Nutraceuticals have recently become a hot trend in the United States due to the sweeping preventive health concern. Increased consumption of dietary supplements and functional foods and beverages is driving new businesses to explore the robust opportunities nutraceuticals have to offer.
In 2015, the U.S. nutraceutical market opportunity was $64.8 billion, making Americans one of the largest consumers. By 2024, the market is projected to see continual growth reaching $102.6 billion. The question is, what exactly is driving the growth?
We have the answer! Below are the key factors driving growth in the nutraceuticals market.
Demographics.
Demographics play a key role in determining market growth. For nutraceuticals, the focus is on Millennials and Baby Boomers. In today’s market, Millennials are the fastest growing group of nutraceutical consumers. Yet, due to their disproportionate representation of the overall population, Baby Boomers are currently the largest consumers. Understanding these two major consumer groups is important to monitoring the market growth.
Psychographics.
With two unique generational consumer groups comes varying purchasing motivators. Maintaining a healthy weight, nutrition and energy are what drives Baby Boomers. They are focused on preserving a healthy lifestyle as they enter into retirement age. Millennials, on the other hand, are focused on creating a healthy lifestyle for themselves and the environment. Millennials choose nutraceuticals based on product formats that are sustainable, environmentally friendly and non-GMO.
Rising consumer interest in preventive health.
The preventive health movement is on the rise and in return, so are nutraceuticals. The conversation has shifted from lifespan to “health span.” People are more concerned about healthy aging and living well for as long as possible rather than the number of years they will be alive. Developing a lifestyle focused on health has its perks. Reducing healthcare costs, avoiding illnesses and simply feeling good are a few of the benefits that have increased the interest in preventive health.
Demand for more convenient formats.
Although there are different purchasing motivators in Baby Boomers and Millennials, they do have one thing in common – the desire for convenient nutraceutical formats. Baby Boomers seek nutraceuticals that either replace or delay the use of prescription medicines. After years of taking medications and supplements in pill format, Baby Boomers are eager for a convenient alternative. Millennials continue to demand healthier products at convenience stores instead of visiting specialty stores. In the world we live in today, convenience is key for every generation.
Innovations in food manufacturing.
As technology advances in all aspects of our lives, it’s not a surprise food manufacturing has seen many innovations. These advances have increased the possibility for nourishing food. Non-thermal food processing preserves more nutrients and flavor than traditional food processing. Innovations in food manufacturing allows more opportunity to create foods and beverages with more health benefits.
