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Last updated: March-9,2023

5 Bold Dietary Supplement Industry Predictions for 2020 and 2021

Research suggests a steady growth for the global nutraceuticals market through the next 6 years - $302.3 million by the year 2022. And, we at NutraScience Labs believe that versatility is one of the main reasons for the rising popularity of nutraceutical products, setting this market up to surpass the $225 billion mark by 2025.

Even though the amount of investment required for research and development is a challenge for players in the nutraceuticals industry, companies are adopting newer innovations to cater to the growing demands for functional nutrition by the new-age consumer.

Expected Growth of the Dietary Supplement Market

The global dietary supplements market size was valued at USD 140.3 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 8.6% from 2021 to 2028. The increasing consumer awareness regarding personal health and wellbeing is expected to be a key factor driving the market for dietary supplements over the forecast period.

The working population around the globe is struggling to fulfill the daily nutrient requirements owing to hectic work schedules and changing lifestyles. According to supplement market trends, this is increasing their dependency on dietary supplements to fulfill the nutrient requirements. As a result, the nutritional supplement industry benefits.

In the Northern America region, the U.S. came out on top as the leading market in 2020. This is due to the higher spending capacity of American consumers. As more people become health-conscious, there will be increased spending on healthcare products. The rising geriatric population, spike in awareness about the importance of preventive healthcare, and attaining wellness through diet are expected to alter and mold the market growth over the next decade.

Here are our 5 bold dietary supplement industry predictions for 2020 and 2021:

  1. Demand for nutraceuticals will rise in emerging economies, where preventative healthcare is seen as a springboard to work towards a better health index.
  2. Asia-Pacific will emerge as a huge market for nutraceuticals and personal care products. Growing incomes, changing lifestyles and more purchasing power will create a surge in the demand for convenience and health products. However, the United States will remain a mature market for these products and the nutraceutical industry will see more innovation here.
  3. Probiotics will rule the nutraceutical roost, with a wider collaborative research effort to support the growing demand for products around immunity and gut health.
  4. Brand owners will face greater market and regulatory challenges than ever before. Those brands that refuse to cut corners in terms of quality and are able to adjust their strategies to compensate for longer lead times and ingredient shortages will thrive.
  5. Consumer demand for high-quality immune support supplements will surge over the next 24 months - and beyond.

The Rising Global Nutraceuticals Market: 2015-2022 - Chart

The Growing Interest in Nutraceutical Products

With people expecting nutraceutical products that help support both the physical and emotional well-being, research from Innova Market Insights Consumer Survey shows that all generations, be it Millennials or Baby Boomers, are likely to choose nutraceutical products to enhance their physical or emotional health.

Why Do Baby Boomers and Millennials Use Nutraceuticals?

Millennials tend to focus on balancing body and mind, with 53 percent reporting a focus on increasing their “happiness” and in maintaining both the physical and mental aspects of health. They also wouldn't mind shelling out more money for products that incorporate ethical consumption and sustainability.

According to Gene Bruno, Senior Director of Product Innovation at Twinlab Consolidation Corporation, “Millennials have driven much of the market interest in nootropic supplements, which is consistent with their focus to balance body and mind. Smart brand owners will make sure they have products that address this rapidly growing category.”

Baby Boomers that make up 23 percent of the US population are more inclined towards 'healthy aging' as per the survey. Reportedly, 54 percent of U.S. boomers have moved towards healthier products, taking steps to change their diet to improve health. Not only do they have a strong interest in functional foods and personalized nutrition solutions, but they're also opting for plant-based protein options versus alternatives such as whey.

To further illustrate the concept of growing consumer demand for plant protein supplements, Professor Bruno and NutraScience Labs' New Business Development Manager, Ryan Gillen, recently discussed why now is the perfect time for brand owners to develop and bring a high-quality plant protein supplement to market.

You can watch the podcast episode in its entirety by clicking below.

why now is the perfect time for brand owners to develop and bring a high-quality plant protein supplement to market video

Additionally, Baby Boomers are also reducing their intake of “bad” ingredients, such as sugar, fat, and salt. Nutraceutical companies must take this into account while tailoring their products for consumers.

Products for Children, Infants, the Elderly, and Pets

Those 60 and up, a growing demographic - reaching a global population of approximately 1.2 billion by 2025 - are turning to nutraceuticals to avoid a weakened immune system that can slow the healing of wounds and lead to muscle atrophy making them susceptible to fractures and falls.

“The USDA has verified that only 10% of Americans eat a good diet, and even those that don’t may not be getting sufficient amounts of several key vitamins and minerals,” says Bruno. “Consequently, the daily use of a multivitamin can help to assure that all Americans—especially the elderly—are obtaining sufficient amounts of the most important nutrients.”

Nutraceutical products for the elderly focus on enhancing their nutrition and also help them age healthily. Calcium, Vitamin D are some of the vitamins that are added to foods for the elderly.

Vitamin and Supplement Chart for Children

Nutraceuticals for infants and children are also growing in popularity, helping bridge their dietary gaps. Supplement brands have started making functional food products by fortifying products with vitamins, minerals, and other nutritional ingredients.

With respect to pets, NutraScience Labs' Vice President of Contract Manufacturing, Vincent Tricarico had this to say, "The typical household is changing and pets are becoming a bigger part of the traditional family household, as such we expect a huge surge in the demand around quality pet nutrition in the same way demand for safe supplementation for children has always remained."

Top Trends That Are Most Likely to Impact the Nutraceutical Industry

According to a 2016 Global Wellness Economy Monitor report by the Global Wellness Institute (GWI), the worldwide wellness industry grew 10.6%, to $3.72 trillion, from 2013-2015, which makes it ‘one of the world’s fastest-growing, most resilient markets.


As per the data, revenue-wise, the United States ranked number one among nations in four out of five wellness markets. The wellness market is only expected to grow in the future, with U.S. healthcare costs predicted to rise an average of 5.8% every year through 2025, more Americans are expected to turn to alternative, preventive health approaches.

Personalized nutrition is the new trend in the food industry and nutraceutical companies are working towards fulfilling customer demands in this area. Between 2014 and 2018, there was a 21 percent annual increase in launches of products with claims such as "happy," "joy," or "fun." This is because nutraceutical companies understand that supplements can also promote mental and emotional health, among other benefits.

Clean label supplements and products are among nutraceutical products that are projected to rise 8 percent annually through 2021 in the US, with other clean-label areas like veganism, raw, and paleo diets, minimal processing, and use of techniques like cold-pressing and high-pressure treatment that drawing the interest. These trends run alongside the increasing ethical concerns like fair trade and sustainability, packaging, the environment, as well as animal welfare.

Recent trends point towards the introduction of Stevia, a natural sugar alternative and plant extract, an increase in demand for natural antioxidants be it in foods or supplements, increase in competition for drinks with beta-carotene antioxidants from algae and vegetables, flavor masking of omega-3 products, and newer variants of omega-3 fatty acids.

What's inspiring these trends?

  • Satisfying adventurous consumers that are inclined towards moving out of their comfort zones in order to explore bolder flavors and multisensory food experiences.
  • Greening up portfolios in order to win over consumers that are interested in adopting plant-based options as part of their diets. A lot of consumers are going plant-based, without eliminating meat entirely from their diets, to achieve a healthy balance between meat and vegetables.
  • Healthy food alternatives to proteins in the form of supplements and a search for alternative proteins.
  • Sustainability efforts to address customer expectations and driving corporate goals, as manufacturers are now using sustainable packaging, waste reduction, and improved biodegradability in their products.
  • Snackification of foods and innovation around snacks in various categories, even functional food.

Some other trends listed by Innova that are changing the nutraceutical landscape include:

  • Eating for Me – Personalized nutrition, mapped to individual requirements
  • A Fresh Look at Fiber – Rising interest in and understanding of the wholesome benefits of natural fibers in food
  • I Feel Good – The rising importance of “overall well-being” - physical and emotional wellness
  • Small Player Mindset – The adventurous and creative start-up spirit inspires innovations in the market
  • Connected to the Plate – Product development and marketing is customer-centric (co-creation) and more transparent than ever – inspiration is based on social engagement

Nutraceutical brands that are keen to see growth must adapt to the growing demands and new trends in the market. Some of the newer trends include naturally functional food, fragmentation, specialty solutions, etc.

Market and Regulatory Challenges

One of the main challenges that face nutraceutical companies is limited research on dietary supplements to support health claims. Since some of the scientific challenges in supplement science are ubiquitous and global, scientists need to collaborate across nations and gather adequate research that nutraceutical companies can then use to ensure safety for consumers.

Other market challenges that nutraceuticals face include the cost of production, limited availability of quality ingredients, and a time-consuming marketing process of nutraceutical products. The cost of research and development is another challenge that is expected to restrain the market.

In general, companies are not allowed to market supplements that are unsafe or contain unsafe ingredients. They must take measures like ensuring safe upper levels of intake for nutrients or safe levels of maximum dosages for other ingredients and ensure the absence of toxic contaminants.

As for pet products, the Food, Drug, and Cosmetic Act (FDCA) states that animal feeds must be pure and wholesome, contain no harmful or deleterious substances, and be truthfully labeled.

Tricarico added, "We expect the trend to continue where there is more disclosure on labels to promote brand trust and loyalty, we also expect that the trend to stay away from artificial flavors, sweeteners and additives will also continue as consumers continue to strive for a cleaner diet which goes hand in hand with cleaner supplementation."

Supply chain challenges like clean label products, responsibly sourced ingredients, sustainable packaging, and pressures to extend shelf life also need to be planned for by nutraceutical companies.

Immunity Supplements

Another trending supplement trend for 2021 in the nutraceutical industry is immunity supplements. The nutritional supplement industry is largely benefiting from the rising demand for immunity supplements, the heightened interest to adopt a preventive lifestyle has pushed more consumers to include immunity supplements into their shopping carts. Furthermore, the trend has resulted in more purchases of organic immunity health supplements worldwide.

The immune health supplements market size was USD 16.32 billion in 2019 and is predicted to reach USD 29.40 billion by 2027. This means the immunity supplement industry is displaying a healthy CAGR of 7.4% during the forecast period.


There is increased interest in health products due to factors like an increase in global longevity, the growing geriatric population, the rising popularity of the concept of healthy aging, a high birth rate, an increasing number of premature births, and a surge in the number of cases of nutritional deficiencies and malnutrition. To meet these demands, companies need to invest in research and keep up with the market needs and trends.

For existing brands looking to add to their existing product portfolio or for new brand owners interested in making a strong start in the nutraceutical market, this is a great opportunity to leverage the changing health trends. In order to accomplish this, you need to partner with a reputable and experienced contract manufacturer.

NutraScience Labs possesses over 120 years of nutraceutical industry experience and has contract manufactured customized, high-quality dietary supplement products for over 2,300 brands. In addition, we offer award-winning packaging, labeling and order fulfillment solutions; our ability to offer all of these services “under one roof” saves our customers money and reduces lead times which allows them to go to market faster with their products.

For more information on how we can assist you, call (855) 492-7388 to speak with one of our knowledgeable representatives or send us your request to receive a free nutraceutical manufacturing price quote.

January 3rd, 2020

About the Author:

Vincent Tricarico

Vincent Tricarico is currently the Vice President of Contract Manufacturing at NutraScience Labs. With nearly 20 years of direct-to-consumer and business-to-business experience, Mr. Tricarico is a respected executive in the dietary supplement industry and is well-known for his ability to consistently build and grow successful teams that produce results. Over the years, his work has been published in many industry trade publications, such as Natural Products Insider, Nutritional Outlook, and WholeFoods Magazine.