Nutritional Supplements Market – Insights
Increasing awareness about health benefits of nutritional supplements is driving growth of the global nutritional supplement market. Nutritional supplements are used in order to treat nutritional deficiency in the human body. Nutritional supplements consist of vitamins, minerals, proteins, and other necessary ingredients. Health benefits associated with consumption of nutritional supplements are reduction in signs of aging and improved cardiovascular health, among others. There has been increasing focus among women on maintaining healthy skin, hair, and nails, as well as a rising need to prevent premature skin aging, and rising preference for effective and safe beauty solutions. Such factors are expected to drive growth of the nutritional supplements market.
However, high cost of nutritional supplements and side effects caused due to nutritional supplements are expected to restrain growth of the global nutritional supplement market. Nutritional supplements provide all the minerals and vitamins needed for healthy skin, hair, and nails. However, such products often contain large doses of vitamins and minerals which may cause side effects such as constipation, diarrhea, and other stomach problems. The inactive ingredients may also cause allergic reactions.
The global nutritional supplements market was valued at 248.1 million in 2018 and is expected to exhibit a CAGR of 6.9% in terms of value over the forecast period (2019 – 2027), and is expected to reach 436.1 million by 2027.
Figure 1. Global Nutritional Supplements Market Share (%), By Region, 2018
Source: Coherent Market Insights, 2018-19
North America has witnessed second largest market of the nutritional supplements market in 2018. U.S. is expected to be the major market in this region over the forecast period. This growth is attributed to increasing use of dietary supplements owing to rising awareness regarding health benefits of consumption of these supplements as it provides nutrients such as minerals and vitamins. According to U.S. Pharmacopeia Convection, in 2016, the dietary supplements are used by 80% of adults in the U.S.
Among ingredients, fibers & specialty carbohydrates held a significant market share in the global nutritional supplement market in 2018. Increasing number of new products, which are rich in omega-3 & fibers is expected to contribute to significant growth of the omega-3 fatty acid segment over the forecast period. For instance, in 2011, the Kashi Company launched Kashi Waffles, 7 Grain Waffles and Blueberry Waffles that are rich in omega-3 and fibers. In 2012, Abbott Company’s Zoneperfect brand introduced a line of nutritive bars named Perfectly Simple. These bars have ingredients such as vitamins, proteins, minerals, and others.
Figure 2. Global Nutritional Supplements Market Share (%), By Product Type, 2017
Source: Coherent Market Insights, 2018-19
Based on product type, the sport supplement segment held significant market share in the global nutritional supplement market as key players are adopting strategies such as partnerships & collaborations to expand their presence in the sports supplements segment. For instance, in March 2018, Fonterra, a dairy nutrition company, partnered with a startup, Foodspring, which is into active nutrition, by investing in its parent company, Goodminton AG. This partnership has allowed Fonterra to enter the active nutrition consumer segment.
On the basis of form, the capsule segment held significant market share in the global nutritional supplements market owing to increasing consumer preference for nutritional supplements in the form of capsules. The exterior of the capsule is made from gelatin or starch, and it contains active ingredients. Capsules allow extended release of active ingredients. The capsule is encapsulated in such a way that it dissolves over an extended period of time, and does not deliver the supplement all at once.
Key players are adopting in-organic growth strategies such as product launches in order to gain market share in the global nutritional supplement market. For instance, in August 2019, the Danone and Nestle S.A. re-launched food drink, Melo, in the health and nutrition segment to strengthen its position in the nutrition market. The company has other products such as low sugar variants, bar, and ready-to-drink protinex.
Major players in the global nutritional supplements market include Abbott Laboratories, Archer Daniels Midland (ADM), American Health, Inc., Amway Corporation, Arkopharma Laboratoires Pharmaceutiques, Ayanda, DuPont, DSM, the Nature's Bounty Co., Herbalife International of America, Inc, Stepan Company, Pfizer Inc., Nestle S.A., Nature's Sunshine, and GlaxoSmithKline.