The global nutraceutical market is projected to reach USD 826,426.3 million by 2028, expanding at a CAGR of 8.9% over the forecast period.
Rising awareness regarding calorie reduction and weight loss in countries, including U.S., China, and India, is expected to promote the application of nutraceuticals, which, in turn, will have a substantial impact on the industry growth.
Demand for nutraceuticals is increasing at the global level as it improve the digestive and immune systems and enhances the cognitive behavior of consumers.
Growing trend among consumers to alter dietary habits is likely to boost the demand for nutraceuticals. The consumer belief that improper diet results in an increase in costs on pharmaceuticals are anticipated to boost the demand for nutraceuticals. This would also help the government as it would result in lesser expenditure on healthcare and low social security costs.
Rise in disposable income, increasing consumer awareness concerning health issues, and rapid urbanization are likely to boost the nutraceutical market growth over the forecast years. Positive outlook towards medical nutrition owing to increasing weight management programs, along with cardiovascular diseases, is anticipated to propel the demand for nutraceuticals.
The rise and evolution of wellness-focused diets, such as keto and paleo, are driving food producers to cater their products in this direction. Functional food products, such as probiotics and omega-3, are highly used in yogurt and fish oils in order to reduce the risk of cardiovascular diseases and develop the quality of intestinal microflora, which is further projected to fuel the market growth of the nutraceutical products over the coming years.
Based on functional food product, prebiotics and probiotics are projected to expand at a CAGR of 10.1% over the forecast period owing to increasing usage of probiotics as a primary ingredient among the majority of food manufacturing companies to provide better nourishment and reduce health problems caused by harmful bacteria.
Vitamins and minerals together accounted for over 40.71% share in 2019 owing to increasing consumer interest in the relationship between diet and health, which, in turn, has increased demand for these products.
In terms of dietary supplement product, vitamins emerged as the largest segment in 2019 and is expected to expand at a CAGR of 5.8% in the coming years.
In terms of product, functional food accounted for the largest share in 2019 and generated revenue of USD 187.51 billion. Rising healthcare costs, coupled with growing geriatric population across the world, are anticipated to drive the functional food segment over the forecast period.
Asia Pacific is expected to witness the fastest growth over the forecast period. Expansion of the retail chain in countries, such as India, Japan, and China, has increased the consumption of dietary supplements and functional foods in this region.
The nutraceuticals industry represents a highly competitive landscape. Key players dominate the nutraceutical market space and have been focusing on various strategic initiatives, including mergers & acquisitions, product innovation, and portfolio expansion.
Key market participants include Cargill, Incorporated, Archer Daniels Midland Company, DuPont, Nestle S.A, Danone, General Mills, Innophos, WR Grace, and Amway Corporation.