U.S. Nutraceuticals Market to Showcase Growth Driven by Rising Health Consciousness and Increasing Disposable Income
The U.S. Nutraceuticals Market is estimated to be valued at USD 168.05 Bn in 2024 and exhibit a CAGR of 5.1% over the forecast period 2024-2031. Rising health consciousness among consumers and increasing preference for supplement to treat chronic diseases are expected to drive the market growth.
The growth of the U.S. nutraceuticals market is driven by factors such as rising health consciousness and increasing disposable income. Rising health consciousness has led to increasing demand for dietary supplements as consumers focus on preventive healthcare and maintaining wellness. This is expected to positively influence the sales of nutraceuticals. Additionally, growing disposable income allows consumers to spend more on expensive nutraceutical products to meet their daily nutritional needs and prevent lifestyle diseases. Major players are launching innovative products incorporated with omega-3 fatty acids, probiotics and plant-based extracts to capitalize on the demand. However, stringent regulatory framework and high costs associated with clinical trials and product approval may hinder the growth of nutraceuticals market during the forecast period.
Growing awareness about the health benefits of nutritional supplements driving the market growth
One of the major drivers for the U.S. nutraceuticals market is the rising awareness among consumers about the health benefits of consuming nutritional supplements. There is a strong focus on preventive healthcare and maintaining overall wellness in the country. People are more conscious about living active lifestyles and taking measures to reduce the risk of lifestyle diseases. Nutraceuticals containing ingredients like vitamins, minerals, herbs, probiotics, etc. are seen as effective options for supporting health from within. The COVID-19 pandemic has further highlighted the importance of boosting immunity, leading to increased demand for supplements. Various studies have demonstrated the role of certain nutraceuticals in improving immunity, cardiovascular health, brain health, eyesight, bone & joint health and more. As consumers continue to seek natural health solutions, the awareness about function-specific nutraceuticals is expected to drive the market.
High disposable incomes allowing consumers to spend more on premium nutrition products
The growing disposable incomes of the U.S. population is another key driver propelling the nutraceuticals industry. According to the U.S. Bureau of Economic Analysis, the personal disposable income in the country increased from US$15.7 trillion in 2019 to US$16.8 trillion in 2020 indicating higher spending power. This allows consumers to spend more on better quality, premium nutrition products rather than just basic supplements. The market offers a wide variety of nutraceuticals targeting different health needs and lifestyles. Products with cleaner labels, organic certifications and novel delivery forms such as gummies, chewable are gaining traction. The customers’ ability and willingness to pay more for these innovative, value-added variants is fueling the market revenue growth.
Lack of clarity in regulations restraining new product innovation
One major challenge faced by the U.S. nutraceuticals industry is the lack of clear, well-defined regulations for new product categories which hinders innovation. The FDA currently regulates supplements under a different framework compared to pharmaceutical drugs. This regulatory gap leaves a lot of ambiguity for functional foods, medical foods, and other hybrid categories combining food and drug characteristics. Companies have to invest significant time and resources for approvals and risk facing legal hurdles. Strict regulations also impact the types of health claims that can be made. This regulatory vulnerability discourages investing in R&D for cutting-edge products using novel formulations, extracts or delivery systems. Resolving overlapping jurisdictions between the FDA and FTC can help streamline the process and enable more progressive products to enter the market.
Intense competition from alternate solution categories restraining growth
One of the other key challenges faced is the intense competition from alternative solution categories like pharmaceutical drugs, genetically modified organic foods, herbal teas etc. For certain health conditions that were earlier served only by supplements, now consumers have multiple choices. For instance, for supplementing essential nutrients, consumers also look at fortified/enriched foods. Further, drugs provide targeted solutions for major health issues thereby limiting the scope of supplements. Herbal teas claiming relaxation are substituting supplement pills/capsules for consumers preferring natural products. This crowding of options dilutes the addressable market for any single category including nutraceuticals. Strong branding plays, new formulations and clinical research will be important for supplements to retain consumer relevance amid healthy competition.
Growing popularity of personalized nutrition presenting an opportunities
With the rise of preventive healthcare approach and holistic wellness trend, there is a increasing demand for more personalized nutrition solutions. Consumers want options tailored to their specific genes, lifestyles, diets and needs. The advent of precision/personalized medicine, direct-to-consumer genetic testing is allowing people to better understand their individual risk factors, biomarkers, deficiencies etc. This push for personalized preventive care is opening doors for customized nutraceuticals and dietary supplements. Companies leveraging technologies like nutrigenomics are introducing more systematic, individualized products and programs. This emerging space for customized formulation and dosage presents lucrative opportunities for innovative brands.
Shift towards organic, non-GMO and clean label products opening new avenues
Clean/transparent labels with no artificial ingredients is a strong consumer demand seen across many industries including food and supplements. This clean eating movement provides opportunities for formulators catering to these new preferences. Additionally, with increasing concerns around long-term impact of GMOs and chemical farming, there is growing traction for organic, non-GMO and regeneratively sourced supplements. Sourcing high-quality ingredients that are pesticide-free, ethically produced without synthetic material presents an avenue to tap into values.
Link - https://www.coherentmarketinsights.com/market-insight/us-nutraceuticals-market-3710
Key Developments
- In June 2022, Herbalife Nutrition, a nutrition-focused company, announced plans to establish a unified campus in Los Angeles that will integrate its corporate headquarters with its North American operations.
- In November 2021, Herbalife Nutrition, a company focused on nutrition products, expanded its offerings in the United States by launching an instant soup category. The new Herbalife Nutrition Instant Soup is formulated with 15 grams of plant-based protein per serving. This protein-rich soup mix is designed to help satisfy hunger and provide sustained energy. Additionally, each serving of the instant soup contains 3 grams of fiber.
- In 2020, Lallemand Inc., a privately held company, bolstered its presence in the North American market by acquiring and transforming a new production facility in Canada. This Canadian site has been integrated into Lallemand's existing network of manufacturing plants that specialize in yeast-derived ingredients. Lallemand now operates these yeast production factories across the United States, Canada, Mexico, and other regions globally.
Key Players
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, and Pfizer Inc.
