Market Overview and Growth Highlights - 2018-2027
Vitamins and nutraceuticals are nutrients required by the body in order to ensure its proper functioning. Vitamins are organic substances that are not produced by the body in sufficient amounts and thus are required from external sources. Nutraceuticals, on the other hand, is a term derived from “nutrition” and “pharmaceuticals”. They are derived from food sources and are used to provide additional health benefits. The market for vitamins and nutraceuticals in Indonesia is projected to grow at a CAGR of 6.06% over the forecast period, i.e., 2020-2027 and is estimated to attain a market value of USD 3,424.06 million by the end of 2027. The Philippines market for vitamins and nutraceuticals had a market value of USD 421.60 million in 2018 and is anticipated to observe a CAGR of 5.39% during this period.
Market Segmentation Synopsis
By Product
Based on product, the market is segmented into functional food, functional beverages, dietary supplements, feed additives and personal care. In both Indonesia and Philippines, the functional beverages segment held the largest market share with a value of USD 804.99 million and USD 165.18 million in 2018 respectively. Functional beverages contain micronutrients such as iron, iodine, zinc, vitamin and folic acid, which helps in the treatment of micronutrient deficiency and the disorders associated with it. However, the segment for personal care is anticipated to grow at the highest rate between 2020 and 2027 in Indonesia as well as Philippines on account of their anti-ageing and skin protecting properties. CLICK TO DOWNLOAD SAMPLE REPORT
By Derivative
The market for vitamins and nutraceuticals in Philippines and Indonesia is segmented by derivative into synthetic and natural, out of which, the synthetic segment held a much larger market share than the natural derivative segment in both the regions. This can be attributed to the increasing presence of chemical based and synthetically derived vitamins and nutraceuticals in the market. On the other hand, the naturally derived products are growing at a much faster pace as a result of growing awareness about the benefits of organic consumable products over synthetic products.
By Application
On the basis of application, the market is segmented into general health & immune support, beauty, weight management, sports nutrition and others. The general health & immune support segment held the leading share in the market in Indonesia as well as Philippines in 2018 with a market share of approximately 41.16% and 42.28% respectively. The sports nutrition segment is estimated to witness substantial growth in the coming years on account of rising emphasis on sports and body fitness.
By End Users
Indonesia and Philippines vitamins and nutraceuticals market is segmented based on end users into adults, geriatric, pregnant women and pediatric, out of which, the pediatric segment led with the highest market share in 2018 and is anticipated to continue this trend by end of 2027. This segment is closely followed by the adults segment, which witnessed a significantly large market value as well.
By Distribution Channel
Based on the distribution channel, the market is segmented into online and offline segments. The offline segment held the larger market share in the vitamins and nutraceuticals markets in both Indonesia and Philippines in 2018. However, the online segment is anticipated to observe the highest growth rate during the forecast period as vitamins and nutraceuticals are easily accessible through online distribution portals.
Market Drivers and Challenges
Growth Indicators
The total amount spent on final goods and services in a country is measured by the gross domestic product (GDP). An increase in GDP of Indonesia and Philippines indicates the increasing spending capacity of people on certain products and services. The rising disposable income and GDP of the countries is anticipated to become a major factor contributing towards the market growth. Unhealthy diet and the growing health related problems as a result of it leads to increasing adoption of vitamins and nutraceuticals by the population. According to the World Bank, 17.9 million people were estimated to die from cardiovascular diseases in 2016, out of which, 85% deaths were estimated to occur as a result of heart attack and stroke. These can be prevented by addressing the risk factors such as unhealthy diet, physical inactivity and obesity. Additionally, the rapidly growing urbanization is another significant growth driver for the vitamins and nutraceuticals market in Indonesia and Philippines as it increases the demand for dietary supplements, functional food, medicinal food, pharmaceuticals and herbal products by people living in urban areas. Furthermore, the growing ageing population gives rise to age related disorders including diabetes, obesity, cardiovascular diseases and others. The risk of these diseases can be eliminated with the help of intake of proper nutrients in the form of vitamins and nutraceuticals.
Barriers
The strict government policies and regulations associated with the testing, manufacturing and approval of dietary supplements such as vitamins and nutraceuticals is estimated to become a restraining factor for the market players in vitamins and nutraceuticals market in Indonesia and Philippines. With the rising demand for vitamins and nutraceuticals products, the presence of fake products that are available at much lower prices is increasing. These products do not offer the same amount of nutrients as compared to the original products and might be harmful for the consumers’ health. These factors are predicted to hamper the market growth during the forecast period.
Competitive Landscape
The leading industry players in the Indonesia and Philippines vitamins and nutraceuticals market are Nestlé, Danone S.A., Bayer, Indofood Sukses Makmur Tbk, Abbott Laboratories, Mayora Indah Tbk PT, DSM, Amway, Yakult Honsha Co. Ltd., NuSkin Enterprises, Otsuka and Pfizer Inc. Moreover, other key and niche players are working towards the expansion of product portfolio along with investing in high quality research and development in the healthcare sector to develop vitamins and nutraceuticals that are highly rich in nutrients in order to gain competitive edge in the Indonesia and Philippines vitamins and nutraceuticals market.
