Nutraceuticals Market Size, Share & Trends Analysis Report By Product (Dietary Supplements, Functional Foods, Functional Beverages), By Application (Allergy & Intolerance, Animal nutrition), By Region, And Segment Forecasts, 2024 - 2030

Nutraceuticals Market Size & Trends

The global nutraceuticals market size was valued at USD 712.97 billion in 2023 and is expected to grow at a CAGR of 8.4% from 2024 to 2030. The primary factors driving the market growth are preventive healthcare, increasing instances of lifestyle-related disorders, and rising consumer focus on health-promoting diets. Additionally, increasing consumer spending power in high-growth economies is projected to contribute to the growing demand for nutraceutical products. The growing demand for dietary supplements and nutraceuticals is also attributed to consumer preferences shifting towards self-directed care in the treatment of lifestyle disorders such as cardiovascular disorders and malnutrition.

Nutraceuticals are associated with various medical and health benefits, which is driving its increased adoption among consumers globally. Rising healthcare costs, coupled with the increasing geriatric population across the world, are anticipated to assist the global nutraceutical industry growth over the forecast period. Consumers’ attitude is observed to be very positive towards functional foods mainly on account of the added health and wellness benefits offered by these products. The rising geriatric population, increasing healthcare costs, changing lifestyles, food innovation, and expectations regarding higher prices have aided the overall growth.

In the wake of the COVID-19 pandemic, the demand for dietary supplements and functional foods has soared. Immunity boosting supplements have become mainstream over the past year and this has led to a significant change in buying patterns and consumer behavior. Moreover, after the COVID-19 pandemic, preventive healthcare measures such as dietary supplements will become a part of people’s everyday lives. Thus, the COVID-19 pandemic across the globe has paved the way for nutraceuticals to build a strong presence in the global market.

Growing technological advancements in the nutraceutical industry are projected to influence consumer demand positively. The growing innovation in the market has led to the adoption of AI which will enable more personalized solutions based on dietary and health data of a consumer. Therefore, AI will be pivotal in the growth of the nutraceuticals industry globally.

Industry Dynamics

The nutraceuticals industry has experienced a high degree of innovation attributed to evolving consumer preferences and technological advancements. Companies are actively developing novel formulations, including fortified foods, beverages, and dietary supplements, leveraging scientific research to create products that cater to specific health and wellness needs. Additionally, advancements in delivery systems, such as nano-encapsulation and controlled-release technologies, are enhancing the bioavailability and efficacy of nutraceutical ingredients.

The nutraceuticals industry has witnessed a substantial level of mergers and acquisitions as companies seek to expand their product portfolios, enhance research and development capabilities, and gain access to new geographic markets. Mergers and acquisitions have allowed for the consolidation of expertise, technologies, and distribution networks, enabling companies to capitalize on emerging health and wellness trends and address a diverse range of consumer health concerns.

Regulations significantly impact the nutraceuticals industry by overseeing product safety, quality, and labeling to ensure consumer protection and confidence. Stringent regulations pertaining to the efficacy, safety, and manufacturing standards of nutraceutical products drive industry compliance and responsible innovation. Labeling requirements regarding ingredient transparency, health claims, and dosage recommendations influence consumer perceptions and purchasing decisions.

Product substitutes in the nutraceuticals industry include pharmaceuticals, functional foods, and herbal supplements. Pharmaceuticals offer an alternative approach to addressing health concerns through clinically proven drugs and medications. Functional foods, such as fortified cereals and beverages, present a natural source of essential nutrients and health-promoting ingredients, competing with traditional nutraceutical supplements.

Product Insights

The functional foods segment dominated the market with a revenue share of 46.2% in 2023 and is expected to retain its dominance during the forecast period. Technological upgradation, coupled with progression in product development, is projected to drive the functional foods industry over the coming years. Sports drinks are gaining popularity among athletes and other individuals involved in energetic physical activities. The millennial generation exponentially drives the sports drinks market due to its high buying capacity, willingness to pay for health products, acute interest in sports, and growing inclination toward fitness activities.

Increasing adoption of new technologies such as microencapsulation is driving technological innovations in the functional foods industry. Microencapsulation technology helps in enhancing the taste of the final functional food item. For example, omega-3 fatty acids have an unpleasant odor, however, the fragrance and taste of these ingredients are enhanced with the use of encapsulation technology. This helps the product to be tastier and more appealing to the consumers. Such advancements in line with changing consumer preferences are projected to drive the growth of functional food products.

Application Insights

The weight management & satiety segment dominated the market with a revenue share of 19.76% owing to the growing emphasis on fitness and nutrition. Health-conscious consumers are looking for a constant upgrade in their dietary patterns owing to the change in the working environment coupled with socioeconomic changes. Rising demand for sports nutrition products due to increasing awareness of muscle improvement among athletes is expected to fuel the demand for nutraceuticals for weight management. This is likely to promote the demand for beverages such as energy drink-mix powders in the near future.

Weight management is one of the crucial application areas, wherein increasing obesity rates, as a result of lifestyle changes, has generated immense demand for dietary supplements. According to Trust for America's Health’s (TFAH), 19th annual report, 19 states in the U.S. had obesity rates over 35% in 2022, which was up from 16 states in 2021.

Regional Insights

North America nutraceuticals market accounted for a revenue share of over 28.80% in 2023. The growing health concerns amongst consumers and increasing awareness regarding nutraceuticals are likely to be the major drivers of the North American market. Additionally, an increase in the aging population, spending patterns on healthcare products, and changing lifestyles have enhanced the growth of the nutraceutical industry in the region. A vast product portfolio and government regulations regarding nutraceutical products are a few factors that suppress this market. However, the growing trend of food fortification with nutraceutical products is anticipated to create a significant growth opportunity for this market.

Increasing healthcare costs in the U.S., recent regulations on functional food, and increased research & development on functional food are the key factors that are positively affecting the market. Moreover, improper dietary habits, long working hours, and a sedentary lifestyle are some of the factors contributing to poor health and associated healthcare costs. Healthcare accounts for approximately 14% of the gross national product (GNP) in the U.S. economy. Thus, the increasing cost of healthcare is forcing the U.S. population to opt for preventive healthcare driving them to shift to dietary supplements and functional foods.

U.S. Nutraceuticals Market Trends

The nutraceuticals market in the U.S. is expected to witness a CAGR of 7.5% from 2024 to 2030. The U.S. nutraceuticals market has been one of the largest and most mature globally, with steady growth over the past decade. As of recent years, the market size was estimated to be in the tens of billions of dollars, with projections suggesting continued growth. Annual growth rates have typically been in the mid-single digit percentages. Dietary supplements have been a significant segment, accounting for a substantial portion of the market. Functional foods and beverages have also seen strong growth, driven by consumer interest in health-enhancing food products.

Europe Nutraceuticals Market Trends

The nutraceuticals market in Europe is expected to witness a CAGR of 7.6% from 2024 to 2030. The market has seen particularly strong performance in countries like Germany, France, and the UK, which are often considered leaders in the European nutraceuticals space. Online sales channels have been gaining significant traction, especially in recent years, contributing to a substantial portion of overall sales. It's worth noting that market dynamics can vary considerably between different European countries due to cultural differences, regulatory environments, and consumer preferences.

Asia Pacific Nutraceuticals Market Trends

The nutraceuticals market in Asia Pacific accounted for the largest revenue share of over 36.9% in 2023 and is expected to witness a CAGR of 9.8% from 2024 to 2030. The Asia Pacific nutraceuticals market has been experiencing robust growth in recent years, outpacing many other global regions. This market is considered one of the fastest-growing nutraceutical markets worldwide, driven by factors such as increasing disposable incomes, growing health awareness, and an aging population in many countries. Key markets like China, Japan, and India have been significant contributors to this growth. The market encompasses a wide range of products, including dietary supplements, functional foods and beverages, and herbal/traditional products.

Key Nutraceuticals Company Insights

The nutraceuticals market is a moderately fragmented industry. The competitive landscape is characterized by the presence of key international players. Key players such as Amway, Nestle, and General Mills are characterized as market leaders owing to their wide and diversified product portfolio and large distribution network.

Companies have implemented mergers & acquisitions and new product launches as key strategies to compete in the market. Acquisitions and mergers facilitated the companies to expand their product reach and improve product quality. Moreover, introducing new products to the market has supported the companies to offer better quality products, meeting the changing consumer trends across the industry. For instance, in August 2022, one of the key dietary supplement brands, Youtheory launched a line of new liquid dietary supplements post its acquisition by Jamieson Wellness Inc. The new product comprises ingredients such as B12B6, K2D3, and ashwagandha offered in liquid and capsule forms. This new launch is in line with the growing consumer demand for nutritional supplements in the U.S.

Nutraceuticals Market Report Scope

Global Nutraceuticals Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global nutraceuticals market report based on product, application, and region.

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Dietary supplements

    • Vitamins

    • Botanicals

    • Minerals

    • Proteins & Amino Acids

    • Fibers & Specialty Carbohydrates

    • Omega Fatty Acids

    • Probiotics

    • Prebiotics & Postbiotics

    • Others

  • Functional foods

    • Carotenoids

    • Dietary Fibers

    • Fatty Acids

    • Minerals

    • Prebiotics & Probiotics

    • Vitamins

    • Others

  • Functional beverages

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Allergy & intolerance

  • Animal nutrition

  • Healthy ageing

  • Bone & joint health

  • Cancer prevention

  • Children's health

  • Cognitive health

  • Diabetes

  • Digestive / Gut health

  • Energy & endurance

  • Eye health

  • Heart health

  • Immune system

  • Infant health

  • Inflammation

  • Maternal health

  • Men's health

  • Nutricosmetics

  • Oral care

  • Personalised nutrition

  • Post Pregnancy and reproductive health

  • Sexual health

  • Skin health

  • Sports nutrition

  • Weight management & satiety

  • Women's health

  • Other

• Region Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • Italy

    • U.K.

    • Spain

    • The Netherlands

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia & New Zealand

    • South Korea

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • UAE

    • South Africa