Nutraceuticals have extra functionality in terms of minerals, nutrients, and vitamins which are beneficial for delivering psychological benefits. Consumption of these products also reduces the risk of chronic disease and relieves the symptoms of any disease. They are categorized into functional beverages, functional foods, and dietary supplements. Nutraceuticals have a wide range of applications across various industries such as food & beverages, personal care, animal feed additives, and pharmaceutical. These products have potential health benefits such as cell proliferation, gene expression, protecting mitochondrial integrity and antioxidant defenses.
The U.S. nutraceuticals market is estimated to account for around US$ 74.6 million in terms of value in the year 2018 and it predicted to grow at a CAGR of 5.3% during the forecast period (2019-2027)
The growing baby-boomer population in the U.S. country is expected to fuel the market growth of nutraceuticals. As per the 2016 Population Reference Bureau report, ‘Aging in the United States’, the number of Americans aged 65 and older is projected to double from 46 million currently to over 98 million by 2060, and the 65-and-older age group’s share of the total population is estimated to rise to around 24% from the current 15%.
Growing demand for herbal nutraceutical products is projected to fuel the market growth of the nutraceutical. For instance, in September 2018, CURE Pharmaceutical an innovative drug delivery and development company, announced the launch of its second sleep aid product powered by its multi-layer oral thin-film technology CUREfilm, in partnership with Sleep Club, a wellness and destination brand where healthy sleep fuels an inspired awake life.
Nutraceutical products experience any strict regulatory testing and clinical trials, as a result, negative health claims can be made by players in the U.S. nutraceuticals market which is expected to create a negative image of the product in the public. When various tests and studies carried out by researchers on these products, many products have been found to not match the ingredients mentioned on the labels. This is projected to restrict market growth.
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.
Rising use of pectin & modified starch ingredients as gelling and emulsifying agents in juices and yogurts for stabilizing acid of the dairy products. This is expected to fuel the market growth of the nutraceutical product. For instance, in November 2016, Stonyfield Farm, Inc. introduced three new organic yogurt products, in which pectin and modified starch are used.
The growing focus of manufacturers to increase their product visibility by creating awareness regarding the benefits of the products is expected to accelerate market growth. For instance, in December 2019, GCI Nutrients has introduced new functional food and beverage technical advisory service. The purpose of this step is to create knowledge and efficacy of raw material ingredients while expanding their use in the cosmetic, food, beverage, sports nutrition, health and pet industries.
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
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