An Introduction to Surge in Nutraceuticals Industry

The size of the worldwide market for dietary supplements was estimated at USD 61.20 billion in 2020, and over the projection year 2021–2028, it is expected to increase at a CAGR of 8.68%, from USD 71.81 billion in 2021 to USD 128.64 billion in 2028. In 2020, North America held a dominant market share of 25.33% in the dietary supplements industry.

The market's growth and demand, which will eventually return to pre-pandemic levels after the pandemic is ended, are responsible for the increase in CAGR. The COVID-19 pandemic has had an unparalleled and profound effect on the world, resulting in a positive demand shock for dietary supplements in every region

Products that can be taken orally and contain at least one dietary element are referred to as dietary supplements. The global market is driven by the growing demand for sports-based and athletic performance-enhancement supplements. The market for food supplements is anticipated to be driven by rising consumer spending on health and wellness products as well as the growing demand of consumers to meet the body's daily needs for micronutrients.

Additionally, it is anticipated that government attempts to promote the manufacturing of herbal supplements will have a favorable effect on market expansion. For example, in July 2020, the Indian government launched the Atmanirbhar Bharat Abhiyan, an economic stimulus program that included USD 535 million to support the cultivation of herbal products.

The Nutraceutical Market Is Exploding

According to data released by the Ministry of Food Processing Industries, the dietary supplements market in India is expected to increase from its 2020 valuation of USD 3924.44 million to USD 10,198.57 million by 2026, or an impressive 22% annual growth rate. This growth is driven by factors such as the aging population, the move from pharmaceuticals to nutraceuticals, and the emphasis on individualized nutrition.

Presently, the United States, Japan, and Europe account for 90% of the worldwide nutraceutical market. The Ministry of Food Processing Industries projects that the global market will increase at a compound annual growth rate (CAGR) of 8%, from USD 247 billion in 2019 to USD 336 billion in 2023.

The Necessity of Using Supplements in a Calibrated Manner

But while India seeks to become a global leader in the nutraceutical sector, concerns about the research, management, production, and use of these goods remain. It is becoming more and more clear that quick action is required to maximize the industry's growth potential and remove obstacles.

Understanding each person's unique needs is crucial, as Dr. Preeti Chhabria, Director of Internal Medicine at Sir HN Reliance Foundation Hospital, emphasizes. According to her, multivitamins have historically been significant when it comes to severe diets, high catabolism, or specific medical conditions. In the Indian context, extra multivitamins are necessary for vegetarianism or extremely restricted diets, particularly for individuals following low-calorie regimens. However, continuing to push supplements in the absence of certain circumstances is not the best course of action.

According to her, having too much iron when there isn't a shortage can cause iron buildup in different parts of the body, which can be dangerous. Because vitamin D is fat-soluble, it can accumulate in the body and produce toxicity in a variety of additional ways." The speaker went on to emphasize the importance of protein supplements, particularly for people following low-calorie diets or experiencing catabolic conditions. However, the elderly in particular require close supervision to avoid kidney strain.

Supplement Categories

The NBJ market research analyst Erika Craft provided a breakdown of the top-line categories in the dietary supplement market for 2023. NBJ reports the following sales figures for 2023:

1. Vitamins: 19.4% market share, +0.5% in sales

2. Herbs and Botanicals: 19.8% market share, +3.8%

3. Specialty Ingredients: 28.8% market share, +5.4%

4. Sports Nutrition: 15.3% market share, +8.5%

5. Meal Supplements: 10.6% market share, +5.1%

6. Minerals: 6.1% market share, +2.3%

Popular sports nutrition items, such as protein powders, creatine, and pre-workout mixes, didn't normalize in 2022 and kept growing far into 2023, according to Craft. Meanwhile, since condition-specific concerns are often the driving force behind purchases, specialist ingredients—which include goods like collagen, probiotics, and omega-3s—performed well.

Points of Sale

The most notable development in sales channel trends is the continued rise in mass-market retail's market share at the expense of natural and specialized merchants. Craft stated, "The mass market grew at a 5.7% rate in 2022 and decreased to 5.1% this year, indicating that consumers are still looking for more affordable options.

NBJ’s sales-channel breakdown for 2023 is as follows:

1. Mass-Market: 26.5% market share, +5.1% growth

2. Natural/Specialty: 26.6% market share, +0.6% market growth

3. E-commerce: 21.7% market share, +8.7% growth

4. MLM: 13.1% market share, +2.8% growth

5. Practitioner: 9.3% market share, +7% growth

6. Mail order: DRTV: 2.9% market share, -4% growth

INSPIRING FACTORS

Increasing Attention to Preventive Healthcare Practices to Promote Growth

Customers are becoming more aware of preventative healthcare practices since age- and lifestyle-related ailments are becoming more common. As a result, they are gravitating toward goods that are good for their health, such as food additives, which are predicted to lead the worldwide market.

Growing innovation from both major and small companies in the industry is contributing to the market's expansion on a worldwide scale. For example, The GHT firms announced in March 2018 the introduction of a new line of nutritional products that are 100 percent vegan. The new goods are produced in response to the growing market for plant-based, animal-free weight-management products.

Increasing Attention on Producing High-Quality Supplements to Meet Demand

To encourage consumers to utilize dietary supplements, regulatory bodies like the Food and Drug Administration of the United States (USFDA) take several steps to guarantee that only safe and high-quality food and dietary supplements are marketed on the market. 

Furthermore, it is anticipated that throughout the forecast years, the market demand for these supplements will increase due to the growing use of safe, organic, and clean-labeled ingredients in the creation of food nutritive additives.

A further driver of growth for the human dietary supplement industry is the growing popularity of bodybuilding and sports. Sports nutrition products and supplements are becoming more and more popular among athletes and sportspeople as a way to improve their endurance and performance.

The market will do well in the upcoming years due to the trend toward sports nutrition products and vitamin nutrients because of their capacity to improve endurance and performance.

Oversight and Regulations: Handling Difficulties

Government campaigns like the Fit India Movement and the National AYUSH Mission have raised public awareness of alternative and conventional medical procedures, which in turn has encouraged wellness and preventative healthcare.

The research, management, production, and use of these nutraceuticals are all being questioned seriously, even if the sector is growing and new businesses are joining the market. Therefore, to fully realize the industry's immense growth potential and eliminate any bottlenecks that are preventing it from developing, quick action is imperative.

Conclusion

The constantly changing worldwide supplement market is being caused by an increasing emphasis on health and wellness, evolving customer tastes, and technology improvements. Manufacturers, retailers, and other stakeholders must remain aware of and responsive to the shifting market as the industry innovates and adjusts to these trends. They can take advantage of fresh prospects and guarantee that their items are appealing to customers by doing this.