ACAI BERRY MARKET ANALYSIS

Acai Berry MarketSize and Trends

Market Dynamics

• Increasing consumer awareness regarding various health benefits associated with the consumption of acai berry is expected to increase the demand for acai berry in cosmetics industry coupled with increasing per capita spending on cosmetics is fueling the growth of acai berry market. According to U.S. Department of Commerce, International Trade Administration (ITA), per capita cosmetic spending in U.S., Japan and South Korea was US$ 139, US$ 174 and US$ 171 respectively in 2014.
• Furthermore, rising demand for acai berry in the form of health supplements is driving acai berry market growth. For instance, according to the Government of Canada, 38.3% males and 52.6% females used at least one nutritional supplement in Canada in 2015.

Market Outlook

• North America holds a significant position in the global acai berry market, owing to increasing prevalence of cardiovascular diseases in the region. Acai berry consists of anthocyanin that helps to prevent oxidation of cholesterol, which in turn helps to reduce buildup of plaque in the arteries. According to the Centers for Disease Control and Prevention (CDC), the most common type of heart disease is coronary heart disease that led to death of around 366,000 people in the U.S. in 2015.
• However, in 2009, Health Canada, Department of the government of Canada, advised people to not use certain acai berry products, which includes Acai Pure Ultra, Acai Power Blast, Vital Acai Super Antioxidant Weight Loss, and others. These products were found to contain sildenafil, which causes serious side effects such as life threatening low blood pressure. This is one of the major factors restraining growth of the acai berry market.
• Asia Pacific is expected to be the fastest growing region in the global acai berry market over the forecast period. This is owing to increasing number of pharmaceutical industries and cosmetic industries. According to the Indian Brand Equity Foundation (IBEF), pharmaceutical industry is the third-largest industry in India in terms of volume and accounted for around 20% of the global pharmaceutical industries in 2017. The pharmaceutical market is expected to increase to US$ 55 billion by 2020. According to the Australian Trade and Investment Commission, Japan is the third-largest cosmetic market in the world and was valued at US$ 2.63 billion in 2014.
• Furthermore, increasing consumption of nutritional and dietary supplements in this region is expected to fuel growth of acai berry market. According to the Australian Trade and Investment Commission, nutritional supplements accounted for around 35% of China’s health food market in 2015 and is expected to reach US$ 22.3 billion by 2020 with a CAGR of 6.4% during 2015-2020.