NUTRACEUTICALS: A COMBINATION OF NUTRITION AND PHARMACEUTICALS

An overview of Nutraceuticals Market

It was Stephen L. DeFelice who coined the word nutraceuticals from the source words of nutrition and pharmaceuticals. A wide variety of products fall under the realm of nutraceuticals ranging from simple dietary supplements that cost less than normal medicines to ridiculously expensive products made from rare herbs. Other categories include processed food and beverages and in some cases even nutrients that can be consumed directly. Looking at it from a market perspective, the market is divided into functional food and beverages, dietary supplements and others.

Today, nutraceuticals are not just for human consumption. Rising milk and meat demands have led to nutraceuticals being developed for animals as well. These are mixed in to the cattle feed for better output. The list of ingredients in nutraceuticals are endless varying from fibers, minerals, proteins, vitamins, pre-biotic and pro-biotic components, omega 3 fatty acids and lipids.

WHY ARE NUTRACEUTICALS IMPORTANT NOW?

Lifestyles around the world are changing. Gone are the days when the only time one used to think about his or her health was when he or she got sick. Modern technologies as well as better consumer awareness have led to highly health conscious consumers. They are much more aware and better informed about the health care products and nutritional supplements that the market has to offer. Supplements are no longer seen as medications but as part of a daily balanced diet. They help meet the daily nutrient requirements of the body and also provide the much needed performance boost to meet the everyday rigors of a fast paced lifestyle. Over the course of the past decade or so, the world has witnessed a change in the preference of consumers from synthetic nutritional products to 100% natural and organic ones. Even non-GMO origin supplements are specially being preferred.

Inspite of the fact that it’s been quite a while since nutraceuticals have come into the market, it is only recently that their market has boomed. This is due to several factors, the main one among them being the inflow of money into the middle class of developing countries. They earn more and are also better aware to spend their money in attaining a healthier lifestyle. This increased income also gives them more choices regarding the same. The nutraceuticals’ market is no longer a market just for the rich as other parts of the society have also found a place among the customer base. Fundamentally, the saying that prevention is better than cure is what drives the market for nutraceuticals. Inspite of the fact that nutraceuticals used to be just a type of medication, it has now leeched its way into several products. They are available right from vegetables and fruits to cereals, dairy or poultry products, sea food and even confectionary. They are also available in the form of several non-alcoholic beverages such as juices, energy drinks, soy beverages, sports drink and so on.

THE CORPORATE RIVALRY

The major target audience for nutraceuticals is people who are undergoing a mid-life crisis. It’s during the late 30s or early 40s that people start to think about looking after their bodies better. The manufacturers intend to extend the target audience to a wider group of people. The current generation will help in this regard, being ones who like to keep a healthy and firm body, maintain diet goals and healthy BMI. On the other end of the spectrum as well, the market yet remains to be captured. Older people are unaware of the health benefits offered to them or are sometimes just reluctant to use the products. The companies operating in this sector need to find ways to cater out of their comfort zone. Their products must be varied in innovation as to attract the young and the old at comparably equal rates. In a world where gluten free and additives free are two tags that most consumers like to see, healthier lifestyles are turning out to be the norm. Probiotic drinks for better digestive health is another recent development that women and senior citizens have found particularly useful. Looking at the major brands dominating the market, they are Activia, Yakult, Coca Cola, General Mills, Kellogg. Nestle, Dean Foods, Royal DSM, ADM, BASF and Cargill among others. Even purely pharmaceutical companies are getting into the field to obtain a sizeable revenue boost through pharmaceuticals.

MARKET ANALYSIS AND INVESTMENT OPPORTUNITIES

The global leaders among nations for the nutraceutical market consists of Israel, Japan, Germany and USA. The market is also driven by the recent boon in the food and beverages market as well, both of which contain segments dedicated to nutraceuticals. The US nutraceutical market is expected to cross well over 20 billion USD in revenue by the end of the forecast period at growth rates of over 6%. This growth rate is only expected to rise predicted to go as high as 9% by the end of the forecast period. After the North American market, Asia Pacific have the second highest market share ahead of usual silver medalists, Europe. The Asia Pacific market is given a strong boost by the Japanese market where statistics have shown 50% of the population are consumers of nutraceuticals. This can be attributed to several reasons the most interesting and unique one being the very high life expectancy of people in the region. Coming to the European region, Germany, Netherlands and Sweden are the top market players with UK and Spain also showing significant growth rates in recent times.

Looking at the future market prospects, innovation seems to be the way forward in this market as well as it is in almost every other medical product market. An interesting prospect in the coming years is the development of customized nutraceuticals depending on consumer need. The fact that nutraceuticals have a less stringent regulatory policy as opposed to pharmaceuticals is also an important pro that the market has going for itself. But in the end it is upto the people to decide, they buy the promised benefits and not the ingredients. So it is upto the companies to make the best product from the right ingredients and make it known to the masses.

Check out Market Data Forecast’s comprehensive reports with in-depth analysis about the Nutraceuticals Market a free research sample can also be availed. Stay tuned for trending news stories about the latest technologies and interesting Healthcare tit-bits.

 

Share this post:

Related Posts

Leave a Comment