Dietary Supplements Market

The Global Dietary Supplements Market is expected to witness a compound annual growth rate (CAGR) of 7.4% during the forecast period, with projected growth from USD 167.5 billion in 2023 to USD 239.4 billion in 2030. This growth can be attributed to several factors. Firstly, the increasing elderly population, along with a shift from pharmaceuticals to nutraceuticals, amino acids, and protein supplements, has led to a focus on preventive healthcare. Additionally, the growing trend of personalized nutrition has provided support to the dietary supplement industry. Consumers are now placing greater emphasis on self-directed care, driven by the rising importance of personal health, weight management, and overall well-being.

There has been a significant transformation in the personal care markets, as consumers are increasingly adopting weight management and protein supplements to help address life disorders. In many regions, there is a lack of adequate protein intake, leading to a growing demand for amino acids and protein supplements. Moreover, due to unhealthy eating habits and improper lifestyles, a large number of consumers are opting for weight management supplements to combat obesity and overweight issues.

The expansion of the dietary supplements market has created lucrative business opportunities for market players. For example, Nestle has expanded its business presence in the Brazilian market, while other key players like Abbott, GSK, and Glanbia offer supplements with preventive benefits such as vitamins and minerals to address micronutrient deficiencies. The market is highly competitive, with the top 5 players, including Nestle, Abbott, Amway Corp, Pfizer Inc., and ADM, occupying a substantial market share of 25-50%. Herbalife International of America, Inc. is also a prominent player in the global dietary supplements market, having formed a partnership with the Asociacion Mexicana de Bancos de Alimentos ("BAMX") in May 2021 to address food insecurity in Mexico.

Market Dynamics:

Driver: Shifting consumer preferences towards health and prevention

A survey conducted by the Council for Responsible Nutrition (CRN) reveals that 73% of Americans used dietary supplements in 2020, with the main reason being the perceived overall health and well-being benefits. The increasing health consciousness has led consumers to seek customized dietary supplements tailored to their specific biological requirements. As awareness grows, there is a significant demand for protein supplements, vitamins, and mineral supplements. Consumers are also increasingly turning to herbal supplements to address health-related issues and make life changes.

Restraint: High cost of dietary supplements

The cost of dietary supplements is relatively high due to expenses associated with ingredients, manufacturing, and storage. Proper storage conditions are necessary to prevent product spoilage, particularly for supplements containing enzymes and probiotics. Raw material availability also affects the final cost of dietary supplements. Moreover, if supplements are made from natural ingredients, production costs increase, further adding to the overall expense.

Opportunity: Shift towards plant-based supplements

There is a growing market for plant protein ingredients, and plant-based products offer significant opportunities as alternatives. Changing consumer preferences, interest in plant-based sources, nutritional benefits, clean eating trends, health concerns such as lactose intolerance, and environmental considerations have all contributed to the growth of plant-based supplements.

Challenge: Consumer skepticism and counterfeit nutraceutical products

The use of nutraceuticals, which include food ingredients and dietary supplements with medicinal benefits, is on the rise due to the prevalence of clinical disorders. However, consumer skepticism has increased due to the lack of experimental evidence, false advertising, and stringent regulatory frameworks associated with these products.

In terms of product types, botanicals are expected to grow at a significant CAGR in the market. Botanical supplements are derived from plant-based sources such as herbs, fruits, vegetables, and other plant materials, offering natural compounds that promote health. The increasing awareness of the benefits of plant-based dietary supplements, coupled with a growing interest in plant-based lifestyles, has made botanical supplements popular among North American consumers. The demand for dietary supplements in the United States is driven by heightened health consciousness, the desire for preventive healthcare, and the convenience of supplements in bridging nutritional gaps in the diet.

The sports nutrition function segment is expected to exhibit the highest growth rate during the forecast period.

Various sports nutrition supplements available today, such as multivitamins, branched-chain amino acids (leucine), omega-3 fatty acids, glucosamine, glutamine, beta-alanine, beetroot, and green tea extract, offer different performance benefits. While all individuals require an adequate amount of macro and micronutrients, athletes, due to their intense physical exertion, need to monitor their food intake closely. Sports nutrition supplements fulfill their specific nutrient requirements, which is why this category is projected to experience rapid growth in the dietary supplements market.

In terms of Mode of Application, the Soft gel segment is expected to grow at the fastest rate during the forecast period.

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

The elderly age group holds a significant share in the dietary supplements market as the target consumer during the forecast period.

As the aging population increases, the specific nutritional needs of older individuals become more apparent. Aging individuals often require additional support to address nutritional deficiencies and age-related health concerns. Dietary supplements provide a convenient and targeted solution to meet these needs by 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, significant growth is expected in the dietary supplements market within this segment.

In terms of distribution channels, the pharmacy segment is projected to hold the second-largest market share.

The provision of purchasing dietary supplements without a prescription or doctor's recommendation has led to improper consumption and potential adverse effects on patients' health. Inappropriate use of these supplements, especially when consumed in excess of the recommended dietary allowance (RDA), can be potentially toxic to the body. Pharmacists play a crucial role in disseminating scientific information and providing dosage guidance for dietary supplements. Continuous education for young professionals would further enhance their ability to advise patients effectively.

North America is expected to dominate the dietary supplements market during the forecast period.

The North American population has become increasingly health-conscious, adopting dietary supplements as part of their daily regimen for overall health and weight management. Life disorders such as diabetes, obesity, and high blood pressure are prevalent in the region due to improper diets. The consumption of junk and processed foods lacking nutrition contributes to these health issues. Additionally, the trend of consuming vegan and less processed foods has led to increased intake of dietary supplements to address nutritional deficiencies. Furthermore, South Africa shows potential as a market for the production and consumption of dietary supplements, given the prevalent issues of malnourishment and nutritional deficiencies in the population. Overall, these factors drive the growth of the dietary supplements market in North America.

Key Players in 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).

Dietary Supplements Market By Type
• Botanicals
• Vitamins
• Minerals
• Amino acids
• Enzymes
• Probiotics
• Other Dietary Supplements

By Function
• Additional Supplements
• Medical Supplements
• Sports Nutrition Supplements

Dietary Supplements Market By Mode of Application

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

By Target Consumer
• Infants
•  Children
•  Adults
•  Pregnant Women
•  Elderly

Dietary Supplements Market By Distribution Channel
• Pharmacy
• Supermarket/Hypermarket
• Online

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

Target Audience:
• On the supply side: Producers, suppliers, distributors, importers, and exporters of dietary supplements
• On the demand side: Large-scale food and beverage manufacturers, nutraceutical manufacturers, functional food ingredient manufacturers, and research organizations
• On the regulatory side: Government authorities responsible for regulations, commercial research and development institutions, and other regulatory bodies
• Other relevant associations, research organizations, and industry bodies.

Recent Developments:

• In February 2023, Otsuka Pharmaceutical Co., Ltd. (Japan) entered into a partnership with the Tokyo Marathon to provide health management support for approximately 38,000 participating runners and 80 race officials. This collaboration aims to raise public awareness about the importance of exercise and nutrition as part of the company's strategic development.
• In December 2022, Amway established a Business Innovation Hub in Singapore in collaboration with the Economic Development Board to address the evolving wellness needs in Asia. This strategic expansion allows Amway to tap into the growing demand for customized health and wellness solutions in the region, thereby boosting the company's sales and profitability.
• In May 2022, Nestlé expanded its presence in the Brazilian dietary supplement market through the acquisition of Puravida. This strategic move strengthens Nestlé's supplement offering, enhances its market position, and enables the company to capitalize on the growth opportunities in Brazil's thriving health and wellness industry.