North America Nutraceuticals Market - Growth, Trends and Forecasts (2020 - 2025)
The North American nutraceutical market is projected to register a CAGR of 6.4%, during the forecast period, 2020 - 2025.
Growing Efficacy of Functional Foods and their Botanical Active Ingredients
As Canadians age and face rising healthcare costs, many are considering the link between health and diet. The functional food (nutraceutical) industry is seizing the opportunity with product innovation and market expansion. Functional food growth in Canada is predicted to be in the areas of trans fat replacements, sodium substitutes, sugar alternatives, free-from allergens (in particular, gluten-free foods), clean labels, whole foods, naturally sourced bioactive, nutrigenomics, protein boosters, and new technologies. The growing vegan diet trend is also driving the demand for botanical functional ingredients used in functional food and beverages. Manufacturers have also isolated and concentrated these botanical active ingredients in dietary supplements. These functional foods with vegan ingredients supply the phytochemicals in dosages that exceed those obtained from normal foods and are promoted for health enhancement.
Increasing Demand among Baby Boomers, Millennials, and Women
The three important consumer demographic segments that are driving the nutraceutical market are - millennials, baby boomers, and women. Millennials are concerned about optimizing their present health and preventing deteriorating health in the future. They consume food products, typically fortified with calcium, fiber, vitamins, and minerals, and are also responsible to drive the trend for a more regular and healthier snacking. Baby Boomers require products that help prevent or mitigate conditions related to aging. They prefer nutraceutical products usually rich in fiber, antioxidants, heart-healthy ingredients, vitamins and minerals, omega-3 fatty acids, vitamin D, calcium, and whole grains. Women drive the supplement and functional food in their diet segments, due to recommendations from health practitioners. Sales of women's nutraceutical products account for a significant share of the demographic sector. Also, advertising for female-targeted vitamins and supplement products is usually focused on fitness and lifestyle.
The North American nutraceutical market is competitive in nature having a large number of domestic and multinational players competing for the market share. Emphasis is given on mergers, expansions, acquisitions, and partnerships of the companies, along with new product development as a strategic approach adopted by the leading companies to boost their brand presence among consumers. Key players dominating the North American region include PepsiCo Inc., General Mills Inc., Nestle SA, The Kellogg Company, and Herbalife International of America Inc.