Nutraceuticals Market
In 2023, North America held the largest share of the nutraceuticals market. Nutraceutical products such as functional food and beverages, and dietary supplements are gaining huge popularity among the American population. The increasing awareness of nutraceuticals and rising health concerns among consumers drive the North American nutraceuticals market. Obesity is a major cause of diabetes and other chronic diseases. According to the Trust for America’s Health, as of September 2023, 41.9% of Americans in the US were suffering from obesity. To overcome these health issues, a majority of the population is resorting to healthier diets with functional claims. They are also adopting an active lifestyle with the inclusion of physical exercises and sports, which further boosts the demand for sports and health benefitting supplements. In response to this trend, several key players in the region are offering a comprehensive product portfolio of nutraceutical products. In November 2023, Vinatura Supplements LLC, which aims to empower individuals focused on achieving optimal well-being, launched a line of high-quality supplements for healthy living and wellness.
Awareness regarding health and nutrition has increased significantly in the past few years. With busy lifestyles and hectic work schedules, people fail to concentrate on their health, fitness, and nutrition. This has led to an increase in the prevalence of diseases such as obesity, diabetes, high blood pressure, skin problems, and digestive issues. The World Health Organization (WHO) refers to cardiovascular diseases as a leading cause of death across the world. According to a report from the World Heart Federation (WHF), the number of death cases from cardiovascular diseases rose from 12.1 million in 1990 to 20.5 million in 2021. Such a high prevalence of cardiovascular diseases drives consumer focus toward preventive health. As a result, the demand for nutraceuticals such as dietary supplements, and functional food and beverages with nutritional benefits has increased among the masses as they focus on preventive health. Nutraceuticals support the healthy functioning of the digestive tract, spanning from mouth to gut, along with controlling the growth of harmful microorganisms inside these organs.
Rising Penetration of E-Commerce to Create Opportunities for Nutraceuticals Market
The emergence of e-commerce has significantly transformed the way people shop and spend their money. A positive change in the organized retail sector, a rise in the reach of smartphones and the internet, upsurge in purchasing power, easy access to emerging technologies, and convenience provided by online retail shopping platforms from anywhere at any time are a few of the major factors bolstering the penetration of e-commerce worldwide. Consumers are becoming confident about purchasing various nutraceutical products online, moving from the traditional purchasing model to the home delivery service model. Moreover, online sales of nutraceuticals grew significantly during the COVID-19 pandemic due to the shutdown of physical stores and the government’s imposition of social restrictions. As lockdowns constrained people’s movement and compelled them to stay home, there was a substantial inclination toward online shopping. With the increasing penetration of online shopping, manufacturers began selling products through direct-to-customer (D2C) channels by launching their online retail sites, thereby eliminating the need to invest in expensive marketing and distribution infrastructure. For instance, Herbalife International, Inc; Now Foods; and Quest Nutrition have their own retail channels.
Nutraceuticals Market: Segmental Overview
Based on type, the nutraceuticals market is segmented into functional foods, functional beverages, and dietary supplements. The functional foods segment held the largest share of the market in 2023. Functional food products are formulated in such a way that they contain substances or ingredients that add a health-enhancing or disease-preventing value to them; these functional ingredients are incorporated at concentrations that are sufficiently high to achieve the intended benefits but are safe for consumption. Foods enriched and fortified with nutritional ingredients are part of the functional food. These food products are fortified with specific components or nutritional additives such as omega-3 fatty acids, vitamins, fibers, and minerals to promote optimal health by reinforcing the body’s immune systems and reducing the risk of certain diseases. For example, breakfast cereals are usually fortified with nutrients such as vitamins, iron, calcium, and probiotics. Functional food products go beyond standard daily nutrient intake to provide targeted health benefits. They can aid in cholesterol management, and improved bone and heart health, among other benefits. Major brands are increasingly focused on introducing low-sugar and no-sugar functional food, which helps them to stay competitive in the market.
The nutraceuticals market, based on distribution channel, is segmented into supermarkets and hypermarkets, specialty stores, online retail, convenience stores, and others. The supermarkets and hypermarkets segment held the largest share of the market in 2023. Supermarkets and hypermarkets refer to large retail establishments organized into different sections to offer an array of products, including groceries, beverages, and other household products. Products from various brands are available at economical prices in these stores. Further, these stores offer attractive discounts, along with a pleasant customer experience and advantage of multiple payment options. Supermarkets and hypermarkets focus on maximizing product sales to boost their profits. Key players in the nutraceuticals market benefit from product visibility in higher-traffic areas and heavier footfall in these markets.
Nutraceuticals Market: Competitive Landscape and Key Developments
Glanbia Plc, NOW Health Group Inc, Amway Corp, Nature’s Bounty, Garden of Life LLC, Danone SA, Quest Nutrition LLC, Kellanova, Chobani LLC, and GNC Holdings, LLC are among the prominent players profiled in the nutraceuticals market report. These market players focus on providing high-quality products to fulfill customer demand. They are also adopting various strategies such as new product launches, capacity expansions, partnerships, and collaborations to maintain a competitive edge in the market.
