The dietary supplements market is one of the fastest growing markets in the world.
Valued at US$61.84 billion in 2014, the dietary supplements market is anticipated to witness stellar growth in the next five years and reach a valuation of US$84.8 billion according to Future Market Insights.
Market drivers
One of the prime reasons why dietary supplements market is witnessing such a robust growth is because today, dietary supplements are not limited to bodybuilders and aspiring wrestlers. There is a paradigm shift in the adoption of dietary supplements.
A decade ago, dietary supplements were associated with bodybuilders who needed extra zing to do all those workouts.
However, ordinary men and women today buy these supplements to compensate for the lack of vitamins and minerals in their daily diets.
Today, there is greater awareness among people about the importance of eating a balanced diet.
However, owing to the hectic lifestyle that has become a hallmark of the contemporary times, a majority of people do not have the time to brown bag their lunches or include nutritious food items in their daily diet.
These factors, combined with the positive perception about dietary supplements, have provided an impetus to the sector.
Among the various dietary supplements available in the market, the demand for vitamin supplements has been the most robust; the vitamin supplements had the largest revenue share of around 40% in 2014.
Growth of dietary supplements market by region
The demand for dietary supplements will be quite strong from the key markets around the world.
In terms of valuation, Asia Pacific is anticipated to be the key region, whereas Middle East and Africa (MEA) is projected to witness the highest growth rate.
North America, Europe, and Asia Pacific are the key regions for the growth of the global dietary supplements market.
The demand for dietary supplements will be particularly strong in Asia Pacific, owing to the emergence of a strong middle class in these countries.
It is anticipated that the region will have the largest revenue share of 44% by 2020.
The dietary supplements market in North America was valued at around US$15.30 billion in 2014.
It is anticipated that the region will witness a compound annual growth rate (CAGR) of about 4% through 2020 to reach a valuation of US$19.43 billion.
The European dietary supplements market was valued at US$11.41 billion in 2014 and it is anticipated that it will expand at a CAGR of around 3.8% through 2020.
The valuation of the European market is anticipated to be around US$14.3 billion by 2020.
The dietary supplements market is anticipated to witness the highest growth in the next five years.
It is anticipated that the dietary supplements market in Asia Pacific will grow at a CAGR of 4.6% and reach a valuation of US$37.12 billion.
Latin America, another key market for the dietary supplements market will expand at a healthy 7.8% CAGR and reach a valuation of about US$6 billion by 2020.
The highest CAGR for the dietary supplements market will be witnessed in MEA.
It is projected that the market will witness a CAGR of over 14% and the total valuation in this market will be close to US$7.8 billion.
Cumulatively, the dietary supplements market globally is anticipated to witness a CAGR of over 5% through 2020.
Market challenges
Dietary supplements are called ‘supplements’ for a reason — they are meant to supplement and not substitute a regular diet.
Also, dietary supplements manufacturers cannot claim that their products ‘treat’ or ‘cure’ any ailment.
The ingredients used in the manufacture of dietary supplements have also been a cause of concern for regulatory authorities in the past, and a recent research published in the journal Drug Testing & Analysis has found that certain dietary supplements contain ‘amphetamine-like chemical stimulants’.
Despite regulations on dietary supplements in the US, manufacturers often exaggerating the benefits of their products.
According to an article published in The New York Times in 2011, there were ‘were 2,292 serious illnesses and 33 deaths related to supplements between June 2009 and June 2011’.
Concerns about the side effects of dietary supplements can emerge as a restraint for the growth of the market.
It is anticipated that regulations governing the manufacture, sale, and marketing of dietary supplements will become stricter, and stakeholders will need to adapt to the changes in the marketplace to stay relevant and competitive.
Story by Megha Dodke, Lead Analyst at Future Market Insights.
