The global ketone market is estimated to be valued at USD 443 million in 2019 and is projected to reach USD 640 million by 2025, recording a CAGR of 6.3%. The market is projected to witness significant growth due to factors such as the increase in the consumption of functional foods, rise in health consciousness among consumers and sport athletes, and multi functionalities of ketones, which has widened the scope of its applications. The increasing market potential, growing population, and surge in demand for food & beverages that boost the energy levels are factors that are projected to impact the growth of the ketone market.
The demand for ketone remains high in developed markets, such as the US and Europe. Developing countries, namely, China, Japan, and India, are projected to witness a surge in demand for ketone in the coming years. This demand is projected to remain high due to the increase in the production of processed and functional food products. Emerging economies such as India and China in the Asia Pacific region are also witnessing high growth. The demand for ketone is projected to grow in developed countries, such as Japan. In addition, the exponential growth is projected to be witnessed in the new and emerging markets, such as China, India, and other Asia Pacific countries.
Key manufacturers are focusing on expanding in Asia, as it offers cost-effective benefits to manufacturers, in terms of production and processing, due to the low prices of raw materials and cheap labor. The rise in the standard of living and changes in lifestyles in developing countries also contribute to the growth of the functional food market. Therefore, the ketone market is projected to witness high growth potential in the new markets of China, India, and Japan.
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Companies are increasingly investing in R&D activities, and new product launches to incorporate the formulations of existing products and cater to customer requirements. Companies are focusing on innovating new products to benefit their customers. The rise in health concerns and the consumer demand for healthy products are projected to encourage companies to increasingly invest in research & development activities. Top players such as HVMN Inc. (US) and Perfect Keto (US) are focusing on engaging in research & development activities, and new product launches activities to meet the increasing demand for ketone in various applications. In February 2019, Perfect Keto has launched its products with ketosis and ketogenic ingredients in the US market through omnichannel distribution models. The company focuses on establishing itself as an innovative brand and gain a foothold in the US keto market with the launch of its new keto bars in various flavors. In January 2018, HVMN, Inc. launched products with ketone esters and ketone collagen in the US market through its omnichannel distribution model. Ketone ester drinks launched by the company are the first ketone ester drinks in the world that are scientifically proven to improve metabolic performance.
By application, the ketone market is segmented into supplements, food & beverages, and cosmetic & personal care products. Ketone is used in the supplements industry and is available in both solid and liquid forms. Consumers and sport athletes prefer spending on the solid form, as it is convenient to carry and has a longer shelf life. Due to the fast-paced life and busy lifestyles, consumers prefer consuming supplements to make sure that they get proper nutrients, and ketone supplements are used to improve the physical performance of athletes in sports. In addition, the consumption of ketone supplements remains high among the younger population in their weight loss regime. Hence, the supplement subsegment in the application segment dominated the market in 2018.
In the food & beverage industry, ketone is also used in various food and beverage products, such as keto bars, energy drinks. Due to the rising health consciousness among consumers and sports athletes, consumers prefer spending on caffeine-based drinks to other alternatives that increase energy and performance. Due to this shift, ketone-based food and beverages witness high growth potential. Emerging countries such as China and India are markets that witness high consumption of food & beverage products are projected to increase the demand for ketones in the global market.
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The major players, such as HVMN Inc. (US), Perfect Keto (US), KetoLogic (US), BPI Sports (US), and Pruvit Ventures, Inc (US) in the ketone market are focusing on undertaking new product launches, expansions & investments, joint venture, agreements, and partnerships to expand their global footprint.