The Dietary Supplement Industry – Growing, Gaining and Going Global!
There’s a lot of positive news these days about the dietary supplement industry. Progress in technology, validating research, product innovations, stringent GMPs, and increasing approval from the medical profession has caused consumers and critics to take a fresh look at the nutraceutical industry, with renewed respect.
Top market research companies all agree the nutraceutical market is headed for significant growth in the next 5 years. Good news all around means there’s no better time than now to setup a startup nutraceutical business or for established supplement business owners to explore new product options!
Global Growth for the Nutraceutical Market
According to Research and Markets, the dietary supplement industry is slated to be the world’s fastest growing market during 2012 to 2017. The market shares of North America’s nutraceutical market are expected to rise to 39.2 percent; and that of the Asia-Pacific market to 30.4 percent. 1
The Freedonia Group, a global market research company based in Ohio, predicts the global nutraceutical ingredients market to grow by 7.2 percent annually to reach $23.7 billion in 2015. According to their “World Nutraceutical Ingredients to 2015” report, the key drivers are science-backed nutraceuticals with broad applications in foods, dietary supplements, beverages, which can be easily applied to adult and pediatric nutrition. 2
The Global Business Intelligence (GBI) Research, a leading provider of global market intelligence data with key offices in the U.S., Europe and Asia, also predicts strong performance in the global nutraceutical market. The GBI forecasts the global nutraceutical market to reach $180.1 billion by 2017, after growing at a compound annual growth rate (CAGR) of 4.9 percent from 2010 to 2017. 3 Major factors stimulating the nutraceutical market growth in the top seven countries (U.S., Japan the U.K., Spain, Italy Germany and France) are:
- A growing aging population
- A growing and affluent working population
- Increased awareness of nutraceuticals
- More people looking to take their health into their own hands
Top-Selling Ingredients in the Nutritional Supplement Industry
According to the Freedonia Group, the top-selling group of nutraceutical ingredients in the nutritional supplement industry includes proteins, fibers and various specialized functional additives which constitute the 3 major groups of nutraceutical ingredients. 4
- Proteins are predicted to have the fastest gain as manufacturers introduce innovations for protein application in foods and beverages with high-value nutrition.
- Herbal and botanical extracts as well as animal and marine-based derivatives are expected to have the fastest growth. Global demand for these products is expected to rise 8.9 percent annually, through 2015.
- Specialized functional additives are predicted to grow. A report from Global Business Intelligence (GBI) Research predicts healthy growth rates from 2010 to 2017 for food additives like omega-3 fatty acids and probiotics. The Freedonia Group expects vitamins and minerals as it pertains to nutraceutical application to reach $6 billion in 2015 (an increase of 6.2% annually from 2010).
An annual increase of 6.7 percent is expected for the above group of nutraceutical ingredients, through 2015.
Anticipated Growth in the Omega-3 Segment
Fish or other marine-based sources of omega-3s are expected to grow exponentially in naturally-derived substances category, according to The Freedonia Group. Analyzing the growth of the omega-3 segment of the nutraceutical ingredients market, Frost and Sullivan, valued the global market at $1.4 million in 2009. Marine and algae-based EPA and DHA omega 3 ingredients market is forecast to grow at a CAGR of 12 percent from 2010 to 2015. According to Frost & Sullivan, the omega-3 market is still in its growth stage and expects “product innovations and possible market disruptions”. 5
A 2010 report from Frost and Sullivan on the omega-3 market states a growing increase in the demand for omega-3 concentrates. Growth in the omega-3 market is largely attributed to: 5
- Heightened consumer awareness of the benefits of omega-3 fatty acids.
- Credible research that back up these benefits
- Increasing technological developments
Health-Conscious Americans – Largest consumers of Nutraceuticals
According to RNCOS, an industry intelligence and creative solutions company based in India, the nutraceutical industry in the United States, consisting of dietary supplements, functional foods and vitamins, is estimated to grow at a CAGR of 7 percent during 2012 to 2015.
Here are a few highlights from the RNCOS report:
- By 2015, 61 percent of the nutraceutical market in the U.S. will be functional foods
- Rising health concerns will drive consumers to nutritious products
- Specialty supplements are expected to lead the dietary market in the U.S.
- The key market drivers will be an aging population and bigger disposable incomes
For Startups and Supplement Business Owners who want to add to their product line!
Are you excited about the growth of the health supplement industry but are not too sure how to go about producing high-quality supplements that can compete in the marketplace? Maybe you already own a supplement business and want to use this peak season to maximize your ROI through strategic product releases. NutraScience Labs can guide you every step of the way:
- All of our tablets, capsules and powders are manufactured in state-of-the-art facilities that are NSF-GMP certified.
- Rapid quote and product turnaround times means that we’ll help you get your product out to market faster than your competitors.
- Taking advantage in-house label and packaging design, order fulfillment and drop shipping services means that you don’t have to spend time and resources looking anywhere elsewhere for your supplement manufacturing needs.
Are you ready to start working with us? Call (855) 492-7388 to speak with one of our Production Specialists or submit your request to receive your free quote in 48 hours or less!