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When Nutrition Meets the Pharmaceutical Industry: Must-Read Reports & Sector Analysis

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Global Nutraceutical Industry

The global nutraceutical ingredients market is forecast to record yearly growth in excess of 7% to reach almost $24 billion in 2015, according to research from Freedonia. The greatest growth will come from ingredients with clinically confirmed health benefits that can be used in a wide rang of dietary supplements, drinks, foods, and nutritional preparations for children and adults. Market growth across developing nations is expected to be faster in terms of consumption and production compared with developed nations.

Nutraceuticals are used in the prevention of potential disease and the healing of already existing diseases. According to Transparency Research, the nutraceuticals product industry is classified broadly according to functional beverages, functional food, and dietary supplements. Market growth is fuelled by dietary supplement segment expansion. The protein and peptides sector of the dietary supplement market is expected to record strong growth in the coming years. The non-herbal market segment of the dietary supplement sector is also forecast to record strong growth between 2012 and 2017. In the functional food market sector, the omega fatty acid fortified food market segment is predicted to record moderate growth.

Key Market Segments

Nutrients represent the market segment with the highest sales within the nutraceutical ingredients market. The nutrients market segment encompasses fibers, specialized functional additives, and proteins, reports Freedonia. Nutrients market growth is expected to exceed 6.5% to reach almost $10.5 billion in 2015. Proteins are expected to record the fastest gains due to food and beverage manufacturers opting to use high value-added nutritional preparations in their products. Demand for functional additives and fiber nutrients will be fuelled by clinical evidence pointing to the health benefits of these ingredients.

Naturally derived substances represent the segment promising the fastest rate of growth out of the three categories of nutraceutical ingredients. These substances involve animal-based and marine-based derivatives and herbal and botanical extracts. Demand is expected to record 9% yearly growth to generate sales of close to $7.5 billion in 2015. Omega-3 fish oils represent the leading segment, with demand driven by clinical evidence as to the cardiovascular benefits of this ingredient. Demand for natural nutraceutical ingredients in general will be fuelled by increased consumer awareness of the role of the diet in preventing disease. Popular ingredients include ginseng, ginkgo, garlic, palmetto extracts, cranberry, and biloba.

Global demand for vitamins and minerals consumed in nutraceutical applications is expected to record yearly growth in excess of 6% from 2010 to hit the $6 billion mark in 2015.

Regional Markets

Transparency Research forecasts the Asia Pacific and North America nutraceutical market will hold just over 30% and almost 40% respectively of the global market in 2017. Dietary supplements represents the market predicted to record the highest rate of growth over the five-year period ending 2017. 

North America nutraceutical market growth is fuelled by US consumer awareness surrounding the impact of dietary habits on health. Functional food represents the fastest growing market segment in the North America nutraceutical market, recording close to 7% yearly growth between 2007 and 2011. Non-herbals represented the market segment enjoying the fastest rate of growth in the North America dietary supplement market over the same period. Proteins and Peptides represented the market segment generating the highest sales in the North America dietary supplement sector in 2011. The US functional beverage market is forecast to record moderate growth over the coming years.

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Parent industry: Functional Food
Related industries: Vitamin and Supplement, Diet Food, Sport Nutritional

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