Nutraceutical Products Market by Type (Functional Food {Confectionery Products, Dairy Products}, Functional Beverages, Dietary Supplements), Source (Vitamin, Mineral), Distribution Channel (Specialty Stores, E-commerce) - Global Forecast to 2030

The Nutraceutical Products Market is slated to register a CAGR of 7.8% from 2023–2030 to reach $691.87 Billion by 2030. The popularity of nutraceutical products is rising due to their nutritional and medicinal benefits, changing lifestyles and the growing veganism trend, innovations in nutraceutical products, and growing venture investments in nutraceutical companies. They can improve health, delay aging, prevent chronic diseases, increase life expectancy, or support the structure and functioning of the body. They are also used to prevent and treat mental health issues and disorders, which positively impacts the demand for nutraceutical products.

The global nutraceutical products market is driven by growing demand for nutrition-enriched products, rising demand for functional beverages, increasing geriatric population and prevalence of chronic diseases, growing innovations, and new product developments. However, the high cost of nutraceutical products is expected to restrain the growth of this market to some extent. Also, counterfeiting in the nutraceutical industry is challenging the growth of the nutraceutical products market.

Growing Demand for Nutrition-enriched Products

Sports & performance drinks are functional beverages that help athletes replace water, electrolytes, and energy, especially during arduous exercise. They have become an essential part of any workout routine and are mostly consumed by people seeking health benefits from their beverages. Most sports & performance drinks contain carbohydrates (glucose), caffeine, B vitamins, and electrolytes (sodium, magnesium, potassium, and calcium). These drinks quickly replace fluids lost during exercise and provide maximum energy uptake. In the last few years, the remarkable development in the industry is due to the marketing shift from offering electrolyte drinks to athletes to other consumers. The rising inclination towards fitness activities and increasing participation in half and full marathons have helped the sports & performance drinks industry flourish.

Functional sports and performance drinks are designed to help athletes and active individuals improve their physical performance and recovery. These drinks typically contain various ingredients, such as carbohydrates, electrolytes, and amino acids, that help replenish the body's energy and support muscle recovery.

In addition, the need for sports & performance drinks is increasing rapidly as they help enhance performance and endurance and allow athletes to exercise vigorously. Moreover, the rising athlete population and sports players in developing countries are major factors that would propel the market growth during the forecast period. For instance, according to the National Collegiate Athletic Association (NCAA), the number of NCAA athletes is increasing rapidly. In 2021–2022, approximately 520,000 students participated in NCAA championships sports, an increase of more than 25,000 since 2017–2018. The migration from rural to urban areas is causing a major population change, impacting consumption patterns.

Furthermore, the growing inclination of the millennial population towards physical and fitness-related activities, increasing buying power, and willingness to pay for healthier alternatives are some of the major factors accelerating the demand for sports & performance drinks. For instance, according to the Physical Activity Council, 64.4% of baby boomers and 70% of millennials in the U.S. were in fitness sports in 2021.

Additionally, an increase in sales of products in different distribution channels like supermarkets & hypermarkets, convenience stores, and E-commerce sites is also driving the market growth. In many developing countries, Ecommerce is growing due to more product availability. It is why consumers are getting more options, offers, and discounts. For instance, in February 2021, products from Ready Nutrition (U.S.), which makes protein-infused sports drinks, were launched in selected grocery stores in the U.S.

Hence, all these factors are expected to boost the sports & performance drinks market, which, in turn, is poised to drive the demand for functional beverages in the coming years.

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Key Findings in the Nutraceutical Products Market Study:

The Functional Beverages Segment is Slated to Register the Highest CAGR During the Forecast Period

Based on type, the global nutraceutical products market is segmented into functional food, functional beverages, and dietary supplements. The functional beverages segment is slated to register the highest CAGR during the forecast period. The fastest growth of this segment is attributed to the growing demand for functional beverages in emerging economies, increasing demand for sports drinks, and a rise in health expenditure. Additionally, the accessibility to healthier substitutes further supports the growth of this segment.

In 2023, the Vitamins Segment to Account for the Larger Share of the Market

Based on source, the global nutraceutical products market is segmented into vitamins, proteins and amino acids, probiotics, minerals, omega-3 fatty acids, fibers & specialty carbohydrates, prebiotics, phytochemical & plant extracts, and other sources. In 2023, the vitamins segment is expected to account for the larger share of the global nutraceutical products market. The large market share of this segment is attributed to the growing number of vitamin deficiency cases among young adults, adolescents, and children. Moreover, increasing attention to health and the prevention of diseases by consumers and growing demand for immunity-boosting products is further expected to support the large market share of this segment.

In 2023, the Supermarkets & Hypermarkets Segment to Dominate the Nutraceutical Products Market

Based on distribution channel, the nutraceutical products market is segmented into supermarkets & hypermarkets, convenience stores, specialty stores, pharmacies & drug stores, e-commerce, and other distribution channels. In 2023, the supermarkets & hypermarkets segment is expected to account for the largest share of the nutraceutical products market. The large market share of this segment is attributed to the factors such as rapid urbanization, rising per capita disposable incomes, consumers’ increasing adoption of healthy eating habits, and increased sales of functional food and beverages in well-established supermarkets and hypermarkets.

North America: The Dominating Regional Market

The nutraceutical products market is segmented into five major regions: North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2023, North America is expected to account for the largest share of the nutraceutical products market. The large market share of this region is attributed to the well-established food & beverage industry; high awareness of the health benefits of nutraceuticals; the growing popularity of protein bars, shakes, and cookies among millennials; the rising demand for clean-label nutraceutical products; growing vegan trend and increasing health-conscious consumers; and advancements in nutrition and technology.

However, Asia-Pacific is slated to register the highest CAGR during the forecast period. The growth of this regional market is attributed to increasing demand for dietary supplements, rising awareness regarding the health benefits of nutritional products, increasing disposable incomes, rapid urbanization, and rising health wellness trends. Moreover, the rapid economic growth in countries such as China, Japan, and India drives the demand for fortified nutritional food and beverages, which is further expected to support the growth of this market during the forecast period.

Key Players

The report offers a competitive landscape based on an extensive assessment of the product portfolio offerings, geographic presences, and key strategic developments adopted by leading market players in this market in the past three to four years. Some of the key players operating in the global nutraceutical products market are Abbott Laboratories (U.S.), Amway Corporation (U.S.), Conagra Brands, Inc. (U.S.), Danone S.A. (France), General Mills Inc. (U.S.), Glanbia plc (Ireland), Herbalife Nutrition Ltd. (U.S.), International Flavors & Fragrances Inc. (U.S.), Kellogg Company (U.S.), Nestle S.A. (Switzerland), PepsiCo, Inc. (U.S.), The Coca Cola Company (U.S.), Hearthside Food Solutions LLC (U.S.), Mars, Incorporated (U.S.), Meiji Holdings Co., Ltd (Japan), and Royal FrieslandCampina N.V. (Netherlands).

Scope of the Report:

Nutraceutical Products Market Assessment, by Type

• Functional Food
  • Dairy Products
  • Bakery Products
  • Snacks
  • Confectionery Products
  • Infant Food Products
  • Other Functional Food
• Functional Beverages
  • Energy Drinks
  • Sports Drinks
  • Fortified Juices
  • Dairy-Based Beverages
  • Other Functional Beverages
• Dietary Supplements
  • Tablets
  • Capsules
  • Powder Form
  • Liquid Form
  • Other Dietary Supplements

Nutraceutical Products Market Assessment, by Source

• Vitamins
• Probiotics
• Minerals
• Proteins and Amino Acids
• Omega-3 Fatty Acids
• Prebiotics
• Phytochemical & Plant Extracts
• Fibers & Specialty Carbohydrates
• Other Sources

Nutraceutical Products Market Assessment, by Distribution Channel

• Supermarkets & Hypermarkets
• Convenience Stores
• Pharmacies & Drug Stores
• Specialty Stores
• E-commerce
• Other Distribution Channels

Nutraceutical Products Assessment, by Geography

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • France
  • Spain
  • Italy
  • Rest of Europe (RoE)
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Rest of Asia-Pacific (RoAPAC)
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America (RoLATAM)
• Middle East & Africa

Key Questions Answered in the Report: