Rising healthcare costs have prompted many consumers to turn to alternative and preventive healthcare practices
Preventive healthcare is a trend that is expected to fuel functional food and nutraceuticals market growth during the forecast period.
Consumers are becoming more interested in following healthier diets to help with digestive disorders by increasing their intake of functional foods and nutraceuticals. Many consumers also consider better digestive health to be a major element in preventive healthcare. These products, therefore, are considered to aid skin health, build immunity and increase energy levels, enabling general well-being.
According to the 2016 functional food and nutraceuticals market report, the rise in healthcare cost has prompted many consumers to turn to alternative and preventive healthcare practices to minimise the spending on treatments and medications. More and more people are consuming functional food and nutraceuticals, as they provide nutritional and medicinal benefits and prevent diseases.
According to functional food and nutraceuticals market research report, analysts estimate that the functional food and beverage segment dominated the market and accounted for more than 67% of the market share in 2015. Therefore, to maintain good health and reduce the risk of illnesses, people are increasingly looking to adopt healthy lifestyles and diets.
This has increased the demand for functional food and beverages such as breakfast cereals and energy drinks. Moreover, there is a growing demand for plant-based functional foods such as oats, flax seeds, tomatoes, broccoli, citrus fruits and cranberries as they are perceived to reduce the risk of chronic diseases such as cancer. This recent shift in consumer preferences toward healthier food with high fibre will have a positive impact on this market segment during the forecast period.
During 2015, North America dominated the functional food and nutraceuticals market and accounted for 40% of the total market share. Factors such as rising awareness of the benefits of a healthy diet, affordability and the availability of these products in the region to propel the growth prospects of the functional food market in North America.
The global functional food and nutraceuticals market is extremely fragmented, owing to the presence of various large and small vendors that deal with niche segments. The providers in this market compete in terms of price, quality, product differentiation, distribution, and promotion to gain maximum market prominence during the forecast period. The competitive environment is likely to intensify with an increase in product or service extensions, product innovations and M&A.
Key players in the global functional food and nutraceuticals market include BASF, Coca-Cola, Kellogg, Nestlé, and PepsiCo. Other prominent vendors in the market are Abbott Nutrition, Amway, Bayer HealthCare, Bio-Engineered Supplements and Nutrition (BSN), Champion Nutrition, Clif Bar, Creative Bioscience, CytoSport, Danone, Gaia Herbs, Glanbia, GNC, GSK, Herbalife, Herb Pharm, Himalaya Herbal Healthcare, Lovate Health Sciences, Nature’s Bounty, NBTY, Nordic Naturals, Nutraceutical, Nutrisystem, Otsuka Holdings, PacificHealth Laboratories, Pfizer, Rainbow Light Nutritional Systems, Schiff Nutrition Group, Science in Sports, Ultimate Nutrition and Yakult.
Further, the functional food and nutraceuticals market report states that adulteration of functional food and nutraceuticals is a major concern for both manufacturers and consumers, which affects the credibility of vendors in the market.