Nutraceuticals are derived from food sources are and highly enrich various nutrients that are beneficial for good health. These products have extra health benefits compared to other normal diets and are considered as non-specific therapies used to control symptoms and prevent various diseases. They can be classified into functional food, medicinal food, dietary supplements, and pharmaceuticals. Nutraceuticals are highly versatile in nature as they are used across the various industry such as food & beverages, animal feed additives, pharmaceutical, and personal care. Nutraceuticals products are available in a variety of forms such as tablets and capsules, powder, liquid, and solids/semi-solids.
The U.S nutraceutical market is projected to reach around US$ 119.8 million by the end of 2027, in terms of revenue, growing at CAGR of 5.3% during the forecast period (2019-2027).
Growing health-conscious consumers and adopting a healthy lifestyle among consumers in the U.S. country is predominantly fueling market growth. Moreover, shifting focus of consumers from the treatment of diseases to daily preventive measures to reduce the onset of chronic and lifestyle-related disease is augmenting the market growth. Nutraceutical products are highly beneficial ingredients as they play a very crucial role in the prevention measures of long-term disease.
Increasing sale of functional food such as breakfast bars, and dairy and bakery products in the U.S. country is expected to accelerate the market growth of nutraceuticals. Increasing adoption of food fortification among various manufacturers in the country coupled with the increasing demand for variety in functional food is further anticipated to foster the market growth of nutraceuticals over the forecast period.
Figure 1. U.S. Nutraceutical Market, Revenue Share (%), By Product Type, in 2018
On the basis of product type in 2018, the functional foods segment has accounted the largest market share of 36.6% in terms of value, followed by dietary supplements and functional beverages.
The market of the U.S. nutraceuticals have already reached maturity is expected to hinder the market growth. Moreover, revenue generation from the nutraceuticals market is relatively stable currently. This is a factor projected to hamper market growth over the forecast period.
A concern associated with health and nutrition as many manufacturers use artificial preservatives and flavoring agents in the nutraceutical to increase the shelf-life of the product. The demand for such products is declining because of the rising demand for organic and natural products due to growing awareness regarding the health benefits of organic products. This is projected to limit market growth.
The growing popularity of multicultural cuisine among consumers in the U.S is creating demand for a diverse set of food options is expected to augment the market growth. As per the 2016 National Restaurant Association survey, over 68% of chefs surveyed in the U.S. responded positively towards multicultural foods. Therefore, the growing popularity of multicultural cuisine is expected to offer potential growth opportunities to the market of U.S. nutraceuticals.
Rising demand for convenient, on-the-go and ready-to-eat among the consumer of U.S countries due to busy work schedules and hectic lifestyle has lucrative growth opportunity for the market of nutraceutical in the country. As per the Coherent Market Insights analysis, the demand is relatively higher for on-the-go products that are fortified with nutrients and proteins.
Figure 2. U.S. Nutraceutical Market– Opportunity Analysis
The growing consumption of fermented food such as yogurt is a trend in the U.S. especially among health-conscious consumer which is the major revenue generation for the U.S. nutraceutical market. For instance, in July 2016, General Mills, which the manufacturer of major yogurt brand Yoplait, announced plans to reformulate or modify 60% of the products it currently offers under its yogurt portfolio to better reflect consumer demand.
Many manufacturers are increasing the production capacity of the nutraceutical products in the U.S. country and this is expected to fuel the market growth. For instance, in October 2019, Algatechnologies, part of Solabia Group, has announced that it has tripled its production capacity for FucoVitalTM. The action follows increased demand from the dietary supplements market. FucoVital was launched in the US in 2018.
Key players operating in the U.S. nutraceuticals market are General Mills Inc., The Nature’s Bounty Co. (NBTY), Amway Enterprises, Herbalife International, Inc., Royal DSM NV, Pepsi Co., Groupe Danone, Bayer AG, Abbott Laboratories, and Chobani LLC
Few Recent Developments
Nutraceuticals are derived from food sources are and highly enrich various nutrients that are beneficial for good health. Consumption of these products also reduces the risk of chronic disease and relieves the symptoms of any disease. Nutraceuticals are highly versatile in nature as they are used across the various industry such as food & beverages, animal feed additives, pharmaceutical, and personal care. Moreover, they can be classified into functional food, medicinal food, dietary supplements, and pharmaceuticals.
The U.S. nutraceuticals witnessed significant growth in recent past years, owing to the growing demand for the increasing consumer preference for high-protein diets among consumers. Based on the product type, the U.S. nutraceuticals market is bifurcated into the functional foods, functional beverages and dietary supplements. Among these segments, the functional foods segment dominated the U.S. nutraceuticals market in 2018, owing to the growing consumption of plant-based protein such as soy, pea protein. This is in turn is fueling the demand for the functional foods enriched with omega fatty acid and herbal supplements. This factor is estimated to drive growth of the U.S. nutraceuticals market during the forecast period.
On the basis of product form, the U.S. nutraceuticals market is bifurcated into the tablets and capsules, powder, liquid and solids/semi-solids. Among these segments, the liquid segment dominated the U.S. nutraceuticals market in 2018, due to the rising demand for the diet beverages among consumers. This factor is estimated to drive growth of the U.S. nutraceuticals market during the forecast timeframe.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section