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Transparency Market Research predicts global market to reach $278.96 billion by the end of 2021.
August 23, 2016
By: Sean Moloughney
Editor, Nutraceuticals World
Increased consumer spending on functional foods and beverages has been presenting lucrative prospects for the global nutraceuticals market. Consumers, especially those across developed nations, are currently exploring healthier lifestyle choices to curb the incidence of chronic and lifestyle diseases. Such trends have bolstered demand for dietary supplements not only as a means to boost physical performance but also to potentially prevent disease. Transparency Market Research (TMR) projects the global nutraceuticals market to rise at a CAGR of 7.3% between 2015 and 2021. Besides growth witnessed across developed regions, the market is also poised to see attractive opportunities in Asia-Pacific. The robust healthcare development demonstrated across emerging economies of the region and increasing disposable income of people will accelerate the nutraceuticals market, the research firm said. TMR estimated the global nutraceuticals market to be $165.62 billion in 2014. Rising at a CAGR of 7.3% from 2015 to 2021, the market is expected to reach $278.96 billion by the end of 2021. On the basis of revenue, functional food emerged as the largest product segment in the global nutraceuticals market, according to TMR. It held a share of over 31% in the market in 2014. In the last couple of years, the demand for functional food products such as branded wheat flour, fortified food, probiotics, omega fatty acid fortified food, branded ionized salt, and others has surged considerably. The rising interest among people to achieve wellness through diet, the increasing aging population, and the skyrocketing healthcare costs have fueled demand for the functional food segment. Besides this, TMR expected the producers of functional beverages to witness attractive opportunities as well. Demand for functional beverages is expected to be significantly high in countries across Asia as consumers prefer dairy-based beverages more. Over the next few years, demand from the dietary supplements segment is also expected to increase considerably. Regionally, North America dominated the global nutraceuticals market in 2014 with a share of over 39.6% in terms of value. As people in North America become more health conscious, the demand for nutraceuticals from the region is expected to increase in response. The regional market is also expected to gain from the persistently rising demand in Canada and the U.S. Asia-Pacific, in the same year, emerged as the second-largest market for nutraceuticals. The rising demand for functional food and dietary supplement from emerging economies of Asia-Pacific will accelerate sales of nutraceuticals in the region. The rising preference for health drinks among athletes and sports enthusiasts—as these drinks help them gain edge in sports, lose weight, and stay healthy—will also augur well for the nutraceuticals market in Asia-Pacific. Furthermore, consumers in India are increasingly opting for nutraceuticals in place of their synthetic alternatives for the treatment of chronic ailments. These developments will give significant impetus to the nutraceuticals market in Asia-Pacific.
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