Gummy Market Size, Share & Trends Analysis Report By Application (Omega Fatty Acids, Vitamins), By End User (Adults, Kids), By Distribution Channel (Store-, Non-store-based), By Region, And Segment Forecasts, 2020 - 2028

Report Overview

The global gummy market size was valued at USD 16.28 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 12.6% from 2020 to 2028. The market is witnessing significant growth owing to the rising health-conscious consumer base demanding easy-to-consume dosage forms of supplements. The rapid pace of social and technological changes has led to unhealthy and hectic lifestyles resulting in increased prevalence of Cardiovascular Diseases (CVDs) and heart problems. The desire and seeming wherewithal to live longer and healthier lives is a huge driver for preventive health measures. The U.S. tops the overall market, in terms of revenue share.

The expansion of the dietary supplement industry in the country coupled with healthy changes in daily routine owing to increased awareness regarding preventive healthcare has led to a rise in the consumption of gummies.

Gummies have a gel-like consistency, are softer in texture, and are easily chewable as compared to hard pills and tablets. Moreover, the product is available in a variety of flavors. All these factors are boosting the product demand across the globe, thereby supporting market growth.

Several brands, such as Nature Made, Amway, and Abbott Laboratories, are offering vitamins- and mineral-infused gummies in various flavors, such as strawberry, blueberry, and orange, to attract consumers demanding nutrition without compromising on taste and mouthfeel.

The easy availability of substitutes, such as soft gels, lozenges, tablets, and capsules, is likely to restrain the growth of the market. In additi0n, gummies have a lower shelf life as compared to dry supplement powders and pills, which may further hinder product sales.

Moreover, gummies have more sugar content than other forms of dietary supplements, resulting in increased calorie intake. Thus, health-conscious customers prefer supplements that are either sugar-free or low in sugar.

The outbreak of COVID 19 from the beginning of 2020 severely disrupted the supply chain, retail distribution, and consumer behavior for numerous products across the world. However, the market witnessed a surge in demand during the pandemic owing to increased awareness levels among the consumers regarding health & wellness products.

Application Insights

The vitamins segment led the market accounting for more than 55% of the overall revenue share in 2020. The increasing working-class population and changes in lifestyles have failed to keep up with the nutrition requirement through food; thus, the demand for vitamin supplements has been increasing.

Factors fueling interest in vitamin supplements also include increasing healthcare costs, a growing aging population, and rising awareness about maintaining a healthy diet. Moreo0ver, gummies are a convenient vitamin delivery system for children, who are reluctant to consume supplements in other forms.

As per the Interactive Nutrition Facts Label of the U.S. Food & Drug Administration, zinc is an important mineral for immunity as well as taste & smell - the functions that are affected due to the COVID-19. This is expected to boost the demand for zinc supplements over a short period.

According to the World Health Organization, an estimated 17.9 million people die each year because of CVDs. Omega fatty acid gummies aid in reducing the risk of heart attack and are a healthy option for children, pregnant women, and the geriatric population, therefore, gaining traction.

The growing trend of protein diet is expected to fuel the demand for protein gummies. However, the rising penetration of protein powders, cookies, bars, and protein-energy balls is anticipated to hamper the growth of gummy formats. However, market players are focusing on offering high-protein gummies with various flavors and shapes, which will support the segment growth.

End-user Insights

The adult end-user segment dominated the market with a revenue share of more than 62% in 2020. The rising demand for convenient dietary supplements from working professionals, sports enthusiasts, elderly people, and pregnant women is expected to augment the growth of the adult end-user segment over the forecast period.

The trend of clean labels and organic products has shifted consumer preference toward botanicals. Consumers are willing to pay more for supplements with such health claims owing to their anti-inflammatory and anticancer properties.

Manufacturers, such as CBDfx, are offering gummies containing Cannabidiol (CBD) along with turmeric & spirulina. CBD is derived from organically grown hemp to attract consumers demanding supplements with organic, clean label, and natural claims. Rising consumer interest in whole food supplements is also expected to favor segment growth.

Manufacturers, such as Hänseler AG, Pfanstiehl, Inc., and GNC Holdings, Inc., are offering D-Mannose in gummies format for women to aid in urinary tract health. The National Kidney Foundation, in its August 2016 report stated that Urinary Tract Infections (UTIs) in women are responsible for nearly 10 million doctor visits each year.

The kids segment is also estimated to register significant growth during the forecast years due to rising product demand. The growing inclination of parents toward natural supplements, along with their willingness to spend more on kids’ health and wellness products, is expected to drive the segment growth over the coming years. 

Distribution Channel Insights

The non-store distribution channel segment is expected to witness the fastest CAGR of more than 14% during the forecast period. Increasingly sophisticated consumer demands coupled with the rising penetration of e-commerce are mainly driving the growth of this segment. Key manufacturers are accessing new distribution channels to connect with the diverse consumer base, which has increased the product sales through the non-store-based channels, such as online stores and other e-retailers like Amazon, 1mg, and others.

Non-store-based channels also include network marketing or direct selling of products, such as those offered by Amway that do not require a physical store. As per the World Federation of Direct Selling Associations (WFDSA), independent direct sellers across the globe generated approximately USD 180.4 billion in sales in 2019.

Wellness products held the highest share of 36% in 2019 among all the products sold through direct selling, globally. Therefore, direct selling offers potential opportunities for gummy supplement brands. However, the COVID-19 pandemic resulted in a decline in the sales from direct selling owing to lockdowns imposed across various regions to limit the disease spread.

Online channels offer a convenient one-click solution. The rising young and working-class population is likely to boost the growth of the segment with the growing penetration of smartphones and e-commerce sites.

Regional Insights

North America dominated the market and accounted for a revenue share of over 38% in 2020. Over the past decade, the dietary supplement industry has witnessed significant growth in North America with the expansion of a health-conscious consumer base, particularly in developed countries, such as the U.S. and Canada.

As per the USDA Foreign Agricultural Services, confectionery products are one of the top 10 packaged food products in Canada and the same is expected to witness double-digit growth in the coming years. Therefore, the demand for confectionery products poses an opportunity for gummy brands to offer well-differentiated fortified gummies and gain a competitive advantage.

Type-2 diabetes has a high prevalence in European countries due to which the market witnessed a steady growth in the region. However, low-calorie or low-sugar gummies are expected to gain popularity, which can prevent obesity, thereby, avoiding diseases, such as diabetes. For instance, in January 2018, HARIBO launched fruit gummies containing dextrin to lower the sugar content by 30% as compared to conventional HARIBO gummies.

Asia Pacific is estimated to be the fastest-growing regional market from 2020 to 2028 as emerging countries are witnessing a major economic change over the past few years. Moreover, a growing health-conscious consumer base and a resultant rise in the consumption of dietary supplements will boost the regional market growth. Countries, such as India, China, and Indonesia, in particular, are driving the product demand. Growing consumer purchasing power combined with the accessibility of different brands is creating a better market scenario for the industry growth in these countries.

Key Companies & Market Share Insights

The companies are working on their branding strategies to appeal to the target audience respective to the specific applications. Players are investing in advanced automated continuous production lines to increase production efficiency. The high level of competition has intimidated the key players to increase their market share with acquisitions, collaborations, new product launches, and mergers. For instance, in 2019, Sirio Pharma Co., Ltd. introduced plant-based solutions for the gummies segment, such as the use of pectin, which is primarily derived from apple pomace and citrus peels, as a replacement for gelatin. Some of the prominent players in the global gummy market include:

• Procaps Group

• Santa Cruz Nutritionals

• Amapharm

• Herbaland Canada

• Allseps Pty. Ltd.

• Vitux AS

• Boscogen, Inc.

• Bettera Brands, LLC

• NutraStar Manufacturing Ltd.

• Better Nutritionals

• Prime Health Ltd.

• AJES Pharmaceuticals LLC

• Lactonova

• SMPNutra.com

• Lexicare Pharma Pvt. Ltd.

• Superior Supplement Manufacturing

• Well Aliments

• Supplement Factory Ltd.

• Vitakem Nutraceutical, Inc.

Gummy Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global gummy market report on the basis of application, end user, distribution channel, and region:

• Application Outlook (Revenue, USD Million, 2017 - 2028)

  • Vitamins

  • Minerals

  • Omega Fatty Acids

  • Proteins

  • Others (Probiotics, Botanicals, Fibers)

• End User Outlook (Revenue, USD Million, 2017 - 2028)

  • Adult

  • Kids

• Distribution Channel Outlook (Revenue, USD Million, 2017 - 2028)

  • Store-based

  • Non-store-based

• Regional Outlook (Revenue, USD Million, 2017 - 2028)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

  • Central & South America

    • Brazil

    • Columbia

  • Middle East & Africa

    • South Africa