The Asia Pacific nutraceuticals product market is growing rapidly. The market was valued at USD 59.55 billion in 2016 and is estimated to reach USD 89.63 billion by 2021, growing at a compound annual growth rate (CAGR) of 8.52% in the period of 2016 to 2021. The functional food ingredients market is expected to expand at a CAGR of 5.9% in terms of value during the period 2016 to 2026 and is expected to reach USD 5.04 billion by the end of 2026.
This growth is driven by increase in consumers’ awareness of health and fitness; rise in disposable income and middle-class consumers in countries such as India and China; ageing populations; urbanization; increase in incidence of lifestyle related diseases such as blood pressure, diabetes, and cardiac diseases; inadequate nutrition due to the consumers’ busy lifestyle and high cost of healthcare, to name a few.
Dieticians and nutritionists are recommending dietary supplements and functional food to their clients in the Asia Pacific region to remain healthy. A number of global multinational in nutraceutical products, including fast-moving consumer goods (FMCG) and pharmaceutical companies, have penetrated the Asia Pacific market to cater to this growing demand. Their products reach the consumers through multiple retail formats/channels such as stand-alone pharmacy and health stores, direct selling, e-tailing and supermarkets, among others.
The nutraceuticals product market is segmented into animal nutrition, functional food, dietary supplements, functional food beverages and personal care, to name a few. Dietary supplements segment of the nutraceutical industry leads the Asia Pacific market, while the functional foods segment is growing at a fast pace. In terms of sales, while the dietary supplement sales have been captured mainly by pharmaceutical companies, functional foods and beverages are being brought to the market by the FMCG companies.
If one examines some of the fast growing markets in the Asia Pacific such as India and China, historically, these countries have used traditional and natural forms of alternative medicines and dietary supplements. Some of the well-known indigenous dietary supplements in India are Chyawanprash and Ashwagandha, which have been used in Ayurveda for thousands of years,
offering a wide range of health benefits. Ginseng is one of the most popular herbal medicines is countries such as China and Korea which is used as a supplement to boost the immune system.
Japan is the most developed market for nutraceuticals in the Asia Pacific region. It is also the largest consumer of nutraceuticals products in the region, followed by China. The Japanese and Chinese nutraceutical markets are expected to have market shares of 54.8% and 39.5% respectively of the Asia Pacific nutraceuticals market in 2017. Existing studies by consultancy organisations show that the Indian nutraceuticals market will continue to experience a high growth rate of approximately 16% in the next five years and is expected to grow to approximately USD 4 billion by 2020.
Although the present size of the market is small, Indian consumers are gradually generating preference for nutraceutical products as an alternative for pharmaceutical medicines as they are becoming more aware about natural supplements and the benefits they provide for good health. In India, a survey conducted by the National Sample Survey Organisation (NSSO) on the Nutritional Intake in India (2011-12) found that, since the year 2000, there has been a sharp decline in calorie intake in both urban and rural India resulting in low nutrition levels.
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