CLINICAL NUTRITION MARKET ANALYSIS

Market Challenges And Opportunities

Clinical Nutrition Market Drivers:

• Rising Chronic Disease Burden: The growing prevalence of chronic diseases, such as diabetes, cancer, gastrointestinal disorders, etc., is expected to be a major driver for the clinical nutrition market. The number of people affected by these conditions is increasing each year primarily due to aging populations and lifestyle changes such as poor diet, lack of exercise, increased stress levels etc. Chronic diseases require long term medical treatment and management. Many patients suffering from chronic illnesses are recommended specialized clinical nutrition solutions by healthcare professionals to aid their treatment and recovery. For example, people with diabetes are prescribed meal replacement products to manage their blood sugar levels. Cancer patients undergoing chemotherapy often need liquid nutrition support due to side effects that reduce appetite and ability to eat regular food. Similarly, formulas enriched with probiotics, prebiotics, and amino acids are seeing increased demand for managing gastrointestinal disorders. For instance, according to the World Health Organization (WHO), in April 2023, about 422 million people worldwide had diabetes, the majority living in low-and middle-income countries, and 1.5 million deaths are directly attributed to diabetes each year.
• Rising Awareness Regarding Disease-specific Nutrition: Rising awareness among consumers regarding the importance of nutrition specific to diseases and conditions is a key factor fueling the growth of the clinical nutrition market. With increasing prevalence of chronic ailments, such as diabetes, obesity, malnutrition, etc., people are better informed today about the role played by dietary modifications in the management and treatment of illnesses. Customized nutrition plans focusing on individual requirements are being prescribed by doctors and dieticians for improved health outcomes. This growing health-centric approach among the population has boosted the demand for tailored nutritional products that provide fortification tailored to medical requirement. The market is witnessing a surge in the demand for formulas enriched with vitamins, proteins, minerals, prebiotics, and probiotics as supplements for disease treatment. For instance, diabetes patients closely monitor their carbohydrate and sugar intake through nutrition schemes designed specifically for their condition by healthcare providers and manufacturers.
• Increasing Incidence of Pre-mature Birth: The average pregnancy lasts for around 37 to 42 weeks. Every baby born before the completion of 37 weeks of pregnancy (also called weeks of gestation) is considered as preterm. Infants born early, before 37 weeks of pregnancy, have a higher risk of suffering from lifelong health problems. For instance, according to the data provided by the European Commission, on June 2020, around half a million babies are born prematurely in Europe each year, which may increase personalized nutritional advice for premature babies, and this is expected to drive the market growth over the forecast period. For instance, according to the data published in the European Commission, in July 2020, about 500,000 babies are born prematurely in Europe annually, and the numbers are rising. This is due to the fact that more women suffer from diabetes and obesity.

Clinical Nutrition Market Restraints:

• High Costs Associated with Clinical Nutrition Products: The costs associated with clinical nutrition products are substantial and rising, creating unfavorable conditions for growth in the clinical nutrition market. Clinical nutrition products must adhere to stringent regulations and undergo clinical testing to validate their safety and efficacy for specific at-risk patient populations. This lengthy and expensive clinical trials and regulatory approval process drives up production costs. Additionally, specialized formulations tailored to the nutritional needs of chronic disease patients demand premium ingredients and customized manufacturing protocols that further increase expenses. As a result, clinically tailored nutrition products and supplements command high retail prices that place them out of reach for many consumers and healthcare budgets.
• Product Recalls: Product recalls have emerged as a major impediment to the growth of the clinical nutrition market in recent years. With innovation in formulations and the increasing complexity of products, issues pertaining to quality and safety have also risen. Several major players in the clinical nutrition market have had to issue large-scale recalls due to the presence of contaminants or improper manufacturing practices. This erodes customer confidence in the brands and clinical nutrition products as a whole. More importantly, it disrupts supply chains significantly. For instance, in October 2022, Abbott, a multinational medical devices and health care company, announced that it is recalling certain lots of 2 fluid ounce/59 milliliter bottles of Ready-to-Feed liquid formula for infants and children due to problem with the bottle caps. Out of them, some bottles were not sealed completely and could result in spoilage. If a child were to consume spoiled formula, it could cause stomach problems such as vomiting or diarrhea. The recalled brands include Similac, Similac 360 Total Care, Pro-Total Comfort, Similac Special Care 24, Similac 360 Total Care Sensitive, Similac Stage 1, Similac NeoSure, Pedialyte Electrolyte Solution, and Similac Water (Sterilized).
• Issues Related to Product Quality: Issues related to product quality have been one of the key factors restraining the growth of the clinical nutrition market. Maintaining high standards of quality in clinical nutrition products is crucial, as any contamination or other quality-related issues can seriously harm patients and their health. However, ensuring consistent quality at scale has been a challenge for many players in clinical nutrition market. Clinical nutrition products are developed using various ingredients sourced from different locations and companies globally. Maintaining visibility and control over the entire supply chain and production process is important to minimize quality risks but difficult to achieve for most companies.

Clinical Nutrition Market Opportunities:

• New Product Innovations with Enhanced Formulations: New product innovations with enhanced formulations present a great opportunity in the clinical nutrition market space. With advancements in nutrition science and developments in areas like functional foods, the needs and requirements of consumers are evolving rapidly. Manufacturers now have a chance to develop customized and targeted products that offer superior health and wellness benefits to patients. For instance, in September 2022, NextEvo Naturals, a supplement brand that has found a new way to revolutionize the delivery of cannabidiol (CBD) and other nutritional compounds by creating formulations that increase the compound’s potential benefits and consumer value, announced the launch of Revive CBD Complex Curcumin and Hemp Extract. Revive CBD Complex Curcumin and Hemp Extract features the company’s proprietary SmartSorb delivery technology that turns oil-soluble, premium hemp-derived CBD into a water soluble-like (water-dispersible) emulsion. Curcumin, like CBD, is lipophilic and poorly absorbed into the bloodstream, therefore a different technology is utilized to enhance the bioavailability of curcumin. Piperine, a compound that is found in black pepper, has also been clinically shown to be a natural bioavailability enhancer for curcumin. Revive CBD Complex Curcumin and Hemp Extract promotes a healthy response to inflammation and is made with Curcumin C3 Complex with BioPerine, allowing for 20 times more absorption.
• Increasing Focus of Consumers on Health and Wellness: The increasing focus of consumers on health and wellness is driving the adoption of organic and sustainable ingredients in clinical nutrition. Patients and health practitioners are showing heightened interest in nutritional solutions that are natural, clean-label and produced in an environmentally-responsible way. This presents a major opportunity for clinical nutrition product manufacturers to develop formulations with organic and sustainably-sourced ingredients. Clinical nutrition products with organic and sustainable ingredients appeal to consumers' evolving values of environmental protection and personal health. As people become more informed about the detrimental health impacts of pesticides, preservatives, and artificial ingredients, they are increasingly trusting of nutritional therapies derived from organic agriculture.
• Emerging Markets in Asia Pacific and Latin America: The emerging markets in Asia Pacific and Latin America regions present a huge opportunity for growth in the clinical nutrition market. These regions are undergoing rapid economic development which have improved access to healthcare for many. With rising incomes, people in these regions are now able to afford nutrition products that can help manage diseases or aid recovery. Many countries like India, China, Brazil, Mexico, etc. have a very large population and with economic growth, more people are entering the middle class section each year. As per World Bank data from 2021, the number of middle class populations in India and China combined will be larger than the entire U.S. population by 2027. This growing middle class will have more discretionary spending power and be open to premium health and nutrition products. The governments in these regions also understand the economic benefits of a healthy populace. They are making conscious efforts to expand health insurance coverage and make nutrition products affordable through subsidies.