Professional Documents
Culture Documents
FOD013F
March 2017
Natraj Pandal
Project Analyst
ISBN: 1-62296-448-9
BCC Research
49 Walnut Park, Building 2
Wellesley, MA 02481 USA
866-285-7215 (toll-free within the USA),
or (+1) 781-489-7301
www.bccresearch.com
info@bccresearch.com
FOD013F - Nutraceuticals: Global Markets
BCC Research publishes market research reports that make organizations worldwide more
profitable with intelligence that drives smart business decisions. These reports cover
today's major industrial and technology sectors, including emerging markets. For more
than 40 years we've helped customers identify new market opportunities with accurate
and reliable data and insight, including market sizing, forecasting, industry overviews, and
identification of significant trends and key competitors. We partner with analysts who are
experts in specific areas of industry and technology, providing unbiased measurements
and assessments of global markets. Our clients include the top companies in industries
around the world as well as universities, business schools, start-ups, consulting firms and
investment companies. BCC Research is a unit of Eli Research LLC. Visit our website at
www.bccresearch.com. Contact us: (+1) 781-489-7301 (U.S. Eastern time), or email
info@bccresearch.com.
CONDITIONS OF PURCHASE
The purchase of the bound or electronic copy of this report constitutes a contractual
agreement between BCC Research and the purchaser. When purchased under a
single-user license, this report is intended for use solely by the person who made the
purchase. When purchased under a multiple-user license, this report is intended for
access by the maximum number of users specified by the license. For information, email
info@bccresearch.com or telephone (+1) 781-489-7301 (U.S. Eastern time). The report
and its contents are not to be made available to other persons, autonomous divisions,
foreign subsidiaries of the same company, or other companies, unless specified by
contract and/or license. It is here stipulated that terms in an authorized contract or license
will supercede any other conditions cited in any other location. Reproduction of any
material in this report is strictly forbidden without written permission of the publisher;
email editor@bccresearch.com.
REPORT SUBSCRIPTIONS
BCC Research offers cost-effective Report Subscription services that provide organizations
with access to reports in selected industry categories, including our back catalog of
reports and newly published reports.
CUSTOM ANALYSES
BCC Research provides custom research studies tailored to our clients’ needs in areas
related to the subject research material but perhaps not covered in detail in this report.
Please contact BCC Research to discuss such services: email info@bccresearch.com or
telephone (+1) 781-489-7301 (U.S. Eastern time).
DISCLAIMER
Reproduction of any material in this report is strictly forbidden without express permission
of the Publisher; email editor@bccresearch.com.
To receive a complete catalog of BCC Research studies, please visit our Web site at
www.bccresearch.com/product-catalog.
FOD013F
March 2017
Natraj Pandal
Project Analyst
ISBN: 1-62296-448-9
BCC Research
49 Walnut Park, Building 2
Wellesley, MA 02481 USA
866-285-7215 (toll-free within the USA),
or (+1) 781-489-7301
www.bccresearch.com
info@bccresearch.com
FOD013F - Nutraceuticals: Global Markets
CHAPTER 1
INTRODUCTION
This report provides a detailed analysis of the global nutraceutical market. It discusses
premium and mass functional products and the evolution of functional FBSs (foods,
beverages, supplements). This information will be useful for those involved in strategic
planning, marketing, sales and development of nutraceuticals.
Projections for nutraceuticals will be made for geographical regions including North
America (U.S., Canada and Mexico), Europe (Germany, France, Spain, Italy and the, U.K.),
Asia-Pacific (China, India, Japan and Australia) and South America (Argentina, Brazil).
Increasing health concerns among people, government support through various subsidies,
and increase in aging populations and growing per capita income in developing countries
are driving the demand for nutraceuticals.
Increasing consumer demand for nutraceutical products is also helping market players to
position themselves in the global market by launching a variety of new and innovative
products. Regulatory authorities in different countries are taking the initiative in setting
standards and regulations for the promotion of safe and healthy nutraceuticals. This report
is designed to cover aspects of nutraceutical types, demand trends and market
opportunities. It also examines the overall global nutraceutical market and the market
penetration of nutraceuticals in different regions and countries.
SCOPE OF REPORT
This market report organizes information from diverse sources into a cohesive unit that
includes a comparison of premium versus mass functional product as well as the
nutraceutical value chain and the evolution of functional FBS. Regulations are also covered
in the scope of this report.
BCC Research analyzed key categories and regions to determine the present and future
nutraceutical market status and forecasted market growth from 2015 to 2021. In this
report, we also discuss market strategies, patent evaluation and driving forces of the
market.
INFORMATION SOURCES
The data for this report was gathered from primary and secondary sources. Sources
include information obtained from industry analysts, manufacturer and company reports,
industry trade journals and industry associations. Additional information was obtained
from the U.S. Food and Drug Administration (FDA), Japan’s Foods for Specified Health Uses
(FOSHU), Mexico’s National Association of Food Supplements Industry (ANAISA), the
European Food and Safety Authority (EFSA), the World Health Organization (WHO), the U.S.
Department of Agriculture (USDA), the Food and Agriculture Organization of the United
Nations (FAO) and the China Health Care Association (CHCA).
INTENDED AUDIENCE
METHODOLOGY
A top-down approach was used to estimate the size of global nutraceutical markets. The
key players in the global nutraceutical markets were identified through secondary
research, and their market revenues were determined through primary and secondary
research. This included study of the annual reports of top market players and interviews
with key opinion leaders such as CEOs, directors and marketing professionals. The size of
the global nutraceutical market was derived from the aggregation of the market shares of
the major players. Forecasts are based on an analysis of market trends such as
nutraceutical production and consumption. The penetration of micro markets was
established through secondary sources and validated through primary sources.
ANALYST'S CREDENTIALS
Natraj Pandal is the BCC Research analyst for this report. Mr. Pandal has an MBA in
Marketing and Systems from Osmania University, India. Mr. Pandal has more than eight
years of experience in business research and market intelligence. He works as a
consultant for syndicated projects in different domains such as chemicals, materials, food
and beverage, automotive, aerospace, oil and gas, information technology and telecom,
healthcare and sporting goods.
DISCLAIMER
FOD013F
March 2017
Natraj Pandal
Project Analyst
ISBN: 1-62296-448-9
BCC Research
49 Walnut Park, Building 2
Wellesley, MA 02481 USA
866-285-7215 (toll-free within the USA),
or (+1) 781-489-7301
www.bccresearch.com
info@bccresearch.com
FOD013F - Nutraceuticals: Global Markets
CHAPTER 2
SUMMARY
The global nutraceutical market has grown exponentially in the last few years, and growth
is expected to continue. The market is being driven by rising health concerns, an aging
population and growing per capita income in developing countries such as China, India and
Brazil. The global nutraceutical market is facing various challenges such as high prices for
nutraceutical products and a lack of awareness about nutraceuticals. Due to exponential
growth, there are potential opportunities to entering the global nutraceutical market.
There is opportunity for contract manufactures of nutraceutical products, which would
improve the product manufacturing and delivery time. Furthermore, increasing industry
regulation worldwide, new product launches and an upswing in acquisitions are enhancing
the global nutraceutical market growth.
SUMMARY TABLE
CAGR%
Product 2015 2016 2021 2016-2021
Functional beverages 66.6 71.5 105.5 8.1
Functional food 60.1 64.6 92.3 7.4
Dietary supplements 58.3 62.6 87.2 6.9
Total 185.0 198.7 285.0 7.5
Functional beverages dominated the global nutraceutical market with a 36.0% market
share in 2015. The global functional beverage market was $66.6 billion in 2015 and is
expected to reach $105.5 billion by 2021, growing at a CAGR of 8.1% from 2016 through
2021. The global dietary supplements market was $58.3 billion in 2015 and is expected to
reach $87.2 billion by 2021, growing at a CAGR of 6.9% from 2016 through 2021.
The global functional food market was $60.1 billion in 2015 and is expected to reach $92.3
billion by 2021, growing at a CAGR of 7.4% from 2016 through 2021. Producing foods with
added health benefits is the main development within the global functional food market.
New technology in the food industry such as the development of genetically modified (GM)
foods for specific functions requires nutrients, which will increase revenues within this
quickly expanding industry.
SUMMARY FIGURE
From a product point of view, functional beverages dominated the global nutraceutical
market in 2015 with a 36.0% share, followed by functional food with 32.5% and dietary
supplements with 31.5%. Noncarbonated drinks was the largest functional beverage type
in 2015, with a 54.1% share, followed by dairy drinks with a 33.9% share, frozen fruit and
vegetable juices with 6.5%, and tea and coffee with a 5.0% of share. In 2015,
confectionery was the largest functional food type with a 28.6% share, followed by bakery
with a 21.5% share, snacks with a 19.0% share, dairy nondrinkable products with 17.1%
and other with a 13.8% share.
In 2015, sports and energy were the largest nutraceutical market application with a 33.0%
share, followed by general wellness with 15.1% and weight management with a 14.2%
share. Vitamins and minerals dominated the global nutraceutical ingredients market in
2015 with a 45.0% share, followed by probiotics with 15.4% and fiber with 10.2% share.
FOD013F
March 2017
Natraj Pandal
Project Analyst
ISBN: 1-62296-448-9
BCC Research
49 Walnut Park, Building 2
Wellesley, MA 02481 USA
866-285-7215 (toll-free within the USA),
or (+1) 781-489-7301
www.bccresearch.com
info@bccresearch.com
FOD013F - Nutraceuticals: Global Markets
CHAPTER 3
OVERVIEW
The global functional food and supplement market is highly fragmented, driven primarily
by increasing consumer interest in more unique and personalized health solutions. Unlike
traditional pharmaceuticals, the functional foods market is not dominated by a blockbuster
model. Under pressure to compensate for rising commodity and energy costs that are
reducing margins, the food industry is moving toward one of two extremes:
premiumization or low pricing with high volume. The functional food, beverage and
supplements (FBS) market is looked upon as a market for premiumization with new
value-added products promising better health through better dietary choices. For suppliers,
functional FBSs can provide growth opportunities as well as wider profit margins not
available with traditional food products; moreover, consumers are able to benefit from
good health without sacrificing taste and convenience.
The functional FBS (food, beverage and supplements) market is broadly classified as:
New market entrants will likely need to decide on a high volume versus a high margin
product strategy. Certain products, such as energy drinks and functional snacks, may
initially enjoy both benefits. Higher volumes, however, tend to create more power among
consumers and retailers, and erode manufacturer margins over time.
The more common current strategy in FBS companies is to provide more value-added food
products with significant health claims that are priced at a premium. With the increasing
materials and processing costs, this strategy can create margin pressure relief for major
food and beverage companies. It is also difficult for all but the largest companies to
effectively introduce and market new products to the mass market.
Nutraceutical products can enjoy even 100% to 1,500% price premiums over the nearest
ordinary competitive products. Consumers are willing to pay a significant premium for
fortified or high-nutrition products that will deliver desired specified benefits. Despite a
trend of reduced consumer spending in the wake of the economic downturn, consumers
are still willing to invest in their health. Such investments can be justified as a proactive
alternative to costly treatment of disease.
Premium pricing has become more acceptable to consumers as more of them become
educated on their health and take a more active role in health management. A premium
price is easier to justify when a consumer fully understands the proposed health benefit of
the product. Consumers are also more likely to pay a premium price if a key opinion leader
with a high media profile or recognition in the pertinent scientific community endorses the
product.
As consumers become more educated, they also have a desire to receive more
personalized benefits. Some companies are leveraging scientific developments to create
more advanced and convenient delivery systems, such as gel packs that deliver a serving
of whey protein.
Many companies are increasing their spending on research and development to produce
more efficient and functional products that deliver unique claims. They are also spending
significant amounts on branding and advertising products despite the global economic
slowdown. This means that a successful nutraceutical launch will likely require a
significant investment with appreciable risk.
The functional food market has evolved over time to reflect advances in technology and
changing consumer wants and needs. The “less evil foods,” which are generally low-fat,
no-fat, low-cholesterol, low-calorie, or zero-calorie foods, are often misleadingly
categorized as functional food. They are actually a throwback to an earlier point in the
overall food evolution.
The less evil or “better-for-you” foods are generally not fortified with any of the bioactive
ingredients and are considered to be more natural but make no special health claims.
Functional food, which is fortified with one or more bioactive ingredients, provides
specified health benefits and disease prevention. Earlier versions of functional foods
lacked in taste, which deterred major market acceptance. Companies are now focusing
more heavily on the taste aspect of products. Although consumers value health benefits,
they are not willing to compromise on taste.
Functional food products are often packaged to provide added convenience to the
consumer. Controlled and efficient delivery of bioactive ingredients will also serve to boost
the market for functional products. Functional FBS products are now tapping the less evil
food market by fortifying the less evil foods with one or more bioactive ingredients,
providing extra health benefits and differentiated branding messages for producers.
REGULATIONS
Nutraceutical regulations are focused mainly on safety and proper labeling, giving less
importance to product claims as compared to pharmaceuticals. Moreover, nutraceuticals
do not face the same level of scrutiny as pharmaceuticals in regards to product claims and
intended use. Major companies are spending significant amounts to secure claims of
health benefits from regulatory agencies such as the U.S. Food and Drug Administration
(FDA), Foods for Specified Health Uses (FOSHU) in Japan, the European Food Safety
Authority (EFSA) in the European Union and other regulatory bodies. Such approvals
provide products with more credibility and make consumer buying decisions easier. The
Nutrition and Health Claims Regulation (NHCR) that was instituted in Europe in 2007 has
proven very restrictive, rejecting more than 90.0% of submitted claims thus far.
The Federal Institute for Risk Assessment in Germany has imposed restrictions on
marketing of energy drinks to certain sectors that could suffer adverse effects from the
products, including children and pregnant women. Consumption of energy drinks resulted
in cardiac dysrhythmia, seizures, kidney failure and fatalities. These restrictions will
reduce the potential target audience, and some companies may seek formulation changes
to target these groups with less potent product offerings.
NORTH AMERICA
The FDA is the principal U.S. regulatory body controlling the use of product safety. It works
through the Dietary Supplement Health and Education Act of 1994 (DSHEA). The
manufacturer of a dietary supplement or dietary ingredient is responsible for ensuring that
the product is safe before it goes to market. The FDA is responsible for taking action
against any unsafe food, beverage and supplement after its launch.
In Mexico, the National Association of Food Supplements Industry (ANAISA) was formed to
oversee companies committed exclusively to the manufacture or marketing of food and
dietary supplements. ANAISA also works with the Mexican regulatory body responsible for
food and food supplement regulation.
EUROPE
In the European Union, food regulation is largely coordinated under the European Food
and Safety Authority (EFSA). This regulatory entity focuses on food supplements—proteins,
vitamins, minerals and other substances that have a nutritional effect.
European Commission (EC) directive 2002/46 was established for the safety of food
supplements. The EC also maintains a list of permitted vitamin and mineral substances
that might be added to food supplements for specific nutritional purposes. Any new
products originating in Europe are required to pass these European regulatory and quality
requirements. These regulations are helpful for the European nutraceutical companies,
which are generally regarded as leaders in innovation and which enjoy a reputation for
creating products of the highest quality.
In 2015, EC launched a major partnership with the Bill & Melinda Gates Foundation and
announced new funding to tackle the global challenge of undernutrition to implement the
National Information Platforms on Nutrition (NIPN) in order to improve accountability and
governance on nutrition. The foundation will provide $500,000 for the initiative. The U.K.'s
Department for International Development will also support the initiative with $8 million to
support the EU's commitment in supporting partner countries to reduce the number
chronically undernourished children by at least 7 million by 2025. The EU is advancing
towards delivering on this commitment by announcing $25.6 million in funding for an
innovative new initiative: the National Information Platforms on Nutrition (NIPN).
ASIA-PACIFIC
The shift in raw material supply from the U.S. and Europe to China and India has
transformed the regulatory concept. In local markets, the nutraceutical industry operates
under a combination of national agencies with different standards and regulations.
However, global regulatory bodies are becoming more dominant within the nutraceutical
industry—including Codex Alimentarius, the World Health Organization (WHO) and the
Food and Agriculture Organization (FAO). The International Alliance of Dietary/Food
Supplement Associations (IADSA) works closely with both international and local bodies to
ensure that the standards of the food supplement industry are upheld in the development
of policy.
Japan
Japan has the most advanced regulatory environment for nutraceutical and functional
foods, which engenders higher consumer confidence in product offerings. It has developed
the leading formal regulatory framework for nutraceutical and functional foods, known as
the Foods for Specific Health Use (FOSHU) system. Only FOSHU oversees premarketing
approval of nutraceutical products in the Japanese market. However, the Food Safety
Commission affords an additional level of approval as it also examines the safety of the
proposed nutraceutical product.
For regulatory purposes, the nutraceutical industry in Japan is generally divided into two
groups.
● Foods with nutrient function claims must achieve the standards for the minimum and
maximum daily levels of 12 vitamins and five minerals; however, labels are not
greatly regulated.
● The FOSHU system contains dietary ingredients that have reported beneficial
physiological effects and promote health.
China
The China Health Care Association (CHCA), China’s State Food and Drug Administration
(SFDA) and the U.S.-China Health Products Association (USCHPA) are regulatory agencies
for the nutraceutical industry. There are three main entities involved in policing the
nutraceutical industry in China:
1. SFDA, which deals with dietary supplements and issues the “blue hat” registration.
2. The Ministry of Health (MOH), the main influence in the dietary supplements industry
for approval of new novel food ingredients.
India
The Food Safety and Standards Act of India (FSSAI) is a regulatory body for the
manufacture, storage, distribution, sale and import of nutraceutical products in India.
FSSAI was established in 2006, guided by the consolidation of a collection of earlier laws
relating to food to form a single set of rules and oversight relating to food and
nutraceutical safety and standards. FSSAI in India poses several challenges for
nutraceutical manufacturers in regard to formulations of the correct combination of
ingredients on which to base their products.
TABLE 1
VALUE CHAIN
The major products making up nutraceuticals are fortified or functional foods, dietary or
functional supplements and functional beverages. Various raw materials are used for the
nutraceutical ingredients, such as trimethylhydroquinone and vegetable oil for the vitamin
E, ammonia or ammonium salts for amino acids and soybeans for soy proteins.
Trimethylhydroquinone is extracted from crude oil and it is available globally, although
vegetable oil extract is usually obtained from soy, and it is procured from India or Brazil.
Ammonia or ammonium salts are available globally and soybeans are usually procured
from India or Brazil to obtain non-GMO (genetically modified organism) raw materials. A
typical value chain of nutraceuticals is shown in the below figure.
FIGURE 1
FOD013F
March 2017
Natraj Pandal
Project Analyst
ISBN: 1-62296-448-9
BCC Research
49 Walnut Park, Building 2
Wellesley, MA 02481 USA
866-285-7215 (toll-free within the USA),
or (+1) 781-489-7301
www.bccresearch.com
info@bccresearch.com
FOD013F - Nutraceuticals: Global Markets
CHAPTER 4
NUTRACEUTICAL MARKET BY TYPE
The functional food, beverage and supplements (FBS) market, also known as the
● Functional foods.
● Functional beverages.
● Dietary supplements.
This report defines the market as the aggregate sales of all the functional food, beverage
and supplement products that contain one or more of these ingredients: vitamins,
minerals, dietary fiber, probiotics, omega-3 fatty acids (omega-3), protein and peptides,
and phytochemicals. Supplements fortified with herbals are also considered part of the
market.
FUNCTIONAL FOOD
The functional food product market is defined as the aggregate sales value of
nondrinkable food products containing any of the previously mentioned bioactive
ingredients. This market is further divided into the categories of confectionery, snacks,
bakery, dairy nondrinkable food products, meat and poultry, grain and flour, and frozen
fruits and vegetables.
Most of the consumers in the food market are searching for foods that contain nutritious
value or provide a health benefit beyond the traditional nutrients. To cater to these
consumers in the food market, GM foods are being introduced in the market. Companies
are estimating high demand for functional foods due to consumers’ gaining information,
thus becoming more aware of the application of technology in foods. As well, research
bodies have begun to accept advanced-function food products as being safe for public
consumption and have publically released this information.
Snacks include all food bars, cereal bars and roasted nuts. There is a small amount of
overlap between the snacks and confectioneries markets, with certain companies
positioning snacks as confectionery items and vice versa. Dairy nondrinkable food
products include yogurts, cheese and margarine, regular ice cream and low fat/nonfat ice
cream. Bakery items include breads—commercial and retail—cookies and crackers, frozen
cakes, pies and pastries, and dry pasta.
The meat and poultry category includes meat products fortified with probiotics and any
other bioactive ingredients, meat replacements and enhancers. With the increasing cost of
eggs, certain bioactive ingredients are becoming a viable substitute for the protein in eggs.
Frozen fruits and vegetables predominantly consist of superfruits such as aronia,
buffaloberry, pichuberry, acai berry, avocados and blueberries.
TABLE 2
CAGR%
Product 2015 2016 2021 2016–2021
Confectionery 17.2 18.5 27.1 7.9
Bakery 12.9 13.8 19.9 7.6
Snacks 11.4 12.3 17.2 6.9
Dairy nondrinkable products 10.3 11.1 15.7 7.2
Meat 4.2 4.5 6.4 7.3
Grain and flour 1.5 1.6 2.6 10.2
Frozen fruits and vegetables 0.9 1 1.4 7.0
Other 1.7 1.8 2.0 2.1
Total 60.1 64.6 92.3 7.4
In 2015, the global functional food market was dominated by confectionery, bakery and
snacks with estimated 28.6%, 21.5% and 19.0% shares, respectively. The global
confectionery market was estimated to be worth $17.2 billion in 2015 and is expected to
reach $27.1 billion by 2021, growing at an estimated CAGR of 7.9% from 2016 to 2021.
The global bakery market was estimated to be worth $12.9 billion in 2015 and is expected
to reach $19.9 billion by 2021, growing at an estimated CAGR of 7.6% from 2016 to 2021.
The global snacks market was estimated to be worth $11.4 billion in 2015 and is expected
to reach $17.2 billion by 2021, growing at an estimated CAGR of 6.9% from 2016 to 2021.
TABLE 3
CAGR%
Region 2015 2016 2021 2016–2021
North America 25.3 27.2 38.8 7.4
Europe 16.6 17.8 25.1 7.1
Asia-Pacific 15.9 17.1 25.1 8.0
South America 2.3 2.5 3.3 5.7
Total 60.1 64.6 92.3 7.4
In 2015, global functional food was dominated by North America and Europe, with
estimated 42.1% and 27.6% shares, respectively. The North American functional food
market was estimated to be $25.3 billion in 2015 and is expected to reach $38.8 billion by
2021, growing at a CAGR of 7.4% from 2016 to 2021. The European functional food market
was estimated to be $16.6 billion in 2015 and is expected to reach $25.1 billion by 2021,
growing at a CAGR of 7.1% from 2016 to 2021. The European functional food market is
dominated by probiotics due to a large dairy products market as compared with the U.S.
and Japan.
Asia-Pacific commanded the third largest market share with 26.5% of the overall
functional food market in 2015 at $15.9 billion and is expected to reach $25.1 billion in
2021, growing at a CAGR of 8.0% from 2016 to 2021. South America’s functional food
market is expected to grow from $2.3 billion in 2015 to $3.3 billion in 2021 at an
estimated CAGR of 5.7% from 2016 to 2021.
CONFECTIONERY
A prime target market for nutraceutical sugar confectionery will be children and
health-conscious parents. Children are often reluctant to eat foods that are not appealing
in taste and will choose nutraceutical products accordingly. Manufacturers need to focus
on new, innovative products with various health benefits paired with great taste.
TABLE 4
CAGR%
Region 2015 2016 2021 2016–2021
North America 7.0 7.5 10.8 7.6
Europe 4.3 4.5 6.7 8.3
Asia-Pacific 5.2 5.6 8.5 8.7
South America 0.7 0.9 1.1 4.1
Total 17.2 18.5 27.1 7.9
North America commanded the largest share of the overall nutraceutical confectionery
market in 2015 with a 40.7% of the market, valued at $7.0 billion and is expected to reach
nearly $10.8 billion by 2021, rising at a CAGR of 7.6% from 2016 to 2021. Asia-Pacific
commanded the second largest market share with 30.2% of the overall nutraceutical
confectionery market in 2015 at $5.2 billion and is expected to reach $8.5 billion in 2021,
growing at a CAGR of 8.7% from 2016 to 2021. The European nutraceutical confectionery
market is expected to grow from $4.3 billion in 2015 to $6.7 billion in 2021, growing at an
estimated CAGR of 8.3% from 2016 to 2021.
Confectionery products fortified with enriched calcium and ACE vitamins (A, C and E
vitamins) are a popular market offering. Manufacturers are also working on various fruit
flavors with fortified minerals and vitamins, and on confectionery products that
incorporate juices of superfruits such as pomegranate, cranberry and raspberry. These will
provide high levels of antioxidants. Danisco has introduced a new juice confectionery
demonstration kit that contains four confectionery prototypes incorporating fruit juices and
Danisco health-benefiting ingredients.
Dark chocolate has naturally high antioxidant content. It is also considered relatively
healthy since it contains high levels of polyphenols and flavonols that work to protect the
body from cell damage. Quaker Foods (U.S.), a leading breakfast cereal company, has
launched Life Chocolate Oat Crunch, which contains chocolate and oat pieces. It is a
low-fat, high-fiber product that contains 10 essential vitamins and minerals. It is estimated
that approximately 32.3% of global chocolate sales in 2015 come from dark chocolate
varieties of products.
Although vitamin- and mineral-based confectionery products are the largest nutraceuticals
market with $8.0 billion in 2015, the protein-fortified confectionery market is also doing
well with a market value of $3.5 billion, followed by the omega-3-based confectionery
market at $3.0 billion and probiotic-based confectionery market at around $2.7 billion.
TABLE 5
BAKERY
The specialty bakery market is characterized by the dominance of local bakery companies
over large established brands. As such, companies who seek to enter the bakery market in
the nutraceutical segment should focus on mainstream popular products such as whole
grain and brown bread products. Additives to bread such as honey and caraway and
sunflower seeds have found increased acceptance in recent years.
Bread is a staple food in the U.S. and Europe and serves as an ideal vehicle for delivering
functional benefits. Within bakery food products, bread is the biggest food category with
$9.1 billion in 2015 due to its popularity in the aforementioned regions. The cookies and
crackers market is also doing well, with a market value of $2.7 billion, followed by the
frozen cakes, pies and pastries market at $1.1 billion in 2015.
TABLE 6
CAGR%
Region 2015 2016 2021 2016-2021
North America 5.1 5.5 8.1 8.0
Europe 3.6 3.9 5.4 6.7
Asia-Pacific 3.1 3.3 4.8 7.8
South America 1.1 1.1 1.6 7.8
Total 12.9 13.8 19.9 7.6
North America commanded the largest share of the overall nutraceutical bakery market in
2015 with a 39.5% share, worth $5.1 billion and is expected to reach $8.1 billion by 2021,
rising at a CAGR of 8.0% from 2016 to 2021. Europe commanded the second-largest
market share with 27.9% of the overall nutraceutical bakery market in 2015 at $3.6 billion
and is expected to reach $5.4 billion in 2021, growing at a CAGR of 6.7% from 2016 to
2021. The Asia-Pacific nutraceutical bakery market is expected to grow from $3.1 billion in
2015 to $4.8 billion in 2021, growing at an estimated CAGR of 7.8% from 2016 to 2021.
Bakery products lend themselves easily to being enriched with fiber content. Fiber
commanded the largest share of the overall nutraceutical bakery market in 2015 with a
49.8% worth $6.4 billion, followed by protein and peptides with around $3.4 billion,
omega-3 with $1.9 billion and probiotics with around $900 million.
Bread
North America commanded the largest share of the overall nutraceutical bread market in
2015 with a 40.1% worth $3.6 billion, followed by Europe with $2.6 billion and Asia-Pacific
with around $2.4 billion. The bread market has witnessed several product launches that
incorporate whole grains and no preservatives. Bread is one of the oldest functional foods
because it has always been recognized as a good source of calcium and fiber in North
America and Europe. The bread market has recently witnessed several new whole-grain
based bread product introductions in Europe.
The growing focus on whole grain bread, the promotion of gluten-free breads and the
addition of fruits to breads to differentiate products and increase premium value are the
major trends for nutraceutical bread.
The key trends in the functional bread market can be summarized as greater use of whole
grains, lack of preservatives, vegetarian breads and nonallergenic breads. Allied Bakeries
is a leader in the functional bread sector in Europe, and its Kingsmill product is the
fastest-growing brand in the U.K.
Bread provides a common and widely used medium within which it is possible to
effectively regulate micronutrient consumption at a broad population level or to supply
functional ingredients to particular targeted groups.
SNACKS
Snacks manufacturers are moving toward healthier products since more and more
consumers are making the shift from high-fat products. Cereal bars are the
fastest-growing category in the nutraceutical snacks market. Demand has increased for
fiber-based snacks with digestive and weight reduction benefits. Nature Valley, Fiber One
and Kellogg are some of the leading companies for snack food in the world. Breakfast
cereal is also growing category in the nutraceutical snacks market due to increasing per
capita income in developing countries.
Snacks manufacturers are moving toward healthier products since more and more
consumers are making the shift from high-fat products. Cereal bars are the
fastest-growing category in the nutraceutical snacks market. Demand has increased for
fiber-based snacks with digestive and weight reduction benefits. Nature Valley, Fiber One
and Kellogg are some of the leading companies for snack food in the world. Breakfast
cereal is also a growing category in the nutraceutical snacks market due to increasing per
capita income in developing countries.
TABLE 7
CAGR%
Region 2015 2016 2021 2016–2021
North America 5.0 5.4 7.6 7.1
Europe 3.1 3.3 4.5 6.4
Asia-Pacific 2.7 3 4.3 7.5
South America 0.6 0.6 0.8 5.9
Total 11.4 12.3 17.2 6.9
North America commanded the largest share of the overall nutraceutical snacks market in
2015 with a 43.9% worth $5.0 billion and is expected to reach nearly $7.6 billion by 2021,
rising at a CAGR of 7.1% from 2016 to 2021. Europe commanded the second-largest
market share with 27.2% of the overall nutraceutical snacks market in 2015 at $3.1 billion
and is expected to reach $4.5 billion in 2021, growing at a CAGR of 6.4% from 2016 to
2021. The sales for snacks in the European market have shown rapid growth, and have
expanded its healthy and fruit snack range. The Asia-Pacific nutraceutical snacks market is
expected to grow from $2.7 billion in 2015 to $4.3 billion in 2021, growing at an estimated
CAGR of 7.5% from 2016 to 2021. Leading breakfast cereal manufacturers are tapping
growing markets such as China and Russia, which now account for a fraction of the total
cereal market. There is high potential in these countries in terms of market volume and
revenue growth, with growth of 8.8% expected from 2016 to 2021. Fiber commanded the
largest share of the overall nutraceutical snacks market in 2015 with a 49.6% worth $5.7
billion, followed by protein and peptides with around $2.5 billion and omega-3 with $2.4
billion.
Cereal bars are a convenient snack choice and account for more than 71.5% of cereal
snack sales in the U.S., Japan, Australia and Europe’s five largest countries. The increasing
awareness and demand for healthy and organic foods has increased the sales of cereal
bars in the European Union (EU). Global snack bar sales will continue to take greater share
in the snack market in the future. Snack food manufacturers have increased their
revenues and profits due to strong snack or cereal bar sales. Whole grain and oat cereals
have proven successful in aiding cholesterol reduction, and they are performing well in
Europe. Many cereal manufacturers have launched new oat-based variants of their
traditional cereal lines such as Kellogg introduced Optivita, and Weetabix introduced
Oatibix.
TABLE 8
Cookies and crackers are gaining more acceptances by consumers as a healthy snack
option. The cookies and crackers segment includes filled and non-filled cookies, crackers,
biscuits, graham wafers and ice cream cones. The cookie enjoys a certain level of
popularity as a traditional snack; however, cookies, as well as crackers, are faced with
competition from other grain-based products, such as granola bars, which often provide
more nutrition and are viewed by consumers as a healthier option.
North America commanded the largest share of the overall nutraceutical cookies and
crackers market in 2015 with 39.0% worth $1.1 billion, followed by Europe with $1.0 billion
and Asia-Pacific with around $716.8 million. To capitalize on the healthy lifestyle trend,
cookie and cracker producers have introduced many whole grain, sugar-free and low-fat
alternatives, as well as small-portion, calorie-specific packaging to attract diet-conscious
consumers. Manufacturers have also reformulated some products to eliminate or reduce
the level of unhealthy trans fats. According to U.S. Dietary Guidelines, consumption of
trans fat should be as low as possible because, gram for gram, it is the most harmful fat of
all. Trans fat should be specifically listed on packaging.
Grain-based products with higher fiber levels and those fortified with vitamins and other
additives are in demand by older-aged segments of the population, while younger
consumers opt for more convenient ready-to-go items. Consumers of all ages are more
frequently choosing timesaving and convenient grain-based food items.
The cookies and crackers market is driven by major brands with household names in the
U.S., which is also the biggest market. Among cookies, the largest sales were by Kraft
Foods’ Oreo, Chips Ahoy and Newton’s Brands and by Kellogg’s Keebler products. Among
crackers, Ritz (Kraft Foods) and Cheez-It (Kellogg) are leading sellers.
DAIRY NONDRINKABLE
Probiotic products will add extra benefits to products in the dairy nondrinkable products
segment, which will help fuel future growth. The functional cheese market is a
comparatively small part of the functional dairy category. Its penetration rate is quite low
compared to the overall cheese market, which creates a significant market opportunity for
new product introductions. Over the last few years, various companies have introduced
probiotic cheese products in various countries. For example, a LAFTI probiotic cheese was
launched by Bustles Cheese in the U.K., Chr. Hansen introduced a probiotic cheese in Italy
and Europe’s second-largest dairy company, Arla Foods, launched in the U.S. a probiotic
cheese containing the Lactobacillus casei strain F19.
TABLE 9
CAGR%
Region 2015 2016 2021 2016–2021
North America 4.4 4.7 6.7 7.3
Europe 2.9 3.2 4.3 6.1
Asia-Pacific 2.6 2.8 4.2 8.4
South America 0.4 0.4 0.5 4.6
Total 10.3 11.1 15.7 7.2
The global nutraceutical dairy nondrinkable market was estimated to be $10.3 billion in
2015 and is expected to reach $15.7 billion by 2021, growing at a CAGR of 7.2% from
2016 to 2021. North America commanded the largest share of the overall nutraceutical
dairy nondrinkable market in 2015 with a 42.7% share, worth $4.4 billion and is expected
to reach $6.7 billion by 2021, rising at a CAGR of 7.3% from 2016 to 2021. Europe
commanded the second-largest market share with 28.2% of the overall nutraceutical dairy
nondrinkable market in 2015 at $2.9 billion and is expected to reach $4.3 billion in 2021,
growing at a CAGR of 6.1% from 2016 to 2021. Asia-Pacific’s nutraceutical dairy
nondrinkable market is expected to grow from $2.6 billion in 2015 to $4.2 billion in 2021,
growing at an estimated CAGR of 8.4% from 2016 to 2021.
Yogurts commanded the largest share of the overall nutraceutical dairy nondrinkable
market in 2015 with a 60.6% worth $6.2 billion, followed by cheese and margarines with
33.2%, regular ice cream with 5.3% and low-fat and nonfat ice cream with 0.9%. Low-fat
and nonfat ice cream is the fastest-growing market segment with a CAGR of 8.7% for 2016
to 2021. Low-fat and low-calorie has the consistency of jelly with the texture of ice cream.
More than 35 similar probiotic frozen desserts have been launched across the globe, with
many additional products expected.
Nondairy cheeses are available in major markets like the U.S., Europe and Australia. Some
of the key players in Europe are VBites Foods (formerly called The Redwood Wholefood Co.
(Cheezly), Bute Island Foods (vegan cheese) and Kallo Foods (soya, rice and other
nondairy ingredients). In Australia, the market leader is Simply Better Foods (omega-3 soy
cheese). The major U.S. companies are Galaxy Nutritional Foods (Veggie and Soyco Foods)
and Tofutti, which also has a presence in the U.K. and Australia.
TABLE 10
MEAT
Meat and poultry account for more than 26.0% of the total food market in North America
and Europe, but they are not yet a large part of the nutraceutical foods market. From
manufacturers’ point of view, it will only require a minor penetration in the nutraceutical
market to result in significant sales from the meat and poultry segments. (For purposes of
this report, both meat and poultry will be grouped into the “meat market.”)
TABLE 11
CAGR%
Region 2015 2016 2021 2016–2021
North America 1.8 1.9 2.8 8.1
Europe 1.1 1.2 1.6 5.9
Asia-Pacific 1.0 1.0 1.5 8.4
South America 0.3 0.4 0.5 4.6
Total 4.2 4.5 6.4 7.3
The global nutraceutical meat market was estimated to be $4.2 billion in 2015 and is
expected to reach $6.4 billion by 2021, growing at a CAGR of 7.3% from 2016 to 2021. The
increasing societal pressure for weight reduction properties and health benefits is
benefiting the market for meat replacements.
North America commanded the largest share of the overall nutraceutical meat market in
2015 with a 42.9% share, worth $1.8 billion and is expected to reach $2.8 billion by 2021,
rising at a CAGR of 8.1% from 2016 to 2021. Europe commanded the second-largest
market share with 26.2% of the overall nutraceutical meat market in 2015 at $1.1 billion
and is expected to reach $1.6 billion in 2021, growing at a CAGR of 5.9% from 2016 to
2021. Asia-Pacific’s nutraceutical meat market is expected to grow from $1.0 billion in
2015 to $1.5 billion in 2021, growing at an estimated CAGR of 8.4% from 2016 to 2021.
Noncommercial markets including schools, hospitals and airlines are early adopters of the
functional or nutraceutical meat market—in which single decisions can produce large sales.
In their daily lunches, schools are increasing the ratio of protein-enhanced meat or poultry,
soy ingredients in recipes and soy mixed into meat or poultry alternatives. The low market
penetration for functional meat or poultry or meat alternatives is a large opportunity for
functional meat companies. There is a large market for functional meat, especially if
products are trans fat-free and protein-fortified. Demand for some meat products is
increasing due to the continuing popularity of low-carbohydrate diets and the successful
marketing by manufacturers.
In recent years, the average price of whole eggs has increased as a response to higher
prices for fuel and commodity chicken feed. Advanced Food Systems introduced a range of
egg replacement “BakeRite” ingredients as a cost-effective alternative to whole eggs for
food manufacturers. This ingredient can replace up to 65.0% of whole egg solids while
maintaining texture and flavor. This modified egg product is used heavily in baked goods
such as pound cakes, muffins, cupcakes and cookies.
Companies aim to fortify wheat flour with iron and folic acid in order to reduce a
problematic iron deficiency anemia in children and in women of reproductive age. The
incidence of neural tube defects in newborns is expected to be reduced by half as a result
of these dietary changes.
TABLE 12
CAGR%
Region 2015 2016 2021 2016–2021
North America 0.7 0.7 1.1 9.5
Europe 0.4 0.4 0.8 14.9
Asia-Pacific 0.4 0.4 0.6 8.4
South America 0.0 0.1 0.1 0.0
Total 1.5 1.6 2.6 10.2
The global nutraceutical grain and flour market was estimated to be $1.5 billion in 2015
and is expected to reach $2.6 billion by 2021, growing at a CAGR of 10.2% from 2016 to
2021. North America commanded the largest share of the overall nutraceutical grain and
flour market in 2015 with a 46.7% share, worth $700 million and is expected to reach $1.1
billion by 2021, rising at a CAGR of 9.5% from 2016 to 2021.
Europe commanded the second-largest market share with 26.7% of the overall
nutraceutical grain and flour market in 2015 at $400 million and is expected to reach more
than $800 million in 2021, growing at a CAGR of 14.9% from 2016 to 2021. Asia-Pacific’s
nutraceutical grain and flour market is expected to grow from $400 million in 2015 to
nearly $600 million in 2021, growing at an estimated CAGR of 8.4% from 2016 to 2021.
The demand for high-fiber based frozen fruits has increased due to their digestive health
benefits.
Functional fruit extracts in the form of fruit jellies or syrups are now mixed with foods or
beverages for added health benefits. Confectionery manufacturers are utilizing superfruit
extracts to increase antioxidant content in existing confectionery products. Wild, a
German ingredient manufacturer, introduced Fruit Up natural sweetener for fruit jelly
confectionery products and beverages.
TABLE 13
CAGR%
Region 2015 2016 2021 2016–2021
North America 0.3 0.4 0.5 4.6
Europe 0.2 0.2 0.3 8.4
Asia-Pacific 0.2 0.2 0.3 8.4
South America 0.2 0.2 0.3 8.4
Total 0.9 1.0 1.4 7.0
The global nutraceutical frozen fruits and vegetables market was estimated to be $900
million in 2015 and is expected to reach $1.4 billion by 2021, growing at a CAGR of 7.0%
from 2016 to 2021. North America commanded the largest share of the overall
nutraceutical frozen fruits and vegetables market in 2015 with a 33.3% worth $300 million
and is expected to reach $500 million by 2021, rising at a CAGR of 4.6% from 2016 to
2021. Asia-Pacific’s nutraceutical frozen fruits and vegetables market in 2015 at $200
million and is expected to reach more than $300 million in 2021, growing at a CAGR of
8.4% from 2016 to 2021. The European nutraceutical frozen fruits and vegetables market
is expected to grow from $200 million in 2015 to $300 million in 2021, growing at an
estimated CAGR of 8.4% from 2016 to 2021.
Fiber commanded the largest share of the overall nutraceutical frozen fruits and
vegetables market in 2015 with a 29.5% worth $265.5 million and followed by probiotics
at around $117.0 million. Capros, Utah-based Pure Fruit Technologies, RJA Foods, Ocean
Spray and Cargill are the major companies for the superfruit products and they offer
brand-name products such as Capros (Capros), Mango.xan (Utah-based Pure Fruit
Technologies), Pomegreat (RJA Foods) and Special FX (Cargill). Major superfruits with
respective “average grade” are shown in the below table.
TABLE 14
FUNCTIONAL BEVERAGES
The functional or nutraceutical beverage market is defined as the aggregate sales value of
drinkable food products containing any of the previously listed bioactive ingredients. This
mainly includes noncarbonated drinks, dairy drinks, fruit and vegetable juices, and tea and
coffee.
Noncarbonated drinks are dominated by sports and energy noncarbonated drinks such as
Red Bull, as well as functional water. Dairy drinks include functional beverages like
probiotic drinkable yogurts and fermented fluid milk fortified with omega-3 and probiotic
ingredients. Tea and coffee include green and black tea and coffee fortified with any one
of the bioactive ingredients mentioned in this report. Fruit and vegetable juices include
juices fortified with vitamins and minerals, proteins, probiotics and omega-3.
TABLE 15
CAGR%
Product 2015 2016 2021 2016–2021
Noncarbonated drinks 36.0 38.6 57.7 8.4
Dairy drinks 22.6 24.3 35.7 8.0
Fruits and vegetable juice 4.3 4.6 6.5 7.2
Tea and coffee 3.3 3.6 5.0 6.8
Other 0.4 0.4 0.6 8.4
Total 66.6 71.5 105.5 8.1
In 2015, the global functional beverage market was dominated by noncarbonated drinks
and dairy drinks with estimated 54.1% and 33.9% shares, respectively. The global
noncarbonated drinks market was estimated to be worth $36.0 billion in 2015 and is
expected to reach $57.7 billion by 2021, growing at an estimated CAGR of 8.4% from 2016
to 2021.
The global dairy drinks market was estimated to be worth $22.6 billion in 2015 and is
expected to reach $35.7 billion by 2021, growing at an estimated CAGR of 8.0% from 2016
to 2021. The fruit and vegetable juices or frozen juices market is estimated to grow at
CAGR of 7.2% from 2016 to 2021 due to companies like Coca-Cola and Pepsi having
entered the market to tap the opportunities. Frozen juices have become one of the drivers
for the growing overall nutraceutical beverage market.
Major CSD companies like Coca-Cola and Pepsi have experienced a decrease in sales of
carbonated drink products and now are focusing on the faster-growing functional beverage
market as a means to grow sales and retain market share. The major trend in beverages is
fortification, functionality and a shift toward premium, “green” and organic products. Tea,
which was not historically widely accepted in the U.S., is now seeing a larger market
penetration with the help of surging green tea demand. Waters fortified with healthy
ingredients (“enhanced waters”) hold the biggest potential, and beverage giants are
cashing in on this opportunity. Of Coca-Cola’s net sales, enhanced water and sports drinks
are showing the largest growth. The top three companies in this market are now Coca-Cola,
PepsiCo and Energy Brands, accounting for more than 89.0% of the market in 2015.
TABLE 16
CAGR%
Region 2015 2016 2021 2016–2021
North America 21.0 22.6 32.7 7.7
Europe 22.1 23.8 36.0 8.6
Asia-Pacific 17.0 18.2 27.0 8.2
South America 6.5 6.9 9.8 7.3
Total 66.6 71.5 105.5 8.1
Europe commanded the largest share with 33.2% of the overall functional beverage
market in 2015 at $22.1 billion. The market is expected to reach $36.0 billion in 2021,
rising at a CAGR of 8.6% for 2016 to 2021 due to increasing demand for dairy drinks and
sports and energy drinks in Europe and also to huge growth from developing Eastern
European countries. North America commanded the second- largest market share with
31.5% of the overall functional beverage market in 2015 at $21.0 billion and is expected
to reach $32.7 billion in 2021, growing at a CAGR of 7.7% from 2016 to 2021.
Asia-Pacific commanded the third largest market share with 25.5% of the overall
functional beverage market in 2015 at $17.0 billion and is expected to reach $27.0 billion
in 2021, growing at a CAGR of 8.2% from 2016 to 2021. South America’s functional
beverage market is expected to grow from $6.5 billion in 2015 to $9.8 billion in 2021 at an
estimated CAGR of 7.3% from 2016 to 2021.
NONCARBONATED DRINKS
TABLE 17
CAGR%
Region 2015 2016 2021 2016–2021
North America 14.1 15.2 22.2 7.9
Europe 10.9 11.7 18.0 9.0
Asia-Pacific 7.4 8.0 12.0 8.4
South America 3.6 3.7 5.5 8.3
Total 36.0 38.6 57.7 8.4
North America commanded the largest share of the overall nutraceutical noncarbonated
drinks market in 2015 with a 39.2% share, worth $14.1 billion, and is expected to reach
$22.2 billion by 2021, rising at a CAGR of 7.9% from 2016 to 2021. Europe commanded
the second-largest market share with 30.3% of the overall nutraceutical noncarbonated
drinks market in 2015 at $10.9 billion and is expected to reach $18.0 billion in 2021,
growing at a CAGR of 9.0% from 2016 to 2021. Asia-Pacific’s nutraceutical noncarbonated
drinks market is expected to grow from $7.4 billion in 2015 to $12.0 billion in 2021,
growing at an estimated CAGR of 8.4% from 2016 to 2021.
In Europe, there were issues with functional water products. They were initially rejected in
France and the U.K. due to their unpleasant taste. The Dannon functional water brand was
withdrawn from the U.K. and French markets. Despite these issues, the market potential is
immense and companies will continue to introduce new products to capture market share.
The CSD drinks market is decreasing year by year as consumers shift to healthier
alternatives such as energy drinks, functional waters and juices. The cola market has been
shrinking in many Western markets, including the U.S., as consumers shift their
preferences to options like juices, waters, teas, functional waters and other carbonated
energy drink options. The category still represents almost half of the U.S. market,
providing significant opportunities for further functional beverage gains. Sports and energy
drinks offer overall wellness benefits and are now widely available through mass
distribution channels like supermarkets. Pepsi and Coca-Cola are investing heavily to enter
and expand in the energy market. For instance, Coca-Cola has expanded its presence in
Africa with the acquisition of a minority stake in Chi Limited, Nigeria’s leading dairy, juice,
and snacks company in 2016. Coca-Cola Bottling Co. Consolidated also signed agreements
to expand the distribution area to territories located in parts of Kentucky, Indiana, Ohio,
Illinois and West Virginia in 2016, and to purchase manufacturing facilities in Indiana and
Ohio.
Functional waters are one of the fastest-growing product categories in the functional
beverage sector. The global functional/fortified bottled water market doubled between
2005 and 2015, but growth has started to level off. This category has attracted many
players including manufacturers of carbonated soft drinks (CSD) and general beverages
due to its high growth and profit potential.
Pepsi markets many brands under the fortified water category as well, such as SoBec Life
Water and certain Gatorade products. Tata Tea Ltd., the world’s second largest
manufacturer and distributor of tea, has launched a fortified version of the Himalayan
mineral water brand in Western Europe, North America, West Asia and the Far East. Major
functional noncarbonated drinks and their manufacturers are shown in the following table.
TABLE 18
DAIRY DRINKS
Currently there is increasing demand for soy derivatives products. Soy products contain
many ingredients that are beneficial to consumers’ health. The functional milk market’s
two major categories: functional dairy beverages and functional dairy alternative drinks.
Probiotics commanded the largest share of the overall nutraceutical noncarbonated drinks
market in 2015 with a 49.9% worth $17.9 billion and followed by omega-3 with 28.3%,
protein and peptides with 4.7% and fiber with 4.6%. Faced by the rising cost of energy and
raw material and facing fierce competition, dairy market companies are continuously
introducing innovative product extensions to safeguard their market share. Most dairy
companies are now concentrating on functional dairy products to increase their profits and
market share in the overall dairy market. The companies are increasingly adopting
strategies such as partnerships, mergers or acquisitions to introduce new products to new
and existing markets. They are also undertaking considerable investment in R&D to
increase the functional product line. Dutch dairy group Campina DMV collaborated with
Wageningen University for research into ingredients for the fortification of dairy products.
Danisco has launched functional dairy products in the U.S. probiotic market to respond to
competition.
TABLE 19
CAGR%
Region 2015 2016 2021 2016–2021
North America 4.0 4.3 6.5 8.6
Europe 9.1 9.7 14.8 8.8
Asia-Pacific 7.6 8.1 12.1 8.4
South America 1.9 2.2 2.3 0.9
Total 22.6 24.3 35.7 8.0
Europe commanded the largest share of the overall nutraceutical dairy drinks market in
2015 with a 40.3% share, worth $9.1 billion, and is expected to reach $14.8 billion by
2021, rising at a CAGR of 8.8% from 2016 to 2021. Asia-Pacific commanded the
second-largest market share with 33.6% of the overall nutraceutical dairy drinks market in
2015 at $7.6 billion and is expected to reach $12.1 billion in 2021, growing at a CAGR of
8.4% from 2016 to 2021. The North American nutraceutical dairy drinks market is
expected to grow from $4.0 billion in 2015 to $6.5 billion in 2021, growing at an estimated
CAGR of 8.6% from 2016 to 2021.
Soy milk, an alternative to dairy products, has a large market due to greater media
attention and consumer awareness of its health benefits. Soy reduces blood cholesterol,
protects against prostate and breast cancer and helps heal bone fractures. Other major
nondairy alternative beverages are rice-, oat- and almond-based milk. Dean Foods is one
of the largest producers of soy milk in the U.S., and its Silk brand is a major market name.
The Australian market has a higher penetration for soy milk with more than 11.0% of the
total milk sales in terms of value coming from soy in 2015. Fresh soymilk offerings account
for a high share of the U.S. market, proving to be more popular than shelf-stable,
ultra-high-temperature (UHT) packaged offerings. The soy milk market in the U.S. has
started to lose some ground due to higher prices, soy allergies and general soy burnout
within the consumer population.
TABLE 20
FROZEN JUICES
The increasing media attention paid to the adverse effects on health from
sugar-sweetened beverages and carbonated soft drinks has shifted consumer demand to
healthy fruit and vegetable juices and drinks. This level of awareness paired with the
exploding obesity and diabetes epidemics are the main drivers for the growth of fruit and
vegetable drinks. Beverage companies like Coca-Cola, Pepsi and Dr. Pepper are increasing
the fruit juice selections in their product portfolios in answer to increasing customer
demand.
and consumers have the choice of a wide range of products within the category.
Innovative fruit juices have recently been launched, such as Minute Maid’s Heart Wise
juices, which incorporate plant sterols to help lower blood cholesterol levels. In Germany,
ACE juices, which contain folic acid, have shown strong growth.
TABLE 21
CAGR%
Region 2015 2016 2021 2016–2021
North America 1.1 1.2 1.7 7.2
Europe 1.2 1.3 1.8 6.7
Asia-Pacific 1.3 1.4 1.9 6.3
South America 0.7 0.7 1.1 9.5
Total 4.3 4.6 6.5 7.2
The global nutraceutical frozen juices market was estimated to be worth $4.3 billion in
2015 and is expected to reach $6.5 billion by 2021, growing at an estimated CAGR of 7.2%
from 2016 to 2021. Asia-Pacific commanded the largest share of the overall nutraceutical
frozen juices market in 2015 with a 30.2% share, worth $1.3 billion, and is expected to
reach $1.9 billion by 2021, rising at a CAGR of 6.3% from 2016 to 2021. The North
American nutraceutical frozen juices market is expected to grow from $1.1 billion in 2015
to $1.7 billion in 2021, growing at an estimated CAGR of 7.2% from 2016 to 2021.
TABLE 22
Coca-Cola Hi-C Drink Box, Hi-C Blast Juices are rich in vitamin C and fortified with
and Hi-C Sour Blast; Minute calcium and glucosamine
Maid, Odwalla
The global tea market (both nonfunctional and functional) includes instant, leaf, liquid
concentrate and ready-to-drink tea. Phytochemical and antioxidants commanded the
largest share of the overall nutraceutical tea and coffee market in 2015 with a 56.7%
worth $0.3 billion, followed by omega-3 with 18.5%, protein and peptides with 16.5% and
fiber with 8.3%.
The increasing popularity of green tea in the U.S., Europe and Australia is one the main
growth drivers for the green tea market. Consumption of green and black tea in the U.S.
has rapidly grown over the last five years. Convenient ready-to-drink (RTD) tea and coffee
are consumed and marketed as an alternative to CSD (carbonated soft drinks). Green and
black teas are more natural and contain antioxidants and polyphenols.
Functional teas with flavors are used by tea companies to cater to different tastes in
markets worldwide. The U.S., China and Singapore are important markets for flavored tea.
In Asia, consumers prefer tea with less astringency and more floral flavors, while less floral
flavors are favored in U.S. markets. Green, black and oolong teas are most popular in the
U.S.
The leading companies in the tea market have entered the functional teas market.
Unilever is the world’s largest tea company, while Tetley is the second largest tea bag
brand worldwide and a top producer in the U.K. and Canadian markets. Twinings is one of
the oldest tea companies and a leader in the specialty teas market.
TABLE 23
CAGR%
Region 2015 2016 2021 2016–2021
North America 1.0 1.1 1.4 4.9
Europe 0.9 0.9 1.2 5.9
Asia-Pacific 0.6 0.6 0.9 8.4
South America 0.8 1.0 1.5 8.4
Total 3.3 3.6 5.0 6.8
The global nutraceutical tea and coffee market was estimated to be worth $3.3 billion in
2015 and is expected to reach $5.0 billion by 2021, growing at an estimated CAGR of 6.8%
from 2016 to 2021. North America commanded the largest share of the overall
nutraceutical tea and coffee market in 2015 with a 30.3% share, worth $1.0 billion, and is
expected to reach $1.4 billion by 2021, rising at a CAGR of 4.9% from 2016 to 2021. There
is increasing awareness of the health benefits that can be gained through consumption of
green and black tea, and the U.S. market is responding accordingly. Tea, especially in iced
tea form, is now becoming a daily drink in the U.S. with other forms also gaining market
traction.
Europe commanded the second-largest market share with 27.3% of the overall
nutraceutical tea and coffee market in 2015 at $900 million and is expected to reach $1.2
billion in 2021, growing at a CAGR of 5.9% from 2016 to 2021. Asia-Pacific’s nutraceutical
tea and coffee market is expected to grow from $600 million in 2015 to $900 million in
2021, growing at an estimated CAGR of 8.4% from 2016 to 2021.
Green Tea
The market for green tea is increasing due to its use in a wide variety of product
categories including beverages, cosmetics, nutraceutical, medicinal and flavors and
fragrances. The major health benefit of green tea is the potential for disease cures and
prevention. More specifically, defense against bacterial and viral infections and treatment
of certain types of cancer are the main benefits of green tea. There is an increasing trend
toward the production of green tea extracts, which are used in tablets, capsules and
health drinks. Ready to drink (RTD) green tea is gaining more popularity in the North
America and Europe, where convenience is a major selling point. China and Japan are the
dominant producers of green tea extracts, accounting for approximately 85.0% of the total
world crop and 90.0% of world exports.
Black tea extract induces the precipitation of mixed bile salt micelles, lowers blood
cholesterol levels and helps in body weight loss. In this regard, further investigation of the
effects of black tea extracts on body weight loss is warranted. However, the product
category is promising in that it can address the growing world obesity epidemic. RTD teas
and coffee are consumed as alternatives to carbonated soft drinks, which are now
recognized as containing unhealthy levels of sugar and for promoting weight gain and
obesity from calorie intake. Flavored iced teas with additional herbal extracts are growing
in popularity. There is an increase in the number of product launches with full or partial
sugar replacement, and this trend will continue into the future.
Functional Coffee
After tea, coffee is the most consumed beverage worldwide. International Coffee
Organization (ICO) estimated that North America, Europe and Japan account for almost
53.0% of world coffee consumption. Functional coffee typically contains extra antioxidants
(vitamins A, C and E) and carotenoids like beta-carotene, which help to protect cells.
Consumption of three or more cups of coffee per day has been linked to prevention of
ovarian cancer. Unroasted green coffee bean extracts have been tied to weight reduction.
TABLE 24
DIETARY SUPPLEMENTS
The dietary supplements market is defined as the aggregate sales value of supplements
containing any of the bioactive ingredients. This mainly includes vitamins and multivitamin
supplements, mineral supplements such as calcium and herbal and nonherbal
supplements. This market is often wrongly defined in other reports as the total
nutraceutical market. For the purposes of this report, dietary supplements are considered
to be a part of the total nutraceutical market.
TABLE 25
CAGR%
Product 2015 2016 2021 2016–2021
Vitamin and multivitamins 21.0 22.5 31.0 6.6
Mineral 12.8 13.8 19.3 6.9
Herbal 9.9 10.6 15.6 8.0
Other 14.6 15.7 21.3 6.3
Total 58.3 62.6 87.2 6.9
In 2015, the global dietary supplements market was dominated by vitamins multivitamins,
and minerals, with estimated 36.0% and 22.0% shares, respectively. The global vitamin
and multivitamin market was estimated to be worth $21.0 billion in 2015 and is expected
to reach $31.0 billion by 2021, growing at an estimated CAGR of 6.6% from 2016 to 2021.
The global mineral market was estimated to be worth $12.8 billion in 2015 and is expected
to reach $19.3 billion by 2021, growing at an estimated CAGR of 6.9% from 2016 to 2021.
TABLE 26
CAGR%
Region 2015 2016 2021 2016–2021
North America 27.7 29.7 42.2 7.3
Europe 9.4 10.1 11.5 2.6
Asia-Pacific 21.0 22.5 32.8 7.8
South America 0.2 0.3 0.7 18.5
Total 58.3 62.6 87.2 6.9
North America commanded the largest share with 47.5% of the overall global dietary
supplements market in 2015 at $27.7 billion. The market is expected to reach $42.2 billion
in 2021, rising at a CAGR of 7.3% for 2016 to 2021. Asia-Pacific commanded the
second-largest market share with 36.0% of the overall dietary supplements market in
2015 at $21.0 billion and is expected to reach $32.8 billion in 2021, growing at a CAGR of
7.8% from 2016 to 2021. Europe commanded the third-largest market share with 16.1% of
the overall dietary supplements market in 2015 at $9.4 billion and is expected to reach
$11.5 billion in 2021, growing at a CAGR of 2.6% from 2016 to 2021. South America’s
dietary supplements market is expected to grow from $200 million in 2015 to $700 million
in 2021 at an estimated CAGR of 18.5% from 2016 to 2021.
FOD013F
March 2017
Natraj Pandal
Project Analyst
ISBN: 1-62296-448-9
BCC Research
49 Walnut Park, Building 2
Wellesley, MA 02481 USA
866-285-7215 (toll-free within the USA),
or (+1) 781-489-7301
www.bccresearch.com
info@bccresearch.com
FOD013F - Nutraceuticals: Global Markets
CHAPTER 5
NUTRACEUTICAL MARKET BY INGREDIENTS
Nutraceutical products are in great demand globally, though the relative popularity of
products varies by geographic region based on the basic ingredients used. While
probiotic-based nutraceutical products are most popular in Europe and Japan, U.S.
consumers prefer vitamin- and mineral-based products. There is also a great demand for
specific proteins in Japan. Different techniques, such as nanotechnology,
microencapsulation and fortification, are used to manufacture these products according to
the kind of ingredients used.
TABLE 27
CAGR%
Ingredients 2015 2016 2021 2016–2021
Vitamin and minerals 83.3 89.4 128.3 7.5
Probiotics 28.5 30.6 49.0 9.9
Phytochemicals 21.2 22.8 27.4 3.7
Fiber 18.9 20.3 29.9 8.1
Omega-3 17.4 18.7 26.5 7.2
Protein and peptides 15.7 16.9 23.9 7.2
Total 185.0 198.7 285.0 7.5
The global nutraceutical ingredients market is dominated by vitamins and minerals, which
accounted for 45.0% of the overall market in 2015. The global vitamins and minerals
market was estimated to be $83.3 billion in 2015 and is expected to reach $128.3 billion
by 2021, growing at a CAGR of 7.5% from 2016 to 2021.
Probiotics commanded the second-largest market share with 15.4% of the overall
nutraceutical ingredients market in 2015 at $28.5 billion and is expected to reach $49.0
billion in 2021, growing at a CAGR of 9.9% from 2016 to 2021 due to increasing consumer
awareness and application in new areas such as smoothies to salad dressings. The global
fiber market was estimated to be $18.9 billion in 2015 and is expected to reach $29.9
billion by 2021, growing at a CAGR of 8.1% from 2016 to 2021.
TABLE 28
CAGR%
Ingredients 2015 2016 2021 2016–2021
Fiber 15.5 16.6 25.6 9.1
Soy 13.5 14.5 20.9 7.6
Probiotics 10.2 11.0 17.1 9.2
Omega-3 8.7 9.4 12.8 6.4
Other 12.2 13.1 15.9 4.0
Total 60.1 64.6 92.3 7.4
The global nutraceutical food market is dominated by the ingredient fiber, which
accounted for 25.8% of the overall market in 2015. The fiber-based nutraceutical food
market was estimated to be $15.5 billion in 2015 and is expected to reach $25.6 billion by
2021, growing at a CAGR of 9.1% from 2016 to 2021. Soy commanded the second-largest
market share with 22.5% of the overall nutraceutical food ingredient market in 2015 at
$13.5 billion and is expected to reach nearly $20.9 billion in 2021, growing at a CAGR of
7.6% from 2016 to 2021. The global omega-3 based nutraceutical food market was
estimated to be $8.7 billion in 2015 and is expected to reach $12.8 billion by 2021,
growing at a CAGR of 6.4% from 2016 to 2021.
TABLE 29
CAGR%
Ingredient 2015 2016 2021 2016–2021
Vitamins and minerals 38.0 40.8 60.8 8.3
Probiotics 12.8 13.7 20.1 8.0
Omega-3 8.1 8.7 12.7 7.9
Fiber 3.3 3.6 5.2 7.6
Soy 2.0 2.1 3.1 8.1
Other 2.4 2.6 3.6 6.7
Total 66.6 71.5 105.5 8.1
The ingredients of the global nutraceutical beverage market are dominated by vitamins
and minerals, which accounted for 57.1% of the overall market in 2015. The vitamin- and
mineral-based nutraceutical beverage market was estimated to be $38.0 billion in 2015
and is expected to reach $60.8 billion by 2021, growing at a CAGR of 8.3% from 2016 to
2021.
TABLE 30
CAGR%
Ingredients 2015 2016 2021 2016–2021
Vitamins and minerals 45.3 48.6 67.5 6.8
Other 13.0 14.0 19.7 7.1
Total 58.3 62.6 87.2 6.9
The global nutraceutical supplement market is dominated by the vitamin and mineral
ingredients, which accounted for 77.7% of the overall market in 2015. The global vitamin-
and mineral-based nutraceutical supplement market was estimated to be $45.3 billion in
2015 and is expected to reach $67.5 billion by 2021, growing at a CAGR of 6.8% from
2016 to 2021.
The mandatory inclusion on food labels of the commonest food allergen ingredients and
their derivatives covers cereals containing gluten, fish, crustaceans, egg, peanuts,
soybeans, milk and dairy products, lactose, nuts, celery, mustard, sesame seeds and
sulfites. According to the World Allergy Organization, 220 to 250 million people in the
world suffered from food allergies in 2015. According to the Food Standards Agency, more
than 15 million people in the U.S. suffered from food allergies in 2015. There is also a
general backlash against genetically modified (GM) products, which many consumers view
as artificial and unsafe. To capitalize on these market trends, companies are looking to
manufacture products that avoid the GM label and are allergen-free.
DSM Nutritional Products has introduced a new oily form of vitamin A that is both GM- and
allergen-free. This vitamin A form uses medium chain triglycerides (MCTs) as a carrier,
which guarantees ingredients free of genetically modified organisms and eliminates
potential allergic reactions related to peanut oil. BASF has introduced allergen-free
vegetarian variants of vitamin E and beta-carotene for its supplements, and Cognis is
manufacturing a GM-free vitamin E for consumers wary of GM ingredients.Vitamins are
major ingredients in foods, pharmaceuticals, cosmetics and feed additives.
TABLE 31
CAGR%
Region 2015 2016 2021 2016–2021
North America 30.2 32.5 46.4 7.4
Europe 19.1 20.5 28.7 7.0
Asia-Pacific 27.1 29.1 43.6 8.4
South America 6.9 7.3 9.6 5.6
Total 83.3 89.4 128.3 7.5
In 2015, the global vitamins and mineral market was dominated by North America and
Asia-Pacific, with estimated 36.3% and 32.5% shares, respectively. The North American
vitamin and mineral market was estimated to be $30.2 billion in 2015 and is expected to
reach $46.4 billion by 2021, growing at a CAGR of 7.4% from 2016 to 2021. This is due
mainly to the willingness with which consumers in North America are seeking to maintain
vitality and wellness by increased consumption of nutraceutical supplements. ADM
(Archer-Daniels-Midland Co., U.S.) and Cargill Inc. (U.S.) are the major players in regard to
minerals in the North American market. DSM (Netherlands) is the major player in the North
American vitamin market with a 13.0% share in 2015, followed by BASF (Germany) with a
7.7% share in 2015.
Asia-Pacific’s vitamins and minerals market were estimated to be $27.1 billion in 2015 and
are expected to reach $43.6 billion by 2021, growing at a CAGR of 8.4% from 2016 to
2021. The European vitamin and mineral market was estimated to be $19.1 billion in 2015
and is expected to reach nearly $28.7 billion by 2021, growing at a CAGR of 7.0% from
2016 to 2021 due to the rise in the consumption of dietary supplements in order for
consumers to improve their overall health and wellness. Consumers in Europe are willing
to spend premium amounts on higher quality nutraceuticals, which drives the demand for
vitamin and mineral ingredients. BASF (Germany), ADM (U.S.), Cargill (U.S.) and Ingredion
(U.S.) are the major players for vitamins and minerals in the European market.
PROBIOTICS
Oral probiotics are living microorganisms that deliver digestive tract health benefits
beyond basic nutrition. Common probiotic bacteria include Lactobacillus and “bifido,” the
Bifidobacterium species—a carbohydrate not digested by humans that reaches the large
intestine and serves as a substrate for growth of certain beneficial intestinal microbes.
Examples include fructooligosaccharides and inulin, a soluble dietary fiber. Probiotic health
claims are natural defenses, immune function, digestive health, intestinal transit, gut
integrity and balanced micro biota during antibiotic treatment.
The addition of probiotics to their diet may reduce the occurrence of low-level
inflammatory processes in an older population. Prebiotic products are currently being
added to finished products such as bread, chocolate, yogurt and dietary supplements.
Probiotics have proven successful in combating lifestyle-related disorders and
degenerative diseases such as stress, food intolerance, type 2 diabetes, obesity, kidney
failure, and oral and skin health disorders.
TABLE 32
CAGR%
Region 2015 2016 2021 2016–2021
North America 6.7 7.2 11.5 9.8
Europe 10.3 11.1 17.9 10.0
Asia-Pacific 8.3 8.9 14.2 9.8
South America 3.2 3.4 5.4 9.7
Total 28.5 30.6 49.0 9.9
In 2015, the global probiotics market was dominated by Europe and Asia-Pacific, with
estimated 36.1% and 29.1% shares, respectively. The European probiotics market was
estimated to be $10.3 billion in 2015 and is expected to reach $17.9 billion by 2021,
growing at a CAGR of 10.0% from 2016 to 2021 due to rising concern regarding fitness
and resultant high awareness of nutraceuticals, which makes for wide acceptance of
probiotic products among European consumers. An appreciable amount of probiotic
products and product extensions are currently being introduced in Europe.
Asia-Pacific’s probiotics market was estimated to be $8.3 billion in 2015 and is expected to
reach $14.2 billion by 2021, growing at a CAGR of 9.8% from 2016 to 2021. The North
American probiotics market was estimated to be $6.7 billion in 2015 and is expected to
reach $11.5 billion by 2021. North America is the third- largest market for probiotics but is
expected to grow closely in line with Europe at a CAGR of 9.8% due to the fact that more
than 70 million North American adults suffer from digestive problems caused by poor
consumption habits, high usage of additives for processing food and a high rate of
antibiotic intake.
TABLE 33
CAGR%
Product Type 2015 2016 2021 2016–2021
Beverages and supplements 18.3 19.6 31.9 10.2
Food 10.2 11.0 17.1 9.2
Total 28.5 30.6 49.0 9.9
Beverages and supplements dominate the global nutraceutical probiotics market with a
share of 64.2% in 2015. The probiotics-based nutraceutical beverages and supplements
market was estimated to be $18.3 billion in 2015 and is expected to reach $31.9 billion by
2021, growing at a CAGR of 10.2% from 2016 to 2021. Availability of probiotics in both
supplements and functional foods such as yogurts and other dairy products has increased.
TABLE 34
CAGR%
Product 2015 2016 2021 2016–2021
Frozen desserts 4.4 4.8 7.5 9.3
Confectionery 3.5 3.7 6.0 10.2
Bakery 0.8 0.9 1.3 7.6
Cheese 0.8 0.9 1.3 7.6
Meat 0.4 0.4 0.6 8.4
Frozen fruits and vegetables 0.3 0.3 0.4 5.9
Total 10.2 11.0 17.1 9.2
Frozen desserts accounted for the largest share of the overall nutraceutical probiotics food
market with a 43.1% share, worth $4.4 billion in 2015, and is expected to reach $7.5
billion in 2021, growing at a CAGR of 9.3% from 2016 to 2021. Confectionery commanded
the second-largest market share with 34.3% of the overall nutraceutical probiotics food
market in 2015 at $3.5 billion, which is expected to reach $6.0 billion in 2021, growing at a
CAGR of 10.2% from 2016 to 2021.
challenging due to the inability of probiotic strains to survive under difficult technological
and gastrointestinal conditions. Once the ability to alleviate this is achieved, probiotic
applications can be extended into nondairy products.
Drinkable probiotic yogurts are a key product for the probiotic market. Fermented dairy
products fortified with probiotics are very popular in Europe. Probiotic food applications
are also gradually finding uses in other food categories, such as fruit juices, soups,
chocolate and soy- and cereal-based products. Probiotic juices are expected to gain
popularity as a beverage alternative for the health conscious. Kraft introduced the first
cheese products with probiotics, Kraft LiveActive, in the Canadian market. Other
companies’ probiotics are shown in the below table.
TABLE 35
FIBER
Fiber is edible matter obtained from plants. The small intestine does not absorb fiber and
allows it to pass through to the large intestine. Once there, soluble fiber such as
beta-glucan from oats and barley, inulin and polysaccharides is fermented. This
fermentation helps to slow blood glucose absorption and has a prebiotic effect (stimulates
probiotic bacteria in the gut). Insoluble fiber is excreted intact, providing fecal bulking and
helping to regulate bowel function and prevent constipation. In addition to soluble and
insoluble fibers, a third type of fiber is resistant starch.
Several major food and beverage companies have incorporated fiber into their products.
PepsiCo added a fiber product to its Tropicana Pure Premium Essentials orange juice,
becoming the first U.S. brand to do so. ADM’s FibreSol-2, a fiber product, is used in
Dannon’s prebiotic yogurt. Cargill manufactures Barliv from barley beta-glucan that can be
added to beverages, snacks and cereals.
TABLE 36
CAGR%
Region 2015 2016 2021 2016–2021
North America 6.9 7.4 11.4 9.0
Europe 5.6 6.0 8.4 7.0
Asia-Pacific 5.1 5.5 8.2 8.3
South America 1.3 1.4 1.9 6.3
Total 18.9 20.3 29.9 8.1
In 2015, the global fiber market was dominated by North America and Europe, with
estimated 36.5% and 29.6% shares, respectively. The North American fiber market was
estimated to be $6.9 billion in 2015 and is expected to reach $11.4 billion by 2021,
growing at a CAGR of 9.0% from 2016 to 2021 due to increased consumption of dietary
supplements by consumers in an effort to avoid health issues such as obesity, diabetes
and cardiac disorders.
The European fiber market was estimated to be $5.6 billion in 2015 and is expected to
reach $8.4 billion by 2021, growing at a CAGR of 7.0% from 2016 to 2021. Asia-Pacific’s
fiber market was estimated to be $5.1 billion in 2015 and is expected to reach $8.2 billion
by 2021, growing at a CAGR of 8.3% from 2016 to 2021. Asia-Pacific has plenty of raw
material and resources for dietary fiber production, especially in India, China and Australia.
These countries have tremendous amounts of agricultural production of high-fiber-content
plants and oilseeds that are a primary source of raw material for fiber ingredients.
TABLE 37
CAGR%
Type 2015 2016 2021 2016–2021
Food 15.5 16.6 25.6 9.1
Beverages and supplements 3.4 3.7 4.3 3.1
Total 18.9 20.3 29.9 8.1
Foods dominate the global nutraceutical fiber market with 82.0% of share in 2015. The
fiber-based nutraceutical food market was estimated to be $15.5 billion in 2015 and is
expected to reach $25.6 billion by 2021, growing at a CAGR of 9.1% from 2016 to 2021.
TABLE 38
CAGR%
Product 2015 2016 2021 2016–2021
Bakery 6.3 6.8 10.5 9.1
Snacks 5.6 6.0 9.2 8.9
Grain and flour 1.3 1.4 2.4 11.4
Confectionery 1.1 1.2 1.8 8.4
Meat 0.5 0.5 0.8 9.9
Cheese 0.3 0.3 0.4 5.9
Frozen fruits and vegetables 0.4 0.4 0.5 4.6
Total 15.5 16.6 25.6 9.1
Bakery accounted for the largest share of the overall nutraceutical fiber food market with
a 40.6% share, worth $6.3 billion in 2015, and is expected to reach nearly $10.5 billion in
2021, growing at a CAGR of 9.1% from 2016 to 2021. Snacks commanded the
second-largest market share with 36.1% of the overall nutraceutical fiber food market in
2015 at $5.6 billion, and the market is expected to reach $9.2 billion in 2021, growing at a
CAGR of 8.9% from 2016 to 2021.
WHOLE GRAINS
Whole grains are found in whole wheat, oatmeal, popcorn and brown rice and consist of
starchy endosperm, fiber-rich bran and inner micronutrient-rich germ. Whole grains have
high levels of fiber and also provide vitamins, minerals and antioxidants. The U.S.
government recommended increased whole grain consumption in 2005, providing a boost
to whole grain products. This development prompted major food manufacturers like
General Mills, Nestle, Sara Lee and Kellogg to include whole grains in various product
offerings. The European Commission also recommended an increase in whole grain
consumption, giving a boost to the whole grain market in Europe.
The multifaceted health benefits of whole grains, such as digestive health, weight loss,
heart health and cancer prevention, are gaining recognition, according to the Natural
Marketing Institute (NMI). The following is a selected list of products from some of the
major companies that are active in this segment.
TABLE 39
TABLE 40
HIGH-FIBER FOOD
High-fiber food has a relatively lower glycemic index (GI), which helps diabetes patients
achieve better weight management, maintain lower postprandial glucose and improve
their overall lipid profile. The best evidence of the clinical efficacy for the GI is available
through studies of diabetic patients in whom low-GI foods have consistently shown
beneficial effects on blood glucose control in both the short term and the long term.
BETA-GLUCAN
Barley beta-glucan is a soluble fiber (nonstarch polysaccharide) found naturally in the cell
walls of barley that is perceived to have multiple health benefits. There is significant
market opportunity for beta-glucan as a value-added ingredient, given that approximately
27 million tons of oats are produced annually worldwide. A beta-glucan ingredient
researched by New Zealand firm GraceLinc is used in a range of bread and brioches by
Italy’s Barilla.
OMEGA-3
Omega-3 acids are a group of polyunsaturated fatty acids, and their importance is
underscored by the fact that the human body cannot naturally synthesize them. Omega-3
fatty acids are found in plants like flax, canola, walnuts and hemp, and in fish, particularly
ocean fish such as sardines, anchovies, salmon and mackerel. Plants contain omega-3
fatty acids, which include alpha-linolenic acid (ALA), eicosapentaenoic acid (EPA) and
docosahexaenoic acid (DHA). DHA/EPA led the market with more than 70.0% market share,
followed by ALA. A number of dairy beverages containing omega-3 fatty acids from plant
and marine sources have been launched in the U.S., Canada, Europe and Australia. BASF
(Germany), Nissui (Japan) and Wuxi Xunda (China) are major players in global omega-3
fatty acids market.
The omega-3 fatty acids market was initially restricted, primarily due to insufficient
awareness of the “good fat” concept among consumers. Consumers are now becoming
more educated on the benefits, which include defense against several conditions including
hypertension, hyperlipidemia, CVD diseases, depression and dementia. The instability in
the formulation of omega-3 is inhibiting the growth of omega-3 products into the
mainstream marketplace. In addition, multiple servings or doses may be necessary to
achieve an effective dose. However, the market for omega-3 is expected to grow as it is
successfully integrated into beverages, including juices and milk. This does not include the
market for food in which omega-3 occurs naturally, such as flaxseed, salmon, walnuts,
canola oil and cranberry seeds.
TABLE 41
CAGR%
Region 2015 2016 2021 2016–2021
North America 4.8 5.1 7.2 7.1
Europe 6.0 6.5 9.5 7.9
Asia-Pacific 5.4 5.8 8.3 7.4
South America 1.2 1.3 1.5 2.9
Total 17.4 18.7 26.5 7.2
The global omega-3 market was estimated to be $17.4 billion in 2015 and is expected to
reach $26.5 billion by 2021, growing at a CAGR of 7.2% from 2016 to 2021.
In 2015, the global omega-3 market was dominated by Europe and Asia-Pacific, with
estimated 34.5% and 31.0% shares, respectively. Omega-3 is the most consumed
ingredient as compared with fiber because of its wide-ranging applications in food,
pharmaceuticals and dietary supplements. Various health concerns such as obesity,
cardiac failure and neural disorders are driving the consumers toward nutraceuticals that
contain omega-3 fatty acids as a main ingredient.
The European omega-3 market was estimated to be $6.0 billion in 2015 and is expected to
reach $9.5 billion by 2021, growing at a CAGR of 7.9% from 2016 to 2021. Consumers are
ready to spend premium amounts for quality nutraceutical products, which drive demand
for omega-3 fatty acids in Europe. Asia-Pacific’s market for omega-3 was estimated to be
$5.4 billion in 2015 and is expected to reach $8.3 billion by 2021, growing at a CAGR of
7.4% from 2016 to 2021. There is an increasing number of cardiac disorders due to
unhealthy food habits owing to changing lifestyles of the people in the Asia-Pacific region.
Omega-3 fatty acids control the cholesterol, which is raising demand for them in the
Asia-Pacific region.
The North American omega-3 market was estimated to be $4.8 billion in 2015 and is
expected to reach $7.2 billion by 2021, growing at a CAGR of 7.1% from 2016 to 2021.
Supplements are the largest application segment that drives North America’s omega-3
market.
TABLE 42
CAGR%
Type 2015 2016 2021 2016–2021
Food 8.7 9.4 12.8 6.4
Beverages and supplements 8.7 9.3 13.7 8.1
Total 17.4 18.7 26.5 7.2
In 2015, Beverages and supplements had a 50% share in the global nutraceutical omega-3
market.. The omega-3 based nutraceutical beverages and supplements market was
estimated to be $8.7 billion in 2015 and is expected to reach $13.7 billion by 2021,
growing at a CAGR of 8.1% from 2016 to 2021.
Companies in the food and beverages sector have successfully introduced omega-3
fortified products into the mass market. Of the total omega-3 based products in the
market, 50.0% are sold in supermarkets in the U.S. Several supplements manufacturers
are seeing in the area of 31.0% annual growth in their sales as people have become
conscious of the benefits of omega-3.
Various companies have launched or are launching omega-3 products in different market:
Pepsi-owned Tropicana launched orange juice with omega-3 in the U.S. market. Coca-Cola
introduced omega-3 rich orange, mango and passion fruit juice blends in Canada under its
Minute Maid Fruit Solutions brand. Dean Foods (White Wave) has come out with omega-3
rich Silk Plus to extend its brand. Major dairies such as Dannon, Muller and
FrieslandCampina are seeing increased sales of omega-3 fortified yogurts and other dairy
products. General Mills has added DHA to its Yoplait Kids product line in the U.S.
TABLE 43
CAGR%
Product 2015 2016 2021 2016–2021
Confectionery 3.0 3.2 4.7 8.0
Snacks 2.5 2.6 3.6 6.7
Bakery 1.4 1.5 1.8 3.7
Meat 1.3 1.4 1.8 5.2
Frozen desserts 0.4 0.4 0.5 4.6
Cheese 0.1 0.3 0.4 5.9
Total 8.7 9.4 12.8 6.4
Confectionery accounted for the largest share of the overall nutraceutical omega-3 food
market with a 34.5% share worth $3.0 billion in 2015 and is expected to reach $4.7 billion
in 2021, growing at a CAGR of 8.0% from 2016 to 2021. Snacks commanded the
second-largest market share with 28.7% of the overall nutraceutical omega-3 food market
in 2015 at $2.5 billion and the category is expected to reach $3.6 billion in 2021, growing
at a CAGR of 6.7% from 2016 to 2021. The cheese market is the lowest in terms of value.
There has been a significant consumer movement in recent years to remove trans fats
from foods. Dairy ingredients group Land O’Lakes, vegetable oil producer Bunge, DuPont’s
Pioneer Hi-Bred subsidiary and the U.S.-based Asoyia are supplying omega-3 ingredients
to food manufacturers to help them remove trans fats from their formulations. McDonald’s
now uses a blend of canola, corn and soybean oils to cook fries and other products in an
effort to minimize trans fats.
Flax is a cheaper vegetarian source of omega-3 and is found in the ALA form, which
converts to EPA and DHA in the human body. Flax is gaining in recognition, and companies
are now developing innovative products to efficiently combine it with fish oils, which are a
more efficient source of omega-3s. A better source of vegetarian omega-3 is the algae
that are grown outside the ocean. One of the main advantages of using this source of
omega-3 is that its formulations eliminate the challenges inherent in combining fish and
flax oils. The other main vegetarian source of omega-3 is Croda (Seatons) vegetable oil.
Canada-based Ocean Nutrition Canada, U.S.-based Martek Biosciences and Cargill are
prominent companies manufacturing omega-3 products.
TABLE 44
All proteins are comprised of 20 naturally occurring amino acids, nine of which are
absolutely essential for the human body. These nutraceutical products are used in the
weight and sports/energy sector, which has been a major growth driver for the
nutraceutical industry. Proteins are essential for muscle tissue, and the ingredient can also
help promote satiety and thus control weight. Proteins are also versatile and can be
delivered in foods, powders, beverages and gels.
The sport and weight management categories continue to lead the growth in protein
product sales as consumers seek to add or maintain weight and muscle mass. More
products targeting the weight management market are combining fiber and protein, based
on the ability of protein to promote satiety. Nearly one-third of weight management
products are manufactured with a combination of fiber and protein, though certain
products have only high-protein or high-fiber ingredients.
There is a growing market demand for a complete sports drink with a combination of
carbohydrates and protein to promote sports performance along with muscle recovery and
regeneration. Sports drinks typically rely heavily on protein, and this ingredient has driven
significant growth in this market. Manufacturers are seeking novel ways to approach the
market. DSM Food Specialties manufactures PeptoPro protein hydrolysate with protein in
the form of peptides that are connected amino acids that are easily absorbed by the
human body. Ireland-based Glanbia Nutritionals manufactures the citrus-flavored recovery
drink Provon Revive, popular in the hybrid carbohydrate and protein sports drinks market.
TABLE 45
CAGR%
Region 2015 2016 2021 2016–2021
North America 5.7 6.1 8.7 7.4
Europe 5.0 5.3 7.5 7.2
Asia-Pacific 4.4 4.7 6.8 7.7
South America 0.6 0.8 0.9 2.4
Total 15.7 16.9 23.9 7.2
The global protein and peptides market was estimated to be $15.7 billion in 2015 and is
expected to reach $23.9 billion by 2021, growing at a CAGR of 7.2% from 2016 to 2021. In
2015, the global protein and peptides market was dominated by North America and
Europe, with estimated 36.3% and 31.8% shares, respectively. The North American protein
and peptides market was estimated to be $5.7 billion in 2015 and is expected to reach
$8.7 billion by 2021, growing at a CAGR of 7.4% from 2016 to 2021.
The European protein and peptides market was estimated to be $5.0 billion in 2015 and is
expected to reach nearly $7.5 billion by 2021, growing at a CAGR of 7.2% from 2016 to
2021. The Asia-Pacific protein and peptide market was estimated to be $4.4 billion in 2015
and is expected to reach $6.8 billion by 2021, growing at a CAGR of 7.7% from 2016 to
2021.
TABLE 46
CAGR%
Type 2015 2016 2021 2016–2021
Food 14.1 15.2 21.2 6.9
Beverages and supplements 1.6 1.7 2.7 9.7
Total 15.7 16.9 23.9 7.2
Foods dominate the global nutraceutical protein and peptide market with 89.8% of share
in 2015. The protein- and peptide-based nutraceutical food market was estimated to be
$14.1 billion in 2015 and is expected to reach nearly $21.2 billion by 2021, growing at a
CAGR of 6.9% from 2016 to 2021. Despite beverages and supplements’ second position in
the protein and peptide market, it will grow faster than the foods market in the coming
years with a CAGR of 9.7%.
TABLE 47
CAGR%
Type 2015 2016 2021 2016–2021
Confectionery 3.6 3.9 5.5 7.1
Bakery 2.6 2.8 4.0 7.4
Snacks 2.5 2.7 3.8 7.1
Meat 2.4 2.6 3.7 7.3
Frozen desserts 1.9 2.0 2.7 6.2
Cheese 1.1 1.2 1.5 4.6
Total 14.1 15.2 21.2 6.9
Confectionery accounted for the largest share of overall nutraceutical protein and peptide
food market with a 25.5% share worth $3.6 billion in 2015, which is expected to reach
$5.5 billion in 2021, growing at a CAGR of 7.1% from 2016 to 2021. Bakery commanded
the second-largest market share with 18.4% of the overall nutraceutical protein and
peptide food market in 2015 at $2.6 billion and is expected to reach $4.0 billion in 2021,
growing at a CAGR of 7.4% from 2016 to 2021. However, the meat market, which has the
second highest CAGR at 7.3%, is expected to reach $3.7 billion by 2021, accounting for
17.0% of the market in the last year of the forecast. This growth is occurring due to the
fact of more poor countries becoming industrialized as well as to increases in overall meat
demand.
PROTEIN TYPES
The important protein sources are animal proteins, soy and whey. Currently, animal
proteins dominate the market with an estimated market share near 70.0%. A more
health-conscious generation is increasingly favoring healthier plant proteins, which are
safer and cheaper than animal proteins. For example, gelatin is now being replaced by
plant proteins in many products. Soy plant protein is the cheapest and is now being used
along with milk proteins in the manufacturing of dairy products.
Soy Protein
Soy protein derived from plants is the preferred choice of the health-conscious market due
to its perception as being safer than animal protein. The market for soy products is
steadily growing with the U.S. and Canadian markets and becoming prime movers of the
products. Soy products are becoming popular because they are gluten-free and can be
substituted for wheat. More than 3,000 new soy products were introduced in the U.S.
market between 2000 and 2015.
Soy is also making inroads into the health drink market. Soy proteins are more viscous
than dairy products but are not highly soluble. In beverages, use of a soy isolate is more
typical due to the higher protein content. Isolates have 90% protein, concentrates are
around 65% to 70% and flours are in the 50% range. Soy milk is a popular alternative for
consumers seeking dairy-free alternatives. In addition to the original milk flavor, soy milk
comes in vanilla, strawberry, chocolate and eggnog. There are nonfat, low-fat and lite
varieties of several brands on the market, but the fat is mostly unsaturated.
Whey
The protein by-product called whey is gaining in popularity, specifically in the sports sector
due to its high nutritional value and cheaper price point as compared to other ingredients.
Though overall demand is lower, the product has an attractive profit margin. Whey
products include whey protein concentrates (WPC) and whey protein isolates (WPI), which
are used to formulate beverages throughout the world. The products are gaining
popularity in Asia, especially in Japan, as dietary and nutritional supplements in dietary
formulas, sports foods and infant preparations.
As the protein level increases, the functionality of the whey protein also increases.
Inclusion of whey in products gives benefits like heat stability, acid stability, gelatin
functionality and emulsification. Whey is natural and is used by food manufacturers to
replace artificial additives in their products. The whey market in the U.S. is more than
double the next best-selling animal protein, casein.
Whey is comprised of protein, lactose (milk sugar), minerals (calcium, phosphorus and
magnesium) and fat. Whey protein contains alpha-lactalbumin, beta-lactoglobulin, bovine
serum albumin, heavy- and light-chain immunoglobulins (Igs) and protease-peptones.
Whey is now included in juices, beverage mixes, enhanced waters and teas. There is also
evidence that manufacturers will soon add whey to soft drinks. As whey protein is rich in
highly soluble amino acids and whey protein isolates, it lends itself well to drinks in
comparison to other proteins. Whey is now a common ingredient in smoothies, which are
growing in popularity in many markets, including the U.S. The biological components of
whey, including lactoferrin, beta-lactoglobulin, alpha-lactalbumin, glycomacropeptide and
immunoglobulins, have a range of immune-enhancing properties. Whey can act as an
antioxidant, antihypertensive, antitumor, hypolipidemic, antiviral, antibacterial and
chelating agent.
Companies have begun fortifying products such as snacks, cereals, confections, beverages
and meats with whey proteins and other bioactive ingredients to improve nutrition claims
and to make them more attractive to health-conscious consumers. Whey protein is also
used in gels as it helps the controlled release of bioactives. Manufacturers are marketing
whey products as an effective aid for weight loss.
AMINO ACIDS
Amino acids are increasingly replacing proteins since they don’t require being broken
down. To absorb proteins, the body needs to break them down into individual amino acids.
This process can often cause discomfort to the user. As a result, companies are
increasingly focusing on the development and manufacture of products based on amino
acids. The U.S. and Japanese markets are currently seeing rising demand for such
products. Research has shown that athletes have seen improved performances after
including the branched-chain amino acids (BCAAs) leucine, isoleucine and valine in their
dietary program. Some of the leading amino acids companies are Ajinomoto Group,
Glutamate (MSG), Kyowa Hakko, Degussa, ADM, BASF and Adessio.
Other major protein products along with manufacturers and respective ingredients are
shown in the below table.
TABLE 48
Protein
Company Ingredient Product Comment
DSM InsuVital Functional food InsuVital, which was introduced
several months ago in Europe, is
a hydrolyzed protein derived
from casein. DSM is positioning it
as a natural ingredient to help
control blood sugar levels after
meals; the company is tapping
into the pre-diabetic market.
ADM Prolite 100 Cereal products Prolite 100 has been specifically
and developed for improved taste
Prolite 200 and texture in reduced-sugar
applications such as sweet goods,
fillings and desserts. Prolite 200
is better suited to low- sugar
bakery applications, frozen
dough and batter systems, and
reduced egg and dairy products.
NutriSoy Soy products An all-natural, high-quality,
cholesterol-free soy protein
ingredient that contains virtually
every essential amino acid.
SmartBind Bakery products Natural wheat proteins that are
an extension of the Prolite line
and can be used in health and
wellness applications such as
nutrition bars, cereal coatings
and whole-grain baked goods as
well as microwavable bakery
products.
Rice protein Gluten-free breakfast In meat coatings, rice protein can
at cereals, cereal bars, meat enhance the crunchiness after
70% protein coatings, rice and pasta frying.
applications.
AHD Luravida Baked goods, snacks, bars, The cranberry protein powder is
cranberry smoothies, protein blends produced using a patented cold
powder and dietary supplements. extrusion and filtration process of
the seeds of the American
cranberry. No enzymes or
extraction solvents are used in
this process. The new ingredient
contains 23% to 30% protein, 5%
to 20% soluble fiber and 40% to
47% insoluble fiber.
Kerry Group Pea protein, The main use of the pea Companies are relying on
30% to 80% protein is expected to be non-allergen sources of protein.
protein in nutritional bars, which
content, typically contain between
mainly for 8 g and 15 g of protein per
bars. serving.
PHYTOCHEMICALS
All other bioactive ingredients are categorized as phytochemicals with the exclusion of
dietary fiber and prebiotics. The number of identified phytochemicals has increased in the
last decade. Some groups of phytochemicals with significant health potential include
carotenoids, phenolic compounds (flavonoids, phytoestrogens, phenolic acids),
phytosterols and phytostanols, tocotrienols, organosulfur compounds (allium compounds
and glucosinolates) and nondigestible carbohydrates (dietary fiber and prebiotics).
Lycopene, lutein and resveratrol have started to rise in popularity and will be in the next
wave of phytochemicals, after green tea, to gain mainstream recognition. Flavonoids and
carotenoids are just moving beyond the specialty/health food channel, while anthocyanins,
zeaxanthins and polyphenols are firmly entrenched in the health food arena.
Phytochemicals are finally moving into the mainstream market, and interest in
antioxidants is helping the products gain recognition among health-conscious consumers.
TABLE 49
CAGR%
Region 2015 2016 2021 2016–2021
North America 7.4 8.0 9.2 2.8
Europe 6.6 7.0 8.8 4.7
Asia-Pacific 5.7 6.2 7.5 3.9
South America 1.5 1.6 1.9 3.5
Total 21.2 22.8 27.4 3.7
The global phytochemical market was estimated to be $21.2 billion in 2015 and is
expected to reach $27.4 billion by 2021, growing at a CAGR of 3.7% from 2016 to 2021. In
2015, global phytochemical market was dominated by North America and Europe, with
estimated 34.9% and 31.1% shares, respectively. The North American phytochemical
market was estimated to be $7.4 billion in 2015 and is expected to reach $9.2 billion by
2021, growing at a CAGR of 2.8% from 2016 to 2021. The European phytochemical market
was estimated to be $6.6 billion in 2015 and is expected to reach $8.8 billion by 2021,
growing at a CAGR of 4.7% from 2016 to 2021. Asia-Pacific’s phytochemical market was
estimated to be $5.7 billion in 2015 and is expected to reach $7.5 billion by 2021, growing
at a CAGR of 3.9% from 2016 to 2021.
TABLE 50
CAGR%
Type 2015 2016 2021 2016–2021
Food 10.6 11.4 13.5 3.4
Beverages 7.0 7.6 9.6 4.8
Supplements 3.6 3.8 4.3 2.5
Total 21.2 22.8 27.4 3.7
CAGR%
Product 2015 2016 2021 2016–2021
Confectionery 5.1 5.5 6.9 4.6
Bakery 1.6 1.7 1.9 2.2
Frozen desserts 0.9 0.9 1.0 2.1
Snacks 0.8 0.8 0.9 2.4
Cheese 0.6 0.7 0.8 2.7
Frozen fruits and vegetables 0.4 0.5 0.6 3.7
Other 1.2 1.3 1.4 1.5
Total 10.6 11.4 13.5 3.4
Confectionery accounted for the largest share of the overall nutraceutical phytochemical
food market with a 48.1% share worth $5.1 billion in 2015 and is expected to reach $6.9
billion in 2021, growing at a CAGR of 4.6% from 2016 to 2021. Bakery commanded the
second-largest market share with 15.1% of the overall nutraceutical phytochemical food
market in 2015 at $1.6 billion and is expected to reach $1.9 billion in 2021, growing at a
CAGR of 2.2% from 2016 to 2021.
TABLE 52
CAGR%
Product 2015 2016 2021 2016–2021
Noncarbonated drinks 2.4 2.6 3.5 6.1
Dairy drinks 2.2 2.3 2.9 4.7
Frozen juice 1.1 1.2 1.5 4.6
Tea 0.9 1.0 1.1 1.9
Other 0.4 0.5 0.6 3.7
Total 7.0 7.6 9.6 4.8
Noncarbonated drinks accounted for the largest share of the overall nutraceutical
phytochemical beverage market with a 34.3% share worth $2.4 billion in 2015 and are
expected to reach $3.5 billion in 2021, growing at a CAGR of 6.1% from 2016 to 2021.
Although noncarbonated drinks is the largest market in nutraceutical phytochemical
beverages, carbonated cola beverages are losing popularity due to increasing health
conscious among the people.
Dairy drinks commanded the second-largest market share with 31.4% of the overall
nutraceutical phytochemical beverage market in 2015 at $2.2 billion and is expected to
reach $2.9 billion in 2021, growing at a CAGR of 4.7% from 2016 to 2021.
PLANT STEROLS
Plant sterols and plant stanols are called phytosterols. Plant sterols are plant compounds
with chemical structures similar to that of cholesterol, whereas plant stanols exist in more
concentrated form. Rice bran, wheat germ, corn oils and soybeans contain high levels of
sterol.
TABLE 53
Brand
Manu-facturer Name Composition Source Products
ADM CardioAid Sterols, sterol Vegetable oil,
Europe: spreads, yogurt
esters mostly fromdrinks, milk drinks
soybeans U.S.: spreads,
supplements
Japan: oil
Cargill CoroWise Sterols, sterol Vegetable oil U.S.: Minute Maid
esters Premium
Heart Wise Orange Juice;
Rice Dream Heart Wise
Rice Milk; GNC Heart
Advance dietary
supplement; Lifetime
low-fat cheeses
Cognis Vegapure Sterol esters Vegetable oil South America: milk
from rapeseed, Japan, Korea: salad oils,
sunflower, corn, drinks Europe: yogurts,
soybeans spreads, milk
FMI Holdings Reducol Non-GMO sterols, Tall oil pitch U.S.: dietary supplement
Ltd. stanols CholestOff by Nature
Made
Raisio Life Benecol Stanol esters Vegetable oil, Germany, Greece:
Sciences wood oil spreads
Teriaka Diminicol Non-GMO Tall oil Germany, Portugal:
sterols yogurt
drinks Spain, Portugal:
milk drinks Korea: yogurt
drinks
ANTIOXIDANTS
One major trend has been chocolate companies increasing antioxidant levels in their
products. Examples include Hershey’s Natural Flavanol Antioxidant Milk Chocolate in the
U.S. Some juice companies are also introducing “super” juices in various flavor profiles
that boast high levels of antioxidants. According to a Norwegian-U.S. study, “Spending on
antioxidants in health activists’ markets was estimated to be among the highest of all
health-related categories in terms of year-over-year growth.” The most popular product in
the antioxidant segment is currently liquid tea.
Important health products launched by some companies are shown in the below table.
TABLE 54
Due to their unique properties, antioxidants act as cell protectors and can prevent the
occurrence of several diseases, including cancer and heart disease. They also offer
protection from high cholesterol and bring down triglyceride levels. Antioxidants also boost
the immune system and reduce risk of memory loss and dementia in older adults. They
are used in beauty treatments as they improve skin texture, reduce dryness of the skin
and reduce the fine lines that come with age.
TABLE 55
Type Ingredients
Vitamins Vitamins C, B1, B2, B6, B12, folic acid, niacin, biotin, pantothenic
acid, Vitamins A, E, K, D and beta-carotene
PUFA/ specialty lipids DHA/EPA, ARA, GLA, CLA and structured lipids
FOD013F
March 2017
Natraj Pandal
Project Analyst
ISBN: 1-62296-448-9
BCC Research
49 Walnut Park, Building 2
Wellesley, MA 02481 USA
866-285-7215 (toll-free within the USA),
or (+1) 781-489-7301
www.bccresearch.com
info@bccresearch.com
FOD013F - Nutraceuticals: Global Markets
CHAPTER 6
NUTRACEUTICAL MARKET BY APPLICATIONS
The market size for each health application includes both regulated and non regulated
health claims. Weight management includes products for boosting fat-burning/thermo
genesis, inhibiting protein breakdown, suppressing appetite/ boosting satiety (feeling of
fullness), blocking fat absorption and regulating mood.
The heart health market includes products that promote lower cholesterol and blood
pressure (BP) and fight against cardiovascular diseases. Gastrointestinal and digestive
health also considers the gut health market. The general wellness market includes foods
that promote better health outside of the specific categories shown in the following table.
TABLE 56
CAGR%
Application 2015 2016 2021 2016–2021
Sports and energy 61.1 65.6 98.6 8.5
General wellness 28.0 30.2 40.5 6.0
Weight management 26.3 28.2 39.6 7.0
Heart health 25.9 27.8 39.9 7.5
GI and digestive health 22.9 24.6 36.2 8.0
Beauty and aging 11.5 12.3 16.0 5.4
Type 2 diabetes 5.6 6.0 8.8 8.0
Memory and mental health 3.7 4.0 5.4 6.2
Total 185.0 198.7 285.0 7.5
The sports and energy application accounted for the largest share with 33.0% of the
overall nutraceutical market at $61.1 billion in 2015. This application is expected to reach
nearly $98.6 billion in 2021, growing at a CAGR of 8.5% from 2016 to 2021. The general
wellness had the second-largest share of the overall nutraceutical market in 2015 with a
15.1% share, worth $28.0 billion in 2015 and is expected to reach $40.5 billion in 2021,
growing at a CAGR of 6.0% from 2016 to 2021. The weight management had the
third-largest share of the overall nutraceutical market in 2015 with a 14.2% share, worth
$26.3 billion in 2015 and is expected to reach $39.6 billion in 2021, growing at a CAGR of
7.0% from 2016 to 2021.
The heart health application accounted for the fourth-largest share with a 14.0% of the
overall nutraceutical market at $25.9 billion in 2015 and is expected to reach nearly $39.9
billion in 2021, growing at a CAGR of 7.5% from 2016 to 2021 due to an increase in
occurrence of heart disease and a rise in the number of health-conscious consumers. GI
and digestive health, beauty and aging, type 2 diabetes, and memory and mental health
applications together accounted for 23.6% of the global nutraceutical market in 2015.
Sports and energy is one of the fastest growing and most highly specialized niches for the
overall functional foods and beverage market. With a continuing flood of young adults
entering the sports world globally, the sports and energy beverage market is accelerating
to keep pace with demand. The market is dominated by energy drinks, which is one of the
fastest selling categories in mass market retail outlets. Energy sodas and fruit-based
drinks are increasingly in demand, such as Blue Sky’s Blue Energy Soda and Bossa Nova
Beverages’ Amazon rainforest fruit drinks in Guarana Berry and Natural Energy.
Sports and energy drinks are enjoying greater distribution in supermarkets and other mass
retail outlets. Big players are making a foray into this segment after seeing the immense
success of blockbuster drinks like Red Bull. Sports and energy drinks offer the lucrative
combination or premium pricing and mass market appeal. Efforts by heavyweights such as
Pepsi and Coca-Cola in the sport and energy drink sector have not yet achieved great
success in comparison to Red Bull, but the attraction of the opportunity will persuade them
to continue their efforts.
There is great opportunity for innovation in sports and energy products. The diversity of
consumer needs and desires has created more potential for newer formulations of foods
and beverages that target specific lifestyles and specialized niches. Products that uniquely
target a specific need or a particular problem make the consumer purchase decision
easier.
The sports and energy drink market is currently focused predominantly on male
consumers. Some companies, however, are beginning to focus on the lucrative and
untapped market for energy drinks targeted for women. Women are now perceived as
needing more energy for lives that often include careers along with household and other
responsibilities. In addition, an increasing number of females are dedicating themselves to
health and sports activities. These factors make it logical for companies to undertake
product development, marketing and rebranding to appeal to the female segment.
Manufacturers have started positioning their female-oriented products with buzzwords like
“light,” “sugar-free,” “low-carb,” and so forth that have proven effective in marketing
other products to female consumers.
TABLE 57
CAGR%
Region 2015 2016 2021 2016–2021
North America 19.8 21.3 30.9 7.7
Europe 20.0 21.5 32.5 8.6
Asia-Pacific 18.0 19.3 30.4 9.5
South America 3.3 3.5 4.8 6.5
Total 61.1 65.6 98.6 8.5
In 2015, the global sports and energy market was dominated by Europe and North
America, with estimated 32.7% and 32.4% shares, respectively. The European sports and
energy market was estimated to be $20.0 billion in 2015 and is expected to reach $32.5
billion by 2021, growing at a CAGR of 8.6% from 2016 to 2021. U.K., Germany and France
are driving growth for the European sports and energy market.
The North American sports and energy market was estimated to be $19.8 billion in 2015
and is expected to reach nearly $30.9 billion by 2021, growing at a CAGR of 7.7% from
2016 to 2021. The Asia-Pacific sports and energy market was estimated to be $18.0 billion
in 2015 and is expected to reach $30.4 billion by 2021, growing at a CAGR of 9.5% from
2016 to 2021. Consumption of sports and energy drinks is rising in the Asia-Pacific market,
leading to a high rate sales forecast for Japan, China and Vietnam—a CAGR of 11.0% from
2016 to 2021.
There are several functional products for sports and energy in the market that include
sports drinks, confectionery, fruit bars and yogurts. Red Bull is the clear market leader,
and the Austrian product Dark Dog holds a leading position in Chile, Paraguay and France.
The majority of the players in the market, such as Pepsi, Coca-Cola, Dannon and
GlaxoSmithKline, target either the beverage market or the functional food segment. The
Japanese market is dominated by local companies such as Taisho, which has Lipovitan as
its signature brand.
Leading confectionery market companies include Paso Doble, Spice’n’bong and Energesso.
Hot Fuel from Nitrous Express (NX) located in Texas is meant to be mixed with colas and
other beverages and contains ginseng, guarana and fruity sour cherry. Tropical Buzz with
ginseng extract and tropical flavorings, and superfruit booster with blueberry, cranberry,
green tea and l-carnitine, are the leading fruit bars. Isotonic drinks such as Lucozade Sport,
POWERade and Gatorade dominate the U.K. sports beverage market. PepsiCo’s Gatorade
and Aquarius and Coca-Cola’s POWERade are not only consumed in the sports market but
also cross over into the soft drink market.
TABLE 58
GENERAL WELLNESS
Celiac disease is an autoimmune disorder of the small intestine that occurs in genetically
predisposed people of all ages from middle infancy onward. According to the U.S.
Department of Agriculture (USDA), the gluten-free market is expected to reach $6.2 billion
in 2018, as one in 133 consumers suffers from celiac disease. The global gluten-free
market is dominated by North America with 59.2% of share in 2015. The gluten-free
bakery and confectionery is the largest segment in the market with more than 46.3% of
the total gluten-free market in terms of volume, followed by gluten-free snacks with a
20.0% share in 2015. The disorder is also prevalent in Italy where one in 250 people are
affected, with one in 300 people reporting the issue in Ireland. This makes Europe another
key market for gluten-free product offerings.
TABLE 59
CAGR%
Region 2015 2016 2021 2016–2021
North America 12.5 13.5 17.2 5.0
Europe 6.3 6.7 9.8 7.9
Asia-Pacific 6.7 7.2 9.1 4.8
South America 2.5 2.8 4.4 9.5
Total 28.0 30.2 40.5 6.0
In 2015, global general wellness market was dominated by North America and Asia-Pacific,
with estimated 44.6% and 23.9% shares, respectively. The North American general
wellness market was estimated to be $12.5 billion in 2015 and is expected to reach $17.2
billion by 2021, growing at a CAGR of 5.0% from 2016 to 2021.
The Asia-Pacific general wellness market was estimated to be $6.7 billion in 2015 and is
expected to reach $9.1 billion by 2021, growing at a CAGR of 4.8% from 2016 to 2021. The
European general wellness market was estimated to be $6.3 billion in 2015 and is
expected to reach nearly $9.8 billion by 2021, growing at a CAGR of 7.9% from 2016 to
2021.
WEIGHT MANAGEMENT
The North American weight loss market is more than 3.1 times larger than the European
market, and it is expected to reach $23.6 billion by the end of 2021. The staggering
increase in the incidence and degree of obesity in the North American and European
markets has created a huge market opportunity for weight loss products manufacturers.
The market is divided into five categories, depending on the specific mechanism of action:
boosting fat burning/thermo genesis, inhibiting protein breakdown, suppressing
appetite/boosting satiety (feeling of fullness), blocking fat absorption and regulating mood,
which is linked to food consumption.
Snack bars, ice cream, cakes, biscuits, croissants, smoothies, soups, sandwich breads,
sausages and shakes are the most popular products for delivering weight loss benefits.
TABLE 60
CAGR%
Region 2015 2016 2021 2016–2021
North America 15.4 16.5 23.6 7.4
Europe 5.1 5.5 7.3 5.8
Asia-Pacific 5.5 5.9 8.3 7.1
South America 0.3 0.3 0.4 5.9
Total 26.3 28.2 39.6 7.0
In 2015, global weight management market was dominated by North America and
Asia-Pacific, with estimated 58.6% and 20.9% shares, respectively. The North American
weight management market was estimated to be $15.4 billion in 2015 and is expected to
reach $23.6 billion by 2021, growing at a CAGR of 7.4% from 2016 to 2021.
Asia-Pacific’s weight management market was estimated to be $5.5 billion in 2015 and is
expected to reach $8.3 billion by 2021, growing at a CAGR of 7.1% from 2016 to 2021. The
European weight management market was estimated to be $5.1 billion in 2015 and is
expected to reach $7.3 billion by 2021, growing at a CAGR of 5.8% from 2016 to 2021.
FUNCTIONAL BREAKFAST
Despite the fact that the market has several products with GRAS (generally recognized as
safe) status that have proven their health claims of successful weight management to
some degree, it lacks a single product proven to provide 100% results. Safety is another
issue associated with currently available products, and potential side effects of these
weight management solutions are still unclear and feared by the general public.
Consumers tend to experiment with multiple products rather than relying on any single
product in the absence of guaranteed results. Therefore, manufacturers and marketers of
weight management products are focusing on creating a product with proven efficacy that
has potential for blockbuster sales. Functional food manufacturers generally target women,
who have proven to be early adopters of weight management solutions.
SATIETY PRODUCTS
The global satiety products market is a leader within the category, with the U.S.
contributing more than 50.0% of total satiety product sales. Products meant for appetite
suppression include a host of protein derivatives like lactoferrin, whey, colostrum casein
and other such ingredients. Plants such as cactus and green tea are also an ideal source of
ingredients that help regulate lean body mass and boost metabolism. Several protein
friction suppliers offer food and protein supplements specially developed for increased
satiety. Ingredient suppliers and functional food manufacturing companies are so attracted
by the satiety effects of such ingredients that they are investing in production and
marketing efforts. Unilever invested $40.0 million to get sole rights to market the South
African fruit hoodia gordonii, which has enjoyed significant media attention based on its
perceived success in satiety and appetite suppression.
TABLE 61
Probiotic ingredients are gaining increasing popularity in the weight loss market because
they are water-soluble and offer low-calorie and low-sugar profiles. Ingredient
manufacturers are aggressively pursuing research to explore newer functional ingredients
and potential application expansions. Some of the companies’ functional ingredient
categories are shown in the below table.
TABLE 62
Ingredient
Company Category Product Name Ingredient Remarks
Kemin 1. Weight loss Slendesta, Potato extract, The organization
2. Sweetener Welcose and glucose formula operates in 60
3. Food SHIELD. and food countries.
preservatives preservatives.
DSM Calorie intake Fabuless. Dietary lipids coated DSM has partnered
with galactolipids. with larger
companies
to promote this
ingredient.
Bio Serae- 1. Heart NeOpuntia, Cactus lipophilic Available in more
French healthand Cacti-Nea, IDalG, fiber and milk than 150 foods,
diabetes ViNitrox and protein. beverages
2. Weight Osteol. and supplements.
management
3. Bone
supplement
HEART HEALTH
Cardiovascular disease (CVD) is the main killer in Western countries, and the disease is
especially acute in the North America and Europe due to dietary habits. Ingredients
offering a reduction in the risk factors for heart disease are increasingly popular in these
and other markets. According to the American Heart Association, around 80 million
Americans had cardiovascular diseases in 2010. More than half of global heart disease
cases are attributed to high cholesterol levels. Coronary heart disease in the U.S. alone
costs the $108.9 billion each year. CVDs cause over 50% of the deaths in Europe and
account for more than $200 billion in medical costs every year.
In addition to medical treatment and exercise, functional foods containing omega-3s and
vitamin E are gaining popularity as a strategy for disease prevention. These supplements
have become popular among the aging baby boomer generation as a preventive measure
for heart disease. Therefore, inclusion of ingredients such as cholesterol-fighting omega-3s
in functional products targeted to CVD is highly recommended. Fish-, plant- and nut-based
omega-3 oils are gaining popularity not only among heart patients but also among the
general health-conscious public. Naturally fortified products typically utilized include
low-cholesterol soy milk, canola, soy and olive oil enriched with vitamin E and omega-3s,
and fortified nut butters and toppings.
Hypertension is one additional major driver of increasing heart diseases. The Institute of
Medicine (IOM, an American non-profit, non-governmental organization founded in 1970
under the congressional charter of the National Academy of Sciences) estimates that one
in three Americans has high blood pressure, and one in six will die from complications
related to the condition. The number of people suffering from high blood pressure is
increasing not only in America but also in Asia-Pacific countries like Japan and India, where
diets are beginning to incorporate more unhealthy food options. Further, Calpis Co, a
Japanese functional food company, has introduced a milk peptide called AmealPeptide to
control blood pressure.
TABLE 63
CAGR%
Region 2015 2016 2021 2016–2021
North America 12.6 13.5 21.0 9.2
Europe 5.8 6.2 8.2 5.8
Asia-Pacific 6.8 7.3 9.8 6.1
South America 0.7 0.8 0.9 2.4
Total 25.9 27.8 39.9 7.5
In 2015, the global heart health market was dominated by North America and Asia-Pacific,
with estimated 48.6% and 26.3% shares, respectively. The North American heart health
market was estimated to be $12.6 billion in 2015 and is expected to reach $21.0 billion by
2021, growing at a CAGR of 9.2% from 2016 to 2021.
Asia-Pacific’s heart health market was estimated to be $6.8 billion in 2015 and is expected
to reach $9.8 billion by 2021, growing at a CAGR of 6.1% from 2016 to 2021. The
European heart health market was estimated to be $5.8 billion in 2015 and is expected to
reach $8.2 billion by 2021, growing at a CAGR of 5.8% from 2016 to 2021.
Functional food manufacturers have focused on omega-3s, whole grains and antioxidants
to formulate specialty health supplements targeting the heart health market. They are
planning to develop newer foods and beverage products enriched with these ingredients
to garner additional attention and purchases from consumers becoming more aware of the
dangers of heart disease. Phytochemicals including flavonoids and plant sterols, high fiber
and soy are the major ingredients for cholesterol reduction. Protein and peptides are the
major ingredients for blood pressure (BP) reduction. Omega-3s, antioxidants and reduced
sodium intake, vitamins E and D and Coenzyme Q10 are the major ingredients for
products aimed at contending with CVD disease.
TABLE 64
Apart from weight management, the digestive health, GI (gastrointestinal tract) and
immune system supplement market has emerged as the second best growth opportunity
for functional food companies. The National Digestive Diseases Information Clearinghouse
(NDDIC) estimates that 50 million to 70 million people in the U.S. suffered from digestive
problems in 2015. Fifty million suffer from heartburn; 15 million from irritable bowel
syndrome; and around 15 million from stomach ulcers.
TABLE 65
CAGR%
Region 2015 2016 2021 2016–2021
North America 5.6 6.0 8.7 7.7
Europe 5.2 5.5 7.6 6.7
Asia-Pacific 10.6 11.3 17.7 9.4
South America 1.5 1.8 2.2 4.1
Total 22.9 24.6 36.2 8.0
In 2015, the global GI and digestive health market was dominated by Asia-Pacific and
North America, with estimated 46.3% and 24.5% shares, respectively. Asia-Pacific’s GI and
digestive health was estimated to be $10.6 billion in 2015 and is expected to reach $17.7
billion by 2021, growing at a CAGR of 9.4% from 2016 to 2021.
The North American GI and digestive health market was estimated to be $5.6 billion in
2015 and is expected to reach $8.7 billion by 2021, growing at a CAGR of 7.7% from 2016
to 2021. The European GI and digestive health market was estimated to be $5.2 billion in
2015 and is expected to reach nearly $7.6 billion by 2021, growing at a CAGR of 6.7%
from 2016 to 2021.
In Japan, more than 70.0% of sales for FOSHU products and almost 30.0% of sales of
non-FOSHU products are related to GI health. Probiotic products comprise the largest
segment of the functional food market for digestive health.
TABLE 66
MAJOR GI PRODUCTS
Traditionally, most of the companies that are targeting functional foods for health
applications have expanded their focus to include beauty and anti-aging applications.
“Beauty from within” has emerged as a new trend in the health and cosmetics market,
allowing consumers to affect their appearance based on the foods they consume.
Functional food and cosmetic companies are working together more and more to develop
new functional foods and beverages for beauty and anti-aging applications.
Pioneering this trend, Nestle and L’Oreal jointly formed a new venture called Inneov to
develop and market nutritional supplements with cosmetic applications. As well, Danish
biotechnology firm Fluxome Sciences joined with CP Kelco to develop and commercialize
fermentation-derived resveratrol for the dietary supplement, food, beverage and
cosmetics markets. Coca-Cola established Yokuasa Purun especially for the Asian market
to offer a milk-based beverage fortified with cysteine, hyaluronic acid, ceramide, vitamin C
and biotin. A bedtime drink, the product claims to promote attractive skin with a soft,
velvety feel.
TABLE 67
CAGR%
Region 2015 2016 2021 2016–2021
North America 4.8 5.2 7.1 6.4
Europe 3.4 3.6 3.9 1.6
Asia-Pacific 2.9 3.1 4.5 7.7
South America 0.4 0.4 0.5 4.6
Total 11.5 12.3 16.0 5.4
The global beauty and anti-aging market was estimated to be $11.5 billion in 2015 and is
expected to reach nearly $16.0 billion by 2021, growing at a CAGR of 5.4% from 2014 to
2021. In 2015, global beauty and anti-aging market was dominated by North America and
Europe, with estimated 41.7% and 29.6% shares, respectively.
The North American beauty and anti-aging market was estimated to be $4.8 billion in 2015
and is expected to reach $7.1 billion by 2021, growing at a CAGR of 6.4% from 2016 to
2021. The European beauty and anti-aging market was estimated to be $3.4 billion in
2015 and is expected to reach $3.9 billion by 2021, growing at a CAGR of 1.6% from 2016
to 2021. The Asia-Pacific beauty and anti-aging market was estimated to be $2.9 billion in
2015 and is expected to reach nearly $4.5 billion by 2021, growing at a CAGR of 7.7%
from 2016 to 2021.
Use of bioactive ingredients is increasing in cosmetic products for anti-aging and beauty
applications. However, the foods intended for beauty and anti-aging have yet to claim a
wide market share, and new product introductions have lagged behind those in other
market categories.
The functional FBS market for beauty applications is dominated by aloe vera with 53.0% of
the total market, followed by collagen at 33.0% and coenzyme Q10 at 14.0% in 2015. The
skin care segment dominates the U.S. cosmeceuticals market with more than 64.3% in
2015, followed by hair care with 19.1% and Other category with 16.6%. Skin care products,
which mainly include age-defying products, acne preparation, medicated lotions and sun
protection products, offer the greatest opportunities in this market. Increased awareness
of skin cancer dangers has helped drive growth in the sun protection market.
Lutein is one of the functional ingredients widely used in beauty products. Other
ingredients used by functional food manufacturers for anti-aging and beauty applications
are shown in the following table.
TABLE 68
TABLE 69
TYPE 2 DIABETES
Diabetes increased by one-third during the 1990s due to the growing obesity epidemic
and an aging population. The World Health Organization (WHO) has estimated that the
number of worldwide cases will soon reach more than 300 million, while the number was
only around 30 million two decades ago. The number is predicted to reach 380 million by
2025. According to American Diabetes Association, the number of people with diabetes in
North America and South America are expected to increase by 165.0% from 11 million in
2000 to 29 million in 2050.
Approximately 90% of the total diabetes cases are of the type-2 variety, which experts
believe can be effectively treated. Alzheimer’s, another disease that is increasing in
number, is being referred to as type 3 diabetes. Diabetes also has a massive effect on
health care budgets. The World Diabetes Foundation estimates that an average of 878
international dollars will be spent globally per person on diabetes healthcare. There is also
a vast economic impact from lost worker productivity as well. The EU Diabetes Working
Group has estimated that 8.6% of the European adult population suffers from diabetes.
This figure is projected to increase by 25.0% to 38 million by 2025.
Low-GI (glycemic index) foods help consumers maintain healthier blood sugar levels. Sales
of low-glycemic foods and beverages are expected to exceed the $3 billion mark in next
five years. Low-GI foods and beverages in the U.S. have been growing at a double-digit
annual growth rate with increased consumer awareness of their benefits.
TABLE 70
CAGR%
Region 2015 2016 2021 2016–2021
North America 2.0 2.1 3.1 8.1
Europe 1.3 1.4 1.8 5.2
Asia-Pacific 2.2 2.3 3.6 9.4
South America 0.1 0.2 0.3 8.4
Total 5.6 6.0 8.8 8.0
The global type 2 diabetes market was estimated to be $5.6 billion in 2015 and is
expected to reach $8.8 billion by 2021, growing at a CAGR of 8.0% from 2016 to 2021. In
2015, global type 2 diabetes market were dominated by Asia-Pacific and North America,
with estimated 39.3% and 35.7% shares, respectively.
Asia-Pacific’s type 2 diabetes market was estimated to be $2.2 billion in 2015 and is
expected to reach $3.6 billion by 2021, growing at a CAGR of 9.4% from 2016 to 2021. The
North American type 2 diabetes market was estimated to be $2.0 billion in 2015 and is
expected to reach $3.1 billion by 2021, growing at a CAGR of 8.1% from 2016 to 2021. The
European type 2 diabetes market was estimated to be $1.3 billion in 2015 and is expected
to reach $1.8 billion by 2021, growing at a CAGR of 5.2% from 2016 to 2021.
Presently, snacks, nutritional bars and meal-replacement bars control the low-glycemic
food and beverage market with an estimated 60% share. Beverages come in second with
approximately 30%. The remainder of the market is fragmented, with cookies proving to
be a significant category. Candies, frozen desserts and table sweeteners, making up a
“sweets” category, help round out the market. Because of the somewhat complex nature
and relatively low consumer understanding of phrases like “glycemic index” or “glycemic
response,” companies often avoid incorporating such phrases in their packaging. Sufficient
quantities of high-maize whole grain corn flour and Nutriose soluble fiber help in
controlling the blood sugar level.
A wide array of key bioactive ingredients have proven effective in combating diabetes,
including alpha-lipoic acid, bitter melon (Momordica charantia), cinnamon, hydroxycitric
acid (HCA), chromium, Maitake mushrooms, biotin; trace minerals selenium, zinc and
vanadium; fiber, fenugreek, resistant starch; beta-glucan, salba, tea, coffee, wine and
pomegranate.
Top-selling low-glycemic products includes Emmi’s Evolus, Gullon Maria Biscuits, Slim
Slammers, Dannon’s Danaten, Ab Kultura, FIFTY 50 food brands, Nom Mix diet, Yoplait
yogurt, Boost Diabetic, Glucerna Shakes, Diasense Multivitamin, Wellion Zimt Plus, Insulow,
Diabetes Formula and Nature Made’s Diabetes Health Pack.
More than 50% of new product development in mental health is being targeted at infants
and children. The different health claims made for the mental health category are mainly
in terms of “DHA supporting brain and eye development.” The market for mental health
supplements targeting the elderly is also growing due to an aging population and
increased fear of conditions such as Alzheimer’s disease that affect older consumers.
TABLE 71
CAGR%
Region 2015 2016 2021 2016–2021
North America 1.2 1.3 1.7 5.5
Europe 1.0 1.1 1.5 6.4
Asia-Pacific 1.1 1.2 1.7 7.2
South America 0.4 0.4 0.5 4.6
Total 3.7 4.0 5.4 6.2
The global memory and mental health market was estimated to be $3.7 billion in 2015 and
is expected to reach $5.4 billion by 2021, growing at a CAGR of 6.2% from 2016 to 2021.
In 2015, the global memory and mental health market were dominated by North America
and Asia-Pacific, with estimated 32.4% and 29.7%, respectively.
The North American memory and mental health market was estimated to be $1.2 billion in
2015 and is expected to reach $1.7 billion by 2021, growing at a CAGR of 5.5% from 2016
to 2021. Asia-Pacific’s memory and mental health market was estimated to be $1.1 billion
in 2015 and is expected to reach $1.7 billion by 2021, growing at a CAGR of 7.2% from
2016 to 2021. The European memory and mental health market was estimated to be $1.0
billion in 2015 and is expected to reach $1.5 billion by 2021, growing at a CAGR of 6.4%
from 2016 to 2021.
The most popular memory product includes DHA (brain, eye development), Horizon
Organic milk, Yoplait Kids, Asturiana natural milk, Nutrisoda, GABA and superbitter GABA.
Another nutritional supplement suggested to improve memory is lecithin-derived
phospholipids. The worldwide leader in lecithin products, Lucas Meyer Group (Germany),
was acquired by international chemical firm SKW and incorporated into its bioactives unit.
Other nutritional ingredients that have been shown to aid memory are huperzine,
vinpocetine, phosphatidylserine (PS), centella asiatica, panax ginseng and ginkgo biloba.
FOD013F
March 2017
Natraj Pandal
Project Analyst
ISBN: 1-62296-448-9
BCC Research
49 Walnut Park, Building 2
Wellesley, MA 02481 USA
866-285-7215 (toll-free within the USA),
or (+1) 781-489-7301
www.bccresearch.com
info@bccresearch.com
FOD013F - Nutraceuticals: Global Markets
CHAPTER 7
NUTRACEUTICAL MARKET BY REGION
North America and Asia-Pacific are major drivers for growth in the global nutraceutical
market due to the facts of facing an aging population and increasing rates of chronic
diseases such as hypertension and diabetes.
TABLE 72
CAGR%
Region 2015 2016 2021 2016–2021
North America 74.0 79.5 113.7 7.4
Europe 48.1 51.7 72.7 7.1
Asia-Pacific 53.8 57.8 84.9 8.0
South America 9.1 9.7 13.7 7.1
Total 185.0 198.7 285.0 7.5
The global nutraceutical market was estimated to be worth $185 billion in 2015 and is
expected to reach $285 billion by 2020, growing at an estimated compound annual growth
rate (CAGR) of 7.5% from 2016 to 2021. North America and Asia-Pacific led the
nutraceutical market and together accounted for 69.1% of the market in 2015.
North America’s nutraceutical market was estimated to be worth $74 billion in 2015 and is
expected to reach nearly $113.7 billion by 2021, growing at a CAGR of 7.4% from 2016 to
2021. Higher levels of awareness of health, physical fitness and mental well-being are
driving the North American nutraceutical market.
The European nutraceutical market was estimated to be worth nearly $48.1 billion in 2015
and is expected to reach $72.7 billion by 2021, growing at a CAGR of 7.1% from 2016 to
2021. The Asia-Pacific nutraceutical market was estimated to be worth $53.8 billion in
2015 and is expected to reach $84.9 billion by 2021, growing at a CAGR of 8.0% from
2016 to 2021. Developing countries in Asia-Pacific such as China and India are showing
rapidly increasing consumption of functional foods and beverages due to the rising of per
capita income.
FIGURE 2
NORTH AMERICA
The North American nutraceutical market is a matured market that is being replicated by
developing regions such as Asia-Pacific (China, India and Japan). The people in this region
are more conscious about their health, physical fitness and mental well-being, which is the
driving the North American nutraceutical market. The U.S. is has the highest number of
consumers of nutraceutical products with $58.8 billion in 2015, which is expected to reach
$93.2 billion in 2021 and to grow at a CAGR of 8.1% from 2016 to 2021.
TABLE 73
CAGR%
Country 2015 2016 2021 2016–2021
U.S. 58.8 63.2 93.2 8.1
Canada 12.3 13.2 16.6 4.7
Mexico 2.9 3.1 3.9 4.7
Total 74.0 79.5 113.7 7.4
The U.S. market is leading the entire global nutraceutical market; however, the U.S.
market for certain segments, such as probiotics and digestive health, is less mature than
the markets in Asia-Pacific and Europe. Increasing numbers of new product launches
across all segments in the U.S. are due to increasing awareness of the benefits of
functional food and beverages. The U.S. market for dietary supplements is mature and
growing. The strength of the U.S. economy and the buying power of its consumers make
the region extremely attractive for nutraceutical companies.
TABLE 74
CAGR%
Product 2015 2016 2021 2016–2021
Functional food 25.3 27.2 38.8 7.4
Functional beverage 21.0 22.6 32.7 7.7
Dietary supplements 27.7 29.7 42.2 7.3
Total 74.0 79.5 113.7 7.4
Dietary supplements currently dominate the North American nutraceutical market with a
37.4% share. The dietary supplements market was $27.7 billion in 2015 and is expected to
reach $42.2 billion by 2021, growing at a CAGR of 7.3% from 2016 to 2021. The North
American functional food market was $25.3 billion in 2015 and is expected to reach $38.8
billion by 2021, growing at a CAGR of 7.4% from 2016 to 2021. North America’s functional
beverage market held a 28.4% of share in 2015 and is expected to reach $32.7 billion by
2021, growing at a CAGR of 7.7% from 2016 to 2021 due to the increased consumption of
sports drinks and growth in the ready-to-drink segment.
TABLE 75
CAGR%
Product 2015 2016 2021 2016–2021
Confectionery 7.0 7.5 10.8 7.6
Bakery 5.1 5.5 8.1 8.0
Snacks 5.0 5.4 7.6 7.1
Dairy nondrinkable products 4.4 4.7 6.7 7.3
Meat and poultry 1.8 1.9 2.8 8.1
Grain and flour 0.7 0.7 1.1 9.5
Frozen fruits and vegetables 0.3 0.4 0.5 4.6
Other 1.0 1.1 1.2 1.8
Total 25.3 27.2 38.8 7.4
The confectionery segment accounted for the largest share of the overall North American
nutraceutical food market with a 27.7% share worth $7.0 billion in 2015 and is expected to
reach $10.8 billion in 2021, growing at a CAGR of 7.6% from 2016 to 2021. Bakery
commanded the second-largest market share with 20.2% of the overall North American
nutraceutical food market in 2015 at $5.1 billion and is expected to reach $8.1 billion in
2021, growing at a CAGR of 8.0% from 2016 to 2021. The grain and flour segment is
expected to grow from $700 million in 2015 to $1.1 billion in 2021, at an estimated CAGR
of 9.5% from 2016 to 2021.
TABLE 76
CAGR%
Product 2015 2016 2021 2016–2021
Noncarbonated drinks 14.1 15.2 22.2 7.9
Dairy drinks 4.0 4.3 6.5 8.6
Frozen juice 1.1 1.2 1.7 7.2
Tea and coffee 1.0 1.1 1.4 4.9
Other 0.8 0.8 0.9 2.4
Total 21.0 22.6 32.7 7.7
The noncarbonated drinks segment accounted for the largest share of the overall North
American nutraceutical beverage market with a 67.1% share worth $14.1 billion in 2015
and is expected to reach $22.2 billion in 2021, growing at a CAGR of 7.9% from 2016 to
2021. Dairy drinks commanded the second-largest market share with 19.0% of the overall
North America nutraceutical market in 2015 at $4.0 billion and is expected to reach $4.3
billion in 2021, growing at a CAGR of 8.6% from 2016 to 2021. North America’s frozen
juice market segment is expected to increase from $1.1 billion in 2015 to $1.7 billion in
2021, rising at a CAGR of 7.2% from 2016 to 2021. The North American tea and coffee
market is expected to grow from $1.0 billion in 2015 to $1.4 billion in 2021, at an
estimated CAGR of 4.9% from 2016 to 2021.
TABLE 77
CAGR%
Application 2015 2016 2021 2016–2021
Sports and energy 19.8 21.3 30.9 7.7
Weight management 15.4 16.5 23.6 7.4
Heart health 12.6 13.5 21.0 9.2
General wellness 12.6 13.6 17.6 5.3
GI and digestive health 5.6 6 8.7 7.7
Beauty and aging 4.8 5.2 7.1 6.4
Type 2 diabetes 2.0 2.1 3.1 8.1
Memory and mental health 1.2 1.3 1.7 5.5
Total 74.0 79.5 113.7 7.4
The sports and energy application accounted for the largest share with a 26.8% of the
North American nutraceutical market at $19.8 billion in 2015. This application is expected
to reach nearly $30.9 billion in 2021, growing at a CAGR of 7.7% from 2016 to 2021. The
weight management application had the second-largest share of the North American
nutraceutical market in 2015 with a 20.8% share worth $15.4 billion in 2015 and is
expected to reach nearly $23.6 billion in 2021, growing at a CAGR of 7.4% from 2016 to
2021. Due to an increased national focus on exercise as a supplement to healthy diet,
sports and energy is the largest nutraceutical application market in the U.S.
Heart health had the third-largest share of the North American nutraceutical market in
2015 with a 17.0% worth $12.6 billion in 2015 and is expected to reach nearly $21.0
billion in 2021, growing at a CAGR of 9.2% from 2016 to 2021. The general wellness
application accounted for the fourth largest share with a 17.0% of the North American
nutraceutical market at $12.6 billion in 2015 and is expected to reach $17.6 billion in 2021,
growing at a CAGR of 5.3% from 2016 to 2021. Weight management and heart health are
the next largest application markets owing to increased consumer awareness of the
dangers of obesity and CVD.
EUROPE
The European market is a mix of more mature markets among the Western region and
Eastern markets with greater future growth potential. Unlike the U.S. and Japan, Europe
can hardly be considered a single, unified entity with respect to functional foods. There are
various differences in tastes and customs among European countries that make it harder
for manufacturers to introduce true mass market blockbusters, but there are many
country-specific niches that can be exploited.
TABLE 78
CAGR%
Country 2015 2016 2021 2016–2021
France 12.0 12.9 18.9 7.9
Germany 9.9 10.6 14.8 6.9
Spain 6.5 7.0 9.7 6.7
Italy 6.0 6.5 8.9 6.5
U.K 4.3 4.6 6.5 7.2
Other 9.4 10.1 13.9 6.6
Total 48.1 51.7 72.7 7.1
France accounted for the largest share of the overall European nutraceutical market with a
24.9% share worth $12.0 billion in 2015 and is expected to reach $18.9 billion in 2021,
growing at a CAGR of 7.9% from 2016 to 2021. Germany was the second-largest market
share with 20.6% of the overall European nutraceutical market in 2015 at $9.9 billion and
is expected to reach $14.8 billion in 2021, growing at a CAGR of 6.9% from 2016 to 2021.
Spain’s nutraceutical market is expected to increase from $6.5 billion in 2015 to $9.7
billion in 2021, rising at a CAGR of 6.7% from 2016 to 2021. Italy’s nutraceutical market is
expected to grow from $6.0 billion in 2015 to $8.9 billion in 2021, at an estimated CAGR of
6.5% from 2016 to 2021. The U.K. nutraceutical market is expected to grow from $4.3
billion in 2015 to $6.5 billion in 2021, at an estimated CAGR of 7.2% from 2016 to 2021.
TABLE 79
CAGR%
Product 2015 2016 2021 2016–2021
Functional beverage 22.1 23.8 36.0 8.6
Functional food 16.6 17.8 25.1 7.1
Dietary supplements 9.4 10.1 11.6 2.8
Total 48.1 51.7 72.7 7.1
The functional beverage segment currently dominates the European nutraceutical market
with a 45.9% share. The functional beverage market was $22.1 billion in 2015 and is
expected to reach $36.0 billion by 2021, growing at a CAGR of 8.6% from 2016 to 2021.
Europe’s dietary supplements held a 19.5% of share in 2015, worth $9.4 billion and are
expected to reach $11.6 billion by 2021, growing at a CAGR of 2.8% from 2016 to 2021.
The European functional food market was $16.6 billion in 2015 and is expected to reach
$25.1 billion by 2021, growing at a CAGR of 7.1% from 2016 to 2021 due to a much more
restrictive regulatory climate and a lack of harmonization. Moreover, many products have
not become commercially successful, but it is unstable growth just like in the U.S. and
Japanese markets that creates similar expectations for the European nutraceutical market.
Further, consumers in Europe are buying and using a variety of functional food.
TABLE 80
CAGR%
Product 2015 2016 2021 2016–2021
Confectionery 4.3 4.5 6.7 8.3
Bakery 3.6 3.9 5.4 6.7
Snacks 3.1 3.3 4.5 6.4
Dairy nondrinkable products 2.9 3.2 4.3 6.1
Meat 1.1 1.2 1.6 5.9
Grain and flour 0.4 0.4 0.8 14.9
Frozen fruits and vegetables 0.2 0.2 0.3 8.4
Other 1.0 1.1 1.5 6.4
Total 16.6 17.8 25.1 7.1
The confectionery segment accounted for the largest share of the overall European
nutraceutical food market with a 25.9% share worth $4.3 billion in 2015 and is expected to
reach $6.7 billion in 2021, growing at a CAGR of 8.3% from 2016 to 2021. Bakery
commanded the second-largest market share with 21.7% of the overall European
nutraceutical food market in 2015 at $3.6 billion and is expected to reach $5.4 billion in
2021, growing at a CAGR of 6.7% from 2016 to 2021. The grain and flour segment is
expected to grow from $400 million in 2015 to $800 million in 2021, at an estimated CAGR
of 14.9% from 2016 to 2021.
TABLE 81
CAGR%
Product 2015 2016 2021 2016–2021
Noncarbonated drinks 10.9 11.7 18.0 9.0
Dairy drinks 9.1 9.7 14.8 8.8
Frozen juice 1.2 1.3 1.8 6.7
Tea and coffee 0.9 0.9 1.2 5.9
Other 0.0 0.2 0.2 0.0
Total 22.1 23.8 36.0 8.6
The noncarbonated drinks segment accounted for the largest share of the overall
European nutraceutical beverage market with a 49.3% share worth $10.9 billion in 2015
and is expected to reach $18.0 billion in 2021, growing at a CAGR of 9.0% from 2016 to
2021. Dairy drinks commanded the second-largest market share with 41.2% of the overall
European nutraceutical market in 2015 at $9.1 billion and is expected to reach $14.8
billion in 2021, growing at a CAGR of 8.8% from 2016 to 2021. The European frozen juice
market is expected to increase from $1.2 billion in 2015 to $1.8 billion in 2021, rising at a
CAGR of 6.7% from 2016 to 2021. Europe’s tea and coffee market is expected to grow
from $900 million in 2015 to $1.2 billion in 2021, at an estimated CAGR of 5.9% from 2016
to 2021.
TABLE 82
CAGR%
Application 2015 2016 2021 2016–2021
Sports and energy 20.0 21.5 32.5 8.6
General wellness 6.3 6.9 9.9 7.5
Heart health 5.8 6.2 8.2 5.8
GI and digestive health 5.2 5.5 7.6 6.7
Weight management 5.1 5.5 7.3 5.8
Beauty and aging 3.4 3.6 3.9 1.6
Type 2 diabetes 1.3 1.4 1.8 5.2
Memory and mental health 1.0 1.1 1.5 6.4
Total 48.1 51.7 72.7 7.1
The sports and energy application accounted for the largest share with a 41.6% of the
European nutraceutical market at $20.0 billion in 2015. This application is expected to
reach nearly $32.5 billion in 2021, growing at a CAGR of 8.6% from 2016 to 2021. The
general wellness segment had the second-largest share of the European nutraceutical
market in 2015 with a 13.1% share worth nearly $6.3 billion in 2015 and is expected to
reach nearly $9.9 billion in 2021, growing at a CAGR of 7.5% from 2016 to 2021.
The heart health segment had the third-largest share of the European nutraceutical
market in 2015 with a 12.1% share worth $5.8 billion in 2015 and is expected to reach
$8.2 billion in 2021, growing at a CAGR of 5.8% from 2016 to 2021. GI and digestive health
applications accounted for the fourth-largest share with 10.8% of the European
nutraceutical market at $5.2 billion in 2015 and is expected to reach $7.6 billion in 2021,
growing at a CAGR of 6.7% from 2016 to 2021.
ASIA-PACIFIC
Overall, the nutraceutical market has attained maturity in North America and Europe. India,
China and other Southeast Asian countries are considered key growth countries in spite of
their current low per capita spending on nutraceutical products.
The Asia-Pacific region is densely populated with rapidly changing consumer lifestyles and
increasing disposable income among consumers. These facts are driving the Asia-Pacific
nutraceutical market. Increasing consumption levels of nutraceutical products is also
positively affected by growth of the aging population.
Higher socioeconomic classes and upper middle classes consumers are looking for
supplements and functional foods to achieve a nutritional balance. Moreover, these
consumers are interested in energy-boosting products in order to improve their physical
stamina, mental awareness and level of activity—in essence, living consciously. Due to
this trend, many local and international pharmaceutical and fast-moving consumer goods
(FMCG) manufacturers have launched numerous nutraceutical products in the Asia-Pacific
region.
India is one of the largest economies among developing nations to have high purchasing
power parity. The per capita income of individuals has increased over the past decade,
which is resulting in changing lifestyles in India. Further, changing food habits, lack of
physical activity and increasing numbers of people involved in desk jobs has increased,
which contributes to the occurrence of lifestyle diseases. As well, a lack of proper nutrients
in the fast foods and packaged foods many of these workers have turned to is playing a
major role for occurrence of lifestyle diseases such as obesity in India.
TABLE 83
CAGR%
Country 2015 2016 2021 2016–2021
Japan 28.5 30.6 43.3 7.2
China 20.6 22.1 33.1 8.4
India 2.7 2.9 5.9 15.3
Australia 0.3 0.3 0.4 5.9
Other 1.7 1.9 2.2 3.0
Total 53.8 57.8 84.9 8.0
Japan commanded the largest market share with 53.0% of the overall Asia-Pacific
nutraceutical market in 2015. Japan’s nutraceutical market was $28.5 billion in 2015 and is
expected to reach $43.3 billion in 2021, growing at a CAGR of 7.2% from 2016 to 2021 due
to the fact that more than 48.0% of Japan’s population are consuming nutraceuticals in
2015. Japan was the first country to recognize and regulate functional food with a name:
FOSHU, meaning food for specified health uses, in 1980. Since 1988 more than 1,400
functional foods and beverages were launched in Japan, with major ingredients including
oligosaccharides, dietary fiber and calcium.
China commanded the second-largest market share with 38.3% of the overall Asia-Pacific
nutraceutical market in 2015 at $20.6 billion and is expected to reach $33.1 billion in 2021,
growing at a CAGR of 8.4% from 2016 to 2021. China will become largest global producer
and consumer of nutraceutical ingredients by 2020 due to rising consumer incomes and
investment levels in this industry.
India’s nutraceutical market is expected to increase from $2.7 billion in 2015 to $5.9
billion in 2021 with highest growth rate of 15.3% during the same period. Australia’s
nutraceutical market is expected to increase from $300 million in 2015 to $400 million in
2021. Historically, the Indian nutraceutical ingredient market was viewed as an
export-focused industry, but, due to changing market trends, most Indian companies have
started to introduce products in local markets and also to expand their product lines as
determined by consumer needs.
The major brands in the functional food market in Japan are Yakult, Dannon, Aloe Nomu
Yogurt, Bikkle, Maiasa Sokai, One a Night, Yakult 80 Ace, Bifiel and Oligo CC. The main
players among nutraceuticals manufacturers in Japan are Yakult, Dannon, Ajinomoto,
Calpis, Morinaga and Suntory. Yakult is one of the oldest nutraceutical companies in the
world, with recognized brand name for more than seven decades in the market.
TABLE 84
CAGR%
Product 2015 2016 2021 2016–2021
Dietary supplements 20.9 22.5 32.8 7.8
Functional beverage 17.0 18.2 27.0 8.2
Functional food 15.9 17.1 25.1 8.0
Total 53.8 57.8 84.9 8.0
TABLE 85
CAGR%
Product 2015 2016 2021 2016–2021
Confectionery 5.2 5.6 8.5 8.7
Bakery 3.1 3.3 4.8 7.8
Snacks 2.7 3.0 4.3 7.5
Dairy nondrinkable products 2.6 2.8 4.2 8.4
Meat 1.0 1.0 1.5 8.4
Grain and flour 0.4 0.4 0.6 8.4
Frozen fruits and vegetables 0.2 0.2 0.3 8.4
Other 0.7 0.8 0.9 2.4
Total 15.9 17.1 25.1 8.0
The confectionery segment accounted for the largest share of the overall Asia-Pacific
nutraceutical food market with a 32.7% share worth $5.2 billion in 2015 and is expected to
reach $8.5 billion in 2021, growing at a CAGR of 8.7% from 2016 to 2021. Bakery
commanded the second-largest market share with 19.5% of the overall market Asia-Pacific
nutraceutical food market and is expected to grow from $3.1 billion in 2015 and it is
expected to reach $4.8 billion in 2021, growing at a CAGR of 7.8% from 2016 to 2021. The
grain and flour segment in the Asia-Pacific markets is expected to grow from $400 million
in 2015 to $600 million in 2021, at an estimated CAGR of 8.4% from 2016 to 2021.
TABLE 86
CAGR%
Product 2015 2016 2021 2016–2021
Dairy drinks 7.6 8.1 12.1 8.4
Noncarbonated drinks 7.4 8.0 12.0 8.4
Frozen juice 1.3 1.4 1.9 6.3
Tea and coffee 0.6 0.6 0.9 8.4
Other 0.1 0.1 0.1 0.0
Total 17.0 18.2 27.0 8.2
Noncarbonated drinks and dairy drinks together accounted for 88.2% of the Asia- Pacific
nutraceutical beverage market in 2015. The Asia-Pacific noncarbonated drinks market is
expected to increase from $7.4 billion in 2015 to $12.0 billion in 2021, rising at a CAGR of
8.4% from 2016 to 2021. Asia-Pacific’s dairy drinks market is expected to grow from $7.6
billion in 2015 to $12.1 billion in 2021, at an estimated CAGR of 8.4% from 2016 to 2021.
The Asia-Pacific frozen juice market is expected to increase from $1.3 billion in 2015 to
$1.9 billion in 2021, rising at a CAGR of 6.3% from 2016 to 2021. Asia-Pacific’s tea and
coffee market is expected to grow from $600 million in 2015 to $900 million in 2021, at an
estimated CAGR of 8.4% from 2016 to 2021.
TABLE 87
CAGR%
Application 2015 2016 2021 2016–2021
Sports and energy 18.0 19.3 30.4 9.5
GI and digestive health 10.6 11.3 17.7 9.4
Heart health 6.8 7.3 9.8 6.1
General wellness 6.7 7.4 8.9 3.8
Weight management 5.5 5.9 8.3 7.1
Beauty and aging 2.9 3.1 4.5 7.7
Type 2 diabetes 2.2 2.3 3.6 9.4
Memory and mental health 1.1 1.2 1.7 7.2
Total 53.8 57.8 84.9 8.0
The sports and energy application accounted for the largest share with a 33.5% of the
Asia-Pacific nutraceutical market at $18.0 billion in 2015. This application is expected to
reach nearly $30.4 billion in 2021, growing at a CAGR of 9.5% from 2016 to 2021. The GI
and digestive health had the second-largest share of the Asia-Pacific nutraceutical market
in 2015 with a 19.7% share worth $10.6 billion in 2015 and is expected to reach $17.7
billion in 2021, growing at a CAGR of 9.4% from 2016 to 2021.
The heart health application accounted for the fourth-largest share with a 12.6% of the
Asia-Pacific nutraceutical market at $6.8 billion in 2015 and is expected to reach $9.8
billion in 2021, growing at a CAGR of 6.1% from 2016 to 2021. The general wellness
application had the third-largest share of the Asia-Pacific nutraceutical market in 2015
with a 12.5% share worth $6.7 billion in 2015 and is expected to reach $8.9 billion in 2021,
growing at a CAGR of 12.5% from 2016 to 2021.
SOUTH AMERICA
Emerging countries such as Brazil are turning out to be lucrative markets for nutraceutical
manufacturers. The confectionary industry is gaining momentum in South America due to
increasing influences of Western countries.
TABLE 88
CAGR%
Country 2015 2016 2021 2016–2021
Brazil 5.5 5.8 8.4 7.7
Argentina 3.6 3.9 5.3 6.3
Total 9.1 9.7 13.7 7.1
The South America nutraceutical market is expected to grow from $9.1 billion in 2015 to
$13.7 billion in 2021, rising at an estimated CAGR of 7.1% from 2016 to 2021. Brazil’s
nutraceutical market is expected to increase from $5.5 billion in 2015 to $8.4 billion in
2021, rising at a CAGR of 7.7% from 2016 to 2021. Argentina’s nutraceutical market is
expected to grow from $3.6 billion in 2015 to $5.3 billion in 2021, at an estimated CAGR of
6.3% from 2016 to 2021.
FOD013F
March 2017
Natraj Pandal
Project Analyst
ISBN: 1-62296-448-9
BCC Research
49 Walnut Park, Building 2
Wellesley, MA 02481 USA
866-285-7215 (toll-free within the USA),
or (+1) 781-489-7301
www.bccresearch.com
info@bccresearch.com
FOD013F - Nutraceuticals: Global Markets
CHAPTER 8
PATENT EVALUATION
This chapter presents an analysis of nutraceutical patents registered in the U.S., Europe
and Japan from 2011 to 2015. During this period, a total of 687 patents were registered in
the U.S., Europe and Japan combined. The global nutraceuticals market is witnessing rapid
development in terms of new products, innovations and technologies. Major participants in
the nutraceuticals industry, including Nestec S.A., Noevir Co. Ltd. (Japan), Probiotical S.p.a.
(Italy), Sumitomo Chemical Co Ltd. (Japan), KAO Corp. (Japan), Zimmer Inc. (U.S.), Mead
Johnson Nutrition Company (Germany), The IAMS Company (Netherlands), Kracie Home
Products Ltd. (Japan), Master Supplements Inc. (U.S.), Ab-biotics Produccione (Spain) are
expected to increase their research and development efforts to achieve product
innovation and gain a competitive edge. Driven by development and standardization of
nutraceutical regulations, companies are moving toward offering more nutraceutical
products in the market.
TABLE 89
The most patents were registered by Nestec S.A., accounting for 11.9% of overall patents,
followed by Probiotical S.p.a. (Italy) with 2%, Noevir Co Ltd. with 1.5%, Sumitomo Chemical
Co Ltd. with 1.3%, Zimmer Inc. with 1%, KAO Corp. with 1%, and AB-Biotics S.A. (Spain)
with 6% of registered patents from 2011 to 2015. The other major companies had lower
shares of registered patents compared to Nestec S.A., Probiotical S.p.a. and Noevir Co. Ltd.
PATENTS BY COUNTRY/REGION
FIGURE 3
LEGEND
(%)
Region/
Country Percentage
U.S 31.3
Europe 38.0
Japan 30.7
Total 100.0
Europe accounted for the largest share of nutraceutical patents at 38.0% of overall
patents from January 2011 to December 2015. The U.S. accounted for the second largest
share of nutraceutical patents at 31.3% of all patents from January 2011 to December
2015. The fewest patents as compared to the U.S and Europe were registered in Japan,
with a 30.7% share of the total number of patents in these regions.
TABLE 90
Institution/ Patent
Date Patent Holder/Company Title Number
2015 4Life Patents LLC (Sandy, Utah) Nutraceutical gels 9028882
2015 Nitromega Corp. (Pittsburgh, Pa.) Nutraceuticals containing nitro 8933255
fatty acids
2015 GAO SONG Compositions containing enriched 9211298
natural crocin and/or crocetin, and
their therapeutic or
nutraceutical uses
2015 Evonik Röhm GmbH (Darmstadt, Coated pharmaceutical or 9011907
Germany) nutraceutical preparation with
enhanced pulsed active substance
release
2015 SHER JUSTIN Nutraceutical composition for 9149457
PDE4 inhibition, enhanced
dopamine metabolism and long
term potentiation
2015 Auburn University (Auburn, Ala.) Nutraceutical compositions 9168277
produced from co-products of corn
or milo ethanol fermentation and
methods of making and using
thereof
2015 AB-Biotics S.A. (Cerdanyola, Spain) Probiotic composition for oral 9192634
health
2015 Nestec S.A. (Vevey, Switzerland) Extruded non-replicating probiotic 8961952
micro-organisms and their health
benefits
2015 Nestec S.A. (Vevey, Switzerland) Nutritional composition 9034314
comprising probiotics and
improving sleep patterns
2015 Compagnie Gervais Danone (Paris, Probiotic strains for use in 9198940
France) improving the enteric nervous
system
2015 The Board of Trustees of the Methods of selecting and using 9107938
University of Arkansas (Little Rock, therapeutic and prophylactic
Ariz.) probiotic cultures to reduce
The United States of America, as bacterial pathogen loads
Represented by the Secretary of
Agriculture (Washington, D.C.)
2015 Wyeth LLC (N.Y.) Multi-vitamin and mineral 8927012
nutritional supplements
2015 The Board of Trustees of the Process for forming films, fibers, 9096743
University of Alabama (Tuscaloosa, and beads from chitinous biomass
Ala.)
2015 TRB Chemedica International S.A. Ophthalmic compositions based 8957110
(Geneva, Switzerland) on polyunsaturated omega-3 and
omega-6 fatty acids
2015 Omthera Pharmaceuticals Inc. DPA-enriched compositions of 9050309
(Princeton, N.J.) omega-3 polyunsaturated fatty
Chrysalis Pharma AG (Sacheln) acids in free acid form
2014 Nestec S.A. (Vevey, Switzerland) Probiotics, secretory IgA and 9173937
infection
2014 Vita-Herb Nutriceuticals Inc. Probiotic and preservative uses of 8846082
(Placentia, California) oil-emulsified probiotic
encapsulations
2014 Probiohealth LLC (Beverly Hills, Prebiotic and preservative uses of 8758742
Calif.) oil emulsified probiotic
encapsulations
2014 Probiotical S.p.A. (Novara, IT) Composition comprising probiotic 8734783
bacteria for use in the treatment
of immune disorders
2014 I did It Inc (Far Hills, N.J.) Joint preserving nutritional vitamin, 8703174
mineral and herbal pet
supplement
2014 Stillman, Suzanne Jaffe (Los Angeles, Water containing soluble fiber 8663721
Calif.)
2014 T.F.H. Publications Inc. (Neptune City, Pet chew product containing 8875663
N.J.) natural animal fibers, methods of
manufacture and use thereof
2014 Weyerhaeuser NR Company (Federal Catalytic carboxylation of 8641863
Way, Wash.) cellulose fibers in a continuous
process with multiple additions of
catalyst, secondary oxidant and
base to a moving slurry of
cellulose fibers
2014 GP Cellulose GmbH (Zug, Switzerland) Modified cellulose from chemical 8778136
kraft fiber and methods of making
and using the same
2014 Rosedale, Ronald E. (Bellevue, Omega-3 fatty acid nutriceutical 8697676
Wash.) composition and optimization
method
2014 Hill's Pet Nutrition Inc. (Topeka, Kan.) Omega-3 fatty acids for 8633246
osteoarthritis
2014 Perlman Consulting LLC (Arlington, TRB Chemedica International S.A. 8828470
Mass..) (Geneva, CH)
2014 University of Manitoba (Manitoba, Yellow pea seed protein-derived 8815806
Calif.) peptides
2014 HARPER TOM G. Phytoplankton 8658182
based nutraceuticals
2014 Laila Nutraceuticals (Vijayawada, Nutraceutical composition from 8853261
Ind.) Garcinia mangostana
2013 ExxonMobil Research and Method for improving the deposit 8618031
Engineering Company (Annandale, formation resistance performance
N.J.) of turbine oils containing amine
antioxidants
2013 University of Ottawa (Ottawa, Antioxidant producing bacterium 8617870
Ontario, Canada) and uses thereof
2013 Sangart Inc. (San Diego, Calif.) Methods for preparing stable 8609815
deoxygenated PEG-hemoglobin
conjugate solutions comprising an
antioxidant
2013 Nestec S.A. (Switzerland) Complete liquid nutrition for 8603492
children the age of 1-10 years
comprising probiotics
2013 The University of British Columbia AP-ECD methods and apparatus 8598514
(Vancouver, British Columbia, for mass spectrometric analysis of
Canada) peptides and proteins
2013 Polnox Corp. (Lowell, Mass.) Macromolecular antioxidants 8598382
based on sterically hindered
phenols and phosphites
2013 Hill’s Pet Nutrition Inc. (Topeka, Kan.) Antioxidant-containing food 8592478
composition
2013 Premier Micronutrient Corp. Multiple antioxidant 8592392
(Greenwood Village, Colo.) micronutrients
2013 Tegenero AG (Wuerzburg, Germany) Peptide or protein comprising a 8586386
C′-D loop of the CD28 receptor
family
2013 BASF SE (Ludwigshafen, Germany) Encapsulated phenolic 8580876
antioxidants
2013 Albermarle Corp. (Richmond, Va.) Multi-ring antioxidants with 8580718
antiwear properties
2013 Master Supplements Inc. (Victoria, Enzyme and probiotic 8568712
Minn.,) combinations for enhancing
probiotic efficacy
2013 Van Andel Research Institute (Grand Parathyroid hormone peptides and 8563513
Rapids, Mich.,), The General Hospital parathyroid hormone-related
Corp. (Boston, Mass.) protein peptides and methods of
use
2013 Bio-Botanica Inc. (Happauge, NEW Stabilizing and antioxidant 8551540
YORK,) composition containing saw
palmetto berry component and
method of use
2013 Brookhaven Science Associates LLC Facilitating protein solubility by 8535908
(Upton, N.Y.) use of peptide extensions
2013 Premier Research Labs, LP (Austin, Method for producing probiotically 8530209
Texas,) derived compounds
2013 Nestec S.A. (Switzerland.) Probiotics in a pre- and/or post 8529887
surgical environment
2012 Ciba Specialty Chemicals Corp. Aqueous functional fluids with 8329625
(Tarrytown, N.Y.) antioxidants
2012 Trustees of the University of Antioxidant polymer nanocarriers 8329225
Pennsylvania (Philadelphia, Pa.) for use in preventing oxidative
injury
2012 Chakravarthy, Balu (Ottawa, Canada) Amyloid-beta-binding protein and 8323925
its peptide derivatives and uses
thereof
2012 Abbott Cardiovascular Systems Inc. Poly(ester-amide) and poly(amide) 8323676
(Santa Clara, Calif.) coatings for implantable medical
devices for controlled release of a
protein or peptide and a
hydrophobic drug
2012 Alcon Research Ltd. (Fort Worth, Self-preserved aqueous 8323630
Texas) pharmaceutical compositions
2012 Imagilin Technology LLC (Frederick, Effects of probiotics on humans 8318152
Md.) and animals under environmental
or biological changes
2012 Nestec S.A. (Switzerland.) Lactobacillus rhamnosus NCC4007, 8318151
a probiotic mixture and weight
control
2012 The U.S., as represented by the Inhibition of HIV-1 replication by 8318425
Secretary, Department and Human disruption of the processing of the
Services (Washington, D.C.),Myrexis viral capsid-spacer peptide 1
Inc. (Salt Lake City, Utah) protein
2012 Cedars-Sinai Medical Center (Los Antioxidant polymers containing 8318795
Angeles, Calif.) [1,2]-dithiolane moieties and uses
thereof
2012 The Dial Corp. (Scottsdale, Ariz.) Combinations of herb extracts 8313783
having synergistic antioxidant
effect, and methods relating
thereto
2012 Chemtura Corp. (Middlebury, Conn.) Antioxidant additive for biodiesel 8313542
fuels
2012 The Regents of the University of Methods for enhancing bacterial 8293685
California (Oakland, Calif.) cell display of proteins and
peptides
2012 Dyax Corp. (Burlington, Mass.) Methods of constructing libraries 8288322
comprising displayed and/or
expressed members of a diverse
family of peptides, polypeptides or
proteins and the novel libraries
2012 King Fahd University of Petroleum System for electrostatic 8287710
and Minerals (Dhahran, Saudi Arabia) desalination
2012 The Procter & Gamble Company Absorbent structure with 8287999
(Cincinnati, Ohio) improved water-absorbing
material comprising polyurethane,
coalescing aid and antioxidant
2012 Biomedal, S.L. (Sevilla, Spain) Peptide and protein preservation 8283125
method
2011 Amylin Pharmaceuticals Inc. (San Methods and compositions for 8008255
Diego, Calif.) enhanced transmucosal delivery
of peptides and proteins
2011 Isconova AB (Uppsala, Sweden) Vaccine composition comprising a 8007806
fibronectin binding protein or a
fibronectin binding peptide
2011 Xanodyne Pharmaceuticals Inc. Vitamin/mineral composition with 8007853
(Newport, Ky.) DHA
2011 Wyeth (Madison, N.J.) Use of antioxidants to prevent 8007737
oxidation and reduce drug
degradation in drug eluting
medical devices
2011 Proteotech Inc. (Kirkland, Wash.) Small peptides for the treatment 8003612
of Alzheimer's disease and other
beta-amyloid protein disorders
2011 The Procter & Gamble Company Methods of treatment or 7998473
(Cincinnati, Ohio) prevention of gastrointestinal
disorders using canine probiotic
bifidobacterium
2011 Mannatech, Incorporated (Coppell, Antioxidant compositions and 7999003
Texas) methods thereto
2011 Immunomedics Inc. (Morris Plains, Methods and compositions for 7993626
N.J.) F-18 labeling of proteins, peptides
and other molecules
2011 Nestec S.A. (U.S.) Probiotics in primary prevention of 7988960
atopic diseases
2011 Soft Gel Technologies Inc. (Los Natural vitamin E compositions 7989493
Angeles, Calif.) with superior antioxidant potency
2011 ExxonMobil Research and Catalytic antioxidants 7989407
Engineering Company (Annandale,
N.J.)
2011 Gorbach, Sherwood L. (Weston, MA, Food containing a probiotic and an 7981412
US),Goldin, Barry R. (West Newton, isolated beta-glucan and methods
Mass.) of use thereof
2011 The Regents of the University of Method of promoting delivery of 7972601
California (Oakland, Calif.) an antioxidant agent to a cell
expression neuroligin
2011 Bader, Mansour S. (College Station, Methods to treat produced water 7963338
Texas)
2011 Chemtura Corp. (Middlebury, Conn.) Antioxidant additive for biodiesel 7964002
fuels
2011 Universite de Liege (Angleur, Probiotic bifidobacterial species 7959912
Belgium)
2011 Mosaiques Diagnostics and Method and device for the 7955862
Therapeutics AG (Hanover, Del.) qualitative and/or quantitative
determination of a protein and/or
peptide pattern of a fluid sample,
which has been taken from a
human or animal body
2011 Merck Patent GmbH (Darmstadt, Fc-fusion proteins for enhancing 7955590
Germany) the immunogenicity of protein and
peptide antigens
2011 Polnox Corp. (Lowell, Mass.) Macromolecular antioxidants 7956153
based on sterically hindered
phenols and phosphites
2011 Cipla Medpro Research and Probiotic strain and antimicrobial 7951385
Development (Pty) Ltd. (Bellville, peptide derived therefrom
South Africa)
2011 Instituti Fisioterapici Ospitalieri Peptide able to break the 7939624
(Rome, Italy) m-p53/p63, m-p53/p73 and
m-p53/respective isoform proteins
complex formed in the tumor cells
and uses thereof in the
pharmacological field
2011 Imagilin Technologies LLC (Frederick, Probiotics as alternative 7935334
Md.) medicines against infectious
diseases
2011 The Procter & Gamble Company Canine probiotic Lactobacilli 7906112
(Cincinnati, Ohio)
TABLE 91
Institution/
Patent Holder/ Patent
Date Company Title Number
2015 Evonik Röhm GmbH Pharmaceutical or nutraceutical EP2538955
(Kirschenallee 45, 64293 formulation
Darmstadt, Germany)
2015 HAMLET Pharma AB (Lilla Prophylactic and nutraceutical therapy EP2882446
Fiskaregatan 10, 222 22
Lund, Sweden)
2015 Ophthalmopharma AG Nutraceutical chocolate or compound EP2542096
(Bahnhofplatz 5, 6060 chocolate product
Samen, Obwalden)
2015 Universiti, Putra Malaysia Anti-diabetic nutraceutical composition EP2411033
(UPM Serdang, 43400 from palm leaf extract
Selangor Darul Ehsan,
Malaysia)
2015 SC, Teso Spec Srl (Str. Nutraceutic supplement for bees EP2949220
Muncii, Nr. 53 Parter, families and process for its
915200 Fundulea, Jud. administration
Calarasi, Romania)
2014 Nestec S.A. (Switzerland) Probiotics, secretory iga and infection EP2318047 B1
2014 Nestec S.A. (Switzerland) Probiotics, secretory iga and infection EP2700411 A1
2014 Compagnie, Gervais Probiotic strains for use in improving EP2575834
Danone (France) transepithelial resistance B1
2014 Compagnie, Gervais Probiotic strains for use in improving the EP2575837 B1
Danone (France) enteric nervous system
2014 Probiotical S.p.a.(Italy) Method for the preparation of anallergic EP2169050
probiotic bacterial cultures and related B1
use
2014 CARGILL, INCORPORATED Improved dietary fiber containing EP1608236
(U.S.) materials comprising low molecular B1
weight glucan
2014 Weyerhauser NR Company Catalytic carboxylation of cellulose EP2574633 B1
(U.S.) fibers in a continous process with
multiple additions of catalyst, secondary
oxidant and base to a moving slurry of
cellulose fibers
2014 Visiotact Pharma (France) Composition comprising OPC and EP2476425 B1
Omega-3 for preventing and/or
inhibiting the development of diabetic
retinopathy
2014 Heliae Development LLC Methods of and systems for isolating EP2556136 B1
(U.S.) carotenoids and omega-3 rich oils from
algae
2014 Amorphical Ltd.(Israel) Stable amorphous calcium carbonate EP2251018
comprising phosphorylated amino acids, B1
synthetic phosphorylated peptides, and
gastrolith proteins
2014 Université, Bordeaux Selective nox-1 inhibitor peptides and EP2752196
Segalen (France) and uses thereof A1
Inserm (France)
2014 E.I. Du Pont De Nemours Clay-binding peptides and methods of EP1999140
And Company (U.S.) use B1
2014 Laboratorios Ordesa S. A novel strain of bifidobacterium and EP2179028 B1
l.(Spain) active peptides against rotavirus
infections
2013 Pivotal Therapeutics Inc. Statin and omega 3 fatty acids (EPA, EP2675445A1
(Canada) DHA and DPA) for use in cardiovascular
diseases
2013 Pivotal Therapeutics Inc. A formulations comprising omega-3 EP2675444A1
(Canada) fatty acids and an anti obesity agent for
the reduction of body weight in
cardiovascular disease patients (CVD)
and diabetics
2013 Pivotal Therapeutics Inc. Omega-3 fatty acid diagniostic assay for EP2675443A1
(Canada) the dietary management of patients
with cardiovascular disease (CVD)
2012 Chr, Hansen A/S (Denmark) New probiotic bifida bacterium longum EP2318513B1
2012 Biosearch S.A. (Spain) The process for the selection of new EP1565547B2
probiotic strains, to new probiotic
microorganisms of the genus
lactobacillus
2012 BASF Plant Science GmbH Pythium omega-3 desaturase with EP2500420A1
(Germany) specificity to all omega- 6 fatty acids
longer than 18 carbon chains
2012 Otkrytoe, Aktsionernoe Antioxidant additive composition, a EP2500402A1
Obschestvo "Sterlitamaxky solution thereof, and a method for
Neftekhimichesky Zadov" improving the storage stability of
(Russia) biodiesel fuel (variants)
2012 Obschestvo, Pharmaceutical substances on the basis EP2500336A1
Ogranichennoi of mitochondrially addressed
Otvetstvennostyu antioxidants
"Mitotekh" S. (Russia)
2012 Nestec S.A. (Switzerland) Nutritional compositions comprising EP2493336A1
lactoferrin and probiotics and kits of
parts thereof
2012 Wyeth-Pharma GmbH Improved stability in vitamin and EP2491800A1
(Germany) mineral supplements
2012 Instytut, Biochemii Synthetic genes encoding peptide EP2436693A3
Biofizyki Pan I. (Poland) fragments of natural myelin proteins for
induction of oral tolerance, DNA
fragment comprising these genes,
means of obtaining these peptides in a
microbial (bacterial) system and their
medical application
2012 Zimmer Inc. (France) An antioxidant stabilized crosslinked EP2486948A1
ultra-high molecular weight
polyethylene for medical device
applications
2012 Graf, Dr. Frederico Lactic acid bacteria as probiotic strains EP1812023B1
(Switzerland) and compositions containing same
2012 F.Hoffmann-La Roche AG Method of processing protein peptide EP2000935A3
(Switzerland) data and system
2012 Affiris AG (Austria) Vaccines based on peptides of the EP2468295A1
complement protein C5a
2012 Fakulta V, Rybárstvi Feed for common carp and method of EP2462814A2
Ochrany Vod Jihoceská rearing common carp with increased
Univerzita Ceskych a. content of omega 3 fatty acids
(Czech Republic)
2012 Nestec S.A. (Switzerland) Non-replicating probiotic EP2455094A1
micro-organisms protect children
against gastrointestinal infections
2012 Nestec S.A. (Switzerland) Non-replicating probiotic bacteria and EP2455093A1
prevention or treatment of infections in
children
2012 Nestec S.A. (Switzerland) Non-replicating probiotic EP2455092A1
micro-organisms protect against upper
respiratory tract infections
2012 Suomen Punainen, Risti Use of animal cells for screening EP2454594A1
Veripalvelu (Finland) probiotic bacteria strains
2012 Nestec S.A. (Switzerland) Extruded non-replicating probiotic EP2452576A1
micro-organisms and their health
benefits
2012 Nestec S.A. (Switzerland) Array of age-tailored nutritional formula EP2452575A1
with probiotics
2012 INSERM - Institut National Recombinant probiotic bacteria for the EP2451467A1
de la Santé et de la prevention and treatment of
Recherche Médicale inflammatory bowel disease (IBD) and
(France), Institut, Pasteur irritable bowel syndrome (IBS)
(France),Université, Paris
Diderot Paris (France)
2012 Rubin, Israel (47 Sheshet Heat resistant probiotic compositions EP2451300A1
HaYamim Street, 44269 and healthy food comprising them
Kfar Saba, IL), Zimand,
Henri (Israel)
2012 Nestec S.A. (Switzerland) Drinking yoghurt preparations EP2449891A1
containing non-replicating probiotic
micro-organisms
2012 Nestec S.A. (Switzerland) Powdered cereal compositions EP2449890A1
comprising non-replicating probiotic
microorganisms
2012 Nestec S.A. (Switzerland) Rice pudding preparations containing EP2449889A1
probiotic micro-organisms
2012 Nestec S.A. (Switzerland) Pet food preparations containing EP2449887A1
probiotic micro-organisms
2012 Consejo, Superior De Method for identifying peptides and EP2450815A1
Investigaciones Científicas proteins according to mass
(Spain) spectrometry data
2012 Zimmer Inc. (France) Polymers compositions including an EP2395048A3
antioxidant
2012 Nestec S.A. (Switzerland) A suction device with external deposit of EP2441432A1
probiotics
2012 Cornelli, Umberto (Italy) Antioxidant composition for reducing the EP2441450A1
oxidative stress and side effects
ascribable to treatment with
levothyroxine
2012 Nestec S.A. (Switzerland) A nutritional composition comprising EP2438821A1
probiotics and improving sleep patterns
2012 Instytut, Biochemii Synthetic genes encoding peptide EP2436693A2
Biofizyki Pan I. (Poland) fragments of natural myelin proteins for
induction of oral tolerance, DNA
fragment comprising these genes,
means of obtaining these peptides in a
microbial (bacterial) system and their
medical application
2012 Bayer Pharma Medication for oral administration, EP2432474A1
Aktiengesellschaft comprising at least one estrogen and/or
(Germany) at least one gestagen and at least one
probiotic bacterial strain
2012 Bacterfield, OÜ (Estonia) Probiotic oil suspension and use thereof EP2421384A1
2012 Forschungsverbund V, Peptide and protein affinity tag from EP2423217A1
Berlin E. (Germany) mistic protein
2012 AB-Biotics, S.A. (Estonia) Probiotic composition for oral health EP2420580A1
2012 Chemotherapeutisches, Scaffold proteins for recombinant EP2392585A3
Forschungsinstitut peptide aptamers)
Georg-speyer-haus
(Germany)
2012 Dikovskiy, Aleksander Pharmaceutical composition comprising EP2415475A2
Vladimirovich (Russia) a proton pump inhibitor and a prebiotic
for the treatment of ulcerous lesions of
the stomach and duodenum
2012 Chr, Hansen A/S (Denmark) Use of a probiotic to regulate body EP2411027A1
weight
2012 Chr, Hansen A/S (Denmark) Use of probiotics to ameliorate EP2411026A1
diet-induced insulin resistance
2012 The IAMS Company Methods of use of probiotic lactobacilli EP1737477B1
(Netherlands), Alimentary for companion animals
Health Limited (Ireland)
2012 Hero España, S.A. (Spain) Isolation, identification and EP2407532A2
characterisation of strains with probiotic
activity, from faeces of infants fed
exclusively with breast milk
2012 Probiotical S.p.A. (Italy) Oily suspension containing probiotic EP2405894A2
bacteria for paediatric uses
2012 Lesaffre, et Compagnie Stable probiotic granulate, and method EP2405767A1
(France) for preparing same
2012 Lazarev, Mikhail Ivanovich Vitamin/mineral complex EP1360957B1
(Russia)
2012 Statens, Serum Institut Expanding the t cell repertoire to EP2402024A1
(Denmark) include subdominant epitopes by
vaccination with antigens delivered as
protein fragments or peptide cocktails
2012 Statens, Serum Institut Expanding the T cell repertoire to EP2402023A1
(Denmark) include subdominant epitopes by
vaccination with antigens delivered as
protein fragments or peptide cocktails
2011 Nestec S.A. (Switzerland Lactobacillus rhamnosus ncc4007, a EP2396014A1
probiotic mixture and weight control
2011 Histocell S. L. (Spain) Antioxidant composition EP2397125A1
2011 Nestec S.A. (Switzerland) Dispensing container for probiotics EP2394920A1
2011 Oü, Tervisliku Piima Isolated lactobacillus plantarum strain EP2288360B1
Biotehnoloogiate inducia dsm 21379 as probiotic that
Arenduskeskus (Estonia) enhances natural immunity and food
products and medicinal preparations
comprising it
2011 Zimmer Inc. (France) Polymers compositions including an EP2395048A2
antioxidant
2011 Baltadjieva, Maria (Estonia) Probiotic strain lactobacillus delbrueckii EP2076139B1
subsp. Bulgaricus
TABLE 92
Institution/
Patent Holder/
Date Company Title Patent Number
2015 Laboratoires Twirl Bee Compositions containing probiotics and JP2015514720
Pratt and Alexandra bee pollen / clay complex, the use of
Furegonezu (France) the preparation method, and the
compositions in nutrition and
therapeutics
2015 Dee SM IPD Assets Bee. Use of a protein hydrolyzate enriched JP2015524265
buoy.(Switzerland) in tryptophan
2015 Toriaruko Industries Method increased the protease JP2015501661
(Japan) enzymes for digestion rate and
absorption of the protein using the
same
2014 Pfizer Inc. (U.S.) and EDN3-like peptides and their use JP2014513923
The Scripps Research
Institute (U.S.)
2014 Dee SM IPD Assets Bee. Blood pressure lowering peptides in a JP5580273
buoy.(Switzerland) single enzymatic steps
2013 Agilent Technologies Method for mapping peptide onto JP2015257311
Inc. (U.S.) protein by using array data
2013 Probiotical SpA (Italy) Method for preparing anallergic JP2015252141
probiotic bacterial culture and related
use
2013 Kagoshima Univ. (Japan) Method for producing liquefied koji with JP2015252125
enhanced antioxidative activity
2013 Kao Corp. (Japan) Antioxidant JP2015249285
2013 National Taiwan Normal Novel nickel complex, derivative of the JP2015241385
Univ. (Japan) same, method of producing the same
and application to antioxidant
2013 Toyota Motor Corp. Metal surface treatment agent and JP2015237906
(Japan) antioxidant coating
2013 Immunomedics Inc. Method and composition for improved JP2015231059
(Japan) f-18 labeling of protein, peptide and
other molecule
2013 Kobayashi Shigeki (Japan) Method for decontaminating soil and JP2015231678
incineration ash by ionization of
radioactive cesium
2013 Sumitomo Chemical Co. Antioxidant for rubber JP2015231155
Ltd. (Japan)
2013 Kyowa Hakko Bio Co. Antioxidant composition comprising JP2015230987
Ltd. (Japan) oxidized glutathione
2012 Inst Pasteur, Centre Use of proteins and peptides encoded JP2012165750
National De La by genome of novel sars-associated
Recherche Scientifique, coronavirus strain
Univ. Paris 7 (Japan)
2012 Gekkeikan Sake Co. Anti-inflammatory agent and JP2012162566
Ltd., (Japan) antioxidant
2012 Watanabe Oisutaa Antioxidant, antioxidant composition, JP2012153852
Kenkyusho KK, Hokkaido and method for producing the same
Univ. (Japan)
2012 Chikuno Shokuhin Kogyo Antioxidant composition JP2012153799
KK (Japan)
2012 Genmont Biotech Inc. Composition in which probiotics strain JP2012149026
(Taiwan) gm-263 (adr-1) is used for treating
kidney fibrosis caused by diabetes and
use thereof
2012 Kracie Home Products Antioxidant, cosmetic, food and drink JP2012144457
Ltd. (Japan) composition and pharmaceutical
composition
2012 Shiseido Co. Ltd. (Japan) Antioxidant and collagen production JP2012144446
promotor
2012 Kao Corp. (Japan) Process for producing antioxidant JP2012140618
2012 Toyo Tire & Rubber Co. Antioxidant for rubber compounding, JP2012140510
Ltd. (Japan) method for producing the same and
rubber composition
2012 Kracie Home Products Antioxidant, cosmetic, food and drink JP2012140362
Ltd. (Japan) composition, and pharmaceutical
composition
2012 Kracie Home Products Antioxidant, cosmetic, food and drink JP2012140361
Ltd. (Japan) composition and pharmaceutical
composition
2012 Kracie Home Products Antioxidant, cosmetic, food and drink JP2012140360
Ltd. (Japan) composition and pharmaceutical
composition
2012 Konica Minolta Business Method for producing aqueous JP2012136617
Technologies Inc. (Japan) dispersion solution of antioxidant and
aqueous dispersion solution of
antioxidant
2012 Kao Corp. (Japan) Antioxidant JP2012136616
2012 Kao Corp. (Japan) Antioxidant JP2012136458
2012 Ibis Biosciences Inc. Method for rapidly purifying nucleic JP2012132924
(Japan) acid by solution capture for subsequent
analysis by mass spectrometry
2012 L’air Liquide Sante Improved microbicidal composition JP2012131793
Internatl (Japan) based on formaldehyde donor
compound and antioxidant
2012 Kao Corp. (Japan) Antioxidant JP2012131748
2012 Sawada Shoji (Japan) Method for producing composition JP2012126873
containing antioxidative component
2012 Inst Pasteur (Japan) Peptide originated from human bplp JP2012120533
protein, polynucleotide encoding the
peptide and antibody directed against
the peptide
2012 Mishimadenshi Co. Ltd. Applied battery and emergency power JP2012124142
(Japan) supply device
2012 Fujifilm Corp. (Japan) Antioxidation method of metal film JP2012124398
surface and liquid antioxidant
2012 Fuji Oil Co. Ltd. (Japan) Antioxidant containing hydrolysate of JP2012116817
protein composition
2012 Maruzen Pharmaceut Co. Antioxidant and anti-inflammatory JP2012102041
Ltd. (Japan) agent
2012 Tada Masahiro (Japan) Method of producing antioxidant active JP2012097058
substance of rosemary
2012 Toppan Printing Co. Antireflection film and method for JP2012093623
Ltd. (Japan) manufacturing the same
2012 Toppan Printing Co. Antireflection film and method for JP2012093418
Ltd. (Japan) manufacturing the same
2012 JSV Co. Ltd. (Japan) Ultrasonic ion phase synchronization JP2012090903
drug injection/discharge device
2012 Sumitomo Metal Ind. Antioxidant and method for producing JP2012092207
Ltd. (Japan) metal material
2012 Sumitomo Metal Ind. Method for predicting corrosion rate of JP2012083140
Ltd. (Japan) metal, and prediction system of
corrosion life of metal
2012 Kracie Home Products Antioxidant, tyrosinase activity inhibitor, JP2012067026
Ltd, Arika Co. Ltd., skin care preparation, and food and
Fuseeds Inc., Celless drink
Comtech Co. Ltd.
(Japan)
2012 Kaneka Corp. (Japan) Affinity carrier for purifying or removing JP2012062259
protein or peptide having kringle
sequence and method for purifying and
removing the same
2012 Adeka Corp. (Japan) Antioxidant composition, and JP2012062348
lubricating oil composition containing
the same
2012 Adeka Corp. (Japan) Antioxidant for lubricant and lubricant JP2012062347
composition containing the same
2012 Kaneka Corp. (Japan) Probiotic preparation JP2012056921
2012 Toppan Printing Co. Antireflection film and method for JP2012058415
Ltd. (Japan) producing the same
2012 Genmont Biotech Inc. Composition of probiotic strain gm-080 JP2012051869A
(Taiwan) to be used in treating of cardiac
inflammation and cardiac cell apoptosis,
and use thereof
2012 Toray Ind. Inc. (Japan) Cyclic peptide and modified peptide of JP2012051826
the same, and screening method of
binding inhibition substance of
kelch-like ech-associated protein 1
2011 Uha Mikakuto Co. Ltd. Dna fragment, transformed yeast cell JP2011004649
(Japan) and method for producing protein or
peptide using the dna fragment and/or
the transformed yeast cell
2011 Univ. Of Miami (Japan) Modified heat shock protein-antigenic JP2011001378
peptide complex
FOD013F
March 2017
Natraj Pandal
Project Analyst
ISBN: 1-62296-448-9
BCC Research
49 Walnut Park, Building 2
Wellesley, MA 02481 USA
866-285-7215 (toll-free within the USA),
or (+1) 781-489-7301
www.bccresearch.com
info@bccresearch.com
FOD013F - Nutraceuticals: Global Markets
CHAPTER 9
INDUSTRY STRUCTURE
The fact of increasingly aging populations is expected to drive the global nutraceutical
market. Increasing demand for nutraceutical products and significant technological
advancements are expected to complement the growth of nutraceuticals in the future.
TABLE 93
More than 1 billion people globally will be over the age of 60 by 2020, and this group is
likely to experience one or more chronic age-related diseases and seek some form of
treatment through nutraceutical products. Developed nations such as the U.S. and
Germany have more than 70% of older people as compared to other countries like India,
with a more youth-based population. The elderly population is shifting their preference
from pharmaceutical medicines to nutraceutical products to provide nutritional as well as
health benefits for greater enjoyment of their lengthening lives.
Increases in global healthcare costs have led more individuals to focus on preventative
care, self-diagnosis and self-medication. The medical industry is doing ongoing research in
nutraceuticals to provide more benefits to individuals that seek those benefits. Both the
medical industry and the clinical industry are doing extensive research to determine the
nutritional benefits from nutraceuticals with more emphasis on curing diseases.
Today people are more aware of and knowledgeable about their health and the side
effects caused from the intake of pharmaceutical medicines; therefore, there is a clear
shift of preferences from medicines to natural foods and products with ingredients from
nature. People prefer products that contain ingredients from natural sources that help in
curing diseases as well as provide nutritional benefits.
The advances technology continues to offer new means of extraction and enrichment.
These advances can also improve delivery of specific bioactive ingredients to the body.
The development of cholesterol-lowering plant sterols and stanols are used in various food
products. Manufacture of special soya protein for bread and the inclusion of omega-3 fatty
acids in various products to lower the risk of heart disease are other key areas of
technological development. These advances in technology are improving the efficacy and
performance of functional products.
Nutraceutical products can command higher prices in the market than pharmaceutical
medicines do. This price gap is causing people to shift from nutraceuticals to medicines if
there are no side effects from medicines and they help in providing cures and health
benefits over a long period.
Nutraceuticals have benefited people on a large scale. However, most people are still
unaware of the benefits they can derive from nutraceutical products. So consumers with a
preference for nutraceuticals in the form of a combination of medicines in addition to a
nutritional health diet is low in comparison to who choose the perceived health benefits
from pharmaceuticals.
Nutraceutical products provide nutritional benefits as well as help in curing diseases. But
these features of nutraceuticals must be communicated to end users, as people have less
awareness of the fact that nutraceutical can help in curing diseases with no side effects.
People rely less on nutraceuticals due to the fact that information and proper knowledge is
not delivered that could counterbalance their hesitation to the pay the high cost of these
products.
High growth rates and striking margins have fueled interest from big pharma and food
manufactures. Prominent companies such as Pfizer and Bristol are entering the
nutraceutical market and finding very encouraging growth opportunities. The domestic
players are also making more effort to sustain themselves in the market with more
aggressive and effective pricing.
Niche opportunities also exist for new entrants to effectively coexist with larger
incumbents. All stakeholders, including ingredient suppliers, wholesalers, retailers, FBS
product manufacturers, advertisers and technology as well as R&D labs are constantly
evaluating new ways to enter and grow in this market. The FBS market has higher growth
and operating margins than the overall food and beverage market; therefore, FBS is
increasingly attractive. Main strategies for capitalizing on this market include new product
introduction, mergers and acquisitions, innovative branding and research and
development.
Many value-added processors and formulators (e.g., Agricore) are looking to move down
the value chain by turning ingredients into final products. Niche players can effectively
compete by developing and patenting proprietary processes and technologies. Private
labels will continue to place increased demand on branded products as consumers spend
more wisely after the global economic downturn.
Contract manufacturing for nutraceutical products is still in a nascent stage as there are
fewer manufacturers in the market. The contract manufacturing outsourcing (CMO) of
nutraceutical products helps in improving the product manufacturing and delivery time
because it cuts lead time.
The nutraceutical product market is emerging slowly, with large numbers of competitors in
the local as well as the global market. The global players are forcing local players to
manufacture new products as the market is growing rapidly. This encourages good
manufacturing practices for nutraceuticals and increases market share in terms of quality
and introduction of new nutraceutical products.
MARKET STRATEGIES
The growth strategies adopted by companies in the nutraceuticals market from 2011 to
2015. The three major strategies identified are:
A high growth rate and striking margins have fuelled interest from leading manufacturers
of pharmaceuticals and food companies willing to enter the nutraceutical market through
various strategic acquisitions, partnerships, joint ventures and collaborations in growing
markets of Asia-Pacific and Latin America.
Tata Chemicals entered into the probiotics market in 2014 and started its first
nutraceutical plant in Chennai, India. The company is looking to produce high-purity
carbohydrate oligosaccharides, which will be helpful in improving wellness and nutrition in
the food industry and farming productivity. Further, it will also help to improve an
individual’s ability to absorb nutrients into the body.
STRATEGY BY TYPE
FIGURE 4
LEGEND
(%)
Strategy Percent
New product launch 45.8
Mergers and acquisitions 22.9
Partnerships, collaborations, joint ventures, 31.3
expansion and agreements
Total 100.0
The high number of product launches (22) shows that industry players are keen to capture
underserved nutraceutical markets by providing more options to consumers. Other
developments such as agreements, collaborations, and mergers and acquisitions were
implemented in moderate numbers in 2015. In terms of strategies, most nutraceutical
companies are focusing on new product launches (45.8%) followed by partnerships,
collaborations, joint ventures, expansion and agreements (31.3%) and mergers and
acquisitions (22.9%) from 2011 to 2015.
Nordic Naturals (U.S.), Equateq Ltd. (U.K.), Danisco A/S (Denmark) and Martek Bioscience
Corp. (U.S.) are the most active companies in the nutraceuticals market during the
analysis period (2011 to 2015).
FIGURE 5
LEGEND
(%)
Company Percentage
Nordic Naturals 33.3
BASF SE 10.4
Cargill Inc. 10.4
Danisco A/S 8.3
Cosucra Groupe 8.3
Other 29.3
Total 100.0
The figure above shows major market players accounting for a 70.7% of share in overall
developments in the nutraceutical industry. Nordic Naturals is the most active company in
the nutraceutical market, accounting for 33.3% of total developments from 2011 to 2015,
followed by BASF SE (10.4%), Cargill Inc. (10.4%), Danisco A/S (8.3%) and Cosucra Groupe
(8.3%). Other players are active and together have contributed 29.3% of developments in
the nutraceutical industry.
Some of the major companies that have introduced nutraceutical products are shown in
the below table.
TABLE 94
2015 Nordic Naturals Nordic Naturals introduced new "Nordic Probiotic" sport. This
(U.S.) product offers natural support for gastrointestinal (GI) health,
combining probiotics and prebiotics to promote the growth of
friendly bacteria and maintain GI balance.
2015 Danisco A/S Danisco launched "HOWARU" Cardio probiotics.This product
(Denmark) con-tains contains Lactobacillus AB-Life, a patented probiotic
formulation documented to have a positive effect on
maintaining healthy cholesterol levels.
2015 Nordic Naturals Nordic Naturals introduced "Ultimate Omega." This product
(U.S.) contains 70% purified omega-3 fatty acids, providing an
exceptionally high concentration of EPA and DHA in one
delicious serving. It is formu-lated to support healthy aging,
improve mood, and healthy glucose levels, and supports other
organs such as the liver and prostate.
2015 BASF(Germany) BASF introduced an omega-3 fatty acids product called
"Pronova Pure." This product offers a highly concentrated
omega-3 fatty acid with an outstanding purity profile for usage
in dietary ingredients.
2014 Nordic Naturals The company launched Postnatal Omega3, which has been
(U.S.) named the "Official Postnatal Omega-3" of the American
Pregnancy Association, and utilizes Nordic Naturals' exclusive,
new, ultra-concentrated omega-3 oil.
2014 Nordic Naturals Nordic Naturals introduced multi-vitamin and mineral
(U.S.) supplementa-tion in the form of chewable “gummies.” These
daily gummies provide significant amounts of vitamins A, B, C
and D, plus the minerals iodine, magnesium, zinc and calcium.
2013 Danisco A/S Danisco probiotics include a range of specific probiotic strains
(Denmark) marketed under the HOWARU brand. HOWARU premium
probiotics are health-enhancing bacteria that today are widely
used in dairy, dietary supplements and nutritional products.
2013 Nordic Naturals Nordic Naturals introduced Allergen-Free, 100% Vegetarian
(U.S.) Probiotic.
2013 Nordic Naturals Nordic Naturals launched innovative EPA Elite Targeted Support
(U.S.) in one of the most powerful EPA-only concentrates available
without a prescription.
2013 Nordic Naturals Nordic Naturals introduced Nordic CoQ10 Ubiquinol Active
(U.S.) Antioxidant Form of CoQ10, which supports cardiovascular
health and energy production.
2013 Nordic Naturals Nordic Naturals introduced Vitamin C Gummies for Kids and
(U.S.) Adults
2013 Danisco A/S Danisco Animal Nutrition has unveiled Axtra PHY, the very
(Denmark) latest technological advance in phytase enzyme solutions.
Launching at the International Production and Processing Expo,
Atlanta, in January 2015, Axtra PHY is the result of an extensive
development program, including animal studies conducted
under a wide range of conditions. The patented phytase,
isolated from Buttiauxella, has unrivaled performance and
economic benefits.
2012 Cargill Inc. (U.S.) The company announced introduction of its Oliggo-Fiber inulin
in liquid form.
2011 Beneo-Orafti S.A. The company announced new products that include Fibralac
(Belgium) Milk for adults from Costa Rica, Wickbold “Estar Bem” breads
and Doces de leite (milk jam), both from Brazil. These products
are expected to generate increased revenues for prebiotic
ingredients used in them.
2011 Nordic Naturals Nordic Naturals launched premium products at China Expo
(U.S.) 2011, where the company was also looking for prospective
partners for the distribution to launch its products in the
Chinese market.
2011 Nordic Naturals NSF International gave its dietary supplement Good
(U.S.) Manufacturing Practices (GMP) Certification to Nordic Naturals
after completion of its new eco-friendly headquarters.
2011 Nordic Naturals Nordic Naturals launched an unflavored supplement in the U.S.
(U.S.) It is DHA with Vitamin D3, a liquid omega-3 supplement
especially for babies.
2011 Nordic Naturals Nordic Naturals launched the Daily Omega that includes
(U.S.) one-per-day omega-3 solutions in three forms, which are Daily
Omega with vitamin D3 lemon-flavored soft gel, Daily Omega
strawberry-flavored soft gel and Daily Omega Kid chewable
strawberry-flavored soft gel.
Some nutraceutical companies that have merged and acquired other companies to
strengthen their nutraceutical business are shown in the table below.
TABLE 95
2012 Cargill Inc. (U.S.) In the Netherlands, Royal DSM announced that it has
and DSM successfully completed the acquisition of Cargill’s cultures and
enzymes business. The acquisition, announced in October 2012,
will enable DSM to become a global tier-one dairy ingredients
supplier.
2012 BASF SE BASF SE made a bid to acquire Pronova BioPharma ASA, which
(Germany) and was the pioneer in high concentrates of omega 3 fatty acids.
Pronova Pronova Corp. is the world’s second-largest manufacturer of
BioPharma ASA omega-3 ingredients. This acquisition will enable BASF SE to
consolidate its market share in the global omega-3 ingredients
market.
2012 BASF SE BASF SE announced the acquisition of the German
(Germany) and pharmaceutical company Equateq Ltd., a major manufacturer of
Equateq Ltd omega-3 fatty acids, to improve its global omega-3 production
(U.K.) capacities.
2012 BASF SE BASF SE completed the acquisition of Equateq to fortify its
(Germany) and omega-3 acids business.
Equateq Ltd.
(U.K.)
2011 Martek Bioscience Martek signed a definitive agreement with Altech to sell a
Corp. (U.S.) and notable portion of its assets at its Winchester, Ky.,
Altech manufacturing facility. The agreement does not permit
production of omega-3s and omega-6s polyunsaturated fatty
acids at this site. This deal is in the line with Martek’s
restructuring plans for its Winchester, Ky., production site in an
effort to reconfigure its operations, enhance capacity utilization
and reduce manufacturing costs and operating
expenses. This deal calls for Alltech to pay Martek a total of
roughly $14 million over the upcoming four years.
2011 Martek DSM acquired Martek for the cost consideration of $1.1 billion.
Bioscience Corp. This acquisition will serve as a platform for DSM to enter into the
(U.S.) and DSM omega-3 and omega-6 markets through Martek’s portfolio of
microbial DHA and ARA. Through this acquisition DSM will garner
new opportunities in the infant nutrition business as well as food,
beverages and dietary supplements. Using its global market
reach, technology base and application skills, DSM can channel
and boost the growth of Martek’s portfolio into other
geographies, applications and market segments beyond
Martek’s existing strong U.S.-based position in infant formula
ingredients and its growing position in food, beverage and
dietary supplement applications worldwide. In addition, Martek’s
algal and other
microbial-based biotechnology platforms and its robust
biotechnology pipeline that backup DSM’s portfolio are expected
to create new nutritional and nonnutritional growth opportunities
in, for example, biochemicals and biofuels.
2011 Danisco A/S DuPont’s acquisition of Danisco would boost the probiotic market
(Denmark) and and would lead to more acquisitions.
DuPont
2011 Omega Protein Omega Protein Corp. concluded the acquisition of the Cyvex
Corp. (U.S.) and Nutrition Inc., leading to a strengthening of its non-marine based
Cyvex Nutrition product line as well as ensuring an extended omega-3
Inc. (U.S.) distribution network to Omega Protein it return for its
OmegaPure refined menhaden fish oil.
TABLE 96
2013 Cargill Inc. (U.S.) Cargill’s Animal Nutrition business and Purac, a subsidiary of
and Purac AB CSM, are to collaborate in the development and
commercialization of bio-based animal feed solutions. Under
the collaboration, Purac will focus on technology development
and production of Aloapur, while Cargill Animal Nutrition’s
Provimi business will focus on application development and
commercialization of the product.
2013 Nordic Naturals Nordic Naturals and Lipid Technologies are partnering to offer
(U.S.) and Lipid practitioners an exclusive omega-3 blood spot-test
Technologies opportunity
for their patients.
2013 Nordic Naturals Nordic Naturals expands Canadian presence with new
(U.S.) and Trainers distribution partner, Trainers Choice, to head up mass market
Choice distribution for Canada.
2012 Cosucra Groupe Cosucra has entered into a partnership with REDA Food
Warcoing S.A. Ingredients for distribution of ingredients in the Gulf region
(Belgium) (Iran, United Arab Emirates and Saudi Arabia). This is
expected to increase product sales in the region and enable
the
company to tap a potentially large market for prebiotic
ingredients.
2012 Cosucra Groupe The company established a partnership with U.K.-based
Warcoing S.A. company Caldic. This move was aimed at increasing the
(Belgium) and distribution network for its ingredients in the U.K.
Caldic
2012 Cosucra Groupe The company announced increased collaboration with Cargill
Warcoing S.A. that has been an exclusive distributor for Cosucra’s inulin and
(Belgium) and oligofructose powders under the Oliggo-Fiber brand in North
Cargill Inc. (U.S.) America since 2001. This is expected to strengthen the
Cosucra’s sales in North America.
2011 Dannon (France) Groupe Danone’s Research Centre teamed up with Pasteur
and Pasteur Institute in order to improve research in the field of probiotics.
Institute (France) Groupe Danone and Japan’s Yakult Honsha Co have entered a
joint venture in India in order to develop a probiotic market in
India. They have entered into an agreement to form a
strategic
alliance in order to strengthen their position in the global
probiotic market.
2011 BASF SE and Cargill BASF SE and Cargill Inc. entered into a joint venture whereby
Inc. they would jointly develop a rapeseed oil containing omega-3
fatty acids. This will help BASF SE to meet growing demand
for
omega-3 fatty acids.
2011 Beneo-Orafti S.A. NutraCea, a global leader in the production and marketing of
(Belgium) and value-added products derived from rice bran, and
NutraCea Beneo-Remy,
a world leader in functional food ingredients derived from rice,
announced an exclusive, co-branded sales and marketing
agreement. Under the terms of the distribution and
cooperation agreement entered into on September 29, 2011,
NutraCea will produce stabilized rice bran (SRB) for exclusive
distribution by Beneo-Remy under their “RemyLiVe” brand in
over 40 countries in Europe, the Middle East and Africa (EMEA)
as well as in Russia, India, Australia and New Zealand.
2011 Equateq Ltd. (U.K.) Equateq signed a long-term supply agreement with Amarin for
and Amarin the supply of omega oil pharmaceuticals for cardiovascular
indications. Under the terms of this agreement, Amarin has to
purchase a minimum $10 to $20 million of API for use in
AMR101. In addition, Amarin also agreed to pay Equateq $1.5
million in milestone payments and to advance Equateq $5.0
million as a refundable deposit against future API purchases,
with $1.0 million of the milestone payments to be paid as a
part of signing the agreement.
FOD013F
March 2017
Natraj Pandal
Project Analyst
ISBN: 1-62296-448-9
BCC Research
49 Walnut Park, Building 2
Wellesley, MA 02481 USA
866-285-7215 (toll-free within the USA),
or (+1) 781-489-7301
www.bccresearch.com
info@bccresearch.com
FOD013F - Nutraceuticals: Global Markets
CHAPTER 10
COMPETITIVE OUTLOOK AND COMPANY PROFILES
This chapter contains a discussion of many of the important players in the nutraceutical
industry along with their background details, product range and business strategy.
COMPETITIVE OUTLOOK
The nutraceuticals market faces both external and internal competition. External industry
competition is generated by manufacturers of natural, organic and “less evil foods” that
are addressing health benefits similar to those that FBS manufacturers are addressing. As
competitive pressure grows, both FBS competitors and outside threats such as
pharmaceutical companies are increasingly filing petitions against the health claims of FBS
products.
Natural foods and beverages have owned the largest market share of FBSs, with organic
products being second. Functional products are still struggling to overcome these
categories and to gain share. The internal competition is also wide due to FBS market
fragmentation. Functional FBS companies are competing on the basis of taste, health,
convenience, price, safety, efficacy, packaging and brand loyalty. Price has become a
more important factor due to the recent economic conditions.
Correct branding and positioning is still a challenge, and differentiation will become
increasingly difficult as more external competitors begin to assert “functional” claims.
Foods with low or no fats or sugar content (including natural as well as organic foods) are
increasingly being marketed with claims like “natural,” and “pure.”
The global nutraceutical market is of a highly competitive nature and has several local and
international companies coexisting within it. In order to compete in the nutraceuticals
market, companies are launching various new and innovative nutraceutical products in the
market on the basis of ingredients, packaging and serving ability.
Various new nutraceutical products are being introduced into the market due to evident
consumer interest toward new products, new flavors, new formulations and new foods.
There are several large corporations trying to introduce new nutraceutical products every
year; they include major manufacturers Kellogg Co., General Mills Inc. and Procter &
Gamble Hygiene and Health Care Ltd.
These companies are seeking to gain advantage through nutraceuticals and are deferring
to their existing products for support of sales with new marketing approaches.
Furthermore, these companies highlight the benefits of their core products along with their
new products.
COMPANY PROFILES
ARISTA INDUSTRIES
Overview
Founded in 1930, Arista Industries is a privately held company on the eastern seaboard of
the U.S. The company deals in production, import and supply of seafood products. The
company’s omega-3 fatty acids production is a subdivision of its specialty oils and butter
segment. Arista Industries also caters to industry segments such as marine oils, vegetable
oils and seafood and serves clients in the cosmetic, pharmaceutical, foodservice and
wholesale and retail seafood industries in the U.S. and internationally. The company has
more than 300 employees throughout the world in 2015.
Financials
Arista Industries generated revenue of more than $16.9 million for the financial year
ended 2015.
Arista Industries’ products include omega-3 fatty acids, omega-6 fatty acids, borage oil,
DHA (Docosahexaenoic Acid), GLA (Gamma Linoleic Acid), EPA (Eicosapentaenoic Acid),
marine oils and krill oil.
Strategy
BASF SE
Carl-Bosch-Strasse 38
Ludwigshafen, 67056
Germany
Tel: 49-621-600
Fax: 49-621-604-2525
Website: www.basf.com
Overview
BASF operates globally through subsidiaries in more than 80 countries with 338 production
facilities. The company operates primarily in Europe and has an active presence in North
America, the Asia-Pacific region, South America, Africa and Middle East countries; it
employs about 112,435 people as of June 2015.
Financials
BASF SE reported nutrition and health subsegment revenues of approximately $2.2 billion
in 2015, decrease of 1.6% over 2014 revenues.
BASF SE offers omega-3 acid under its health and nutrition business segment. The
company sales of the omega-3 acid are under the brand name Dry n-3. BASF SE’s
omega-3 fatty acids are used for fortification of baby foods and other foods such as fish oil
powder.
Strategy
BASF SE is focusing on joint ventures and acquisitions in order to strengthen its omega-3
production in Europe and North America. The company has future plans to gain the market
share in the omega-3 fatty acids market by acquisitions of leading pharma companies.
BENEO-ORAFTI S.A.
Aandorenstraat 1
Tienen, 3300
Belgium
Tel: 32-1-680-1301
Fax: 32-1-680-1308
Website: www.beneo.com
Overview
Financials
Beneo reported annual sales of about $261 million for the financial year 2015.
Beneo offers functional dietary fibers that help to improve digestive health, support weight
management and enhance calcium absorption for bone health. The company’s key
nutraceutical products are shown in the table below.
TABLE 97
Brand Description
Orafti Inulin This is an ideal fiber that also supplies a creamy texture and a
smooth mouthfeel in low-fat yogurts.
RemyPro A concentrated rice protein source with a biological value that is
higher than most other plant nutrient sources.
BeneoPro W The brand name for vital wheat gluten by Beneo.
Beneo inulin and A source of nutrition for young pets.
oligofructose
BeneoCarb S This is unique low-glycemic sugar syrup made from pure beet
sugar. It has a sweet honey-like taste and can be used to improve the
organoleptical profile of animal food.
Strategy
Beneo is focusing on the manufacturing of prebiotic ingredients and extending its product
portfolio with new product launches, especially in the food segment. The company also
plans to expand its operations into different regions to increase its market share and
competitive edge. A Knowledge Program is the most notable strategy of Beneo—designed
to communicate the health benefits of inulin and oligofructose to food manufacturers and
consumers in order to increase consumer awareness and thus their sales.
CARGILL INC.
Overview
Founded in 1865, Cargill Inc. (Cargill) is headquartered in Minneapolis, Minn., in the U.S.
Cargill is privately held and known worldwide as an international producer and marketer of
food, agricultural, financial and industrial products and services. The company produces
synthetic-based fluids and lubricants under its industrial, or bioindustrial segment.
The various types of products that Cargill manufactures are biodegradable base oils
suitable for chain and bar, high-temperature processing fluids, rolling oils and process oils,
machine lubricants, spray and de-dusting oils, and low-viscosity base oils suitable for use
as rust-prevention fluids. The company operates more than 70 countries and employed
more than 150,000 people in 2015.
Financials
Cargill recorded revenues of approximately $120.4 billion 2015, decrease of 11.0% over
2014.
Cargill offers a broad range of probiotic products under its functional food and beverages
business segments.
TABLE 98
Brand Description
CoroWise Naturally sourced cholesterol reducer (plant sterols)
Oliggo-Fiber Inulin
Regenasure Glucosamine
Leci-PS Phosphatidylserine
Arthred Hydrolysed collagen
Leci-Choline Phosphatidylcholine-enriched soy lecithin
Cargill also offers feed nutrition products under its animal nutrition and feed products
business segment.
TABLE 99
Brand Description
Nutrena High-quality nutrition that meets the needs of animals at every life stage.
LNB LNB products include vitamin and mineral premixes, milk replacers and
specialty products such as acidifiers, water-soluble vitamin blends and young
animal feeds.
Provimi Offering the broadest array of products and services in premixes and specialties
for animal nutrition.
Strategy
Cargill’s global presence is noteworthy and it looks to strengthening its market position
with newer health feed additive products and streamlining its production lines. The
company also looks at M&A’s as a way of increasing its impact on the market. Cargill is
aiming to achieve greater penetration of emerging markets and increasing probiotic
production capacities with its strong R&D capabilities.
1 Rue de la Sucrerie
7740 Warcoing
Belgium
Tel: 32-69-446-600
Website: www.cosucra.com
Overview
Financials
TABLE 100
Brand Description
Fibruline Fibruline (inulin) and Fibrulose (oligofructose) are soluble fibers obtained from
chicory root. They are tasteless, odorless, soluble and easy to process.
Pisane With no labeling constraints, this non-GMO and gluten-free ingredient is
extracted in a natural process from the yellow pea.
Swelite With no labeling constraints, this non-GMO and gluten-free ingredient is
extracted in a natural process from the yellow pea.
Strategy
Cosucra is expanding its sales platform by expanding its range of products and entering
emerging markets. The company aims at larger production and distribution of ingredients
to increase its global market share in the prebiotic ingredients industry. Cosucra’s
development strategy is to increase and streamline its distribution lines by strengthening
relations with existing distributors in various regions and with new partnerships and
collaborations.
Overview
Croda operates in over 36 countries in four geographic areas: Europe, North America, Latin
America and Asia. The company also has technical centers and manufacturing facilities
across the U.K., France, Germany, the Netherlands, Italy, Spain, the U.S., Brazil, India,
Singapore, South Korea, Indonesia and Japan. Croda employed more than 4,230 people in
2015.
Financials
Croda reported revenues of around $1.3 billion in 2015, an increase of 3.4% over the
2014 revenues.
TABLE 101
Strategy
Croda is using a strategy of joint ventures and new product launches to enhance its
omega-3 fatty acids sales. The company is also focusing on region-wide expansion
techniques aimed to broaden the scope of omega-3 around the world in a phased manner,
thus enhancing product sales and eventual geographic expansions.
To achieve products with superior quality and purity of pharmaceutical and nutraceutical
industries, Croda developed a proprietary flash chromatographic technique called Super
Refining. This technique physically removes impurities from pharmaceutical excipients and
nutritional oils while their fundamental structure remains intact. In the manufacturing of
nutritional products, the company employs a multiple purification process called Super
Refining with PureMax technology for superior standards in quality testing of highly
concentrated omega-3 fatty acids.
DANISCO A/S
Langebrogade 1
Copenhagen, 1001
Denmark
Tel: 45-32-662-000
Fax: 45-32-662-175
Website: www.danisco.com
Overview
Financials
Danisco reported annual revenue of around $2.4 billion in 2012. DuPont reported annual
revenue of around $25.3 billion in 2015.
TABLE 102
Brand Description
Guardian Chelox, Guardian and Grindox Antioxidants
Howaru and Florafit Probiotics
Alpha, Centex, Nurish, Procon, Profine, Proplus, Response, Supro, Supro Ex, Soy proteins
etc.
ActivK Vitamins
PinVita Phytosterols
Strategy
Danisco has set up a sustainability strategy for transformation. The company is focusing
on bio-based ingredient solutions to enhance its food ingredient products in the health and
nutrition market. Danisco’s mission is to deliver innovative, sustainable solutions that
increase the efficiency and safety of the food production chain in an environmentally
responsible manner.
Overview
Founded in 1919, Groupe Danone S.A. (Danone) has its headquarters in Paris, France.
Danone is a food processing and commercializing company. Danone was formerly known
as Groupe Danone. The company along with its subsidiaries engages in the production and
sale of a range of beverages, fresh dairy products, cereal- and nutrition-based baby food,
medical nutrition food, packaged food articles and various other related products. Danone
sells all of these products under the brands Danone, Activia, Essensis, Evian, Volvic, Aqua,
Gallia, Nutricia, Cow and Gate, Fortimel, FortiCare and Infatrini. Geographically, the
company operates in North America, Latin America, Western Europe, Central Europe,
Asia-Pacific, Africa and the Middle East. Danone has 158 manufacturing units and 20
research and development centers around the world. The company employed more than
99,780 people worldwide in 2015.
Financials
Danone reported revenue of approximately $24.7 billion in 2015, an increase of 6.0% over
2014.
Danone offers a wide range of probiotic products under the brand name of Activia. The
company’s key nutraceutical products are shown in the table below.
TABLE 103
Brand Description
Activia Activia is a delicious and nutritious probiotic yogurt that helps to improve
digestive comfort.
Oikos Oikos is a low-fat, high-protein Greek yogurt with a thick and creamy texture
that is perfect for enjoying as-is or for cooking.
DanActive A delicious daily drinkable probiotic yogurt for the whole family with L. Casei
Danone DN-114 001 cultures.
Silhouette Nourish your body and mind with Silhouette’s line of yogurts—fat-free and
with no added sugar. Discover new high-protein Silhouette GREEK at 50
calories.
Danone In addition to being low in fat, the new Danone Creamy yogurt is made with
Creamy simple and good ingredients. It is made with fresh milk, real fruit, no gelatin,
no preservatives and no artificial flavors or colors. The ingredients and the
smooth texture make it an ideal everyday yogurt.
Danino Danino yogurt is made with real fruit puree that is bursting with flavor. It’s
the perfect treat for snack time or dessert.
Strategy
Danone is focusing on core business of high-growth and high-margin like dairy products
and beverages. The company has expanded its nutraceutical business across Asia, Latin
America, Africa and the Middle East by various strategic partnerships and acquisitions.
Danone acquired Clover S.A. in South Africa and the Tessala in Algeria.
Overview
Financials
This is a privately held company and no financial information is available in the public
domain.
Martek develops, manufactures and sells naturally produced products derived from micro
algae, fungi and other microbes. The company’s nutraceutical products are shown in the
following table.
TABLE 104
Product Description
life’sDHA Considered the best source of DHA and omega-3, used for nutritional purposes
for children, adults, sports nutrition and for animals. DHA (docosahexaenoic acid)
is the only omega-3 that supports brain, eye and heart health throughout all
stages of life. After five years on the market, infant formula fortified with
life’sDHA accounts for 99% of all infant formula sales in the U.S. Recent food
and beverage launches from Minute Maid Pomegranate Blueberry Juice to
Horizon Organic Milk Plus life’sDHA are exceeding sales expectations. The
following foods and supplements contain life’sDHA: Horizon, Cofco Cooking Oil,
Spring Valley, Francesco, Rinaldi and Crisco.
Services Contract manufacturing services are based on DHA, Omega-3. The company’s
technology platform involves microbial biology, algal genomics, fermentation
and downstream processing. This technology platform has led the company’s
development of products, including, an omega-3 fatty acid for brain, heart and
eye health throughout life for use in infant formula, pregnancy and nursing
products, foods and beverages, dietary supplements and animal feeds.
Strategy
Martek is focusing on an expansion strategy, especially into the Chinese market. The
company has engaged into an agreement with Feihe Dairy and COFCO to expand its
penetration in Chinese market. Further, Martek also sold certain assets to streamline its
operations as a part of its strategy to significantly outset price reductions resulting from
their infant formula contract extensions through the execution of production cost savings,
product innovation initiatives and growing their non-infant formula business.
NORDIC NATURALS
Overview
sells around 150 different fish oil products in a variety of flavors, concentrations and
delivery forms. Nordic Naturals had approximately 375 employees throughout the world in
2015.
Financials
Nordic Naturals generated revenue of approximately $25 million in financial year 2015.
Nordic Naturals’ products are for different categories that depend on the presence of
omega-3, which is different for different ages, different functions and different sources.
Products include children’s multivitamins, omega-3 concentrates, omega-3
non-concentrates, daily omegas and pet products. The company’s omega-3 products are
shown in the following table.
TABLE 105
Product Description
Products 1. Ultimate Omega Junior, Children’s DHA, Children’s DHA, Omega-3.6.9 Junior,
for Ultimate Omega 500, Baby’s DHA and Omega-3 Effervescent.
children 2. Children’s multivitamin Children’s Gummies.
3. Children’s gummies: Nordic Omega-3 Gummies, Nordic Omega-3 Gummy
Worms and Nordic Omega-3 Fishes.
Products 1. 100% arctic cod liver oil: Arctic Cod Liver Oil, Arctic Cod Liver Oil Soft Gels,
by Arctic-D Cod Liver Oil.
category 2. Kenai wild Alaskan salmon oil: Kenai Wild Alaskan Salmon Oil Soft Gels and
Kenai Wild Alaskan Salmon Oil Liquid.
3. Omega-3 concentrates: Ultimate Omega, Ultimate Omega Liquid Ultimate
Omega-D3, Ultimate Omega 500, Ultimate Omega in Fish Gelatin, Ultimate
Omega Sport, DHA 1000, DHA, Prenatal DHA, EPA, EPA Xtra and Ultimate
Omega Junior.
4. Omega-3 non-concentrates: Omega-3, Omega-3 Liquid, Omega-3D,
Omega-3D Liquid, Omega-3 in Fish Gelatin, Arctic Cod Liver Oil Soft Gels, Arctic
Cod Liver Oil, Arctic-D Cod Liver Oil
5. Omega-3.6.9 combinations- Complete Omega-3.6.9, Complete Omega-3.6.9
Liquid, Complete Omega-3.6.9-D and Omega Woman.
6. Omega-3 + nutrients- Omega Blood Sugar, Omega LDL , Omega Probiotic,
Ultimate Omega +CoQ10, Ultimate DHA Eye, Omega Joint, Omega Joint,
Omega Joint Xtra
7. Vitamin D3 formulas- Vitamin D3, Ultimate Omega-D3, Omega-3D,
Omega-3D Liquid, Arctic-D Cod Liver Oil, Complete Omega-3.6.9-D,
Omega-3.6.9-D Junior, Nordic Berries
Pet Omega-3 Pet, Omega-3 Pet, Cats and Small Breed Dogs, Omega-3 Pet, Medium
products to Large Breed Dogs, Omega-3 Pet Large to Very Large Breed Dogs & Multi-Dog
Households, Pet Cod Liver Oil
Strategy
Nordic Naturals is focusing on continuously improving the quality of its fish oils in light of
the importance of omega-3s to good health. The company is working on purity, freshness
and structures that maintain the overall quality of fish oil. Nordic Naturals is extending its
business with new product launches in the fish oil market.
Overview
ONC’s products include omega-3 fish oils and oil concentrates for the dietary supplement
market; Levenorm, a fish protein hydrolysate that supports healthy blood pressure level in
prehypertensive people; and omega-3 powders, which are used in various food products
such as baked goods, milk, yogurt, juice, nutrition bars and confectionary products. These
products are available in different ranges depending on the presence of omega-3. The
company offers dietary supplements and healthy foods to the multi-national companies
throughout North America, Europe, Asia and Australia. ONC has a strategic agreement
with Wilmar International Ltd., an agribusiness group headquartered in Singapore. ONC
operates primarily in the Canada and also has an active presence in the U.S., Australia,
Europe, the U.K., Ireland, Mexico and China. ONC employed more than 400 people as of
2015.
Financials
ONC revenue was not given in DSM’s annual report for the financial year ended 2015.
The company is a supplier of a variety of pure and palatable omega-3 fish oils formulated
for bakery products, pharmaceutical products, nutraceutical products and supplementary
products etc. ONC deals in omega-3 bakery products, Big Shotz multivitamin and mineral
juices, kettle corn and chocolate containing omega-3s.
Strategy
Being the world’s largest producer of Omega-3 EPA/DHA from fish oil, ONC is positioned to
deliver unique solutions that provide companies with a competitive edge, which includes
unmatched cost advantage and the highest-quality omega-3 EPA/DHA ingredients
available for both dietary supplements (DS) and healthy food ingredients (HFI).
ONC has built three high-tech processing plants which can deliver a reliable supply of fish
oils and fish oil powders. ONC’s excellence and innovation in serving customers in
research and development, manufacturing, marketing and distribution of omega-3
ingredients is the major element of its strategy, ensuring sustainable growth and position
as an industry leader.
Overview
Established in 1878, Omega Protein Corp. (OPC) is headquartered in Texas. In 1994, it was
developed as Zapata Protein, which was renamed Omega Protein Corp. in 2002. The
company is principally engaged in the processing of fish oil, fish meal and fish soluble
used in animal feed, human food products and dietary supplements. OPC produces,
markets and distributes fish meal and fish oil products, most of which contain omega-3,
primarily in the U.S.
The major competitors of the OPC are ADM Co., American Seafoods Group LLC and Cargill
Inc. The company owns and operates four menhaden processing facilities—two plants in
Louisiana, one plant in Mississippi and one in Virginia. OPC also operates a health and
science center in Reedville, Virginia, which has capacity for processing 100-metric tons per
day of fish oil for the company’s food, industrial and feed grade oils. OPC has operations in
North America, Europe, Asia, and South and Central America. The company employed
around 1,150 people in 2015.
Financials
Omega Protein Corp. generated revenue of approximately $359.3 million in financial year
2015.
Omega Protein Corp. sells three general types of products, namely fish meal, fish oil and
fish soluble. Key brands include Fish Meal, Special Select SeaLac Fish Oil, SeaCide
OmegaPure Fish Soluble and Neptune OmegaGrow, OmegaEquis and OmegaGrow Plus.
The company’s nutrition products are shown in the following table.
TABLE 106
Product Description
Animal The company has developed a complete line of high-quality protein feed
nutrition ingredients from nature’s best source of protein and omega-3 fatty acids, the
menhaden fish. OPC produces three types of fishmeal—FAQ, Special Select
and SeaLac—for the nutritional needs of all animal species. The company also
manufactures Neptune Aqua Grade Liquid Protein and Virginia Prime Refined
Oil for livestock and pet applications. Omega Protein is produced with fish oil
naturally rich in omega-3 fatty acids EPA and DHA, which help improve
immune response, reproductive function and performance.
Human Nutraceutical ingredients: Omega Protein offers some of the most innovative
nutrition ingredients in the marketplace under the Cyvex Nutrition brand. Every Cyvex
Nutrition ingredient is guaranteed by the exclusive NutriPrint quality
assurance system for safety and efficacy.
Food Ingredients: Omega-3 fatty acids from fish are essential to brain
development and a healthy body. Flavorless, odorless and the perfect balance
of EPA and DHA, OmegaPure is the preferred source of omega-3 rich fish oil
with a number of available delivery systems. This functional food ingredient
was the first fish oil to have direct GRAS approval by the FDA for human
consumption.
Plant OmegaGrow and OmegaGrow Plus were developed to meet the specific needs
nutrition of farmers seeking a natural way to effectively fortify crops and increase
yields. When used as fertilizer, these fish-based nutrients enhance plant
growth and support beneficial microbial populations in the soil.
These products are designed for foliar applications on virtually any
crop—vegetables, fruits and field crops, greenhouses and nurseries—for
integrated pest management programs.
Strategy
High quality and purity of nutritional products with the critical importance of the omega-3
fatty acids warrant painstaking control every step of the production process to ensure
product integrity, consistent quality and complete traceability. In order to sustain its
leading position in the omega-3 market, the company has created the OmegaPure
CTechnology and Innovation Center (OPTIC) for research and development of new and
innovative ways to integrate omega-3 fatty acids in food and beverage applications.
Overview
Financials
This is a privately held company and no financial information is available in the public
domain.
TABLE 107
Strategy
Pharma Marine is focusing on its DHA ingredient business to increase its market share and
competitive edge. The company developed Calamarine, which is imbued with unique
characteristics that provide customers with an opportunity to differentiate themselves in
the increasingly commoditized omega-3 market.
ZYMES LLC
Overview
Zymes also holds the worldwide exclusive rights for the use of its proprietary PTS
technology for omega-3 acids for food, beverage and dietary supplements. The company
employed more than 30 people in 2015.
Financials
Zymes generated revenue of approximately $2.0 million in the financial year 2015.
Zymes has successfully solublized omega 3s (EPA/DHA from both fish oil and algae) by the
use of Zymes’ Ubisol-Aqua solubilizing technology. The company’s omega-3 products are
shown in the following table.
TABLE 108
Product/
Services Description
Zymes water Zymes water-soluble omega-3 offers the solubility and stability of
soluble omega-3 fatty acids for use in food and beverage applications. Current
omega-3 omega-3 products have limited shelf life, ranging from two weeks to six
months, during which most require refrigeration. Processing limitations
allow for only limited types of products for the delivery of omega-3s. No
company prior to Zymes has been
able to stabilize omega-3s and deliver them in clear beverages.
Zymes omega-3 Zymes water-soluble omega-3 is the only available source for clear
beverages beverage products. Zymes Ubisol-Aqua Technology (the lead component
of which is PTS) combined with proprietary patented formulations and
trade secrets, delivers the solution for clear, shelf-stable omega-3s in
finished products.
Zymes omega-3 Zymes has successfully created a powder form of its proprietary
powders omega-3 formulations. This stable powder can be added directly to water,
resulting in a clear solution. The powder can also be used as an
ingredient in a variety of products including granola bars, cereals and
powdered stick packs. Beyond the consumer benefits in the omega-3
powder form, there are significant processing and logistical benefits
afforded in the use of a powder form in the manufacturing of omega-3
fortified consumer food and beverages.
End-product Food and beverage manufacturers can now offer Zymes’ omega-3
formulations formulations in the following categories: Clear beverages, gelatin
desserts, powder stick packs, liquid concentrates, fountain beverages,
cereal, cookies, food requiring high-temperature baking, ice cream,
coffee creamers and beverage sweetener.
Strategy
Zymes is looking forward to bringing to market exciting new products to increase its
market share and competitive advantage over other players in omega-3 market. The
company holds substantial intellectual property on technology for, among other things,
enhanced drug delivery systems. Zymes strives to develop and offer innovative solutions
to market through its patented science and technology, enabling new products to enhance
the well-being of people.
FOD013F
March 2017
Natraj Pandal
Project Analyst
ISBN: 1-62296-448-9
BCC Research
49 Walnut Park, Building 2
Wellesley, MA 02481 USA
866-285-7215 (toll-free within the USA),
or (+1) 781-489-7301
www.bccresearch.com
info@bccresearch.com
FOD013F - Nutraceuticals: Global Markets
CHAPTER 11
APPENDIX
LIST OF ACRONYMS