North America dominates the market but Asia-Pacific countries are likely to show the strongest growth, says new report
The global sports nutrition market is expected to show a CAGR of 7% during 2015-2020 to reach a revenue of US$33.6bn by 2020, according to a new report published by Allied Market Research.
In the current market scenario, North America occupies the largest share of approximately 47%, owing to high obesity ratio and health awareness among people, says the report, titled 'World Sports Nutrition Market - Opportunities and Forecasts, 2014 - 2020'. However, Asia-Pacific (APAC) is likely to witness a faster adoption of sports nutrition products owing to an increase in income levels and increasing indulgence in sports and fitness activities.
Sports food, which accounted for nearly 25% of the market in 2014, is expected to witness fastest growth of 11.1% during the forecast period. Sports drinks, supplements and food are the key sports nutrition products marketed by companies worldwide. Sports drinks account for the largest share of the overall sales value and would continue to be the leading contributor over the forecast period (2015-2020). Gatorade (a brand of PepsiCo) and Powerade (a brand of Coca-Cola) are the two leading sports drink products.
The sports supplement category is witnessing significant growth in demand and would continue to gain popularity due to increase in number of health clubs and fitness centres worldwide. These centres and clubs act as the key distribution points for sports supplements. However, the sports food segment (includes energy and nutritional bars) is expected to witness the fastest CAGR of 11.1% during the forecast period, due to the increasing awareness and adoption and the introduction of innovative and effective products by the leading manufacturers.
Athletes account for nearly 37% of the global sales of sports nutrition products, trailed by recreational users accounting for nearly 27% of the global sales. In the recent years, the market has witnessed the emergence of a new user group: the lifestyle users. Lifestyle users utilise sports nutrition products to boost their stamina and enhance physical and mental performance. They mostly use sports nutrition products as a beverage, meal replacement or healthy snack rather than using them for fulfilling sports or exercise related nutrition needs.
The segment of lifestyle users, followed by recreational users, would be the two fastest growing segments over the forecast period. The rising number of health clubs and fitness centres and growing health awareness worldwide, are the key factors supplementing the growth of these segments.
Sport nutrition products are distributed through large retail and mass merchandise, small retail, drug and speciality stores, gyms and health clubs and online sales channels. Among these prominent distribution channels, large retail and mass merchandise account for approximately 32% of the overall market share in the current scenario.
Mass merchandisers offer sports nutrition products at lower prices, which leads to higher sales. Small retail, which includes convenience stores, grocery stores and other small retail formats, is the second most preferred distribution channel for sports nutrition products. Convenience store is a major distribution channel in small retail format. Retail stores are the primary sales channel for sports drinks, whereas sports supplements are predominantly sold through fitness centres and health clubs and pharmaceutical stores. Due to developments in e-commerce, online sales of sports nutrition products is on the rise.
North America, accounting for nearly 47% market share in 2014, would continue to dominate the market throughout 2015 - 2020. However, developing regions would exhibit phenomenal growth during the forecast period. Asia-Pacific is projected to account for a market share of nearly 24% by 2020. In the Asian countries, urbanisation has brought transformation in lifestyle, economy and spending habits. The higher disposable incomes, rising standards of living and greater indulgence in outdoor sports and fitness activities are likely to drive the demand for sports nutrition products in APAC.