The Future of Nutraceutical Industry
May 27, 2019
The name “Nutraceutical” is formed by merging the words “Nutrition” and“Pharmaceutical”. coined by Stephen L. DeFelice (founder and chairman of the Foundationof Innovation Medicine) in 1989. Nutraceuticals are functional foods and dietarysupplements, as deemed by the Food and Drug Administration (FDA) in the US.
They are more of fortified pharmaceuticals with added nutritional value and health benefits that have the capability of preventing and fighting diseases. Nutraceuticals provide concentrated nutrient in the form of single nutrient or a combination of multi-nutrients such as vitamins, minerals or plant extracts.
Major players in the Pharmaceutical industry have started to invest in nutraceuticals.
In a market research conducted by Nutraceuticals World in October 2018 about the industry, 85% of respondents said they are very confident in the future of the industry. This is a 60% rise compared to last year’s survey.
The Nutraceutical Industry is classified in various categories basis the types:
- Dietary Supplements (Vitamins, Minerals, Botanicals, Enzymes, Fatty Acids, Proteins)
- Functional Foods (Cereals, Bakery, Dairy, Confectionery)
- Functional Beverages (Energy Drinks, Sports Drinks, Fortified Juice, Dairy and non-dairy beverages, tea, water, non-carbonated water)
- Herbals (Ayurveda extracts, plant extracts, algal extracts, phytochemicals)
To understand the scope of this industry, let’s look at a few facts:
- The Global Market for Nutraceuticals in 2017 accounted for $379.06 billion.
- At a 7.5% Compound Annual Growth Rate (CAGR) for Nutraceuticals, the market forecast is predicted to reach a revenue of $671.30 billion by 2024.
Major countries that contribute to Nutraceuticals
At a global level, people are beginning to realize the importance of multivitamins and nutrients as part of their daily diet.
At a Region level, the major countries that play a substantial role in the Nutraceutical Industry are:
- Latin America
- North America
At a Country-level, the leading geographic markets include the US, Mexico, Japan, China, South Korea, the UK, Germany, France and Italy.
India has also played a vital role in recent years in the Nutraceutical Industry as is evident from the below table.
Since before the Industrial Revolution, in a primitive time, people have always looked to herbal remedies and natural ingredients to combat diseases.
Nutraceutical companies have mastered the science behind plant-based natural ingredients to manufacture nutraceuticals that can be used for general wellbeing and in some cases preventing diseases. Companies with expertise in herbs are combining it with botanical knowledge to create botanical and nutritional ingredients.
Rising trend of use of natural supplements among consumers
One of the primary reasons for this has been the shift in our lifestyles. People have erratic work-life balance, a healthy diet being the least of their concerns. Nowadays consumers look towards a healthier alternative and Nutraceuticals are their first choice.
This has been facilitated with the increased awareness of the side effects caused by the pharmaceuticals. Additionally, the hefty prices for pharmaceuticals don’t help.
The present generation is looking towards preventive healthcare rather than remedial. They want to prevent diseases before they happen by improving their health and lifestyle.
People from all walks of life (not just gym aficionados) have taken to supplements. The use of herbal extracts promotes the safe use of nutraceuticals with high quality and at affordable prices.
The importance of Health and wellness along with food supplements among young consumers has significantly grown in 2019.
There’s been a shift in spend patterns for consumers who are more willing to spend on preventive medicine than later spending heavily on remedial medicine. Millennials with access to information and increased consumer knowledge about supplementary foods based on natural ingredients have made nutraceuticals more acceptable.
Companies have well-laid out plans for more investment and consumer-based market research to reach the goal of $671.30 billion by 2024. Technological advancements have played a huge part as well to achieve these goals so far.
With these trends and the change in the consumer behavior assures us the future of the nutraceutical industry is safe and growing.