The nutraceutical market globally was worth $230 billion in 2016, according to a report published on July 27, 2017, by the IMARC Group, a leading market research company that offers management strategy and market research reports worldwide.
Aging and millennial consumers (those between the ages of 18 to 35) comprising nearly half the U.S. population have been a driving force behind the increase in opportunities for research and innovation for entrepreneurs and companies in a variety of different industries.
Nutraceuticals are food and beverages which cater to individual nutritional demands and offer health benefits beyond basic nutrition. They include “fortified products (such as vitamin-fortified juices) to enhanced commodities (such as eggs with higher omega-3 content). These products may be required for certain health conditions, professional needs or food allergies and intolerances, and can help enhance immunity and digestion, prevent chronic diseases, and improve cognitive behavior.”
Competition within established sub categories fragmented and diverse
Focusing on the bone and joint health category, which is well-established, the market is competitive with a number of well-recognized products. Bio-availability, potency, and purity, have become key considerations for consumers and selling points for companies in distinguishing their product from a competitor’s product.
However, a number of sub-categories have popped up that relate to the main bone and joint category, such as female energy for sports nutrition or weight management, as well as unmet consumer needs, like menopause. These and other sub-categories offer many opportunities for educating consumers as well as creating innovative marketing strategies that make a product stand out from the rest of the crowd.
The convergence of health and beauty through adjacent industries
Innovative thinking and marketing approaches have helped to grow the health and beauty sector. Natural Products Insider cites Nestle, the Switzerland-based food giant, which has transitioned into a company that holds nutrition, health, and wellness at its core.
The transition started in 2014 when the company created Nestle Skin Health by taking full ownership of Galderma S.A., a pharmaceutical company specializing in dermatological treatment. In 2015, in response to China’s aging population, rapid
urbanization and increased need for health care, including skin care, Nestle launched its SHIELD center in Shanghai.
SHIELD is an acronym for “Skin Health Investigation, Education, and Longevity Development.” The site, which opened in 2016, is a global innovation network built to foster breakthroughs and collaboration in skin health through medical investigation, education, and applications related to the convergence of technologies and bio-informatics, according to its website.
Even though the convergence of health and beauty is well established in Asia, An aging population and a growing interest in wellness by the younger generation in the U.S. will likely create a huge growth spurt in nutraceutical products.The global market is expected to reach a value of $350 Billion by 2022.
