MELATONIN MARKET ANALYSIS

Market Size and Trends

The melatonin market is estimated to be valued at USD 635.1 Mn in 2024 and is expected to reach USD 1,222.1 Mn by 2031, exhibiting a compound annual growth rate (CAGR) of 9.8% from 2024 to 2031.

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The growth of the melatonin market is driven by the increasing consumption of melatonin supplements. There has been a rising awareness among consumers about the health benefits of melatonin in improving sleep, reducing stress, and promoting overall wellness. Busy lifestyle and hectic work schedules have increased the need for alternate sleep aids, driving the demand for melatonin supplements. Moreover, the rising prevalence of insomnia and other sleep disorders globally is anticipated to push the adoption of melatonin-based products during the forecast period. However, the market still face challenges from the presence of alternatives present in the market.

Rise in stress and sleep issues

Rising stress levels and growing sleep issues have become a serious concern globally in recent times which has propelled the growth of the melatonin supplement market. According to WHO, stress and lack of proper sleep are increasingly considered major health issues as constant stress can impair both physical and mental health. More and more people are facing disrupted sleep cycles and difficulty falling asleep especially after the COVID-19 pandemic where stress levels spiked for countless individuals.  Melatonin is a naturally occurring hormone that our body produces to induce sleep and regulate circadian rhythm. However, factors like erratic work schedules, excessive screen time before bed, and daily stressors disrupt the body's natural melatonin production. Melatonin supplements help supplement the body's own melatonin levels to promote better quality of sleep. With more awareness about the health impact of poor sleep and the role melatonin plays, its demand as a supplement has risen substantially. According to a National Health Service survey conducted in 2021 covering 10,000 adults in UK, over 60% reported experiencing occasional to frequent sleep issues with rising stress being a key factor.  As stress and disrupted sleep impact daily life and productivity, individuals are increasingly relying on melatonin supplements for relief. Moreover, with busy lives and inconsistent schedules becoming the norm, people are more open to consuming supplements. Manufacturers are also innovating formulations like sustained release and increasing dosage to better target divergent consumer sleep needs. The growing health consciousness and rising expendable incomes in emerging markets also provide opportunities. The global melatonin market is projected to witness steady growth in the coming years as inadequate sleep and anxiety issues remain prevalent.

Market Concentration and Competitive Landscape

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Increasing health-conscious consumer base

Another key factor driving the melatonin market is the rising health-consciousness among consumers and their preference for natural products with minimal side effects. In recent years, people have become more cautious about their lifestyle choices and the long-term impact on health and wellness. There is considerable attention on maintaining overall well-being through measures like balanced diets, regular exercise, managing stress, and ensuring sufficient quality sleep. People understand the health risks of insufficient or poor sleep and are keen to supplement their sleep schedule when needed.

 Key Takeaways of Analyst:

The melatonin market is expected to witness steady growth owing to increasing health awareness among consumers globally. The market is driven by the growing demand for natural sleep aids due to their fewer side effects compared to prescription drugs. North America currently dominates the melatonin market however Asia Pacific is likely to be the fastest growing region.

Consumer preference for convenient packaging formats like gummies and fast-dissolving tablets will provide new opportunities for manufacturers to tap the youth consumer base. Stringent regulations on dietary supplement products may restrain the market to some extent.

Rising prevalence of sleep issues among the general population especially due to changing lifestyles can generate additional demand.

Market Challenges: Side effects associated with melatonin supplements

The side effects associated with melatonin supplements are posing a serious challenge for the growth of the global melatonin market. Melatonin supplements are often used to promote better sleep. However, some potential side effects are being reported which is creating concern among consumers. Some common side effects include daytime drowsiness, dizziness, nausea, headaches and irritability. In some cases, melatonin supplements have also been reported to cause altered dreams or nightmares. The side effects tend to be more common with higher dosage levels. The risk of side effects also increases with long-term use of melatonin supplements beyond three months. This long-term safety data is still limited which is causing hesitation among people.

Market Opportunities: Development of innovative melatonin-based products

The global melatonin market has seen tremendous growth in recent years due to rising awareness about its health benefits and natural sleep-regulating properties. Melatonin is a hormone that helps control the sleep-wake cycle by inducing drowsiness and relaxing the muscles. As more people face issues like insomnia, jet lag, and stress, the demand for non-addictive melatonin supplements as an alternative to prescription drugs has surged. However, the market has been dominated by traditional melatonin capsules and tablets. There is now a massive opportunity for manufacturers to develop innovative product formats that are more effective, convenient and appealing to modern consumers. New delivery forms such as sublingual sprays, fast-dissolving strips and gummies could help speed up melatonin absorption into the bloodstream for faster action compared to pills. These novel formats would be particularly popular among travelers, shift workers and the elderly. Product developers are also researching improved formulations that combine melatonin with other natural sleep aids like chamomile, CBD, magnesium or GABA to produce synergistic sleep-promoting effects. Customizing melatonin levels and delivery profiles for different needs through controlled-release or time-delay technologies could further boost efficacy. Such cutting-edge product innovations have the potential to revolutionize the melatonin market and capture a significant share of the lucrative sleep remedies industry worth billions.

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Insights by Source: Animals contribute the highest share due to natural properties

In terms of source, animals is expected to contribute 38.6% share of the market in 2024, owing to natural advantages over other sources. Animal sources of melatonin like sheep, cows, and goats have the highest concentrations of melatonin in their biological systems. Their meat and other livestock products have varying but significant levels of melatonin when consumed. This makes animal melatonin highly bioavailable for human uptake and utilization compared to plant sources which require extensive metabolic processing before absorption. Further, animal melatonin mimics the human circadian rhythm more effectively than alternatives due to its similar protein structure assembled in vivo. Research also shows that serum melatonin levels obtained from animal sources most accurately represents physiological dark cycle secretions in size and timing. As a result, animal melatonin is considered the gold standard for regulatory functions and bears fewer side effects than synthetic supplements.

Insights by Type: Natural properties drive greater demand over synthetics

In terms of type, natural melatonin is expected to contribute 69.6% share of the market in 2024, owing to perceived wellness benefits over synthetics melatonin. Consumers demonstrate a marked preference for natural melatonin over synthetic variants due to beliefs about superior compatibility with human biology and overall health profile. Natural melatonin extracted from permitted plants and animals is thought to pose negligible long-term safety risks compared to laboratory-synthesized products. Additionally, natural sources provide the full spectrum of co-factors and enzymes working synergistically with melatonin as found in nature. Synthetic melatonin consisting only of the isolated molecule is considered an incomplete nutrient by many. This perception of natural as safer and more effective translates directly to its leadership position in the global melatonin market landscape.

Insights by End User: Role in healthcare boosts medical usage over others

In terms of end user, the medical & healthcare segment is expected to contribute 38.7% share in 2024, due to melatonin's therapeutic applications. As a hormone regulator, melatonin plays a significant role in reducing stress and promoting restorative sleep. It has proven efficacy against conditions like insomnia, jet lag, dementia, and symptoms of the menstrual cycle. Consequently, the use of melatonin as a mainstream medical nutrient is growing rapidly. Both allopathic and alternative practitioners are employing natural melatonin supplements to treat an extensive list of stress-related and sleep disorders. Its excellent safety profile also allows wider prescription without major drug interactions. This has boosted medical consumption above other sectors and will continue propelling the healthcare segment as an engine of growth for the overall melatonin market.

Regional Insights

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North America has established itself as the dominant region in the global melatonin market with 37.8% of the market share in 2024. This is primarily due to strong consumer awareness about the benefits of melatonin as a sleep aid and natural supplement in countries like the U.S. The prevalence of insomnia and other sleep disorders is high among North American adults and melatonin is widely accepted as a safe and effective treatment option.  Major pharmaceutical companies have established production facilities and conduct research & development activities focused on melatonin formulations and delivery mechanisms. Retail distribution networks are highly organized, making melatonin supplements easily accessible to the mass consumer segment. The nutritional supplement industry in North America also promotes melatonin aggressively through online and in-store marketing campaigns.

Asia Pacific has emerged as the fastest growing regional market for melatonin in recent years. Rising health consciousness and preference for natural products are driving the market growth. The considerable time zone differences faced by traveling business professionals and students have further increased demand for sleep aids like melatonin in Asia Pacific nations. China, in particular, represents immense market potential. Several local manufacturers have entered the melatonin market and offer products at competitive price points compared to imports. E-commerce is a major sales channel that is helping Chinese consumers overcome the challenge of limited retail shelf space for nutritional supplements. Japan is another important Asian country, where melatonin is deemed effective for improving sleep quality among the sizeable aging population. The presence of major pharmaceutical distributors has made Japanese market opportunities attractive for global melatonin producers.

Market Report Scope

Key Developments

• In 2024, Nutremed, Introducing our Newest Vitamins & Supplements
• In 2024, Natrol Launches Time-Release Melatonin Gummies
• In 2023, Nutraland USA Launches First Melatonin Sourced from Tomatoes
• In 2023, Natrol Launches First Non-Melatonin Sleep Supplement

*Definition: The melatonin market includes supplements that contain the hormone melatonin. Melatonin is a naturally occurring hormone that regulates sleep-wake cycles. The melatonin market sees demand from consumers looking to improve their sleep quality, reduce jet lag or adjust their circadian rhythm. Key products in this market include melatonin pills, gummies, capsules, and liquids sold over-the-counter without a prescription.

Market Segmentation

• Source Insights (Revenue, USD Mn, 2019 - 2031)
  • Plants
  • Animals
  • Bacteria
  • Others (fungi, etc.)
• Type Insights (Revenue, USD Mn, 2019 - 2031)
  • Natural Melatonin
  • Synthetic Melatonin
•  End User Insights (Revenue, USD Mn, 2019 - 2031)
  • Pharmaceuticals
  • Food & Beverage
  • Medical & Healthcare
  • Others
• Regional Insights (Revenue, USD Mn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • Natrol
  • Pharmative
  • Nature’s Bounty
  • Jameison
  • Rexall Sundown
  • GNC
  • Xiu Zheng
  • Finex OY
  • Church & Dwight
  • By-Health
  • Pfizer
  • Solgar
  • Biotics Research
  • New Food
  • Neurim Pharmaceuticals Ltd.
  • Pulse Pharmaceuticals Pvt.Ltd.
  • Schiff Nutrition International Inc.
  • Fidia Farmaceutici S.P.A
  • Joshi Agrochem Pharma
  • Neurim Pharmaceuticals pvt.Ltd.