The global nutritional supplements market size was valued at USD 310.25 billion in 2020 and is projected to surpass USD 504.86 billion by 2028, expanding at a CAGR of 5.9% during the forecast period, 2021–2028. The growth of the market is attributed to the growing demand for nutritional supplements among the ageing population especially among women and rising preference for safe cosmetic products.
The emergence of the COVID-19 pandemic has resulted in a rise in consumer health awareness. According to a report published by the World Health Organization (WHO) in March 2020, adopting a balanced diet to maintain a robust immune system is a critical step for quick recovery from virus infections including SARS-CoV-2 infection. Despite the lack of proof that nutritional foods and dietary supplements can prevent or cure COVID-19 infection, healthy and nutritional diets are still important for immune system support.
A large increase in consumer demand for immunity-boosting supplements across the globe presents a key aspect for the market expansion. A per the article published in April 2020, the immunity-boosting supplements are becoming more popular in Europe due to increase in the number of health-conscious population when the pandemic hit the region. Additionally, the rising demand for nutrition supplements can be influenced by the increasing engagement in sport activities from the youth and young population. Furthermore, during the COVID-19 epidemic, internet platforms are thriving for supplements supply. For example, in the first quarter of 2020, the online revenue for BY-HEALTH, a Chinese nutritional supplement company, rose by more than 45.6% from the previous year.
Market Trends, Drivers, Restraints, and Opportunities
- Increasing demand for sports nutrition products as a result of a growing preference for healthy active living is expected to boost the market growth during the forecast period.
- Growing elderly population, increase in lifestyle diseases, and a rising healthcare costs are anticipated to spur the market expansion in the coming years.
- High cost of nutritional supplements as well as lack of products knowledge are key factors expected to hamper the market growth.
- Rise of e-commerce selling dietary and nutritional supplements along with easily accessible through both brick & mortar as well as online channels are major factors helping to drive market expansion.
Scope of the Report
The report on the global nutritional supplements market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Nutritional Supplements Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Products (Sports Nutrition, Fat Burner, Dietary Supplements, and Functional Foods), Consumer Groups (Infants, Children, Adults, Pregnant, and Geriatric), Formulations (Tablets, Capsules, Powder, Softgels, Liquid, and Others), Sales Channel (Brick & Mortar, Direct Selling, Chemist/Pharmacies, Health Food Shops, Hyper Markets, Super Markets, and E-commerce)
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
Amway; Abbott Nutrition; Nestle; Herbalife International of America, Inc.; and Glanbia plc.
Market Segment Insights
Sports nutrition segment is expected to grow at a rapid pace
Based on products, the nutritional supplements market is divided into sports nutrition, fat burner, dietary supplements, and functional foods. The functional foods segment is expected to account for a key share of the market in the coming years owing to rising demand for nutritional and fortifying food additives such as vitamins and minerals, omega-3 fatty acids, and fibers. According to a survey by Kerry Group, 41% of customers believe that functional foods & beverages to be one of the greatest ways to maintain their health. However, the sports nutrition segment is anticipated to expand at a rapid pace during the forecast period owing to increase in the number of newer product launches, rise in the number of sport athletes, and increase in the number of gyms and fitness centers. According to the International Health, Racquet and Sportsclub Organization (IHRSA), a Boston-based trade association for commercial health clubs, there were 58 million health club members in 2010, up to 73.6 million in 2019.
Capsule’s segment is anticipated to register a substantial CAGR
On the basis of formulations, the market is categorized into tablets, capsules, powder, softgels, liquid, and others. The capsule segment is expected to register a substantial CAGR during the forecast period owing to increasing consumption of multivitamins and omega-3 fatty acids, both of which are easily available in capsule form. This market growth is further due to the availability of enhanced capsule formulations such as multilayered or multiple membrane capsules, extended-release capsules, and sustained-release capsules. In 2020, the powder segment dominated the nutritional supplement market, accounting for 39.4 percent of total sales. The significant commercial presence of these nutritional supplements in powder form as well as a higher preference for powder over soft gels form across all age groups are the primary factors leading to a large revenue generation of this segment. This category is growing due to increased use of protein powders, green tea, and vitamin supplement powders.
E-commerce segment is expected to grow at a robust pace
Based on sales channel, the nutritional supplements market is segmented into brick & mortar, direct selling, chemist/pharmacies, health food shops, hyper markets, supermarkets, and e-commerce. The e-commerce segment is expected to expand at a robust pace during the forecast period owing to growing online sales as a result of the spread of COVID-19 pandemic and emergency lockdowns, which lead to temporary closures or restricted opening hours of retail stores. Furthermore, to meet rising consumer demand, numerous nutritional supplement companies are extending their online presence. For example, in the financial year 2015, Glanbia plc., a nutrition firm, had 22% online sales, which climbed to 33% in the financial year of 2020. In 2020, the brick & mortar segment led the nutritional supplement market, accounting for more than 67% of total sales. This is due to the existence of numerous retail establishments such as Walmart, GNC, and Vitamin Shoppe, all of which provide a wide range of items. Vitamin Shoppe, for example, opened Brand Defining Stores in nine locations in 2017 to boost consumer involvement and improve their entire experience.
Children segment is anticipated to expand at a considerable growth rate
On the basis of consumer groups, the market is divided into infants, children, adults, pregnant, and geriatric. The children segment is expected to expand at a considerable growth rate during the forecast period owing to raising parental awareness of the benefits of nutritional and dietary supplements. Supplements for children's health help to improve both their physical and mental well-being. Due to the presence of a large consumer base in this segment, the adults segment dominated the nutritional supplement market and accounted for a major revenue share of more than 27.9% percent in 2020. The growing awareness of health and fitness, increased participation in fitness activities, and rising disposable income are driving the segment growth. Furthermore, rising rates of obesity, diabetes, and other chronic conditions in this age group are contributing to the segment growth.
Latin America is anticipated to dominate the market
In terms of regions, the nutritional supplements market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market of Latin America is anticipated to expand at an impressive CAGR during the forecast period attributed to growing disposable income, increased health awareness, and a greater willingness to spend more on nutrition. Furthermore, the rising prevalence of lifestyle disorders such as obesity is pushing up the demand for supplement consumption in the region. In 2017, approximately 360 million which was nearly 58% of the total adult population in Latin America and the Caribbean were obese, according to the Panorama of Food and Nutrition Security in Latin America and the Caribbean.
On the other hand, Asia Pacific dominated the market in 2020, accounting for a key revenue share of over 34.7% due to rising consumer health consciousness, low-cost raw resources, and availability of faculty especially plant-based compounds in the region. Furthermore, nations such as China, India, and the Philippines are becoming major outsourcing hubs for manufacturing and R&D. For example, Herbalife and Syngene International Ltd., an Asia-based contract research business, formed a cooperation in 2017 to construct a nutrition research and development center in India. Multinational corporations are also cooperating with local businesses to expand their footprint in the region. For example, to develop its business in Asia, Jamieson Wellness, a Canada-based vitamin and supplement producer, signed a five-year arrangement with MedPlus, an Indian drugstore chain, in 2018.
Segments Covered in the Report
The global nutritional supplements market has been segmented on the basis of
- Sports Nutrition
- Fat Burner
- Dietary Supplements
- Functional Foods
- Brick & Mortar
- Direct Selling
- Health Food Shops
- Hyper Markets
- Super Markets
- Asia Pacific
- North America
- Latin America
- Middle East & Africa
- Abbott Nutrition
- Herbalife International of America, Inc.
- Glanbia plc.
Key players competing in the nutritional supplements market are Amway; Abbott Nutrition; Nestle; Herbalife International of America, Inc.; and Glanbia plc. These firms have adopted primary methods for establishing a competitive edge in the market include increasing R&D investments, mergers and acquisitions, collaborations with other industry players, geographic expansions, and product and flavour differentiation.
Some of these key players are consistently launching new products in order to expand their consumer’s base, consequently propelling the market revenue. Kirin Group, for example, announced four functional foods & supplements containing beta-lactolin for memory support in March 2021. Senokot Laxative Gummies in pomegranate blueberry flavor and Senokot laxative tea were developed by Avrio Health L.P. in March 2021 as nutritional supplement items. In March 2021, Mommy's Bliss, a health brand, announced plans to launch twenty-six new nutritional supplements in 2021. Innovative nutritional supplement ingredients are being brought to the market. Furthermore, producers are producing new vegan and plant-based goods to meet the growing demand for plant-based ingredients such as elderberry, echinacea, and turmeric, among others. Oziva, a supplement company, launched a vegan omega-3 multivitamin in February 2021. Vegan Life Nutrition (VLN), a range of vegan nutritional supplements, was launched by GHT in March 2018. Nature's Way started its debut elderberry goods in November 2020, including Sleep + Immune Gummies.