Europe Nutrition and Supplements Market Size, Share & Trend Analysis Report, By Function, By Formulation, By Consumer, By Distribution Channel, By Region and Segment Forecasts, 2018 - 2025

Industry Outlook

The Europe nutrition and supplements market size was valued at USD 31.7 billion in 2016 and is anticipated to register a CAGR of 5.9% over the forecast period. Availability of a large number of commercialized products coupled with presence of a wide base of target consumers is one of the key trends escalating market growth.

Growing health consciousness among consumers and increasing willingness to spend on nutrition and dietary supplements are also boosting the growth of the market. In addition, expansion of distribution channels for nutraceuticals is leading to increased accessibility, which is also likely to augment the market. Moreover, rising geriatric population and soaring healthcare costs throughout Europe are expected to help the market gain significant momentum during the forecast period.

As of 2016, Italy, Germany, and France were among the key markets with approximately 40.0% share.However, Spain and the U.K. have witnessed tremendous growth with a large number of product launches in the past few years. The market in Europe is estimated to witness changing dynamics as it moves toward consolidation, which is poised to result in several mergers and acquisitions. In Europe, approximately 131 acquisitions took place between 2007 and 2010, of which nearly 41.0% of the acquiring companies were European.

The European Commission has dictated certain regulations and policies in order to protect consumers from potential health hazards and to ensure accuracy of labelling information. Presentation, labelling, and advertising of food items are prime directives of the food labelling regulation. In terms of safety, EU Directive on food supplements lists out minerals & vitamins that can be added to dietary supplements for nutritional purpose and list of permitted sources of these vitamins & minerals in two separate annexures namely, annexure 1 and annexure 2. There have been several amendments in the list. The European Commission also developed a study pertaining to use of substances other than minerals and vitamins in food supplements.

Moreover, the European Food Safety Authority was established in January 2002, as an independent source of scientific advice for addressing risks associated with food chain. In July 2007, a regulation on nutrition dictating health claims such as low fat or high vitamin C was implemented. This regulation was imposed on any food or drink product meant for human consumption, which is marketed in the region. In addition, traditional herbal medicines require authorization for commercialization.

Function Insights

In 2016, the additional supplements segment accounted for the leading revenue share in the market owing to high adoption rate, presence of large number of commercialized products, and wide of target consumers. The segment includes dietary supplements and functional foods. Rising awareness about advantages of adopting a healthy lifestyle is supporting the dominance of the segment.

In terms of additional supplements, functional foods are the more preferred type. Surging demand for functional foods, rising awareness about benefits of healthy diet, and growing emphasis on weight management are the key factors fueling the demand for functional foods. Fortified foods, probiotics, and sterols & stanols are some of the different types of functional foods. Widening base of geriatric population is also responsible for pushing their demand in Europe. These food items are commonly prescribed for sight degeneration, memory loss, depression, high/low blood pressure, high cholesterol level, and stress in the region. Rising incidence of abovementioned disorders is poised to supplement the growth of the segment.

The sports nutrition segment is anticipated to register a noteworthy CAGR during the forecast period. Key factors contributing to the growth of this segment include increasing awareness about healthy lifestyle, growing number of fitness centers and health clubs, and soaring demand for nutrition products by sportspersons. New product launches and rising marketing & promotional activities by manufacturers are also stimulating the growth of the segment.

Formulation Insights

On the basis of formulation, the Europe nutrition and supplements market was dominated by the powder segment. It held a share of 37.0% in 2016 due to easy availability of these products in pure forms and controlled dosage. Powders are available in higher concentrations and have a higher rate of absorption as compared to pills and other forms. They are generally flavored & colored and can be dissolved in any beverage of patient’s choice. Moreover, they are most preferred by athletes. Spiraling consumption of supplements for maintaining wellbeing is escalating the growth of the segment. In addition, easy availability of raw materials for manufacturing powdered products & lower manufacturing costs are likely to spur the demand for powder formulations.

Soft gels are among the most preferred type of products for fat and lipid-soluble nutrients such as Vitamin E and Conjugated Linoleic Acid (CLA). These formulations consist of suspended oils and an outer shell made of gelatin. They are also used for fish oil supplements as gelatin masks the taste and smell of these oils. Soft gels are easy to swallow and have higher bioavailability as compared to tablets. Burgeoning popularity of omega 3 supplements, fish oils, and vitamin E oils is expected to trigger the growth of the segment.

Capsules represented the second-largest share in the market. Capsules offer fat-solubility and can have unique dosage combinations. They offer several advantages such as lesser irritation in GI tract, higher rate of absorption, and availability in various sizes based on dosage, which helps them edge over tablets. Increasing usage of capsules for ingestion of functional foods can be another factor supporting the rapid growth of this segment. However, manufacturing costs of capsules are high, shelf life of their contents is low, and are not available in different shapes, which are limiting the segment from realizing its utmost potential.

Age Group Insights

Adults form the largest consumer group in the market, accounting for 39.8% of the total revenue in 2016. Heightened consumer awareness about nutrition plays a pivotal role in the growth of the segment. There is significant prevalence of various lifestyle disorders in this age group, such as high blood pressure, diabetes, and obesity, owing to which they need supplements. In addition, increasing purchasing power of adult consumers in European countries such as the U.K, Germany, Italy, France, Spain, and Russia is projected to fuel market growth.

The children segment is estimated to witness a CAGR of 7.5% during the forecast period. Soaring demand for supplements for supporting physical & mental wellbeing of children, boosting immunity, and reducing deficiency are some of the key factors responsible for propelling the growth of the segment. Due to rise in the demand for nutritional supplements for children, manufacturers such as Amway, Abbott Nutrition, and Nestle introduced a special customized product range catering to this population group. These children-specific products are available in various flavors, which is poised to work in favor of the overall market.

Geriatric population was the second largest segment in 2016. Consumption of nutritional and dietary supplement is high among geriatric population as they suffer from various age-related disorders such as diabetes, cardiovascular diseases, arthritis, cancer, and Parkinson’s disease. Moreover, this population group is susceptible to malnutrition due to eating disorders arising from old age. This, in turn, is anticipated to bolster the growth of the overall market.

Distribution Channel Insights

In 2016, brick and mortar accounted for the largest revenue share of 88.6% in terms of the distribution channel. Brick and mortar distribution channel includes convenience stores, retail pharmacies, specialty nutrition stores, hypermarkets, super markets, and mass merchants & warehouses. The highest revenue generated by brick and mortar can be attributed to the large consumer based as compared to the online sales channel.

Sales of foods for special medical purposes require assistance from healthcare professionals as they are consumed under medical supervision. Pharmacy stores are the most suitable retail outlets considered for sales of foods for special medical purposes. Thus, growing demand for these foods in pharmacies to manage various therapeutic conditions is driving the market.

Ecommerce is expected to grow lucratively over the forecast period with a CAGR 9.4%. Growing adoption of e commerce platforms for sales of nutritional and dietary supplements is a key driver. Consumers prefer online channel of distribution owing to several factors such as availability of a wide range of products, cost-effectiveness, less time-consuming, and the facility to compare various brands. Easy access to information pertaining to health and wellness offered by online websites also positively impacts online sales of nutritional supplements.

Country Insights

The market in Italy was valued at USD 4.9 billion in 2016. On the basis of country, Italy is likely to be the largest market in Europe throughout the forecast period. Surging adoption of dietary supplements, rising awareness about their advantages, and the role of pharmacists in promoting their consumption for a healthier life are expected to be among key factors contributing to the growth of the market. Increasing focus on advertisements to spread awareness regarding advantages of dietary supplements and encourage consumption is influencing the growth of the market in the country positively.

Rising awareness regarding the importance of healthy lifestyles, weight management, sports nutrition, healthy eating, and wellbeing is estimated to escalate the growth of the market in the U.K. In recent years, there has been a significant increase in the number of people consuming dietary products in the region. Upsurge in the number of product launches and subsequent rise in awareness due to advertisements are projected to play an important role in revving up the adoption rate of these products. According to the National Diet and Nutrition Survey, on an average, nearly 33.0% of adults aged between 19 and 64 years and 40% of the people aged above 65 years consume dietary supplements in the U.K..

Germany was the second most prominent market in 2016 owing to its large population and increase in R&D expenditure on food technology projects. The trend of self-medication is rising in Germany owing to increasing awareness about over-the-counter products and nutrition deficiency-related disorders.

Europe Nutrition and Supplements Market Share Insights

The market is dominated by multinational nutraceutical manufacturers. Companies are focusing on offering quality nutritional products that provide higher therapeutic benefits. These products are projected to provide optimum nutrition to patients suffering from nutritional imbalance.

The market is fragmented in nature. Some of the participants are Amway; Bayer AG; Sanofi; Abbott; Nestle; Pfizer, Inc.; General Nutrition Centers, Inc.; and LivaNova PLC. These companies are introducing new products and expanding geographically to strengthen their market presence.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at regional & country levels and provides an analysis on industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the Europe nutrition and supplements market on the basis of function, formulation, age, and country:

• Function Outlook (Revenue, USD Million, 2014 - 2025)

  • Medical Food

  • Sports Nutrition

  • Additional Supplements

    • Dietary supplements

      • Vitamin

      • Mineral

      • Enzymes

      • Amino acids

      • Others

    • Functional foods

• Product Type outlook (Revenue, USD Million, 2014 - 2025)

  • CoQ10

  • Others

• Formulation Outlook, (Revenue, USD Million, 2014 - 2025)

  • Tablets

  • Capsules

  • Liquid

  • Powder

  • Soft Gels

  • Others

• Age Group Outlook, (Revenue, USD Million, 2014 - 2025)

  • Infants

  • Children

  • Adults

    • Age group 21 - 31

    • Age group 31 - 40

    • Age group 41 - 50

    • Age group 51 - 65

  • Pregnant

  • Geriatric

• Distribution Channel Outlook,(Revenue, USD Million, 2014 - 2025)

  • Brick and mortar

  • Ecommerce

• Country Outlook, (Revenue, USD Million, 2014 - 2025)

  • Europe

    • U.K.

    • Germany

    • France

    • Spain

    • Italy

    • Russia

    • Austria

    • Denmark

    • Sweden

    • Norway