According to the latest industry estimates, $32 billion was spent on vitamins, minerals, and supplements in 2012, and that number will rise to $60 billion by 2021. Partnership Capital Growth partner Brian Smith, a leading expert on the industry since 2000, says the demand for dietary supplements has become mainstream. He sees huge opportunities in the growing market for vitamin D and mineral supplements. In addition, the rising popularity of these products is driving consumer expenditure.
Growing demand for herbal dietary supplements
Herbal dietary supplements are fast gaining market share in the global supplement industry, driven by several factors. Increasing health consciousness among people coupled with growing availability of natural remedies have led to an increasing demand for these supplements. In addition to this, these products are readily available and come with fewer side effects compared to allopathic drugs. This has also led to a dramatic rise in the market. To understand the market, you should first understand the key factors driving growth.
Herbal dietary supplements are widely available. A recent survey found that herbal supplements were sold in the U.S. at a rate of $1 billion in 2016. The growth is being attributed to the increasing disposable income of consumers in emerging economies and the growing awareness of lifestyle diseases and the health benefits of herbal supplements. Furthermore, herbal supplements are available in an array of forms and contain a variety of botanicals, including ginseng, licorice, and tarragon.
Herbal dietary supplements are derived from natural products, such as plants, which contain essential nutrients that help the body function more efficiently. Prolonged inflammation damages tissues and can lead to inflammatory diseases, including cancer and aging. In addition to promoting overall health, plant-based dietary supplements also help fight the effects of aging and cell damage. And with their high nutrient content, herbal supplements are becoming increasingly popular.
Increasing demand for vitamin D dietary supplements
The market for vitamin D dietary supplements is expected to grow at a moderate rate during the forecast period. The segment is mainly used in food and beverages. It is known to support cardiovascular health, bone and dental health, and immune function. Liquid vitamin D dietary supplements offer 100 to 1,000 IU per drop. The high absorbability of liquid vitamin D supplements are expected to increase their popularity in the coming years.
In recent years, the demand for vitamin D dietary supplements has been steadily increasing, according to a survey by SPINS (Chicago). The segment is expected to increase at a faster rate in the coming years. In 2016, the overall market for vitamin D dietary supplements grew by 34 percent. By 2020, it is estimated to reach nearly $42 million. In fact, dietary supplements containing vitamin D are gaining in popularity as the population ages.
The Asia Pacific region is projected to grow at the fastest CAGR during the forecast period. The region is characterized by a high prevalence of vitamin D deficiency. Many people in this region are low-income or don’t have enough vitamin D in their diets. For example, in China, a lack of vitamin D in the diet leads to rickets, which is a debilitating condition for children.
Increasing demand for mineral additives
The market for mineral additives in nutritional supplements has witnessed a steady growth in recent years. The market for these ingredients is highly competitive, and regional footprints of players vary widely. Among the major players in the industry, Haifa Chemicals Ltd. has a global footprint of more than 2 billion tonnes, while Yara International ASA has a global footprint of about three million tonnes. Moreover, there are many dietary restrictions that restrict the consumption of these ingredients.
Factors affecting the global feed minerals market include the expansion of livestock production and the demand for animal protein sources. According to Mordor Intelligence, the global feed minerals market is anticipated to grow at a 6.5% CAGR over the forecast period (2020-2025).
The demand for mineral additives in nutritional supplements is driven by rising health consciousness, which is correlated with an increase in the number of people who are eating healthier diets. Modern lifestyles are leading to increasing vitamin and mineral deficiency, and the healthy eating index is projected to increase by 2020. This is expected to increase the market potential for existing dietary supplement brands. The industry is faced with high competition, and a medium-risk growth score.
Rising consumer expenditure on health and wellness products
According to research, the world’s wellness economy is valued at $4.4 trillion in 2020 and is expected to reach $7 trillion by 2025. This growth is driven by a growing demand for wellness products and services. The health and wellness industry encompasses a wide variety of products and services, ranging from nutritional and wellness apparel and supplements to workout equipment and subscription food services. In fact, one-third of consumers plan to increase their spending on health and wellness products in the coming year.
A McKinsey & Company survey of more than 7,500 consumers in six countries found that wellness was a top priority for 79 percent of respondents and 42 percent of them considered it an important part of their overall well-being. Despite this, the survey also revealed a disconnect between wellness and health. While 59 percent of consumers in the U.S. said they are more concerned about health and wellness, only 10 percent reported that wellness is becoming less important to them.
While overall consumer spending is increasing, the amount of money Americans spend on health and wellness products and services is sluggish. Despite the slowdown in the economy, health spending continues to be a significant share of the economy. According to the National Health Expenditure Accounts (NHEA), health spending has risen by 17.7% over the past decade. However, the growth in health and wellness products and services will lag behind GDP growth.
Increasing demand for dietary fibers
In recent years, dietary fibers have received a resurgence in the nutritional supplement industry, as consumers increasingly desire to incorporate them into their diets. With an increasing awareness and emphasis on health, the market for dietary fibers is predicted to increase over the next five years. The industry is largely dominated by the food & beverage segment, with North America dominating the market in terms of volume. Several key players in the market include Kerry Group, Archer Daniels Midland Company, DowDuPont, and Tate & Lyle.
The market for dietary fibers in nutritional supplements is expected to grow at a steady rate throughout the forecast period. The market is driven by increasing consumer awareness of healthy eating and an increase in consumption of functional foods. Consumers also believe that dietary fibers can help prevent and reduce various diseases. In addition, growing disposable incomes and strong promotional efforts are driving the market growth of dietary fibers in the upcoming years.
The market is mainly driven by a growing awareness about the benefits of dietary fibers. The growing number of working women and the increasing availability of health-conscious consumers is driving market growth. Furthermore, the introduction of functional foods and the consumption of fiber-rich food are expected to spur growth. The rising public awareness about dietary fibers has also led to an increase in demand for dietary fibers in nutritional supplements.