The Markets and Markets (M&M) report extract did not place a value on the current international market but said it would grow at 7% annually until 2020 when it would hit €35bn, with the Asia-Pacific growing fastest. The figure includes nutrients being used in animal nutrition and cosmeceuticals.
The firm noted the rising popularity of functional foods in various markets. “Manufacturers are also taking in consideration the convenience factor for consumers and providing them with healthy nutrients in the form of food and beverages instead of supplements.”
Yet food supplements remained the biggest market for healthy nutrients ranging from phytochemicals to omega-3s to vitamins, minerals, fibre forms, prebiotics and probiotics and more. Growth here explained why botanicals were the fastest growing nutraceutical type.
The report found the Asia-Pacific, Europe and North America were the biggest regional consumers of health nutrients with Latin America, Africa and the Middle East taking a much smaller slice of the pie.
Japan, India and China would lead growth in the Asia-Pacific, the report found, a finding somewhat at odds with others that show growth slowing in China and India at least, and rising in south east Asian nations like Thailand, Malaysia and Vietnam, albeit from a smaller base.
“The growing health awareness and rising cases of various chronic diseases such as blood pressure, diabetes, and rickets in this region are also driving the market,” M&M said, noting similar health concerns were driving markets elsewhere too.
It added: “Japan is the fastest-growing country market in the Asia-Pacific region. This is due to the rapidly aging population here.”
Middle East, North Africa
Another report by Future Market Insights (FMI) forecast 7.1% yearly growth for the Middle East and North Africa regions between now and 2020.
FMI said “Advancements in product offering” and higher consumer awareness was fueling the growth “in a wide range of products such as medicines and food & beverages”.
Trade was also being facilitated by regulatory changes favouring international players that was promoting imports into the region. “This is one of the major factors driving growth of the nutraceuticals market in MENA region.”
The market analyst said consumers were learning that nutraceuticals could in some situations replace “conventional medicines”. This was leading food and supplement makers “to diversify their product offerings and introduce nutraceutical products to keep up with the demand.”
Food supplements remained the biggest segment of the market, holding 37%. Of this segment, vitmains, minerals and proteins accounted for 75% of sales. Protein supplements were worth about €1bn in 2014.
Functional beverages were the next biggest segment at 27.9%.
The six nations of the Gulf Cooperation Council (GCC) – Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman – represented the biggest market: About €3.25bn in 2014 and set to hit €4.86bn by 2020. The rest of the Middle East was valued at €1.88bn last year.
North Africa would grow at “healthy single-digit” rates until 2020.
The report said key players like BASF, Danone, Nestlé, Amway, General Mills, Arla Foods and Kellogg’s were looking at partnerships and mergers and acquisitions.