Updated on 5 July 2014
Nutraceuticals provides health benefits and helps in prevention and healing of diseases. The global nutraceuticals product market is primarily categorized on the basis of functional foods, functional beverages and dietary supplements. The global market of nutraceuticals is growing on account of growth in the dietary supplement segment. Some of the factors driving the nutraceutical market are increase in disposable income and increased consciousness about one's health. The expenditure for buying healthy and organic foods increasing and thus, giving a boost to the overall nutraceutical market. Some of the factors restraining the market growth are the lack of knowledge about the benefits of nutraceutical products and high prices of the same.
Global nutraceutical market-Food, Beverages and Supplements (2009-16) ($mn)
According to a new market report published by Transparency Market Research "Nutraceuticals Product Market: Global Market Size, Segment and Country Analysis and Forecasts (2007-2017)", Global Nutraceutical Product market reached $142.1 billion in 2011 and is expected to reach $204.8 billion by 2017, growing at a CAGR of 6.3 percent from 2012 to 2017. Asia Pacific (including Japan) is expected to have the second largest market share after North America by 2017. In 2011, the Functional food and Beverage market reached $93.0 billion, registering a growth rate of 6.0 percent from 2007 to 2011. North America enjoyed the highest market share for nutraceutical products at $56.4 billion in 2011.
Among all the geographies, North America has the largest consumer base for Nutraceutical products. Although the market is at a mature stage in this region, it has witnessed a growth rate of more than 6 percent during 2007-2011. Developing countries like China and India possess huge potential both in terms of value and volume for Nutraceutical products, as the population and disposable income is on a rise in these countries.
Functional Food remained the fastest growing segment of North America's nutraceutical market at 6.5 percent CAGR during 2007-2011. Non Herbals segment was the fastest growing segment of North America's dietary supplement market during 2007-2011, whereas proteins and peptides market segment had the largest share of revenue of North America dietary supplement market in 2011. The fact that the entire nutraceutical market is currently learning about the consumer range of choices, which has no limit, is giving rise to rapid product introduction in the region. The functional beverage market in the US is expected to have a moderate growth rate as compared to the dietary supplement market in the region.