The essence of nutraceuticals lies in the Hippocratic quote itself, as these products claim to improve an individual’s beauty and well-being from within. Instead of using the numerous beauty products on the skin, one could ingest nutraceuticals to become healthy from within and consequently enhance their looks and lives.
Transparency Market Research analysts answer the top questions that players in the nutraceuticals market need to ask:
Are Nutraceuticals Going to Replace Beauty Products?
To answer this question, let’s take a look at the statistics first. The global nutraceuticals market is expanding at a CAGR of 7.3% from 2015 to 2021, according to Transparency Market Research. This market was already valued at US$182.6 bn in 2015, which means that it can go up to US$278.95 bn by the end of 2021. These number do speak of a market that holds a high preference and demand among consumers, something which is still showing signs of cumulative increment. Now, the global nutraceuticals market can be divided into four major segments according to product type: functional foods, functional beverages, dietary supplements, and personal care. The segment of functional foods is already dominating this market, and is still expanding at a 7.1% CAGR from 2015 to 2021. Its growth rate is topped by only the functional beverages segment.
Comparing that with the segment of personal care and pharmaceuticals, and then comparing the latter with the huge cosmetics market, it is apparent that nutraceuticals will not completely replace conventional beauty products. They are, however, gaining preference despite the skepticism surrounding this market. Consumers seem to appreciate the idea of improving their appearance from within. There are already major personal care and beauty products companies such as Sephora and Cargill who are marketing beverages and pills that are filled with nutrients and minerals that claim to improve health and appearance. Laced with things like collagen, these personal care nutraceuticals make the promise of imparting a glowing skin and anti-aging properties.
Are Developed Economies the Only Targets for Global Nutraceuticals Players?
It appears to be the case for now. The global nutraceuticals market is still in the process of gaining a bit of healthy competition and better manufacturing processes will allow the companies to make significant reductions to their products prices. Till then, nutraceuticals will remain somewhat of a luxury commodity largely restricted to the developed economies that already show a higher expenditure rate on wellness products and other similar consumer goods. The proliferation of major nutraceuticals brands into regions such as the Rest of the World is not too far off though.
North America was the leading region in the global nutraceuticals market for 2014, owing to strong demand within the U.S. Europe is showing a rapid growth in the demand for nutraceuticals over Asia Pacific, which has been the second-largest market region for functional foods and dietary supplements. Europe is showing a much higher affinity for healthy food and beverage products, while Asia Pacific is showing high demand owing to its sheer consumer population density and the rapidly improving economies of India and China.
Will High Product Prices Continue to Hamper this Market?
Not permanently. Currently, it does hold true for most segments of the global nutraceuticals market that high prices of products will continue to restrict the consumer spectrum of most brands. These prices are likely to increase in the near future, further restricting the overall growth of the market. Add to that the lack of awareness among even a consumer demographic that can afford these products, which creates a very limited scope for sales and penetration for the global nutraceuticals market.
However, there are solutions for this already in effect. Advancements in technology are allowing for faster and more efficient production rates, helping manufacturers keep the prices to as low as they can for now. The global nutraceuticals market is also one of the primary facets of the growing movement among consumers that are migrating towards organic and healthy products. The market is further boosted by a growth in the spending power of consumers across developing economies.
All in all, the scope of the global nutraceuticals market does appear to be positive. Most of the top players, such as Nestle S.A. and Archer Daniels Midland Company appear to be aware of the problems that restrict this market and are employing several strategies to counter any fall in consumption rates. It would be valuable to understand these strategies for a better scope in the global nutraceuticals market.