Nutraceutical Market- Industry Trends & Forecast Report 2027
The global nutraceutical market reached USD 410.20
billion in 2020 and is further projected to reach USD 712.63 billion by 2027, growing
at a CAGR of 8.28% during 2021-2027 (forecast period).The growth of the global nutraceutical
market has been positively impacted by the rising demand for healthy and
nutritious food. Nutraceuticals available in the form of gummies, drinks,
capsules, syrups, and powder are effective and easy to use, which has increased
their adoption. Also, some over-the-counter dietary
supplements, such as OMEGA-3-fatty acids, cholecalciferol sachets, and flavored
gummies available are highly preferred by consumers for maintaining a healthy
lifestyle and nutritious value intake.
A majority of consumers prefer purchasing
nutraceuticals online as online purchase enables them to compare the different nutraceutical
products available on various online stores. The demand for nutraceuticals went
up during and after the COVID-19 pandemic with the growing demand for natural
immunity-boosting products. The growing demand for nutraceuticals combined with
the rising prevalence of acute and chronic diseases (such as obesity and calorie
reduction), increasing awareness about a healthy lifestyle, and boosting immunity
are likely to drive the growth of the global nutraceutical market.
Nutraceutical Market Overview
Nutraceutical is defined as any substance that may be
a food or part of a food that helps prevent diseases besides offering nutritional
benefits. Nutraceuticals are a good and healthy way to reduce expensive medical
treatments. The nutraceutical industry is bifurcated into three main segments—functional
food, dietary supplements, and herbal/natural products. In the past few years,
functional foods have gained popularity within the health and wellness segment.
Functional foods contain high nutritious value and are associated with several powerful
health benefits. The concept began in Japan in the 1980s when government
officials began approving foods with established health benefits in an attempt
to improve the health of the general public. Foods supplemented with vitamins,
probiotics, minerals, and fiber are some examples.
The dietary supplement holds the largest share in the nutraceutical market, followed by functional food and
the next few years, an increase in awareness for nutritional enrichment among
working professionals in the United States and Canada for ensuring balanced
nutrition in the human body is expected to increase dietary supplement intake
in North America. Also,
the growing adoption of herbal medicines among individuals in the U.S. and
Canada on account of rising concerns over perilous effects associated with
conventional pharma drugs is expected to expand the nutraceuticals market over
the forecast period.
Nutraceutical Market Forecast and Trends
Lifestyle is Driving the Market Growth of Nutraceutical
Busy lifestyles in developing and emerging regions
will have a positive impact on the nutraceutical market's growth. According to a
recent study, up to 4% of global diseases
are associated with unhealthy diets due to a busy lifestyle. With the exponential growth of the working population,people’s lifestyles are getting more hectic globally. It is predicted that the incidence
of diseases caused by bad dietary habits will increase significantly due to
busy lifestyles and unbalanced diets.
Developed markets in the United
States and Europe are now discovering the untapped segment of customized
products based on consumer health. It has been reported that nine out of ten adults consume 55% of
minerals and over 50% of vitamins in their daily diets which reveals that this
market has lots of opportunities. This is likely to boost research and development activities for developing new nutraceutical
products as the demand for the same
is rising among the consumers.
Intervention of AI in Nutraceutical is Growing its Demand
Artificial Intelligence (AI) has significantly shown a positive
contribution in boosting this sector. Various AI-designed apps and tools are currently
being used to develop customized or tailor-made nutraceutical products. The
amalgamation of AI into the nutraceuticals industry not only increases efficiency
but also decreases the probability of human error. The aim is to bridge the gap between
the demand and supply of personalized alternative medications. Moreover, AI
helps accumulate huge volumes of data through patient diagnosis. With the help
of algorithms,a specific pattern is recognized, to offer the most effective
and affordable treatment available within the domain of nutraceutical products. For instance, MedicascyAI Solutions Platform aims at
revolutionizing the way nutraceuticals are identified and manufactured. It has
been designed to reduce the amount of time spent on research and development in
the nutraceutical industries so that the manufacturers can focus on ingredients
that have the highest chance of producing the best results.
Increase in the number of counterfeit nutraceuticals
products in the name of original products
A major factor restraining the growth of the nutraceutical
market is the availability of many counterfeit products in the market. Providing
customers with safe products is the key to building consumer trust, and the
nutraceuticals industry is no exception. Unfortunately, many fake,
unregistered, and unapproved nutraceutical products have flooded the market.
Consequently, there has been an increase in the number of skeptical consumers as
well as the industry trade community. To overcome this, companies, as well as
governing bodies need to launch some campaigns to make the consumers aware of
their products and labeling.
In many emerging economies nutraceutical is still at
early development and respective governments are working on the regulations in
this industry. In order to maintain trust among consumers, themarket players need to build integrity into their brands.
of COVID-19 on Global Nutraceutical Market
There has been a positive impact of the COVID-19
pandemic on the nutraceutical market as people are now more conscious about
their health and immunity. Nutraceutical products are known for providing
health and medical benefits for boosting the immune system as well as preventing
chronic diseases. The increase in demand for nutraceuticals has created ample
opportunities for market players to explore untapped regions and fuel the
growth of this sector. Taking the advantage of the pandemic, many fake
nutraceutical companies have flooded the market for selling counterfeit
products. As a result, food safety authorities are now at non-negotiable terms
with the claims and demanding clinical validation of the nutraceutical products.
Thus, the pandemic has accentuated the rightful use of nutraceutical products.
Nutraceutical Market- By Product Type
Based on product type, the market has been segmented
into- functional food (cereal, bakery and confectionary, dairy and snack); functional
beverage (energy drink, sports drink, fortified juice, dairy and dairy alternative
beverage); and dietary supplements (vitamins, minerals, botanicals, enzyme,
fatty acids, and proteins). It is anticipated that the dietary supplement segment would dominate the market during the forecast period. The growth of
this segment can be attributed to the growing demand for easy-to-carry and easy-to-consume
supplements. Additionally, the growing awareness of a healthy lifestyle,
increased demand for self-care and easy-to-carry products, and an increase in
the number of R&D initiatives pertaining to dietary supplements is
expected to support market development.
Nutraceutical Market- By Distribution Channel
Based on the distribution channel, the market is
segmented into- specialty stores, department stores, supermarkets, superstores,
hypermarkets, door-to-door selling, and e-commerce sites. It is anticipated
that the supermarket segment would dominate the market during the forecast
period as they are easily accessible to consumers and offer nutraceutical products
at economical prices. The specialty stores segment is
projected to be the fastest-growing segment in the market during the forecast
period. These stores mainly include bakery stores, confectionery stores, and
Nutraceutical Market- By Region
Based on region, the market has been segmented into-
North America, Europe, the Asia-Pacific, Latin America, and the Middle East and
Africa. It is anticipated that North America will witness the largest revenue
in the market due to the growing demand for protein ingredients as a result of
the increase in consumption of snacks, cold cereals, and energy bars. Moreover, the introduction
of new products such as Enfamil Human Milk Fortifier Liquid High Protein
companies such as Mead Johnson and Cargill, Inc. to cater to the consumer needs
for cholesterol-free and low saturated fat beverages is expected to increase
the product demand further.
There are great opportunities for Tier II, emerging
players, and new entrants in this market. Tier I players like Cargill Inc.,
PepsiCo is already in the game and has attained maturity in developed
countries. Companies are increasingly focused on offering the best affordable
prices in order to boost their production capability, product portfolio, and
provide competitive differentiation. Furthermore, companies are focused on
securing consumer trust over genuine nutraceutical products as fake or
counterfeit products are flooding the nutraceutical market. Some of the key players operating in the market are Cargill Incorporated, ADM,
DuPont, Nestle, Danone, DSM, General Mills Inc., Kellogg’s Company, Herbalife
International of America, Inc., Matsun Nutrition.
In June 2020, Nestlé Health Science acquired
major stakes in Vital Proteins (America’s collagen brand). It may be the first
time a collagen-based health business has been taken over. Collagen is the most
abundant protein found in the human body but it starts declining after 25 years
of age, Thus, collagen-based supplements are becoming widely popular as they
support skin, hair, joints, and bone diseases.
In February 2020, Cipla acquired the nutrition
product portfolio of Wanbury Ltd. It aims to cater to a wide range of patient
requirements, including nutritional deficiencies, bone health, and sexual
Scope of Report
Base Year- 2021
Revenue in USD
Germany, UK, France, Italy, Spain, Brazil, Mexico, Japan, South Korea, China,
India, Australia, Argentina, UAE, South Africa, Saudi Arabia, Turkey, Egypt,
By Product Type,
By Distribution Channel, By Region
Incorporated, ADM, DuPont, Nestle, Danone, DSM, General Mills Inc., Kellogg’s
Company, Herbalife International of America, Inc., Matsun Nutrition.
Bakery and Confectionary
and Dairy Alternative Beverage
The Middle East and Africa
What is the current
size of the global nutraceutical market?
Answer: The global nutraceutical
market has reached USD 410.20 billion in 2020.
What are the major
factors driving the growth of the global nutraceutical market?
Answer: The major factors
driving the growth of the global nutraceutical market is the growing
prevalence of chronic and non-communicable diseases due to busy lifestyles and AI advancements in nutraceuticals.
Who are the key
players in the global nutraceutical market?
Answer: The key players in the
global nutraceutical market are Cargill Incorporated, ADM, DuPont, Nestle,
Danone, DSM, General Mills Inc., Kellogg’s Company, Herbalife International of
America, Inc., Matsun Nutrition.
4. Which product type accounted for the largest share in
the global nutraceutical market?
Answer: Dietary supplements
accounted for the largest share in the global nutraceutical market.
Which distribution channel is growing at a higher rate in the global nutraceutical market?
Answer: The supermarket is likely
to grow at a higher rate in the global nutraceutical market.