Ready to Use Therapeutic Food Market Estimated to Witness Growth Due to Rising Prevalence of Malnutrition and Growing Focus on Preventing Undernutrition
The ready to use therapeutic food market is estimated to be valued at USD 465.3 Mn in 2024 and is expected to witness a CAGR of 5.6% over the forecast period (2024-2031). Growing prevalence of malnutrition, especially in developing nations is a key factor driving the growth of the ready to use therapeutic food market. Furthermore, rising focus on the prevention of undernutrition through programs developed by governments and NGOs is expected to boost the market growth.
Market Dynamics:
The growth of the ready to use therapeutic food market is propelled by two key drivers - the rising prevalence of malnutrition and the growing focus on preventing undernutrition. Malnutrition remains a major public health problem in developing countries and affects millions of lives every year. This has increased the focus on developing ready-to-use supplementary and therapeutic foods to tackle malnutrition. Additionally, several governmental and non-governmental organizations have launched numerous outreach programs to promote the use of RUTFs and prevent undernutrition, especially in children under five years of age. These initiatives are helping create awareness and increasing the uptake of RUTFs in developing nations.
Increase in Prevalence of Malnutrition Globally is Driving the Ready to Use Therapeutic Food Market
The prevalence of malnutrition has been increasing significantly across various developing regions of the world like Africa, Asia Pacific, and Latin America. Ready to use therapeutic food products are specifically designed to treat severe acute malnutrition in children and have proven to be highly effective. The increasing burden of malnutrition is thus driving more adoption of RUTF among healthcare organizations and aid agencies working in underdeveloped regions, thereby propelling market growth.
Growing Investments by Aid Agencies and NGOs is Augmenting the Market Growth
Several international aid agencies and non-profit organizations have been ramping up their investments and programs aimed at tackling the issue of malnutrition in impoverished areas. For instance, the budgets of United Nations Children's Fund (UNICEF), World Food Programme WFP, and United States Agency for International Development (USAID) for procurement and distribution of RUTF products have witnessed substantial rise over the past decade. These organizations are the prime purchasers and distributors of RUTF globally. Therefore, the increasing funds and stepped-up efforts by such agencies to fight malnutrition has driven greater consumption of RUTF, thus positively impacting the market growth.
Lack of Awareness Remains a Key Market Restraint
A major challenge faced by ready to use therapeutic food market is the lack of proper awareness regarding the formulation and use of these therapeutic food products, especially in remote rural locations across developing regions. Many communities still do not recognize malnutrition as a public health problem. This results in underutilization of RUTF even in areas where it is available. Manufacturers find it difficult to promote these products and educate local populations due to lack of resources and infrastructure. This unawareness continues to restrict the market penetration of RUTF to some extent.
Unreliable Supply Chain Hampers Market Growth
The supply chain and logistics involved in transporting and storing RUTF in distant underdeveloped areas is risky and unreliable. Issues like lack of adequate cold chain facilities, transportation difficulties due to poor infrastructure, security threats, and political instability in certain regions disrupt the regular supply of these therapeutic foods. It is challenging for manufacturers as well as aid agencies to ensure uninterrupted supply and consistent availability of RUTF. This unreliable and unpredictable supply network adversely affects the market potential, especially in hard-to-reach zones.
Growing Focus on Preventive Nutrition is Opening New Avenues
With growing understanding of importance of proper nutrition from early childhood, both non-profits as well as private players have started exploring opportunities in preventive nutrition market segment as well. Products like fortified complementary foods designed for babies beyond 6 months and micronutrient powders for point-of-use fortification are witnessing higher demand. This is providing new revenue streams for RUTF manufacturers. Large international organizations have also started integrating preventive nutrition programs into their portfolio, driving more collaborative efforts in this space.
Innovation in RUTF Formulations is Attracting Investments
Continuous innovation in RUTF formulations to improve palatability, efficacy, and convenience of use has been attracting significant investments from major players. Novel formats like ready-to-use supplementary food pastes and breakfast cereals have displayed promising results. Development of formulations customized for specific deficiencies is another active area of research. Investors are optimistic about opportunities arising from such innovative products targeting preventive care in addition to treatment of severe wasting. The growing R&D focus on new formulations is opening lucrative growth prospects for this market.
Link - https://www.coherentmarketinsights.com/market-insight/ready-to-use-therapeutic-food-market-3554
Key Developments:
- In May 2020, the CMAM Association was founded in India to combat chronic malnutrition among children. This will be accomplished through community-wide marketing of ready-to-use therapeutic foods (RUTF).
- In February 2020, Ariel Foods FZE inaugurated its RUTF factory that is in Lagos. Production of therapeutic food, which is a product recommended by the UN, will take place in the ATLC factory in order to combat severe acute malnutrition. Ariel Foods FZE is a Kenya-based company specializing in the production of Ready-to-Use Therapeutic Foods (RUTF). ATLC is a leading company specializing in the production of Ready-to-Use Therapeutic Foods (RUTF), which are essential for treating severe acute malnutrition (SAM). Their facilities focus on manufacturing nutrient-dense food products that are crucial for children and vulnerable populations, especially in emergency and malnutrition contexts.
Key Player:
Nuflower Foods, GC Rieber Compact AS, Valid Nutrition, InnoFaso Corp., Edesia Inc., Nutrivita Foods Ltd., Diva Nutritional Products, Insta Products Ltd., Mana Nutritive Aid Product Inc., Meds & Food for Kids Inc., Samil Industrial Co., Tabatchnick Fine Foods Inc., Amul India Inc., Hilina Enriched Foods PLC, and Société de Transformation Alimentaire
