A
handful of players dominate over half of the global market for
nutraceuticals, thus contributing significantly to the formation a
moderately consolidated competitive landscape. The global market is
sensitive of prices and has experienced an intensified competition
amongst the vendors. Players such as Groupe Danone S.A., Nestle S.A.,
BASF SE, and Royal DSM N.V. have come up to be leading companies in
the global nutraceuticals market with cumulatively accounting for
over 50% of market share in 2015. These companies in the market are
primarily engaged in the manufacturing functional food, beverages,
and nutritional supplements. Tactical collaborations, acquisitions,
and mergers are the important strategies taken up by the leading
companies to enhance their market presence in the global
nutraceuticals market.
Recently,
the industrial bioscience enterprise, Amyris Inc., announced that it
has joined hands with Royal DSM N.V. about new product development
and have made a manufacturing agreement for a new category of
nutrition ingredients for humans. The global science-based company is
active in nutrition, health, and materials. With the help of this new
venture, the company is trying to focus on producing and developing
solutions that will serve bigger markets within the human and animal
nutrition and health sector.
The
global market for is expected to reach a staggering figure of market
valuation worth US$278.96 bn by the end of the year 2021. This growth
in the market valuation is expected to be achieved with the help of
an impressive CAGR of 7.3% over the course of the given forecast
period of 2015 to 2021.
What
Factors are Driving Overall Development of Global Nutraceuticals
Market?
The
demand for nutraceutical products is projected to grow significantly
on the back of the growing incidences of chronic non-communicable
diseases and increasing expenditure over healthcare. Emerging
countries such as India, China, and Japan show a comparatively higher
occurrence of these non-communicable diseases such as diabetes,
cancer, lung disorders, and cardiovascular disorders. Demand for
these nutraceuticals is thus projected to slowly increase from these
emerging nations. The slowly growing expenditure in the healthcare
segment will also propel the growth of the global
nutraceuticals market.
The
increasing demand for milk and meat is encouraging manufacturers of
animal feed in the emerging nations to integrate nutraceuticals in
the animal feed. Besides this, the growing demand for natural beauty
product and a proper nutritional diet across the developed countries
is also expected to augment the growth of the global nutraceuticals
market.
All
across the globe, people are becoming increasingly aware of the
common side effects caused by pharmaceutical products. This is also
one of the major reasons for masses to opt for natural products and
food derived from natural elements, and thus, driving the overall
growth of the global nutraceuticals market.
What
Factors May Slow Down Development of Global Market?
In
spite of experiencing decent growth opportunities across the globe,
the rising prices of the nutraceutical products are causing some
problems in the overall development of the market. The most affected
areas are the emerging nations where people have low acceptance
towards buying these products that are costlier than normal
pharmaceutical products. Moreover, a general lack of awareness is
also stopping the global nutraceuticals market to reach its full
potential. However, increasing marketing strategies by the leading
companies and the initiatives to create awareness among masses about
these nutraceutical products is expected to create lucrative
opportunities over the coming years.
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