Introduction
Nutraceutical ingredients are derived from sources such as animals, plants, microbial, and synthetic, which provide health benefits, adding the basic nutritional value and functional benefits to various applications such as food, beverages, dietary supplements, animal nutrition, and personal care products. The growth in demand for fortified food products, owing to factors such as the rising awareness about better dietary choices, the rising aging population, and the growing number of chronic diseases, has, in turn, resulted in a large number of manufacturers investing in the production of end products, which would contribute to the nutritive health of consumers.
Global players such as General Mills (US), Amway (US), Nestle (Switzerland), The Hain Celestial Group (US), and Kraft Heinz Company(US) have been emphasizing on increasing their customer base with their wide product portfolios and market penetration. Partnerships between companies have resulted in co-branding and co-marketing between ingredient suppliers and manufacturers of finished products, which would help in increasing their customer base.
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The demand for safe and healthy food products among consumers is growing globally, which would drive the market for nutraceutical and dietary supplements. Moreover, as per the current pandemic situation caused due to the outbreak of COVID-19, boosting the immune system is one of the major challenges among consumers. Therefore, nutraceutical products will see an upward trend in the coming years, as these products helpin boosting the immunesystem.
Impact Of Covid-19 Pandemic On The Nutraceuticals And Dietary Supplements Market
The rising demand for food products with multiple health benefits, preventive healthcare measures, the trend of healthy snacking, and the increasing trend of on-the-go snacking, supported by the economic growth, drives the demand for nutraceutical food products, especially in snacks, dairy products, and infant food product categories.As consumers are becoming health-conscious and aware, the preferences for balanced diets and healthy food has been increasing. This has widened the applications for functional foods and created profitable growth opportunities for manufacturers in the nutraceutical products as well as the nutraceutical ingredients market.
The COVID-19 outbreak has positively impacted the nutraceuticals and dietary supplements market. The demand for these products will increase due to the health benefits and immunity-boosting power. The sharp surge in demand is observed for dietary supplements from consumers, as they providea strong immune function and decrease the health threat possibility.
Moreover, numerous countries around the world are experiencing a lockdown, and social distancing has been mandated by the government authorities to curb the transmission of the outbreak. As a result, both imports and exports in many countries have been either restricted or delayed since the outbreak. This poses a drawback for nutraceutical products supplier, as their supply chain is not equipped to handle the surge in demand.
Regional Overview
As the global economy struggles with the COVID-19 pandemic situation, its impact on the global trade and nutraceutical market is mounting with rapid deterioration inthe supply of products irrespective of high demands.The global marketfor nutraceutical productshas contracted due to the COVID-19 crisis with China’s manufacturing shutdown, and sudden recession conditions in regions such as North America, Europe, and Asia Pacific. This could be because the natural product industry was particularly dependent on China, and 75%-80% of raw material used in dietary supplements were sourced from the country. The production of nutraceutical products has reduced, and the demand-supply gap is created due to the lockdown across the world.
The European region is the largest market due toa steady increase in demand, particularly due to the growing consumer awareness regarding health. Additionally, the growing aging population, along with high healthcare costs, has fueled the consumption of dietary supplements in the European region. North America shows stable growth due to its mature market. The Asia Pacific region shows significant growth potential for the nutraceuticals and dietary supplements markets due to the growingawareness among consumers about health benefits related to the intake of dietary supplements such as increased calcium absorption & improvement in bone density and enhancement of immune function.
Governments of various countries in this region have been supportive, and favorableinitiatives have been boosting this sector.However, the COVID-19 pandemic has created a supply lag across the markets, causing severe supply chain disruption in the nutraceuticals and dietary supplements market.
Conclusion
Therising demand for immunity-boosting productsdue to changes in consumer preferencesis a major factor influencing to drive the market for nutraceuticals and dietary supplements. The leverage on regulations provided by the federal bodies of many countries will enhance the growth of the market, especially from the North American and European regions. Furthermore, COVID-19 pandemic is currently expected to impact the supply chain of the nutraceuticals market.However,some non-strategic investments in improving the distribution pattern can help tackle the current pandemic scenario.
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