Claire Moulin, , Departmental Research Analyst, Euromonitor International03.15.12
Nutraceuticals are food/beverages or supplements that claim to have a physiological benefit to health beyond basic nutritional functions. Their positioning—between food, medicine and sometimes cosmetics—has proved to be a major issue for many consumers, who are confused by their utility and efficiency. Consumers often assume that these products are mostly marketing tricks and gimmicks, and without real need.
According to Euromonitor’s latest survey system*, 38% of consumers never use dietary supplements. In the U.S., the practice of dietary supplementation is more developed, with only 21% never consuming supplements and 54% consuming one weekly. In contrast, French consumers are much more suspicious, only 8% consume a dietary supplement weekly and 65% never do. Many consumers believe if they eat a balance diet there is no need for extra nutrients.
Cultural acceptance goes a long way in supporting nutraceutical sales. In Japan, for example, using food and drink as part of a health regimen is buoyed by the longstanding tradition of herbal medicine and FOSHU legislation in Japan, which have both helped boost consumers’ trust and understanding.
In Europe and the U.S., on the other hand, EFSA and FDA have rejected many health claims related to food and drink, which makes it difficult to convince consumers of the real added-value of nutraceutical food and drink. However, this shouldn’t limit product development. Softer claims and looking at more widely accepted and recognized ingredients are an easy ways to gain consumers’ trust with limited investment in scientific substantiation. So, where do we go from here?
Think natural ingredients with health appeal: superfruits (acai, pomegranate, cranberry, grape seed), coconut water and green tea (and to a lesser extent white tea).
Think consistency between the message and the content: nutraceutical food and drink should be good inside and outside. Too often products are not consistent with their message and contain unexpected unhealthy ingredients such as a lot of added sugar and salt. Consumers interested in nutraceutical products are more particular about what they eat—they WILL look at the ingredients list.
Find inspiration from beauty and personal care trends: embracing social media, creating an at-home beauty experience and promoting time-saving vs super-long lasting tools are all key trends in the beauty world that are directly applicable to the nutraceuticals market. The ongoing success of anti-aging products is another indication of still untapped demand with lots of potential.
Thus finally, think about untapped consumers. Nutraceuticals have been restricted to high-income women with high unit price and exclusive distribution. The development of private label and cheaper alternatives is a first step to the democratization of nutraceuticals.
*Survey covered fastest growing and most established consumer markets (U.S., Brazil, U.K., Germany, France, China, India and Japan)
According to Euromonitor’s latest survey system*, 38% of consumers never use dietary supplements. In the U.S., the practice of dietary supplementation is more developed, with only 21% never consuming supplements and 54% consuming one weekly. In contrast, French consumers are much more suspicious, only 8% consume a dietary supplement weekly and 65% never do. Many consumers believe if they eat a balance diet there is no need for extra nutrients.
Cultural acceptance goes a long way in supporting nutraceutical sales. In Japan, for example, using food and drink as part of a health regimen is buoyed by the longstanding tradition of herbal medicine and FOSHU legislation in Japan, which have both helped boost consumers’ trust and understanding.
In Europe and the U.S., on the other hand, EFSA and FDA have rejected many health claims related to food and drink, which makes it difficult to convince consumers of the real added-value of nutraceutical food and drink. However, this shouldn’t limit product development. Softer claims and looking at more widely accepted and recognized ingredients are an easy ways to gain consumers’ trust with limited investment in scientific substantiation. So, where do we go from here?
Think natural ingredients with health appeal: superfruits (acai, pomegranate, cranberry, grape seed), coconut water and green tea (and to a lesser extent white tea).
Think consistency between the message and the content: nutraceutical food and drink should be good inside and outside. Too often products are not consistent with their message and contain unexpected unhealthy ingredients such as a lot of added sugar and salt. Consumers interested in nutraceutical products are more particular about what they eat—they WILL look at the ingredients list.
Find inspiration from beauty and personal care trends: embracing social media, creating an at-home beauty experience and promoting time-saving vs super-long lasting tools are all key trends in the beauty world that are directly applicable to the nutraceuticals market. The ongoing success of anti-aging products is another indication of still untapped demand with lots of potential.
Thus finally, think about untapped consumers. Nutraceuticals have been restricted to high-income women with high unit price and exclusive distribution. The development of private label and cheaper alternatives is a first step to the democratization of nutraceuticals.
*Survey covered fastest growing and most established consumer markets (U.S., Brazil, U.K., Germany, France, China, India and Japan)