Nutraceuticals to play a major role in preventative healthcare, says Frost & Sullivan

Published: 14-Oct-2014

The demand from nutraceuticals will become increasingly lifestyle-related and condition-specific


With more consumers taking a proactive approach towards their health, the prevalence of chronic diseases (such as diabetes and cardiovascular disease) has increased the demand for nutraceuticals, says Frost & Sullivan.

Nutraceuticals products can be used across a wide segment of the population, targeting various health conditions and are playing a large role in the wellness movement, empowering consumers to manage their own health.

Amidst rising costs of healthcare, there is a shift from treatment to prevention through health and wellness achieved by proper nutrition and the use of nutraceuticals. Globally, the nutraceuticals market earned US$155bn in revenue in 2013 and this is expected to grow at a CAGR of 7% to reach $211bn by 2018, forecasts Frost & Sullivan.

Nutraceuticals provide nutrients through various formats including dietary supplements and functional beverages and fortified foods. The world is moving to condition-based nutrition where nutraceuticals can play a large role. Nutraceuticals are moving away from traditional formats to very focused products addressing specific conditions. This will help customers select the right nutraceutical product based on their demographics, health benefits and purpose.

According to Krithika Tyagarajan, Senior Director, Chemicals, Materials and Food Practice, Frost & Sullivan Asia Pacific, it is important to understand consumer needs which vary by region before introducing a nutraceutical product.

'Education and promoting awareness to health benefits is crucial in developing countries,' she says.

The world is moving to condition-based nutrition where nutraceuticals can play a large role

Frost & Sullivan says there are three key areas with growth opportunities for nutraceuticals: heart health, children's nutrition and ageing nutrition.

Cardiovascular disease is acknowledged to be the most costly non-communicable disease globally in terms of medical spending and mortality, with more than 12 million deaths annually across both developed and developing countries. Key reasons include increasing cholesterol, obesity, ageing and smoking.

Heart health concerns among consumers differ from region to region based on genetics, the level of economic development and awareness. This translates into demand for nutraceutical products. Asia-Pacific is the quickest-growing omega-3 product market with increased demand from the infant nutrition fortification sector.

The overall health ingredient market is growing at 15% year-on-year in this region, with demand being driven primarily by China. Most product development in Asia will be focused on omega-3 in the foreseeable future. Popular food products from this genre include Beta-glucan oat beverages and omega-3 infused water.

Children's nutritional needs can vary widely across regions. In developing countries, 43 million children under the age of five are obese or overweight, whereas in Africa, 40% of children are chronically undernourished. Globally, 45% of child deaths are due to malnutrition, with 30% in Asia-Pacific alone. With the unique needs of children's nutrition, nutraceuticals have to balance their needs and wants against a background of changing demographics and decisionmakers.

The nutraceutical interests of the ageing population living in extreme poverty are focused on ethnic medicine, immune health and digestive health

According to Frost & Sullivan analysis, up to 3% of the GDP for most countries will be channelled towards ageing related costs by 2020 (excluding pensions, health and long-term care). It is expected that 1.2 billion people will be over the age of 65 by 2020.

Baby boomers are expected to be the largest group and make up the bulk of the ageing population. Their nutraceutical interests are expected to include heart health, weight management and digestive health.

At the other end of the spectrum, the nutraceutical interests of the ageing population living in extreme poverty are focused on ethnic medicine, immune health and digestive health.

Finally, as consumer demands change across the world, the demand from nutraceuticals will become increasingly lifestyle-related and condition-specific. Although growth is expected be positive, there is a need for caution, advises Tyagarajan.

'Education and clear messaging to consumers will be a priority to avoid confusing the consumers in cases of too many products with little or no validation of their claims. Products that build loyalty have proven ingredients with clear benefits and positioning,' she says.

Future growth opportunities for nutraceuticals will depend on successfully addressing the key market needs in areas such as cultural awareness, product differentiation, competitive pricing and scientific validation.

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