World nutraceutical demand to balloon
2010, with the US remaining the largest single consumer of
nutraceutical ingredients and China and Japan emerging as the
fastest expanding nutraceutical markets, according to a recent
report.
The report entitled "World Nutraceuticals", issued by Cleveland-based international business research Freedonia Group, is an encouraging spur for ingredients manufacturers. The industry is characterized in the analysis as being divided among many small members, with only a few market leaders standing out.
If the report's estimates are correct, greater trade within the global nutraceutical industry could occur as new players catch up and the US market continues to outsource and diversify.
"Growth is driven by a combination of heavy advertising as well as new product introductions, also health consciousness within aging population impacts favourably," Freedonia senior industry analyst Bill Martineau told NutraIngredients-USA.com.
In 2005, US demand for nutraceutical ingredients fare outpaced other individual countries. Demand stood at $2545m, only slightly behind the whole of Western Europe, which saw $2945m.
"European markets are more established and will not gain growth momentum from fads," said Martineau. "Low income in China and India holds down per capita demand."
But the industry scene will likely do a volte-face by 2015, when Freedonia estimates Chinese demand will grow by 10.2 percent annually to $3800m.
Not only will the Chinese nutraceutical market grow as domestic demand increases, but it will also get more business from the US.
"…Because of outsourcing trends, the United States will relinquish its longstanding top position in the global production of nutraceutical ingredients to China within the next few years," says the report.
The report highlights growth opportunities in soy protein nutrients; the functional food ingredients lutein, lycopene, omega-3 fatty acids, probiotics and sterol esters; the essential minerals calcium and magnesium; the herbal extracts garlic and green tea; and the non-herbal extracts chondroitin, glucosamine and coenzyme Q10.
The US is set to remain in its position as largest consumer because of the broad and increasing range of functional and nutraceutical products produced domestically. While growth in China and India will be related to strong economic growth and the subsequent upgrading and diversification of food, beverage and drug production capabilities.
According to the report, demand for herbal and non-herbal extracts will rise by 6.5 percent annually, from $1.35bn in 2005 to $2.5bn in 2015. Similarly, demand for nutrients and minerals will increase by 6.3 percent annually, from $7bn in 2005 to $1.27bn in 2015. While demand for vitamins will grow at a slower rate of 4.6 percent annually - going from $3.33bn in 2005 to $5.2bn in 2015.
The top five nutraceutical ingredient global competitors emerging from the report are Solae, Cargill, DSM Nutritional Products, ADM Natural Health and Nutrition, and BASF. In 2005, these companies held a combined global market share of 36 percent, with another 3500 producers vying for the remainder.
