North America Nutraceuticals Market Outlook to 2028

North America Nutraceuticals Market Overview

The North America Nutraceuticals Market was valued at USD 132 Billion. This growth has been largely driven by the increasing consumer focus on health and wellness, rising awareness of preventive healthcare, and the growing popularity of functional foods and dietary supplements. Additionally, the aging population in North America has led to a higher demand for nutraceuticals, particularly in the segments of vitamins, minerals, and herbal supplements.

The North America Nutraceuticals Market is characterized by the presence of several key players who dominate various segments of the market. Some of the major players include Pepsi Co, Inc., Abbott Laboratories, Nestl S.A., Amway Corp. and The Nature's Bounty Co. These companies have established themselves as leaders in the market through extensive product portfolios, robust distribution networks, and investments in research and development.

In 2023, Pepsi Co announced a strategic partnership with a leading biotech company Pepsi Co's various sustainability initiatives and ESG goals, such as investing USD 216 million in partnerships with organizations like Practical Farmers of Iowa, Soil and Water Outcomes Fund, and Illinois Corn Growers Association to drive adoption of regenerative agriculture practices, doubling its global regenerative farming footprint to more than 1.8 million acres in 2023.

California has emerged as a dominant player in the Market, particularly in the production and consumption of dietary supplements. The state's large population, health-conscious culture, and thriving biotech industry have made it a hub for nutraceutical innovation. In 2023, Californias strong focus on health and wellness, coupled with its favorable regulatory environment, has attracted numerous nutraceutical companies to set up operations there.

North America Nutraceuticals Market Segmentation

By Product Type: The market is segmented by product type into dietary supplements, functional foods, and functional beverages. In 2023, dietary supplements held a dominant market share of under the segmentation by product type. This dominance can be attributed to the widespread use of vitamins, minerals, and herbal supplements among consumers looking to enhance their health and well-being.

By Distribution Channel: The market is segmented by distribution channel into retail stores, online stores, and specialty stores. In 2023, online stores held a dominant market share under this segmentation. The dominance of online stores can be attributed to the increasing trend of e-commerce, which offers consumers the convenience of purchasing nutraceutical products from the comfort of their homes. Additionally, online platforms provide a wider variety of products and often offer competitive pricing, making them an attractive option for consumers.

By Region: The market is segmented by region into USA and Canada. In 2023, The USA dominates the market share due to its large population, advanced healthcare infrastructure, and strong consumer awareness of preventive health. The presence of major nutraceutical companies and a favorable regulatory environment further contribute to its market leadership.

North America Nutraceuticals Market Competitive Landscape

Company Name

Establishment Year

Headquarters

Pepsi Co, Inc.

1965

Purchase, New York

Abbott Laboratories

1888

Chicago, Illinois

Nestl S.A.

1867

Vevey, Switzerland

Amway Corp.

1959

Ada, Michigan

The Nature's Bounty Co.

1971

Ronkonkoma, New York

Abbott's Launch of Plant-Based Protein Supplements: In early 2024, Abbott Laboratories launched a new line of plant-based protein supplements aimed at the growing market of consumers seeking alternative protein sources. This product line, includes pea and hemp protein-based supplements, is expected to generate USD 200 million in sales by the end of 2024.

Nestl's Investment in Nutraceutical R&D: Nestl's overall R&D spending, which was reported to be around USD 1.8 billion for 2023, with a significant portion allocated to the development of new nutraceutical products. This investment is aimed at accelerating the innovation of nutraceuticals that address emerging health trends, such as gut health and mental wellness. Nestl's enhanced R&D capabilities are expected to result in the launch of several new products by 2025, further strengthening its position in the market.

North America Nutraceuticals Industry Analysis

Growth Drivers

Increasing Prevalence of Chronic Diseases: According to the Centers for Disease Control and Prevention (CDC), in 2024, more than 37 million Americans are diagnosed with diabetes, with cardiovascular diseases being the leading cause of death, affecting over 92 million people. This has led to an increased demand for nutraceuticals that offer preventive health benefits and support disease management, particularly in the form of dietary supplements like omega-3 fatty acids and antioxidants.

Aging Population Driving Nutraceutical Demand: The aging population in North America is another key driver of the nutraceuticals market. In 2024, 77 million people in the U.S. are aged 65 and above, a number expected to rise to 83 million by 2030. This demographic shift is leading to a higher demand for nutraceutical products aimed at improving bone health, cognitive function, and overall vitality.

Shift Towards Preventive Healthcare: Consumers are increasingly turning to nutraceuticals as part of their self-care routines to avoid costly medical treatments. The U.S. Department of Health and Human Services has reported that preventive care measures could save the healthcare system billions annually, further boosting the demand for functional foods and supplements that support immune health, cardiovascular health, and overall wellness.

Challenges

High Cost of Raw Materials: The cost of raw materials for nutraceutical products has been on the rise, posing a challenge for manufacturers. In 2024, the global prices for key ingredients like fish oil, used in omega-3 supplements, and plant extracts, such as curcumin, increased due to supply chain disruptions and higher demand. This increase in raw material costs is squeezing profit margins for nutraceutical companies, particularly smaller players.

Competition from Pharmaceutical Products: The market in North America is facing stiff competition from pharmaceutical products that offer similar health benefits, drawing consumers away from nutraceutical alternatives like red yeast rice and phytosterols. The established efficacy, insurance coverage, and widespread availability of pharmaceutical products pose a challenge to the growth of nutraceuticals in specific health segments.

Government Initiatives

FDA's Nutraceuticals for Health Initiative: FDA is actively seeking to enhance food safety and nutrition through a proposed budget of USD 7.2 billion for fiscal year 2025 for the development of new regulatory frameworks, enhanced product testing, and consumer education campaigns. The goal is to ensure that nutraceuticals meet high safety standards and provide clear, evidence-based benefits to consumers, thereby fostering trust and promoting market growth.

Consumer Healthcare Products Association (CHPA): In June 2022, Senators Durbin and Braun introduced the Dietary Supplement Listing Act of 2022. This bill would require dietary supplement manufacturers to register their products and ingredients with the FDA. The Consumer Healthcare Products Association (CHPA) released a statement in response, noting that while they support modernizing regulations, this particular bill raises concerns about unintended consequences for consumer access and innovation.

North America Nutraceuticals Market Future Outlook

North America Nutraceuticals Market is expected to continue its growth. This growth will be driven by ongoing innovations in product formulations, increasing consumer demand for personalized nutrition, and a continued focus on preventive healthcare. The expansion of e-commerce and direct-to-consumer sales channels will further boost market growth by making nutraceutical products more accessible to a broader audience.

Future Trends

Personalized Nutrition to Lead Market Growth: Over the next five years, personalized nutrition is expected to be one of the fastest-growing segments in the North America nutraceuticals market. Consumers will increasingly seek personalized supplements tailored to their unique genetic profiles, lifestyle, and health goals, leading to a significant shift in how nutraceuticals are marketed and consumed.

Sustainability to Become a Key Market Differentiator: Sustainability is expected to become a critical factor influencing consumer purchasing decisions in the nutraceuticals market. North America will prioritize products that are sustainably sourced and produced. Companies will need to adopt more eco-friendly practices, such as using plant-based packaging and sourcing ingredients from sustainable farms, to remain competitive.
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