Global Nutraceuticals Market By Type (Dietary Supplements, Functional Beverages, and Functional Food) By Form (Capsules, Liquid and Gummies, and Other Forms), By Sales Channel, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

In 2022, the Global Nutraceuticals market size was valued at USD 472.7 Billion and is expected to reach USD 1085.4 billion in 2032. This market is estimated to register the highest CAGR of 8.9% from 2023 to 2032. Nutraceuticals are a broad umbrella term that refers to any product derived from food that offers additional health benefits beyond the foods’ basic nutritional value.

Nutraceuticals are non-precise biological treatments that can be used to improve general health, control indications, and prevent malignant developments. The origin is the most important factor in explaining nutraceuticals or allied products.

The basis of nutraceuticals is their natural base, pharmacological conditions, and the chemical structure of the products. Nutraceuticals are most often classified as functional food, dietary supplements, and pharmaceuticals.

Over the forecast period, the market will be driven by the growing demand for functional foods and dietary supplements. Given the growing use of dietary supplements to treat cardiovascular disorders and malnutrition, the favorable outlook for medical nutrition is expected to drive the market.

The global functional food industry is expected to grow due to rising healthcare costs and an aging population. Consumers view functional foods positively due to their added health and well-being benefits. The rising geriatric population and increasing healthcare costs have aided the overall growth.

Key Takeaways

• Market Growth: In 2022, the global nutraceuticals market reached USD 472.7 billion and is anticipated to surpass this goal with an astounding compound annual compound growth rate of 8.9% for the years 2023-2032.
• Functional Food Analysis: Functional food is by far the most prevalent segment within this market and sales of probiotics, prebiotics, and related products are projected to rise over time.
• Analyzing Vitamin Market Trends by Form: Tablet and capsule markets are increasingly preferred because they’re easy to take and absorb into our systems quickly, accounting for an incredible nutraceuticals market share of revenue in 2021. Tablets and capsules make vitamin supplementation part of everyday routine.
• Sales Channel Analysis: Online retail marketplaces serve as digital platforms connecting customers and merchants without needing to store any physical goods themselves.
• Market Drivers: Nutraceuticals Market Drivers: Key drivers fuelling market expansion include an increasing need for personalized nutrition, ongoing research and development efforts aimed at unlocking all their capabilities, as well as increased recognition of health benefits provided by them.
• Restraints: Misconceptions and lack of understanding surrounding nutraceuticals in developing economies could stifle market expansion. Therefore, education of the public on their value and appropriate usage must take place for growth to take place.
• Opportunities: The future of the nutraceuticals market appears promising with advances in manufacturing technology, increased public and private funding for research studies, as well as evolving lifestyles and preferences of consumers. Nutraceuticals with tailored and functional properties hold great promise for future expansion.
• Trends: In today’s market, emerging trends include an increasing interest in personalized and functional nutraceuticals as well as their innovative delivery formats, along with further studies regarding their health benefits and uses.
• Regional Dominance: Asia Pacific was responsible for 28.4% of overall revenues in 2012. As more consumers become aware of nutraceuticals as well as rising healthcare concerns, its market is projected to expand further.
• Key Players in the Nutraceuticals Market: Herbalife Ltd, Nestle S.A, and Danone are some of the industry leaders who stand out as key players in this space, contributing actively towards product innovation and development within this market.

Driving Factors

Increasing Health Awareness is Driving the Nutraceuticals Market Growth.

An increase in regional population has been attributed to improved healthcare options, decreased death rates, and consumers’ willingness to spend more on their health and well-being. This has given rise to the nutraceuticals industry growth. Reports indicate that nearly two-thirds (or more) of Americans consider healthfulness a major factor in their beverage and food purchase decisions.

Increased sales have been attributed to the shift in consumer preferences toward functional foods and beverages. Consumers are more willing to choose a concentrated source of nutrition, and dietary supplement companies have responded quickly and effectively. The global market will grow in the coming years as more people realize its importance to their physical and immune health.

A manufacturer’s investment in research-and-development activities positively impacts its production technology and quality. The nutraceutical market has evolved rapidly in recent years in response to the growing demand for health-enhancing products. This can be seen in the rapid growth of nutraceutical launches within functional beverages and dietary supplement categories.

The widespread use of antibiotics as over-the-counter medications has negatively affected our health. There are incidences of infections caused by antibiotic-resistant pathogens. Nutraceutical products are needed to provide a microbiota rich in diversity, enhancing immunity and improving overall well-being.

Restraining Factors

Complex Framework Regulations are Hindering the Nutraceuticals Market Growth.

The market is still experiencing a higher demand despite this fact. However, certain factors are limiting the growth of the market. The complex and stringent regulatory framework for commercializing nutraceutical products is one of them. Global markets have few harmonized provisions regarding the composition of these products.

Harmonization is still needed to determine the upper limits and conditions for the use of other botanicals, preparations, and bioactive substances. Harmonization is further complicated by the differing opinions of several government agencies on what type and how many ingredients should be allowed.

The industry faces major challenges due to the complex regulations and complicated policies governing nutraceutical product commercialization. A strict set of guidelines was established to ensure safe and high-quality nutraceuticals. Nutraceutical product designers must provide sufficient evidence to support the product’s claims about health.

Different countries have different regulatory policies. The European Food Safety Authority (EPSA) is the European Food Safety Authority. The Therapeutic Goods Administration (TGA), Australia’s regulatory body, oversees the commercialization and distribution of nutraceutical products.

By Type Analysis

Prebiotics are Driving the Domination of the Functional Foods Segment in the Nutraceuticals Market

The functional food segment dominated with a large share of the overall market. The functional food market will see a significant increase in sales of prebiotics and other probiotics products over the forecast period. Due to the pandemic, there was an increase in preventive healthcare measures across many countries.

A wider range of people with weakened immunity now fear the COVID-19 pandemic. Prebiotics and probiotics have seen a rise in demand due to this. The functional food segment is expected to grow significantly during the forecast period due to its increasing use in sports and candy bars as well as increased usage in bakery and confectionery products.

The segmental growth in dietary supplements is expected to increase due to a growing working population and increased energy needs from the millennials and Gen-Z populations. These products will see a rise in demand due to a shift in lifestyles and a tendency towards a more sedentary lifestyle. Due to the increasing demand for fibrous components, dietary fibers will grow at the fastest rate of CAGR over the forecast period. These fibers are most commonly found in breakfast-based meals.

The functional Beverages segment is growing at an impressive pace due to the changing tastes of consumers who are more conscious about their health and switching to functional beverages that are lower in calories and sugar. As a result, functional beverages like sodas, soft drinks, and colas have seen a rise in sales. Sports drinks have become popular with athletes and others involved in active physical activities.

Due to their high purchasing power, willingness to pay for sports products, keen interest in the sport, and a growing desire to exercise, the millennial generation drives the market for sports drinks exponentially. The rising attention of well-known brands to launching low- and no-sugar functional beverages will also help keep their market prominence.

By Form Analysis

Tablets and Capsules are the Dominating Forms of Nutraceuticals

The tablet and capsule market is a popular choice for vitamins as it’s easy to swallow. In fact, in 2021, it accounted for a large revenue share. Tablets and capsules are an easy way to incorporate vitamins into your day. These tablets have a thin layer of sugar or film that helps to encapsulate unpleasant tastes and odors. The many benefits of capsules and tablets will accelerate segmental expansion.

The liquid and gummies segment is expected to expand significantly over the forecast period. Sales of liquids such as sodas, soft drinks, and colas are on the rise. A growing number of athletes and those involved in physical activity are turning to sports drinks. The millennial generation is driving the market for sports drinks because of their high purchasing power and willingness to pay for them. They also have a keen interest in the sport and a growing desire to exercise.

By Sales Channel Analysis

Online Retail Marketplaces are Mostly Popular Among the Customers for Nutraceuticals.

Online retail marketplaces are digital platforms that connect consumers and merchants without needing to warehouse the products. These marketplaces offer shipping, delivery, and a variety of payment options for their customers. Many factors, including low product prices, discounts and easy shopping, free shipping, and a wide product selection, are expected to help support the steady growth in the online retail sector.

The supermarkets/hypermarkets segment is anticipated to grow during the forecast period. Due to their increased reliance on healthy food and multiple food products, supermarkets are vital distributors.

Consumer awareness has increased in food and health, which has resulted in a rise in demand for foods containing biologically active substances, particularly antioxidants. These compounds can aid the body in fighting oxidative stress. Many new and unusual sources of antioxidants have been discovered. This is important not only for food but also for pharmacies and drugstores.

Key Market Segments

By Type

• Dietary Supplements
• Functional Beverages
• Functional Food

By Form

• Capsules & Tablets
• Liquid & Gummies
• Soft Gels
• Powder
• Other Forms

By Sales Channel

• Specialty Stores
• Supermarkets/Hypermarkets
• Convenience Stores
• Drug Stores/Pharmacies
• Online Retail Stores
• Other Sales Channels

Growth Opportunity

The Rising Importance of Bioavailability and health awareness are Creating Opportunities in the Nutraceutical Market

The increasing importance of bioavailability, potency, and purity of nutraceuticals has become a key consideration for customers as well as selling considerations for companies trying to differentiate their products. This is expected to create lucrative business opportunities for both major players and new entrants to the global market. However, market growth will continue to be driven by changing lifestyles and insufficient nutrients from diets.

The global nutraceutical market is expected to grow due to rising healthcare costs and an aging population. Consumers view functional foods positively due to their health and well-being benefits. The rising geriatric population and increasing healthcare costs have aided the overall growth.

Due to consumers’ increasing importance of preventive healthcare, the U.S. has seen a growing demand for dietary supplements in recent years. Multivitamins provide essential nutrients for the human body, which is why consumers prefer multivitamins. Multivitamins have become an integral part of the American consumer’s lifestyle.

Latest Trends

The global Nutraceuticals market will be impacted by an increase in the per-capita income of consumers worldwide over the forecast period. To improve their health, rising disposable income will drive sales of Nutraceuticals.

In the coming years, the personalized nutrition market will see a rise in Nutraceuticals consumption. This market has a strong potential, complemented by evidence-based health benefits and clean-labeled characteristics, which will help increase its size.

Rising healthcare costs and a growing geriatric population will support the global Nutraceuticals market. Market growth will be driven by the changing lifestyles of the working population and the innovations in the food industry. Functional foods & drinks are gaining popularity due to their health benefits, better performance, and well-perceived health benefits.

Market growth will also be driven by the increasing use of nutraceutical ingredients, especially in confectionary and baking products. Market leaders have a strong product portfolio and are changing their delivery strategies to differentiate themselves. These companies go beyond tablets and pills and offer chewing gums and gummy bears as well as patches and lollipops.

Regional Analysis

Asia Pacific Leads the Nutraceuticals Market with Major Share.

Asia Pacific had a 28.4% share of the total revenue. APAC’s market is likely to be driven by growing consumer awareness about nutraceuticals and rising health concerns. The growth of the Asia Pacific nutraceutical market has been aided by an increase in the aging population and changes in lifestyles.

A large product range and strict government regulations about nutraceutical products hamper this market. This market is expected to grow significantly due to the increasing use of nutraceutical products for food fortification.

Rising awareness in India and China about nutritional enrichment will continue to support market growth. In the future, buyers will be more accessible due to the expected expansion of the retail sector in emerging countries like China, Indonesia, Malaysia, and India.

Consumers are more inclined to eat healthily due to their changing lifestyles and rapid urbanization. Vitamins are essential for the healthy functioning of the body. They prevent various diseases and aid in wound healing. These factors are expected to drive significant growth in the Asia Pacific region.

North America will hold the second-largest market share. This is due to consumers becoming more aware of the health benefits these products offer and the nutritional benefits they can provide for health enhancement and prevention of disease. Nutraceutical and functional foods can improve health and reduce healthcare costs.

They also support economic development. These products are mainly driven in part by the growing demand for functional drinks, energy drinks, fortified milk products, functional beverages, and nutritional supplements. However, the key market is still facing challenges such as country-specific regulations and the verification of health claims.

The rising interest in preventive healthcare is driving the European market. A growing number of people becoming older in Europe has contributed significantly to the increasing demand for nutraceuticals, particularly dietary supplements. The regional key players are launching new products to increase their market presence.

Key Regions and Countries

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia & CIS
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • ASEAN
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of MEA

Key Players Analysis

Major market players will make substantial R&D investments in order to diversify their product ranges and expand the market. Market players participate in numerous strategic initiatives to improve and expand their market positions.

These include new product releases, contract agreements, mergers and acquisitions, and significant market developments like greater investments, increased investments, collaboration, and more investment. If they want to succeed in this increasingly competitive field, the competitors in nutraceuticals must set fair prices for their products.

The nutraceuticals sector uses local production to reduce operating costs. This is one of its main business models to expand the market and serve customers. Recent medical breakthroughs have been made possible by the nutraceuticals sector. Herbalife Ltd., Nestle S.A., Danone, and Amway Corporation are some of the major players in the nutraceutical market.

Key Players

• Herbalife Ltd.
• Nestle S.A.
• Danone
• Amway Corporation
• Archer Daniels Midland Company
• Innophos
• GlaxoSmithKline Plc
• Royal DSM N.V.
• Abbot Laboratories
• Arkopharma Laboratories S.A.
• Bactolac Pharmaceuticals, Inc.
• Other Key Players

Recent Developments

• In February 2021, TopGum Industries Ltd., an Israeli manufacturer of functional gummy supplements, is expanding its U.S. operations by creating a New Jersey subsidiary TopGum, Inc. The company plans to expand its production and market activities for functional gummy bears in North America, Europe, and Asia.
• In January 2021, Alpine Start, Inc., a producer of premium instant coffee. With the support of American public benefits company Kickstarter, they announced that they would launch their functional beverages, “With Benefits.” It is expected that the new product will contain vitamins, minerals, as well as MCTs. They will be made with natural ingredients and clean-label products, focusing on immune-boosting properties.

Report Scope