U.S. NUTRACEUTICALS MARKET ANALYSIS

U.S. Nutraceuticals Market Size and Trends

The U.S. Nutraceuticals Market is estimated to be valued at USD 168.05 Bn in 2024 and is expected to reach USD 238.05 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 5.1% from 2024 to 2031.

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Robust growth is expected in the U.S. nutraceuticals market over the coming years due to rising health consciousness among consumers and increasing preference for dietary supplements to meet daily nutrition requirements. The nutraceuticals market in the U.S. is witnessing strong growth driven by increasing consumer awareness about health and wellness. There is a rising demand for functional foods and beverages claiming various health benefits such as immunity boost, digestive health, heart health, sports nutrition, and weight management. The COVID-19 pandemic has further accelerated this trend as preventive healthcare takes priority for consumers.

Aging population

As life expectancy increases in the U.S., the population of older adults is growing at a significant rate. According to the latest census data, there are over 55 million people aged 65 years or older currently living in the country, and this number is expected to double to over 95 million by the year 2060. The nutraceuticals industry recognizes that as people age, their needs for supporting their health and wellness also increases. Many older consumers are actively looking for natural products that can help promote joint health, cognitive function, heart health, and more. Nutraceutical formulations for senior citizens have become quite sophisticated, moving beyond basic supplements to address multiple age-related health concerns through a single product. This has spurred robust demand from the baby boomer generation that wants to continue enjoying an active lifestyle well into their retirement years through the support of targeted nutrients and herbs. Leading companies have focused considerable resources on clinical research to validate ingredient and product efficacy for older demographics, giving consumers greater confidence in items designed specifically for their needs as they grow older.

Market Concentration and Competitive Landscape

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Preventive healthcare

In recent years, the issues of rising healthcare costs and growing chronic disease rates have dominated policy discussions in the U.S.. There is widespread agreement that more emphasis needs to be placed on preventive measures and lifestyle modifications to address underlying risk factors for conditions like diabetes, heart disease, and obesity. Nutraceuticals present an appealing option for consumers who want to proactively support their wellness without reliance on prescription drugs. Products containing antioxidants, anti-inflammatory compounds, omega-3 fatty acids, and other research-backed ingredients are being embraced for their possible disease preventive qualities. As the costs of Western medical treatment skyrocket with each passing year, individuals and families are strongly motivated to implement low-cost lifestyle strategies to avoid illness in the first place. Nutraceuticals have positioned themselves as an important first-line of defense against chronic disease development through supporting immune function, metabolic regulation, cardiovascular health, and other core foundations of good preventive health. This has significantly boosted demand across all major product categories within the industry.

Key Takeaways from Analyst:

The U.S. nutraceuticals market holds strong growth potential over the next five years. Some of the key drivers behind this include an increased health and wellness focus among American consumers and a growing recognition of the health benefits of nutraceutical products. However, regulatory hurdles still pose a challenge to industry growth. The FDA has yet to establish a clear pathway for product classification and approval. This results in much uncertainty regarding legal and advertising issues.

The west coast, particularly California and Washington, has emerged as the dominant region in the U.S. nutraceuticals space. This can be attributed to greater health awareness on the west coast and the presence of several startups and innovative nutraceutical companies based in these states. Similarly, dietary supplements focused on cognitive health and memory support are seeing the fastest uptake in the country. An aging population as well as increasing prevalence of lifestyle diseases is driving much of this demand.

With appropriate regulatory frameworks and further education around product efficacy, the industry has room for accelerated expansion in the coming years. International players may consider entering the lucrative U.S. market through tie-ups or acquisitions. Overall, nutraceuticals demonstrate solid potential to benefit Americans’ health while driving revenues for innovative firms.

Market Challenge: High prices of nutraceuticals products

The high prices of nutraceuticals products is significantly restraining the growth of the U.S. nutraceuticals market. Nutraceuticals contain various health promoting and disease preventing ingredients which provide several health benefits. However, the production cost of these products is quite high as they involve advanced research and development activities along with clinical trials to validate their safety and efficacy. This increases the manufacturing cost. Moreover, nutraceuticals are sold at premium prices compared to generic supplements due to strong intellectual property protection and branding exercised by manufacturers. The increased production and marketing costs are eventually passed on to the end consumers making these products unaffordable for common people.

Market Opportunities: Scope for new product launches

The U.S. nutraceuticals market presents significant scope for new product launches that can help address rising health and wellness needs of the population. With increasing lifestyle diseases and health issues such as obesity, diabetes and cardiovascular problems, there is growing awareness and demand for dietary supplements and functional foods among Americans. According to projections by the Centers for Disease Control and Prevention, by 2030, nearly half of the entire U.S. adult population will suffer from some form of preventable chronic disease if current trends continue. This presents a major opportunity for innovative nutraceutical products targeting specific health conditions or concerns. Products offering benefits for immunity, gut health, brain health, bone and joint health etc., could see strong demand. Customized nutrigenomic and personalized nutrition options tailored to individuals' genetic makeup and needs are an emerging area with scope. Products targeting elderly health as the U.S. population ages are also projected to rise. The market is also evolving in terms of delivery systems - newer formats such as gummies, bites, coconut water based options etc. are gaining traction among young, health-conscious consumers compared to traditional pills and powders.

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Insights by product type : Increasing health consciousness

In terms of product type, the functional foods segment is expected to hold 38.8% share of the market in 2024. Functional foods have seen tremendous growth in the U.S. nutraceuticals market due to rising health awareness among consumers. These types of foods are designed to provide extra health benefits beyond basic nutrition. As people become more focused on proactively managing their health and reducing risk of diseases, functional foods have emerged as a popular option. A major factor driving the growth of functional foods is the ability to easily incorporate health benefits into an everyday diet. People can gain antioxidants, vitamins, minerals, prebiotics and probiotics through common food items like cereal, yogurt, bread and juice without having to remember to take supplements. Busy lifestyle has made functional foods appealing as they allow getting nutrition on-the-go. Product innovations catering to different health needs and tastes have further boosted popularity.

Another key driver has been marketing and promotion by manufacturers highlighting precise health attributes. Conditions like heart health, bone health, digestive health and immune support have resonated strongly with consumers. Promotions through nutrition labels, packaging information as well as digital and social media ads have helped raise awareness. Some products have also strategically targeted the expanding wellness and disease prevention space beyond basic treatment and cure. Strong demand from health-conscious demographics like millennials and baby boomers also contribute to growth. Rising health insurance and medical costs have driven interest in preventive approaches and disease risk reduction through diet. The growing senior population additionally favors functional foods for general well-being and aid with aging concerns.

Insights by product form : Convenience and popularity

Tablet & Capsules segment contributes the 37.7% share of the market in 2024. Tablet and capsule formulations dominate the US nutraceutical products market owing to the widespread popularity and convenience they offer consumers. Their easy-to-take and compact nature makes them a preferred delivery method for supplement intake compared to alternatives like powders. The convenience of tablets and capsules to complement fast-paced lifestyles through "pop and go" usage has been a significant factor driving their sales. Busy Americans prefer the simple convenience they provide over other options requiring additional prep steps. Their portability further allows consumption on the go without mess.

The popularity of tablet/capsule forms also arises due to familiarity and existing healthcare habits. Americans are conditioned to tablets/pills from pharmaceutical usage and see them as the standard delivery method. Supplement companies leverage this familiarity and shape preferences toward same for hassle-free transitions between healthcare and wellness products. Additionally, wide applicability across various supplement categories like vitamins, minerals, herbals, etc. favors their choice. The standardization and dosage control they provide compared to semi-solids additionally builds trust for consistent results. This contributes significantly to the sales leadership of tablets/capsules versus alternatives in different supplement types.

Market Report Scope

U.S. Nutraceuticals Industry News

• In June 2022, Herbalife Nutrition, a nutrition company, announced that it will be in Los Angeles and create a single campus, combining its corporate headquarters with its North American operations
• In November 2021, Herbalife Nutrition launched a soup category in the U.S. with Instant Soup, which is filled with protein. The soup mix is formulated with 15 grams of plant-based protein to help satisfy hunger and provide long-lasting energy, as well as 3 grams of fiber.
• In 2020, Lallemand Inc., a privately owned company, strengthened its position in the North American market with the acquisition and transformation of a new Canadian production site. The site joins the company's network of manufacturing factories that specialize in yeast-based ingredients in the U.S., Canada, Mexico, and other parts of the world.

*Definition: The U.S. Nutraceuticals Market consists of food, beverages, and dietary supplements infused with added health benefits, most commonly vitamins, herbs, botanicals, amino acids, probiotics, and omega-3s. These products are consumed by health-conscious Americans and are thought to provide medical or health benefits, including the prevention and treatment of diseases. Common nutraceutical products found in this large and growing market include vitamins and dietary supplements, functional foods, herbal products, sports nutrition and weight management items.

Market Segmentation

• Product Type Insights (Revenue, USD Bn, 2019 - 2031)
• • Dietary supplements
  • Functional foods
  • Functional beverages
•  Product Form Insights (Revenue, USD Bn, 2019 - 2031)
• • Tablet & Capsules
  • Powder
  • Liquid
  • Solids/Semi-solids
• Key Players Insights
  • BASF S.E.
  • BioNeutra Global Corporation
  • Botaneco Inc.
  • Cargill Inc.
  • Ceapro Inc.
  • DowDuPont Inc.
  • GrainFrac Inc.
  • Ingredion Incorporated
  • InovoBiologic Inc.
  • Jamieson Laboratories Ltd.
  • Koninklijke DSM N.V.
  • Lallemand Inc.
  • Radient Technologies Inc.
  • SunOpta Inc.
  • The Nature’s Bounty Co.
  • Groupe Danone
  • Abbott Laboratories
  • Chobani LLC
  • Pfizer Inc.