Dietary Supplements Market

The global dietary supplements market, with a compound annual growth rate of 7.4%, is expected to grow from $167.5 billion in 2023 to $239.4 billion by the end of 2028. The factors driving the growth are the increasing elderly population, the shift from pharmaceuticals towards nutraceuticals, amino acids, and protein supplements due to the focus on preventive healthcare, and the growing personalized nutrition, which is supporting the dietary supplement industry. Consumers are shifting focus toward self-directed care driven by the growing personal health, weight management, and well-being trend. The personal care markets have changed drastically in recent years, from consumers adopting weight management and protein supplements to help manage lifestyle disorders. In most of the region, it is seen that people do not take an adequate amount of protein, and because of this, the need for amino acids and protein supplements is increasing. Additionally, due to wrong eating habits and improper lifestyles, a vast majority of consumers are opting for weight management supplements to curb obesity and overweight issues.

The expanding business has offered lucrative business opportunities to the players who are operating in the market segments. For instance, Nestle has expanded its business into the Brazilian market. Other key players like Abbott, GSK, and Glanbia provide supplements that have preventive benefits like vitamins and minerals to resolve micronutrient deficiency. The overall dietary supplements is classified as a competitive market, with the top 5 key players namely Nestle (Switzerland), Abbott (US), Amway Corp (US), Pfizer Inc. (US), ADM (US), occupying 25-50% of the market share. Herbalife International of America, Inc. (US) is one of the prominent player operating in the global dietary supplements market. In May 2021, Herbalife Nutrition formed a new partnership with the Asociacion Mexicana de Bancos de Alimentos ("BAMX"), a nonprofit dedicated to meeting the needs of people who are experiencing food insecurity in Mexico.

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Dietary Supplements Market Dynamics

Driver: Shift in consumer preferences due to the increasing focus on health and prevention

According to a recent survey conducted by the Council for Responsible Nutrition (CRN), 73% of Americans will use dietary supplements in 2020. The most important reason for the growing use of dietary supplements among consumers was their "overall health and wellbeing benefits." The increasing health awareness has also driven consumers toward customized dietary supplements that are specific to their biological requirements. As people become more conscious the demand for products such as protein supplements, vitamins, and mineral supplements has increased significantly. Consumers are increasingly opting for herbal (botanical) supplements in their daily diet to address health-related issues and for lifestyle change.

Restraint: High cost of dietary supplements

The price of a supplement is high as the ingredients, manufacturing, and storage involve a high amount of cost expenditure. Additionally, supplements need to be maintained under proper conditions while transporting due to the loss of their property. For instance, enzymes and probiotic supplements need the optimum storage condition to prevent any sort of product spoilage. Further, the availability of the raw materials in products is a factor of consideration that can influence the final cost of dietary supplements. Furthermore, if the supplements are made from natural ingredients, the cost of production adds up as the process increases to produce the final product.

Opportunity: Shift towards plant-based supplements

The market for plant protein ingredients is growing at a high rate. Plant-based products witness a significant opportunity in the current market scenario as alternatives. The change in consumer preference and interest in plant-based sources due to its nutritional profile, inclination toward clean eating, rise in health concerns like lactose intolerance, and environmental concerns have contributed to the growth for the plant-based supplements.

Challenge: Consumer skepticism and fake supplements associated with nutraceutical products

Nutraceuticals refer to food ingredients and dietary supplements that provide certain medicinal benefits. The adoption and use of nutraceuticals are increasing due to an increase in clinical disorders. For example, there are supplements which are for people suffering from diabetes, it provides the optimum amount of fiber and protein to reduce insulin spike. However, there is a rise in consumer skepticism over these products due to the lack of availability of experimental evidence, false advertisement, and stringent regulatory framework.

Dietary Supplements Market Ecosystem

Based on Type, Botanicals is anticipated to grow at a significant CAGR the market

Plant-based dietary supplements are derived from botanical sources such as herbs, fruits, vegetables, and other plant materials, offering natural health-promoting compounds for supplementation purposes. The increasing awareness of plant-based dietary supplement benefits, combined with a growing interest in plant-based lifestyles, has led to the popularity of botanical supplements among North American consumers. The demand for dietary supplements in the United States is being driven by increasing health consciousness, a desire for preventive healthcare, and the convenience of dietary supplements in bridging nutritional gaps in the diet.

The sports nutrition function segment is projected to grow at the highest rate during the forecast period.

Many sports nutrition supplements available today include multivitamins, branched-chain amino acids (leucine), omega-3 fatty acids, glucosamine, glutamine, beta-alanine, beetroot, and green tea extract, each of which provides different performance benefits. In general, all humans require an adequate amount of macro and micronutrients. However, due to extreme exertion athletes need to monitor their food intake. Sports nutrition supplements provide them with all the required nutrients, which is why this category is projected to grow fastly in the dietary supplements market.

Based on Mode of Application, Soft gel segments is projected to grow at the fastest rate during the forecast period.

Due to their ease of consumption, especially for individuals with swallowing difficulties. Their gel-like texture and easy-to-swallow nature make them a preferred choice. Soft gels offer enhanced bioavailability, with advanced formulations that improve nutrient absorption. They can be customized to include a wide range of ingredients, providing flexibility for specialized products. The visually appealing and professional appearance of soft gels, along with their ability to mask unpleasant tastes and odors, contribute to their popularity. Moreover, the gelatin-based shell of soft gels extends the shelf life of enclosed ingredients. These factors drive the growth of soft gels in the dietary supplements market.

The elderly age group hold a significant share in the dietary supplements market by target consumer during the forecast period

Due to the increasing aging population and their specific nutritional needs. As individuals age, they may require additional support to address nutritional deficiencies and age-related health concerns. Dietary supplements provide a convenient and targeted solution to fulfill these needs, offering vitamins, minerals, and other essential nutrients. The elderly segment seeks supplements to support joint health, cognitive function, cardiovascular health, bone strength, and immune system function. Manufacturers are developing specialized formulations to cater to the unique requirements of older adults. With the growing elderly population, the dietary supplements market is expected to experience significant growth in this segment.

By distribution channel, the pharmacy segment is projected to hold the second-largest market share

Inappropriate use of dietary supplements can have adverse effects on a patient’s health when given without proper examination. These supplements can be potentially toxic when consumed more than the recommended dietary allowance (RDA) and have toxic effect on the body. The provision on purchasing these supplements without a prescription or doctor’s recommendation has led to the improper consumption.  The role that pharmacists play a crucial role in helping citizens disseminate scientific information as well as the dosage of dietary supplements. Young professionals in particular would benefit from continuous education to better advise patients.

North America: Dietary Supplements Market Snapshot

North America holds the highest market share during the forecast period.

North American nutrition and supplements hold the largest market share and are expected to expand further. North American population has become more aware of health and adopting dietary supplements as a part of their daily diet regime, to have overall benefits on health and weight. The population in the region is more prone to lifestyle disorders like diabetes, obesity, and blood pressure, due to improper diet. The region is more inclined towards consuming junk and processed food that are devoid of nutrition, which gives rise to health disorders. Additionally, the trend of consuming vegan and less processed food is leading to the increased intake of dietary supplements to tackle nutritional deficiencies. Additionally, South Africa seems to be a potential market, in terms of production and consumption of dietary supplements. The general trend of malnourishment and other nutritional deficiencies is seen in the population in the South African region. Together, it drives the overall dietary supplements market.

Dietary Supplements Market Trends

• Growing Demand for Natural and Organic Supplements: Consumers are increasingly seeking natural and organic dietary supplements made from whole food sources. There's a rising awareness about the potential health benefits of consuming supplements derived from natural ingredients rather than synthetic ones.
• Focus on Health and Wellness: With a heightened focus on health and wellness, consumers are turning to dietary supplements to complement their diets and address specific health concerns. This trend is driven by an aging population, growing interest in preventive healthcare, and a desire for overall well-being.
• Personalization and Customization: Companies are offering personalized supplements tailored to individual needs. This customization can include factors such as age, gender, health goals, and even genetic predispositions. Personalized supplements are gaining popularity as consumers seek more targeted solutions for their health concerns.
• Transparency and Clean Labeling: Consumers are increasingly demanding transparency regarding the ingredients used in dietary supplements. Clean labeling, which involves clearly listing all ingredients and avoiding artificial additives, has become a significant trend. Consumers are scrutinizing labels more than ever, opting for supplements with minimal, recognizable ingredients.
• Digitalization and E-Commerce: The dietary supplements market is witnessing a shift towards digitalization and e-commerce. Online platforms provide consumers with convenient access to a wide range of products, along with detailed product information, reviews, and recommendations. This trend has been accelerated further by the COVID-19 pandemic, as more consumers turn to online shopping for their supplement needs.
• Focus on Immune Health: The COVID-19 pandemic has heightened awareness of the importance of immune health, leading to increased demand for supplements that support immune function. Ingredients such as vitamin C, vitamin D, zinc, and elderberry are experiencing particularly high demand due to their perceived immune-boosting properties.
• Sustainable and Ethical Practices: There is a growing emphasis on sustainability and ethical sourcing within the dietary supplements industry. Consumers are increasingly concerned about the environmental impact of supplement production and are favoring companies that prioritize sustainable practices, ethical sourcing of ingredients, and eco-friendly packaging.

Top Companies in the Dietary Supplements Market

Key players in this market include Nestle (Switzerland), Abbott (US), Amway Corp (US), Pfizer Inc. (US), ADM (US), International Flavors & Fragrance (US), Otsuka Holdings Co., Ltd (Japan), Glanbia PLC (Ireland), GSK PLC. (UK), Bayer AG (Germany), Herbalife International of America, Inc. (US), Nature's Sunshine Products, Inc (US), Bionova (Canada), ArkoPharma (France), American Health (US), Pure Encapsulation (US), H&H Group (Hong Kong), Nu Skin (US), Power Gummies (India), Biomedical Research Laboratories (US), HealthKart (India), NutriScience Corporation (US), Nature's Essentials (US), and Life Extension (US).

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Scope of the Report

Report Segmentation

This research report categorizes the dietary supplements market, based on type, function, mode of application, target consumer, distribution channel, and region.

By Type

• Botanicals 
• Vitamins
• Minerals 
• Amino acids
• Enzymes
• Probiotics
• Other Dietary Supplements

By Function

• Additional Supplements
• Medical Supplements
• Sports Nutrition Supplements

By Mode of Application

• Tablets
• Capsules
• Liquid
• Powder
• Soft gels
• Gel caps

By Target Consumer

• Infants
• Children
• Adults
• Pregnant Women
• Elderly

By Distribution Channel

• Pharmacy
• Supermarket/Hypermarket
• Online

By Region

• North America
• Europe
• Asia Pacific
• South America
• RoW

Target Audience:

• Supply-side: Dietary supplements producers, suppliers, distributors, importers, and exporters
• Demand-side: Large-scale food & beverage manufacturers, manufacturers of nutraceuticals, functional food ingredient manufacturers, and research organizations
• Regulatory side: Related government authorities, commercial Research & Development (R&D) institutions, and other regulatory bodies
• Other related associations, research organizations, and industry bodies.

Dietary Supplements Industry News

• In February 2023, Otsuka Pharmaceutical Co., Ltd. (Japan) partnered with Tokyo Marathon in order to provide health management support for approximately 38,000 participating runners and 80 race officials. This will increase public awareness focusing on the importance of exercise and nutrition which is part of the strategic development of the company.
• In December 2022, Amway opened a Business Innovation Hub in Singapore in partnership with the Economic Development Board to meet evolving wellness needs in Asia. This strategic expansion helps Amway tap into the growing demand for tailored health and wellness solutions in the region, which is expected to boost the company's sales and profitability.
• In May 2022, Nestlé expands its presence in the Brazilian dietary supplement market through the acquisition of Puravida. This strategic move enhances Nestlé's supplement offering, strengthening its position and capturing growth opportunities in Brazil's thriving health and wellness industry.

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