Demand for Nutraceuticals Expected to Rise as Consumers Show Growing Inclination toward Natural Ingredients
A handful of companies hold over half of the global nutraceuticals market, thus contributing to the creation of a fairly consolidated vendor landscape. The market is price-sensitive and witnesses a high degree of competition. As per Transparency Market Research (TMR), BASF SE, Groupe Danone S.A., Royal DSM N.V., and Nestle S.A., emerged as the top players, accounting for over 52.1% in the global nutraceuticals market in 2014.
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The companies operating in the market are primarily engaged in the production of functional beverages, functional food, and nutritional supplements. Strategic collaborations and mergers and acquisitions are the key strategies adopted by the leading players to expand their footprint in the global nutraceuticals market.
Rising Chronic Ailments Boost Demand for Nutraceuticals from Developing Countries
“Demand for nutraceuticals is expected to rise considerably in response to the increasing incidence of non-communicable chronic ailments and the rising healthcare expenditure,” said a lead TMR analyst. Developing countries such as China, Japan, and India exhibit a relatively higher prevalence of non-communicable diseases (NCDs) such as cancer, diabetes, cardiovascular ailments, and lung disorders. Demand for nutraceuticals is therefore expected to gradually rise from these nations. The steadily increasing healthcare expenditure will also augment demand for nutraceuticals across emerging nations.
“The rising demand for meat and milk is encouraging animal feed manufacturers in developing nations to incorporate nutraceuticals in animal feed,” added the analyst. Besides this, the increasing demand for a nutritional diet and natural beauty products across developed countries will also bolster demand for nutraceuticals. Across these nations, people have become more aware about the side-effects commonly associated with the most popular pharmaceuticals. Hence, their preference is shifting towards natural food and products derived from natural ingredients, from their synthetically produced counterparts.
Furthermore, unlike pharmaceuticals, nutraceuticals are natural healthcare options; they are hence easily available without the need of a prescription.
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High Price of Nutraceuticals to Limit their Widespread Adoption
Despite witnessing favorable growth opportunities around the world, the increasing prices of nutraceuticals are hindering their acceptance across less developed economies. Nutraceuticals are generally priced higher than pharmaceuticals. This price gap is compelling people to shift towards low price medicines.
The lack of awareness about nutraceuticals is another factor limiting the market’s trajectory. A large section of people around the world are yet to realize the benefits offered by nutraceuticals. A majority of consumers therefore still opt for conventional pharmaceuticals as opposed to nutraceuticals for the purpose of treatment. Common men therefore have less faith in the efficacy of nutraceuticals due to their limited knowledge regarding such products. This adversely impacts the growth trajectory of the nutraceuticals market.
Nevertheless, the most prominent companies are vying to seize opportunities for growth in Asia Pacific. The robust healthcare development in the region has resulted in high demand for nutraceuticals. Additionally, nutraceuticals sales are also expected to rise with their rising application across diverse sectors such as in dentistry, cholesterol reduction, allergy prevention, treatment of inflammatory diseases, and others.
TMR forecasts, the global nutraceuticals market to reach US$278.96 bn by the end of 2021 from a valuation of US$165.62 bn in 2014. The market is projected to exhibit a CAGR of 7.3% from 2014 to 2015.
Based on products, functional food emerged as the largest segment, holding approximately 31% of the market in terms of revenue. With a share of 39.6% by value, North America emerged as the dominant geographical segment in the market in 2014.
Transparency Market Research (TMR) is a global market intelligence company providing business information reports and services. The company’s exclusive blend of quantitative forecasting and trend analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants use proprietary data sources and various tools and techniques to gather and analyze information.
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