U.S. NUTRACEUTICALS MARKET POISED TO GROW AT A ROBUST PACE
The U.S. nutraceuticals market produces food or parts of food that provide health benefits in addition to their basic nutritional value. Nutraceuticals claim to provide extra health benefits by fortifying foods or dietary supplements with added ingredients or concentrates. Common nutraceuticals include probiotics, prebiotics, vitamins, minerals, and dietary supplements. The demand for these products is increasing as more consumers aim to prevent illness and maintain overall wellness through nutrition.
The U.S. Nutraceuticals Market is estimated to be valued at US$ 168.05 Bn in 2024 and is expected to exhibit a CAGR of 5.1% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the U.S. nutraceuticals are General Mills Inc., The Nature’s Bounty Co. (NBTY), Amway Enterprises, Herbalife International, Inc., Royal DSM NV, Pepsi Co., Groupe Danone, Bayer AG, Abbott Laboratories, and Chobani LLC. The major players are engaged in new product launches and partnerships to expand their market share.
U.S. Nutraceuticals Market Growth include rising investments in R&D activities for developing innovative products, increased demand for dietary supplements and functional foods among consumers, growing awareness about preventive healthcare and healthy lifestyle.
Technological advancements are resulting in the development of nano-encapsulation delivery systems and micro-encapsulation techniques for better absorption of active ingredients. Probiotics are gaining popularity due to their ability to improve gut health. Omega-3 fatty acids have shown promise for heart health.
Market drivers
The main driver for the U.S. nutraceuticals market growth is the rising health consciousness among consumers. With increasing cases of lifestyle diseases, people are more inclined towards maintaining overall wellness through nutrition. The COVID-19 pandemic further highlighted the importance of boosting immunity through a healthy diet. The expanding elderly population base also augurs well for dietary supplements industry catering to their health needs. Overall growing health expenditures and disposable incomes are fueling demand for high-value wellness products in the country.
Current challenges in U.S. Nutraceuticals Market
The U.S. nutraceuticals market is facing various challenges currently which are hindering its growth. One of the major challenges is lack of scientific evidence and clinical data to support the health benefit claims of nutraceutical products. Most manufacturers promote the health benefits of their products but finding clinical trials and scientific research to validate these claims is difficult. This leads to skepticism among consumers and healthcare professionals. Secondly, the pricing of these products is relatively high compared to traditional supplements which limits their adoption. With evolving consumer preference for more affordable options, high prices act as a deterrent. Strict regulations regarding new product development and approval process also increases the cost and time to market for new nutraceutical launches.
SWOT Analysis
Strength: Growing health consciousness and preference for preventive healthcare options boost demand. Nutraceuticals are considered safer alternatives to traditional medications.
Weakness: Lack of scientific evidence and clinical validation of product claims leads to skepticism. Pricing of these products is higher compared to conventional supplements.
Opportunity: Aging population prone to chronic diseases offers scope for targeted product development. Personalized nutrition gaining popularity paving way for customized nutraceuticals.
Threats: Frequent product recalls due to quality issues and contamination dent consumer trust. Stricter regulatory environment increases compliance burden and delays new launches.
Geographical regions with major market share
The West and Pacific regions within the U.S. account for the largest share in terms of value currently in the nutraceuticals market. States like California, Washington and Colorado have emerged as high potential markets due to rising health awareness and willingness to spend on premium wellness products. The Northeast region is another large region driven by states like New York and New Jersey that have seen steady growth in nutraceuticals consumption.
Fastest growing region
The Southern region spanning states like Florida, Texas and Georgia is witnessing the fastest growth currently in the U.S. nutraceuticals market. This is attributed to growing health consciousness among residents, presence of aging population prone to chronic diseases, expanding retail distribution and availability of innovative product offerings in these high population states. Additionally, the migration of health-savvy consumers from the West Coast into Southern states is also supporting the high growth momentum here.
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About Author:
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)