Nutraceuticals,Promise,Nutriti marketing Nutraceuticals: A Promise Of Nutrition Supplementation

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NUTRITION + PHARMACEUTICALS = NUTRACEUTICALS!Stephen L. DeFelice, for the first time used the term ‘Nutraceutical’ a portmanteau of the words ‘nutrition’ and ‘pharmaceuticals’. Nutraceutical is a marriage of nutrition & pharmaceuticals and is applied to products that range from dietary supplements, herbal products, specific diets, processed foods, beverages and even isolated nutrients. On a broad scale, they are the products extracted from food sources and are purported to provide extra metabolic benefits, in addition to the basic nutrition value in foods.IS IT WHAT THE CONSUMER DESIRES FOR?Present day consumers are highly health conscious, aware and better informed on nutrition-enabled products. The supplements are not only seen to meet the recommended daily intake of nutrients, but also as a physical performance booster and a disease prevention option. Past decade witnessed a shift in the consumer preference from synthetic ingredients to natural & organic ingredients including foods that are of a Non-GMO origin.The affluent middle class populations of the developing countries have trended towards a healthier lifestyle with increased money at disposal. This choice of a better lifestyle and higher incomes enabled these populations to buy the nutraceutical products and dietary supplements, which are often believed to be the market for the rich. Furthermore, functional foods successfully demonstrated to have physiological benefits, which reduce the risk of chronic diseases related to cardiovascular problems and diabetes. The old saying of ‘Prevention is better than cure’ has become the current trend and this is a good omen for the emerging nutraceutical market.WHAT ALL COME UNDER NUTRACEUTICALS?The Nutraceutical market mainly constitutes Functional foods, beverages and dietary supplements. The growing milk and meat market is driving the animal feed manufacturers to include nutraceutical ingredients in to the animal feed. The growing market of minerals/vitamins enriched herbal creams and shampoos are also one of the key drivers for growing demand for nutraceutical ingredients. The dietary supplements are present in the form of tablets, capsules and liquids. The Nutraceutical ingredients include pre-biotic and pro-biotic, vitamins, minerals, fibers, Proteins, Omega 3 and structured lipids, Amino acids and various other ingredients. Foods fortified with Omega fatty acids are expected to grow by 6.8% during the forecast period. Nutraceutical ingredients finds application right from cereals, grains, nuts, vegetables, fruits, dairy products, poultry products, sea food and confectionery items to non-alcoholic beverages like juices, energy drinks, sports drinks. Few examples of functional foods are: yogurts with probiotics, drinks with herb blends, soy beverages rich in proteins etc.COMPETITITVE SCENARIO!The companies see growth opportunities in targeting the consumers below the age group of 40 years. Among those aged under 40, around 60% are interested in raising their protein intake to get through busy day, for a firm and healthier body, to meet their weight goals, and for a balanced diet. Consumers aged above 60 years are unaware of the health benefits provided in the functional foods and beverages. Companies targeting this segment can grow in this niche category. Food products with labels of gluten-free, free from artificial additives and preservatives are the strategies being adopted by food companies to drive customers in to taking up healthier lifestyle choices, and in the process the sales. Brands such as Activia and Yakult are targeting women and aged citizens for their probiotics dairy products to improve the digestive health. In US functional food market is dominated by global players such as Coca Cola Co., Dean Foods, General Mills Inc., Kellogg Co., Kraft Foods, Nestle S.A. and Pepsi Co. The major players in the nutraceutical ingredients market include DuPont (U.S.A), Royal DSM (Netherlands), Cargill (U.S.A), ADM (U.S.A) and BASF (Germany). Major Food and Pharma companies are using M&A route to acquire pure-play nutraceutical companies to enter the nutraceutical market. Although, not a major revenue booster, the pharmaceutical companies find higher margins through nutraceutical productsMARKET ANALYSISThe spear heading nations in the global nutraceutical markets are U.S., Japan, Israel and Germany. Rising consumption of dietary supplements among the baby boomer generation and booming food and beverages market is driving the US nutraceutical market which is expected to reach $90 billion by 2020, on 6% CAGR. In 2020, the U.S will still dominate functional food market globally with an expected CAGR of 8.8% globally. Asia Pacific follows this. 47% of the Japanese population consumes nutraceutical products; this can be contributed to the growing ageing population. The developing countries witness high mortality rates for non-communicable and age related diseases and only few percent are aware of the term nutraceutical. Germany, Netherlands and Sweden have emerged as the key nutraceutical innovation hubs in Europe, while U.K. and Spain have emerged as key test markets for new products with the European consumers demanding for products which give energy, promote healthy teeth, strong bones, prevents digestive health issues, boost immune system and lowers cholesterol.CAN WE INVEST IN THIS?The future scope for the nutraceutical product companies and pharmaceuticals is in developing the customized nutrients market which maps the individuals genetic and lifestyle changes to his nutrient status, which helps in developing customized functional goods and beverages based on the genetic segment. Pharmaceuticals see a lower R&D and regulatory burdens in their nutraceutical segment when compared to that of prescription and OTC drugs. For example Dietary supplements do not have to be approved by the U.S. Food and Drug Administration (FDA) before marketing. The nutraceutical products industry is also seeing major changes in its operations in order to meet with the FDA's new Dietary Supplement Current Good Manufacturing Practices (cGMPS). The severely limited consumer awareness in the developing countries on the nutraceutical ingredients needs to be taken up by manufacturers to spread awareness about products. People buy benefits and not the ingredients. Hence it is for the nutraceutical product manufacturers to inculcate the right ingredients and innovate to meet the changing lifestyle patterns of the consumers. Article Tags: Dietary Supplements, Developing Countries, Nutraceutical Products, Functional Foods, Nutraceutical Market, Nutraceutical Ingredients