Market Trends of Nutraceutical Ingredients Industry
Growing Consumption of Neutraceutical Products
Consumers are more concerned about improving their health than paying huge medical bills for treatment, so most people are inclined toward nutraceutical ingredient products. Nutraceuticals are becoming more important around the world, and the average consumer is starting to eat them every day.Also, more people are becoming less active, which could lead to digestive problems like constipation, bloating, and indigestion.Customers are mostly requesting digestive health supplements to address these medical problems. According to the analysis of the Organization for Economic Co-operation and Development (OECD), the percentage of health expenditure spent on overweight and related conditions is predicted to account for 14% of health expenditure in the United States from 2020 to 2050. Nowadays, amendments to the products are made as per the current trend in the market. Thus, technology and innovation enable giant producers to manufacture functional and nutraceutical foods aimed at both general and specific health problems. The spread of COVID-19 worldwide inspires people to be inclined toward nutraceutical-based products that will boost their immune systems and keep them fit and healthy. However, adopting precautionary healthcare measures is considerably increasing product sales in every region. Functional beverages are one of the fastest-growing segments, and developing markets have growth potential for these beverages. Within the functional beverage segment, enhanced water and ready-to-drink beverages are seeing increased consumer demand.
Moreover, the growing working population and hectic lifestyle have adversely affected lifestyle-related diseases. Thus, the rising healthcare costs and benefits of preventive healthcare solutions have encouraged consumers to take their health into their own hands, equipping themselves with health information and taking well-informed purchasing decisions on nutraceuticals.
Asia-Pacific Holds the Largest Market Share
The Asia-Pacific region dominates the market, with the largest share and the highest growth rate projected in the forecast period. In Asia-Pacific, Japan holds the major share in the nutraceutical ingredients market, followed by China and India. Increased working hours and a sedentary lifestyle are factors impacting consumers' overall health and well-being, leading to metabolic stress. Thus, consumers turned to nutraceuticals for self-managed therapy. Customers are looking for nutritional solutions as they become more conscious of the significance of gut health. The economy is projected to improve in some regions with an increase in disposable income in the coming years. This would boost the market, as people tend to spend a good amount of their income on health-related aspects.
In Japan, foods or nutraceuticals with gastrointestinal tract improvement-related health claims are the most prevalent. After cholesterol reduction, triglyceride reduction is the second-most prevalent claim. According to the World Bank, the healthcare expenditure of Japan accounted for 10.74% of the GDP in 2020, making it one of the top countries in health expenditure. As a result of the increase in health-care spending, these ingredients have seen great success in the Japanese market.
Additionally, the functional beverage segment in the nutraceuticals ingredient market is expected to have a steady growth rate during the forecast period as the enhancement in the adoption of health and fitness drink commodities among consumers is high on demand, particularly in the regions of China, Japan, India, and Malaysia. The population growth rate in the Oceania nations, such as Australia and New Zealand, is not very high. Nutraceutical products are highly consumed by athletes and sportspeople, and the sports and energy segment in Asia-Pacific is projected to have the fastest-growing segment with the increasing consciousness of the organic benefits and the acquisition of supplements made up of nutraceutical ingredients.
