Global Nutraceuticals Market 2022-2028

Global Nutraceuticals Market 2022-2028

Global Nutraceuticals Market Size, Share, & Analysis by product type (functional food, functional beverage, and dietary supplements) by distribution channel(retail & supermarkets, and online distribution). The global nutraceuticals market was valued at $348.6 billion in 2021, which is projected to reach $620.2 billion in 2028, growing at a CAGR of 8.1% during the forecast period. The increasing consumption of nutraceuticals around the globe owing to its increasing applications in preventing CVDs (cardiovascular diseases), and malnutrition tends to drive the growth of the global nutraceuticals market. Moreover, the COVID-19 pandemic resulted in an upsurge in the industry growth owing to its increasing consumption among people to prevent diseases as well as boosts the overall immune system.`The global nutraceuticals industry is driven by rising consumer interest in functional food & beverages, growing awareness, and increasing disposable income. Further, individuals are more health-conscious and are inclined towards expensive food beverages for the health benefits. Moreover, the functional beverages come with reduced alcohol, gluten, sugar, and carbohydrates without reducing the original taste of the beverage. Moreover, the availability of functional beverages in various flavors, and other alternatives such as no-calorie and no-sugar will significantly enhance its adoption across the globe, which in turn, will drive the growth of the functional beverages and so the nutraceuticals market during the forecast period.

Segmental analysis

The global nutraceuticals market is segmented on the basis of product type and distribution channel. Based on the product type, the market is further segmented into functional food, functional beverages, and dietary supplements. Functional foods which include probiotics fortified food, iodized salt, and omega fatty acid-based foods held the dominant share of around 44.2% in the market. The functional food segment generated $154.3 billion in 2021, which is further projected to reach $263.3 billion in 2028, exhibiting a CAGR of 7.5% during the forecast period. Increasing demand for fortifying food additives is estimated to drive the segmental growth of the market. Food manufacturers are deploying fortification of nutritional additives such as omega-3 fatty acids, vitamins, and minerals in their products to increase the nutritional content in food items. The functional ingredients such as omega-3 and probiotics are widely used in fish oils and yogurt for reducing cardiovascular risks and improving the quality of intestinal microflora. The global nutraceuticals industry is driven by rising consumer interest in functional food & beverages, growing awareness, and increasing disposable income. Further, individuals are more health-conscious and are inclined towards expensive food beverages for the health benefits. Moreover, the functional beverages come with reduced alcohol, gluten, sugar, and carbohydrates without reducing the original taste of the beverage. Moreover, the availability of functional beverages in various flavors, and other alternatives such as no-calorie and no-sugar will significantly enhance its adoption across the globe, which in turn, will drive the growth of the functional beverages and so the nutraceuticals market during the forecast period.

Based on the distribution channel, retail & supermarkets dominated the market with 74.7% of share and generated $260.4 billion in 2021. This value is further estimated to reach $455.5 billion in 2028, growing at a CAGR of 7.8% during the forecast period. The sales of nutraceutical products are highly concentrated in retail & supermarkets. The segment is considered as the major distribution channel owing to the increasing number of organized retail stores coupled with the rising urbanization. Moreover, the online distribution channel is estimated to exhibit the highest CAGR of 8.8% during the forecast period. The segment was valued at $88.2 billion in 2021, which is projected to reach $164.7 billion in 2028. There is an increasing importance of e-commerce portals as a nutraceutical product selling medium, on account of providing access to products through key benefits such as favorable discounts and cash-on-delivery features, that are expected to create new opportunities for the segmental growth over the forecast period.

Regional Analysis

Geographically, the study of the global nutraceuticals market covers the analysis of four major regions including North America (the US and Canada), Europe (UK, Germany, Italy, Spain, France, and Rest of Europe), Asia-Pacific (China, Japan, India, and the Rest of Asia-Pacific), and the Rest of the World (Latin America and the Middle East & Africa).North America dominated the market with 36.1% of the share, generated $125.9 billion in 2021. This value is further estimated to reach $230.7 billion in 2028, exhibiting the highest CAGR of 8.5% during the forecast period. The increasing demand for sports nutrition owing to the increasing importance of active lifestyles coupled with the rising awareness regarding protein intake plays a vital role in promoting the consumption of nutraceuticals in North America. Moreover, the presence of major players such as PepsiCo Inc., General Mills Inc., The Kellogg Co., and Herbalife International of America Inc. further gives a boost to the regional growth of the market. Moreover, Asia-Pacific is projected to exhibit the second highest growth rate of 8.3% during the forecast period. The market in Asia-Pacific was valued at $77.1 billion in 2021, which is projected to reach $139.3 billion in 2028. Increasing awareness regarding health in countries such as China and India, is expected to remain a favorable factor for the Asia-Pacific nutraceuticals industry growth. In addition, the rise in the prevalence of chronic diseases prompts the need for nutraceuticals and other vital dietary supplements, which drives the regional growth of the market.