Outlook of the functional food and nutraceuticals market
Extensive research carried out by the analysts at Technavio has shown that the global functional food and nutraceuticals market to grow at a steady CAGR of nearly 8% during the forecast period. A sharp rise in medical expenses is one of the key factors driving the growth of the functional food and nutraceuticals market over the forecast period. Medical costs have been increasing significantly due to the rising prices of medical services, use of new technologies and treatments without considering effectiveness, and overuse of procedures and tests. For instance, in 2014, the US healthcare spending reached USD 3 trillion. This increase was primarily due to coverage expansions under the Affordable Care Act, especially for Medicaid and private health insurance. The rising healthcare costs have prompted customers to turn to alternative and preventive healthcare practices to minimize the spending on treatments and medications. With an increasing number of people consuming functional food and nutraceuticals, this market is expected to have a positive outlook until the end of 2020.
In this industry report, the analysts have estimated factors like the growing popularity of multi-herb supplements is one the key trends driving the growth of this market. Multi-herb supplements are a combination of beneficial herbs that benefit different aspects of health including heart and cardiovascular health, libido, digestion, energy, sleep, and immune function. For instance, CandiGONE by Renew Life is a blend of many natural ingredients that have been traditionally used to help maintain a healthy balance of intestinal flora. Similarly, NOW Sleep by NOW Foods is a combination of herbs that help the consumer sleep better. It comprises standardized extracts of valerian and hops traditionally used to relax the nervous system. Due to multiple advantages provided by multi-herb supplements, its demand is expected to increase, which, in turn, will translate into the demand for functional food and nutraceuticals in the coming years.
Product-based segmentation and analysis of the diabetes food market
- Functional food and nutraceutical supplements
- Functional food and beverages
According to this market research report, analysts estimate that the functional food and beverage segment dominated the market and accounted for more than 67% of the market share in 2015. Therefore, to maintain good health and reduce the risk of illnesses, people are increasingly looking to adopt healthy lifestyles and diets. This has increased the demand for functional food and beverages such as breakfast cereals and energy drinks. Moreover, there is a growing demand for plant-based functional foods such as oats, flax seeds, tomatoes, broccoli, citrus fruits, and cranberries as they are perceived to reduce the risk of chronic diseases like cancer. This recent shift in consumer preferences toward healthier food with high fiber will have a positive impact on this market segment over the forecast period.
Segmentation by geography and analysis of the diabetes food market
- North America
During 2015, North America dominated the functional food and nutraceuticals market and accounted for 40% of the total market share. Factors such as rising awareness of the benefits of a healthy diet, affordability and the availability of these products in the region to propel the growth prospects of the functional food market in North America.
Competitive landscape and key vendors
The global functional food and nutraceuticals market is extremely fragmented due to the presence of various large and small vendors that deal with niche segments. The providers in this market compete in terms of price, quality, product differentiation, distribution, and promotion to gain maximum market prominence during the forecast period. The competitive environment is likely to intensify with an increase in product or service extensions, product innovations, and M&A.
Key vendors in this market are -
Other prominent vendors in the market include Abbott Nutrition, Amway, Bayer HealthCare, Bio-Engineered Supplements and Nutrition (BSN), Champion Nutrition, Clif Bar, Creative Bioscience, CytoSport, Danone, Gaia Herbs, Glanbia, GNC, GSK, Herbalife, Herb Pharm, Himalaya Herbal Healthcare, Lovate Health Sciences, Nature's Bounty, NBTY, Nordic Naturals, Nutraceutical, Nutrisystem, Otsuka Holdings, PacificHealth Laboratories, Pfizer, Rainbow Light Nutritional Systems, Schiff Nutrition Group, Science in Sports, Ultimate Nutrition, and Yakult.
Key questions answered in the report include
- What will the market size and the growth rate be in 2020?
- What are the key factors driving the functional food and nutraceutical food market?
- What are the key market trends impacting the growth of the global functional food and nutraceutical food market?
- What are the challenges to market growth for functional food and nutraceutical food?
- Who are the key vendors in the global functional food and nutraceutical food market?
- What are the market opportunities and threats faced by the vendors in the functional food and nutraceutical food market?
- Trending factors influencing the market shares of APAC, Europe, North America, and ROW.
- What are the key outcomes of the five forces analysis of the global functional food and nutraceutical food market?
Technavio also offers customization on reports based on specific client requirement.
Functional food is any food providing additional health benefits beyond the conventional food. Japan was the first country to coin this term. This food group is also called as nutraceutical or health food. Currently, functional food includes dietary supplements containing vitamins, minerals, and herbs, which are not recommended by medical practitioners.
The global functional food and nutraceuticals market report is part of Technavio’s new research areas research portfolio. This portfolio provides a comprehensive market analysis along with the market share, market sizing, and market segmentations covering areas such as agricultural equipment, furniture and home furnishing, health and wellness, home kitchen and large appliances, lab equipment, and outdoor gear. These market research reports provide a perspective on the various market opportunities and market threats along with the key trends that would influence the market growth during the forecast period. It presents insights into the changing competitive landscape and a detailed profiling and market analysis of the vendors. Also covered in the research are the key regions or countries that would have an impact on the market during the assessment years.
Table of Content
PART 01: Executive summary
PART 02: Scope of the report
- Market overview
- Top-vendor offerings
PART 03: Market research methodology
- Research methodology
- Economic indicators
PART 04: Introduction
PART 05: Market landscape
- Market overview
- Five forces analysis
PART 06: Market segmentation
- Global functional food and nutraceuticals market by product
- Global functional food and beverage market
- Global dietary supplement market
PART 07: Geographical segmentation
- Global functional food and nutraceuticals market by geography
- Functional food and nutraceuticals market in North America
- Functional food and nutraceuticals market in Europe
- Functional food and nutraceuticals market in APAC
- Functional food and nutraceuticals market in ROW
PART 08: Market drivers
PART 09: Impact of drivers
PART 10: Market challenges
PART 11: Impact of drivers and challenges
PART 12: Market trends
PART 13: Vendor landscape
- Competitive scenario
- Investment opportunity analysis
PART 14: Key vendor analysis
- Other prominent vendors
PART 15: Appendix
- PART 16: Explore Technavio
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
- Manufacturers and suppliers
- Channel partners
- Industry experts
- Strategic decision makers
- Industry journals and periodicals
- Government data
- Financial reports of key industry players
- Historical data
- Press releases
- Collation of data
- Estimation of key figures
- Analysis of derived insights
- Triangulation with data models
- Reference against proprietary databases
- Corroboration with industry experts
- Market drivers
- Market challenges
- Market trends
- Five forces analysis
- Market size and forecast
- Market segmentation
- Geographical insights
- Competitive landscape