Government Initiatives to Eliminate Malnutrition Propels the Ready-to-use Therapeutic Food & Supplementary Food (RUTF & RUSF) Market

According to a recent news report, an NGO in Kumasi, Ghana has launched a project named Peanut Butter Project, facilitated by the U.S. Agency for Development (USAID) and The Hershey Company and Rotary International in partnership, aiming to tackle the malnourished section of the society, by coming up with an effective ready-to-use therapeutic food, which would also increase the demand for locally grown groundnuts. Such governmental and NGO initiatives are the major driving forces behind the rise in the market demand for ready-to-use therapeutic food & supplementary food (RUTF & RUSF) worldwide.

The global ready-to-use therapeutic food and supplementary food market is likely to project a steady CAGR of 8.6% during the predicted time span of 2017 to 2025. The market is assessed to be worth US$829.3 mn by the end of 2025, astoundingly up from its assessed valuation of US$429.9 mn in 2017. With UNICEF stimulating the domestic production of RUTF, the stockholders of RUSF and RUTF are likely to find more opportunities.

What are the factors stirring up the RUTF and RUSF market growth?

The global ready-to-use therapeutic food and supplementary food market is prospering due various significant reasons. Growing malnutrition in underprivileged regions, rise in population in the world, rise in number of natural disasters and emergencies, and demand for drinkable RUTF products are the major contributing factors. Then again, expanding customer or nearby government shift towards local preferences for food, and uncertainty of food contamination because of irregularity in RUTF dairy products are some of the obstacles present in the market.

Which key players and geographical regions are leading the race?

The ready-to-use therapeutic food market is segmented broadly into semi-solid products or paste, drinkable therapeutic food, and solid products comprising blends or powder and biscuits or bars. On the other hand, ready-to-use supplementary food segment is bifurcated into solid segment or powdered and semi-solid or paste segment. Everything considered, RUTF segment is anticipated to devour the market share of RUSF by the end of the predicted period, which also served greater than 70% of the demand in 2017. The reason why semi-solid or paste segment is gaining popularity and high consumer usage is because of its ease of use as it doesn’t need any preparation and can be consumed as it is whereas, solid powder segment is attaining its pace from its usage in infant food.

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According a report, UNICEF contributed 66.1% of the demand in 2017, much ahead of the other end-use categories of NGOs and WPF. Now, numerous firms and organizations are focusing on making RUSF and RUTF products which would abide by UNICEF norms and requirements.

Mark Moore, founder and CEO of MANA Nutrition entered the ready-to-use therapeutic food business after assessing the response of the product in a meeting on hunger in Africa. Now, the company is one of the leading giants in the market. A joint venture between another key player GC Rieber Compact and South African shareholders also come together by launching their RUSF and RUTF products for hunger struck areas. Diva Nutritional Products, Hilina, and Insta Products are some more leading players in the market.