Growing global dietary supplement markets in 2020

Published on: January 20, 2020

A brief look at some fast-growing markets for dietary supplements

Dietary supplements performed strongly in the last few years, with Grand View Research (San Francisco, CA) reporting that the global dietary supplement market-which Grand View estimates was worth $115 billion in 2018-will grow at a 7.8% CAGR through 2025.¹ Changes in consumer habits and increasing awareness about wellness worldwide are creating new opportunities for supplement brands. Many ingredient categories are expected to grow, including botanicals, amino acids, and proteins.

Market analysts are predicting that 2020 will be a banner year for nutritional supplements and functional foods in countries all around the world. While Grand View’s data indicate there’s every reason to expect cross-category expansion, regionalized trends are emerging that will determine which countries are ideal target markets for particular ingredients. Which markets show the most promise? Where will the fastest growth occur? With regionalized product trends emerging, a localized go-to-market strategy will help brands make smart regional investments and launch products that make the most of 2020’s emerging trends.

Here are some of the global regions that are expected to lead the pack.

Reference
1. Grand View Research. “Dietary supplements market size analysis report by ingredient (botanicals, vitamins), by form, by application (immunity, cardiac health), by end user, by distribution channel, and segment forecasts, 2019-2025.” Published online May 2019. Accessed at: https://www.grandviewresearch.com/industry-analysis/dietary-supplements-market

Photo © AdobeStock.com/Elena Abramova

Asia Pacific Growing Fast: Herbal Ingredients, Dairy Alternatives

Asia Pacific is one of the fastest-growing markets for dietary supplements, driven by a growing GDP and an expanding aging population, per Grand View Research.² Another market analyst, Kenneth Research, predicts that Asia Pacific dietary supplement sales as a whole will grow at a 11.2% CAGR until 2024, a rate 2.4 percentage points higher than the predicted global average.³

Key drivers in the Asia Pacific region will be herbal ingredients like turmeric and ashwagandha, says Kenneth Research.³ Tofu and tofu ingredients are also expected to perform well in Asia Pacific, as will milk substitutes. According to research by MarketsAndMarkets⁴, Asia Pacific held the largest share of the global dairy alternatives market in 2018. Two of the most significant factors driving market growth are an increase in consumer buying power and an increase in soymilk consumption. Additionally, busy consumers in Asia Pacific are seeking nutritionally fortified products to supplement their diets in a convenient manner. The Asia Pacific dairy alternatives market is expected to grow rapidly, with dairy-free yogurts leading the category.

Another important market in Asia Pacific will be protein and amino acid supplements. Mordor Intelligence (Hyderabad, India) estimates that by 2024, the Asia Pacific whey protein market will be worth $1.57 billion, growing a 9.2% CAGR.⁵ Both at home and abroad, proteins and amino acids continue to be a safe bet.

References
2. Grand View Research. “Asia Pacific nutritional supplements market size, share, and trend analysis by product (sports nutrition, dietary supplements, functional foods and beverages), by consumer group, by formulation, by sales channel, and segment forecasts, 2019-2025.” Published online November 2019. Accessed at: https://www.grandviewresearch.com/industry-analysis/asia-pacific-nutritional-supplements-market
3. Kenneth Research. “Global dietary supplements: Business analysis, scope, size, share, growth, trends, demand, overview, forecast 2024.” Published online January 2019. Accessed at: https://www.kennethresearch.com/report-details/global-dietary-supplement-market/10064739
4. Markets and Markets. “Dairy alternatives market worth $29.6 billion by 2023.” Published online January 2019. Accessed at: https://www.marketsandmarkets.com/PressReleases/dairy-alternative-plant-milk-beverages.asp
5. Mordor Intelligence. “Asia-Pacific whey protein market–growth, trends, and forecast (2019-2024).” Published online 2019. Accessed at: https://www.mordorintelligence.com/industry-reports/asia-pacific-whey-protein-market

Photo © AdobeStock.com/kondratya

Europe Pulls Strong in Plant Protein

Europe will continue to be a strong market for nutritional supplements overall. Mordor Intelligence estimates that the European market will grow at a 4.6% CAGR through 2024. Two key factors that will drive the European market are recommendations from health professionals and Europeans’ generally positive view of supplements as a whole.⁶

Europe is expected to be one of the two primary drivers of the plant-based protein market (the other driver being North America). Research by Fortune Business Insights shows that Europe and North America will account for more than half of all global revenue from plant-based protein products through 2025.⁷

Reference
6. Mordor Intelligence. “Europe dietary supplement market – growth, trends, and forecast (2019-2024).” Published online May 2019. Accessed at: https://www.researchandmarkets.com/reports/4617249/europe-dietary-supplement-market-growth
7. Fortune Business Insights. “Plant based protein supplements market size, share and industry analysis by type (soy protein, pea protein & whey protein), by distribution channel (mass merchandisers, pharmacies/drugstores, specialty stores, online retail & others), and regional forecast 2018-2025.” Published online December 2019. Accessed at: https://www.fortunebusinessinsights.com/industry-reports/plant-based-protein-supplements-market-100082

Photo © AdobeStock.com/laplateresca

North American Sports Nutrition Goes Clean Label

Demand for sports supplements continues to grow in North America, with Canada and the United States leading world market. Euromonitor estimates that in the U.S. alone, protein products will grow at a 12% CAGR through 2022.⁸

Despite costing, on average, 26% more than competing products, according to Lumina Intelligence⁹, sports nutrition products that are clean label are expected to see growth. In the U.S., however, Lumina notes that competition has lowered the prices of clean-label sports nutrition products. By contrast, consumers in China are willing the pay the most for clean-label sports nutrition products.

References
8. Decker KJ. “Weekend warriors driving sports nutrition market.” Nutritional Outlook. Published online May 24 2019. Accessed at: https://www.nutritionaloutlook.com/sports-energy/weekend-warriors-driving-sports-nutrition-market
9. Lumina Intelligence. “Clean label: From colours to contraband.” Published online October 2019. Accessed at: https://www.lumina-intelligence.com/reports/clean-label-from-colours-to-contraband/?utm_source=nutraingredients-usa.com&utm_medium=referral&utm_campaign=ProteinPricing_NOAM_SixPackArticle_Oct19

Argentina, Middle East See Growth in Collagen and Supplements Overall

The supplements market overall in Argentina is forecasted to see 27.2% year-over-year growth in 2020, according to data provided to Nutritional Outlook by Euromonitor International. Meanwhile, Euromonitor reports that Turkey and Pakistan will both see overall market growth just over 20%. In all three countries, collagen is expected to be a major market driver.

Mordor Intelligence predicts that the South American nutricosmetics market will see a 7.5% CAGR through to 2023, with collagen accounting for the largest share of the market in 2017.¹⁰ Meanwhile, nutricosmetic sales in the Middle East and Africa will grow even faster during the same forecast period, at a CAGR of 7.8%, although market share still remains limited.¹¹ As more consumers in the Middle East and South America become familiar with collagen supplements and other beauty products, the nutricosmetics market could grow further.

References
10. Mordor Intelligence. “South America nutricosmetics market – segmented by type, segmented by ingredient (Carotenoids, Vitamins, Collagen, Omega-3 Fatty Acids, Coq10, Keratin, and Other Ingredients), application (Skin Care, Hair Care, Weight Management, and Other Applications), and geography - growth, trends and forecasts (2018 – 2023)”. Published online 2019. Accessed at: https://www.mordorintelligence.com/industry-reports/south-america-nutricosmetics-market
11. Mordor Intelligence. “Middle East & Africa nutricosmetics market – segmented by ingredient (carotenoids, vitamins, collagen, Omega-3 fatty acids, Coq10, keratin, and other ingredients), application (skin care, hair care, weight management, and other applications), and geography – growth, trends, and forecast (2018-2023).” Published online 2019. Accessed at: https://mordorintelligence.com/industry-reports/middle-east-and-africa-nutricosmetics-market