THE GLOBAL MARKET OF HEALTH AND

WELLNESS

 

According to the Business Communications Company, “The global nutraceutical market grew from $38.2 billion in 1999 to $46.7 billion in 2002, an average increase of 7%.”  This same study indicated that the global nutraceutical market would exceed $74.4 billion by 2006 and closing in on a trillion dollar market by 2010.  Increased awareness of the link between health and good nutrition, plus the aging population and shocking rise in healthcare costs, is driving explosive growth globally in healthy foods, supplements, and beverages.  According to the Nutrition Business Journal, sales of six main product categories – vitamins, minerals, herbs, meal supplements, sports-nutrition supplements, and specialty supplements – topped $22 billion in 2006 in the U.S. market.

 

The immense potential boom for the nutraceutical market and global demand forecasts nutraceutical ingredients growth at 5.8% annually through 2010 (1). Globally, China and India are the fastest growing markets for nutraceutical type products.  Not surprising, China and India have the highest rates of diabetes in the world.  The total number of people with diabetes worldwide has risen dramatically from 30 million to 230 million during the past 20 years, according to the International Diabetes Federation.  At present, over half of the major food companies and more than one-third of pharmaceutical companies are performing nutraceutical research to develop products to meet the demand while many consumers head for the nutraceutical aisle of the local supermarket when shopping.

 

Over the past decade, the nutraceutical, nutritional supplement, and vitamin markets, matured into the wellness industry that has become a vastly popular and lucrative marketplace.  Moreover, the Nutrition Business Journal estimates that more than 70% of Americans have taken nutritional supplements, and there is commensurate demand globally.  An estimated 158 million consumers use dietary supplements, according to a 2000 study by Prevention Magazine.  The same study found that 22.8 million consumers use herbal remedies instead of prescription medicine and 30.3 million use them instead of over-the-counter (OTC) drugs.  Additionally, 19.6 million people used herbal remedies along with prescriptions (2).  In 2006, the U.S. market for nutritional supplements was valued at $4.7 billion and is projected to reach $6 billion by 2011.  The 2006 figure represents a 1% increase from 2005, while sales from 2002 to 2006 increased by more than 6% (3).  The overall dietary supplement industry, which includes pills, liquids, and other products, is valued at $22 billion annually, according to the Associated Press (4), up from $20.3 billion in 2004 (5).  This market trend is also aptly described by the LOHAS (Lifestyles of Health and Sustainability) movement that is estimated to be worth $228 billion annually in sales of goods and services (6). LOHAS consumers spend $40 billion in alternative healthcare and $27.3 billion for personal development, which describes the Company’s market.