticals company. Therefore, higher cost may create a negative impact on the growth of the market during the forecast period.
Increasing Consumer Awareness about Dietary Supplements in the Market to Create Massive Investment Opportunities
The global nutraceuticals market is growing at a very fast pace due to rising living standards of people, encouraging them to buy best quality products for their health. People across the globe are opting for food that will fulfill the dairy nutrient requirements owing to changing lifestyles along with hectic work schedules. Therefore, increasing health consciousness and living standards are major growth accelerating factors of the nutraceuticals, thereby positively affecting the market growth.
Furthermore, in November 2019, Amway, US based company, that offers nutrition, beauty, personal care, and homecare products, revealed that they invested in dietary supplement innovation center in China, amount of USD 200 billion. This investment helps in offering custom-made solutions to the company, which may further lead to lucrative market opportunities for key players in the upcoming years.
To know more about global nutraceuticals market opportunities, get in touch with our analysts here.
Source: Research Dive Analysis
The functional foods sub-segment is predicted to have a dominating as well as fastest growing market share in the global market. The sub-segment is expected to register a revenue of $225.4 billion during the forecast period. Functional food industry is driving at very fast pace owing to trends of technologies such as nanoencapsulation and bio-encapsulation along with innovations in the functional food ingredients industry. Moreover, key players operating in the market are adopting strategic collaborations to offer best type of functional food products to customers. For instance, in May 2021, Cargill, US based privately held global food corporation, announced that they launched a new probiotic product named EpiCor, a dried yeast that is fermented clinically and beneficially provides immune system support and modulate the gut microbiota. These factors and strategic alliances by key companies may bolster the growth of the sub-segment during the forecast period.
By Distribution Channel
Source: Research Dive Analysis
The supermarket & hypermarket sub-segment of the global nutraceuticals market is projected to have the fastest growth as well as a dominant share and surpass $233.5 billion by 2028, with an increase from $123.6 billion in 2020. This growth in the market can be attributed to rising number of people preferring supermarket & hypermarket owing to freedom of selection and other facilities. Furthermore, at supermarkets, buyers can get quality goods at affordable and lower prices. All such elements may increase the demand for supermarket & hypermarket sub-segment and further surge the market growth.
Source: Research Dive Analysis
The Market for Nutraceuticals in Asia-Pacific to be the Most Dominant
The Asia-Pacific nutraceuticals market is dominating the market by registering a revenue of $203.5 billion by 2028, growing at a CAGR of 7.60%. The growth shall be a result of increasing health concerned consumers that will motivate functional beverages makers to adopt strategies to manufacture healthy functional beverages with associated health benefits. Moreover, growing population of young adults and athletes is one of the factors propelling the growth of the nutraceuticals market in the Asia-Pacific region. Thus, key players operating in nutraceuticals market are opting for various strategies to hold a leading position in the market. For example, in 2020, PepsiCo, the world's largest bottler of Pepsi-Cola beverages, announced that they have launched a new functional beverage, known as Driftwell that helps in de-stressing and relaxation. This type of advancements in the market may increase the growth of the sector during the forecast period. Such factors showcase that the demand for nutraceuticals exponentially in the upcoming years.
The Market for Nutraceuticals in North America to be the Fastest Growing
The North America nutraceuticals market accounted $81.7 billion in 2020, growing at fastest rate and projected to register a revenue of $160.6 billion by 2028. The fastest growth of the North America nutraceuticals market is driven by the factors such as increasing working population and earning sources in the region. Moreover, the strong presence of leading nutraceuticals providers and manufacturers is fueling the market growth across the globe.
Competitive Scenario in the Global Nutraceuticals Market
Product launches and mergers & acquisitions are common strategies followed by major market players.
Source: Research Dive Analysis
Some of the leading nutraceuticals market players are Amway Corporation, Archer Daniels Midland Company, DuPont de Nemours, Inc., BASF SE, Cargill, Inc., Danone, General Mills Inc., Koninklijke DSM N.V., Nestle S.A., and PepsiCo, Inc.
Porter’s Five Forces Analysis for the Global Nutraceuticals Market:
- Bargaining Power of Suppliers: The service suppliers of nutraceuticals market are high in number and are larger and more globalized. So, there will be less threat from the suppliers.
Thus, the bargaining power of suppliers is low.
- Bargaining Power of Buyers: Buyers demand for innovative products in nutraceuticals that can offer high health benefits. This has increased the pressure on the nutraceuticals providers to offer the best product in a cost-effective way. Thus, many suppliers are offering best yet cost–effective nutraceuticals. This gives the buyers the option to freely choose product that best fits their preference.
Thus, the bargaining power of the buyers is high.
- Threat of New Entrants: Companies entering the nutraceuticals market are adopting various innovations such as developing nutraceuticals that can increase the immunity to fight against the viruses.
Thus, the threat of the new entrants is moderate.
- Threat of Substitutes: There are different types of nutraceuticals available for various health benefits,
thus, the threat of substitutes is low.
- Competitive Rivalry in the Market: The competitive rivalry among industry leaders is rather intense, especially between the global players including Amway Corporation and Archer Daniels Midland Company. These companies are launching their value-added services in the international market and strengthening the footprint worldwide.
Therefore, competitive rivalry in the market is high.
Historical Market Estimations
Base Year for Market Estimation
Forecast Timeline for Market Projection
North America, Europe, Asia-Pacific, LAMEA
Segmentation by Product
Segmentation by Distribution Channel
Key Companies Profiled
Q1. What is the size of the global nutraceuticals market?
A. The size of the global nutraceuticals market was over $288.5 billion in 2020 and is projected to reach $516.5 billion by 2028.
Q2. Which are the major companies in the nutraceuticals market?
A. Amway Corporation and Archer Daniels Midland Company are some of the key players in the global nutraceuticals market.
Q3. Which region, among others, possesses greater investment opportunities in the near future?
A. The Asia-Pacific region possesses great investment opportunities for investors to witness the most promising growth in the future.
Q4. What will be the growth rate of the Asia-Pacific nutraceuticals market?
A. Asia-Pacific nutraceuticals market is anticipated to grow at 7.60% CAGR during the forecast period.
Q5. What are the strategies opted by the leading players in this market?
A. Technological development and strategic partnerships are the key strategies opted by the operating companies in this market.
Q6. Which companies are investing more on R&D practices?
A. Amway Corporation and Archer Daniels Midland Company are investing more on R&D activities for developing new products and technologies.
1.2.Real time insights and validation
1.4.Assumptions and forecast parameters
2.2.By Product trends
2.3.By Distribution Channel trends
3.1.Market segmentation & definitions
3.2.1.Top investment pockets
3.2.2.Top winning strategies
3.3.Porter’s five forces analysis
3.3.1.Bargaining power of consumers
3.3.2.Bargaining power of suppliers
3.3.3.Threat of new entrants
3.3.4.Threat of substitutes
3.3.5.Competitive rivalry in the market
3.8.Market value chain analysis
3.8.1.Stress point analysis
3.8.2.Raw material analysis
3.8.4.Sales Channel analysis
126.96.36.199.Raw material suppliers
4.Nutraceuticals Market, by Product
4.1.1.Market size and forecast, by Product
4.2.1.Key market trends, growth factors, and opportunities
4.2.2.Market size and forecast, by region, 2020-2028
4.2.3.Market share analysis, by country 2020 & 2028
4.3.1.Key market trends, growth factors, and opportunities
4.3.2.Market size and forecast, by region, 2020-2028
4.3.3.Market share analysis, by country 2020 & 2028
4.4.1.Key market trends, growth factors, and opportunities
4.4.2.Market size and forecast, by region, 2020-2028
4.4.3.Market share analysis, by country 2020 & 2028
5.Nutraceuticals Market, by Distribution Channel
5.1.1.Market size and forecast, by Sales Channel
5.2.Supermarket and Hypermarket
5.2.1.Key market trends, growth factors, and opportunities
5.2.2.Market size and forecast, by region, 2020-2028
5.2.3.Market share analysis, by country 2020 & 2028
5.3.1.Key market trends, growth factors, and opportunities
5.3.2.Market size and forecast, by region, 2020-2028
5.3.3.Market share analysis, by country 2020 & 2028
5.4.1.Key market trends, growth factors, and opportunities
5.4.2.Market size and forecast, by region, 2020-2028
5.4.3.Market share analysis, by country 2020 & 2028
5.5.1.Key market trends, growth factors, and opportunities
5.5.2.Market size and forecast, by region, 2020-2028
5.5.3.Market share analysis, by country 2020 & 2028
6.Nutraceuticals Market, by Region
6.1.1.Market size and forecast, by region
6.2.1.Key market trends, growth factors, and opportunities
6.2.2.Market size and forecast, by Product , 2020-2028
6.2.3.Market size and forecast, by Distribution Channel , 2020-2028
6.2.4.Market size and forecast, by country, 2020-2028
188.8.131.52.Market size and forecast, by Product , 2020-2028
6.2.6.Market size and forecast, by Distribution Channel , 2020-2028
184.108.40.206.Market size and forecast, by Product , 2020-2028
6.2.8.Market size and forecast, by Distribution Channel , 2020-2028
6.2.10.Market size and forecast, by Distribution Channel , 2020-2028
6.3.1.Key market trends, growth factors, and opportunities
6.3.2.Market size and forecast, by Product, 2020-2028
6.3.3.Market size and forecast, by Distribution Channel , 2020-2028
6.3.4.Market size and forecast, by country, 2020-2028
220.127.116.11.Market size and forecast, by Product , 2020-2028
6.3.6.Market size and forecast, by Distribution Channel , 2020-2028
18.104.22.168.Market size and forecast, by Product , 2020-2028
22.214.171.124.Market size and forecast, by Distribution Channel , 2020-2028
126.96.36.199.Market size and forecast, by Product , 2020-2028
188.8.131.52.Market size and forecast, by Distribution Channel , 2020-2028
184.108.40.206.Market size and forecast, by Product , 2020-2028
220.127.116.11.Market size and forecast, by Distribution Channel , 2020-2028
18.104.22.168.Market size and forecast, by Product , 2020-2028
22.214.171.124.Market size and forecast, by Distribution Channel , 2020-2028
6.3.11.Rest of Europe
126.96.36.199.Market size and forecast, by Product , 2020-2028
188.8.131.52.Market size and forecast, by Distribution Channel , 2020-2028
6.4.1.Key market trends, growth factors, and opportunities
6.4.2.Market size and forecast, by Product , 2020-2028
6.4.3.Market size and forecast, by Distribution Channel , 2020-2028
6.4.4.Market size and forecast, by country, 2020-2028
184.108.40.206.Market size and forecast, by Product , 2020-2028
220.127.116.11.Market size and forecast, by Distribution Channel , 2020-2028
18.104.22.168.Market size and forecast, by Product , 2020-2028
22.214.171.124.Market size and forecast, by Distribution Channel , 2020-2028
126.96.36.199.Market size and forecast, by Product , 2020-2028
188.8.131.52.Market size and forecast, by Distribution Channel , 2020-2028
184.108.40.206.Market size and forecast, by Product , 2020-2028
220.127.116.11.Market size and forecast, by Distribution Channel , 2020-2028
18.104.22.168.Market size and forecast, by Product , 2020 2028
22.214.171.124.Market size and forecast, by Distribution Channel , 2020-2028
126.96.36.199.Comparative market share analysis, 2020 & 2028
6.4.10.Rest of Asia Pacific
188.8.131.52.Market size and forecast, by Product , 2020-2028
184.108.40.206.Market size and forecast, by Distribution Channel , 2020-2028
6.5.1.Key market trends, growth factors, and opportunities
6.5.2.Market size and forecast, by Product , 2020-2028
220.127.116.11.Market size and forecast, by Distribution Channel , 2020-2028
6.5.3.Market size and forecast, by country, 2020-2028
18.104.22.168.Market size and forecast, by Product , 2020-2028
22.214.171.124.Market size and forecast, by Distribution Channel , 2020-2028
126.96.36.199.Market size and forecast, by Product , 2020-2028
188.8.131.52.Market size and forecast, by Distribution Channel , 2020-2028
184.108.40.206.Market size and forecast, by Product , 2020-2028
220.127.116.11.Market size and forecast, by Distribution Channel , 2020-2028
7.1. Amway Corporation
7.1.2.Operating business segments
7.1.5.Recent strategic moves & developments
7.2. Archer Daniels Midland Company
7.2.2.Operating business segments
7.2.5.Recent strategic moves & developments
7.3.DuPont de Nemours, Inc.
7.3.2.Operating business segments
7.3.5.Recent strategic moves & developments
7.4.2.Operating business segments
7.4.5.Recent strategic moves & developments
7.5.2.Operating business segments
7.5.5.Recent strategic moves & developments
7.6.Danone, General Mills Inc.
7.6.2.Operating business segments
7.6.5.Recent strategic moves & developments
7.7.Koninklijke DSM N.V.
7.7.2.Operating business segments
7.7.5.Recent strategic moves & developments
7.8. Nestle S.A.
7.8.2.Operating business segments
7.8.5.Recent strategic moves & developments
7.9.2.Operating business segments
7.9.5.Recent strategic moves & developments
7.10.General Mills Inc.
7.10.2.Operating business segments
7.10.5.Recent strategic moves & developments
Nutraceutical is the term that is combined with two terms, one is “nutrient” which means nourishing food component, and the other one is “pharmaceutical” which means a medical drug. So, the term nutraceuticals are used for any product that is made up of food sources that deliver additional nutritional and medicinal benefits. These specific products include herbal products, genetically engineered products, vitamins, and dietary supplements. Nutraceuticals contain bioactive compounds which help in the prevention and treatment of chronic diseases. Nowadays, nutraceuticals are available in various forms, such as energy bars or pills, drinks, functional foods, protein powder, and many more.
Forecast Analysis of the Global Nutraceuticals Market
With the increasing demand for functional food to provide powerful health benefits beyond basic nutritional value, the market is expected to experience a remarkable growth during the analysis timeframe. Besides, the growing use of nutraceuticals for sports nutrition, cellular repair, digestive health, cardiovascular health, women’s health, and many more, is expected to foster the growth of the market during the forecast period. Moreover, the increasing health consciousness and awareness about dietary supplements among consumers are the factors expected to create huge investment opportunities for the nutraceuticals market over the estimated timeframe. However, the high investment cost of the nutraceutical industry for the high research and development of nutraceuticals may hinder the growth of the market throughout the analysis period.
According to the report published by Research Dive, the global nutraceuticals market is anticipated to generate a revenue of $516.5 billion and rise at a CAGR of 7.6% during the estimated timeframe from 2021-to 2028. The major players of the market are Danone, Cargill, Inc., General Mills Inc., BASF SE, Koninklijke DSM N.V., DuPont de Nemours, Inc., Nestle S.A., Archer Daniels Midland Company, PepsiCo, Inc., Amway Corporation, and many more.
The key companies operating in the industry are adopting various growth strategies & business tactics such as partnerships, collaborations, mergers & acquisitions, and launches to maintain a robust position in the overall market, which is subsequently helping the global nutraceuticals market to grow exponentially.
For instance, in August 2021, Danone, a leading multinational food-products manufacturing company focusing on essential dairy and plant-based products, announced its partnership with Brightseed, a renowned biotechnology company that uses artificial intelligence to reveal powerful compounds hidden in nature. With this partnership, Danone aimed to establish a health-forward food system by expertizing on plant-based products.
In June 2021, Nestle Health Science, a leader in the field of nutritional science, partnered with Focus Brands, a renowned American-based developer of global multi-channel foodservice brands to launch a nutritional drink named “Carnation Breakfast Essentials”. It is a ready-to-drink beverage loaded with key nutrients and a great flavored breakfast experience. This particular breakfast beverage contains 10 grams of protein, 21 vitamins and minerals, and many more essential ingredients.
In December 2021, Cargill Inc., a leading American global food corporation, acquired Croda International Plc., a British specialty chemicals company, to expand its product portfolio for supplying innovative and natural-based solutions to mankind. With this acquisition, the companies focused on deep operational expertise, and a global supply chain to expand the bio-based portfolios for customers worldwide.
Most Profitable Region
The Asia-Pacific region of the nutraceuticals market is expected to have the largest share and is predicted to generate a revenue of $203.5 billion by 2028 and rise at a CAGR of 7.60% during the estimated period. This is mainly due to the increased number of health-conscious consumers all across the globe who motivate beverage manufacturers to adopt innovative strategies to develop functional beverages with numerous health benefits. In addition, the growing population of young adults and athletes in this region is the major factor expected to drive the regional growth of the nutraceuticals market over the forecast period.
Covid-19 Impact on the Market
Though the outbreak of the Covid-19 pandemic has drastically affected several other industries, it has had a positive impact on the nutraceuticals market. This is mainly because of the increasing adoption of food habits among people that imparted health benefits such as boosting the immunity level of the body. Furthermore, the active participation of several researchers and scientists to take strategic steps to recover society from the chaotic situation is the factor that effectively skyrocketed the growth of the nutraceuticals market during the pandemic period.