The global medical foods market size was valued at USD 20.15 billion in 2020. It is expected to expand at a compound annual growth rate (CAGR) of 5.2% from 2021 to 2028. The growing prevalence of chronic conditions along with the increasing geriatric population adopting medical foods and rising awareness regarding clinical nutrition amongst healthcare professionals and patients are the key growth drivers. The rising adoption of healthy alternatives in daily lives due to the rising costs of medical services is yet another factor driving the market growth. Many patients suffer from nutrient deficiencies, due to chronic conditions and the side effects of the drugs used for their treatments. For instance, nutritional deficiency is one of the common conditions during the treatment of cancer. Medical foods can be beneficial in addressing such deficiencies, creating growth opportunities for the market.
The population suffering from neurological conditions, such as multiple sclerosis, stroke, and dementia, which cause difficulty in swallowing; can be considered as one of the biggest target populations for this market. Medical foods have been proven to be useful for maintaining nutritional balance and other factors for people suffering from such chronic conditions. For instance, according to a research paper published in the Food Science and Human Wellness journal in 2019, medical foods have shown symptomatic benefits in Alzheimer’s disease. Souvenaid, Axona, and CerefoliNAC are some of the medical foods showing effects on people suffering from Alzheimer’s disease. The increasing number of researches claiming positive results concerning the utilization of medical foods is anticipated to boost the market growth during the forecast period.
The increasing prevalence of conditions such as malnutrition and diabetes is also a major factor boosting the market growth. For instance, as per International Diabetes Federation (IDF), in 2019, around 463 million adults were living with diabetes and this number is estimated to reach 700 million in 2045. Medical foods are useful in improving the symptoms of diabetic neuropathy, one of the most prevalent conditions in patients suffering from diabetes. Besides, according to a WHO report from 2020, around 462 million adults in the world are underweight and medical foods, along with enteral feeding, can be considered as the first line of choice for providing nutrients to malnourished patients. Hence, the rising prevalence of diabetes is likely to propel the adoption of these products in the forthcoming years.
Discrepancies in the categorization of medical foods can create an obstacle in the growth of the market. In countries such as the U.S and Europe, the guidelines for medical foods are clearly defined by the regulatory bodies. For instance, medical foods are recognized under FDA’s 1988 Orphan Drugs Act Amendments. Besides, the European Food Safety Authority has recognized medical foods as food for special purposes. However, in other parts of the world, the regulation for such products is still underway and due to ambiguous classification, the patent scenario for medical foods is also unclear. Therefore, these factors are likely to hamper market growth.
Moreover, various strategic initiatives undertaken by companies in the field of clinical nutrition has a positive impact on the market growth. Initiatives in the form of mergers, acquisitions, product launches, among others help to increase awareness regarding medical foods and clinical nutrition. Companies are actively involved in implementing various social initiatives, particularly in developing countries to enhance their market presence in such countries. For instance, in 2018, Fresenius Kabi AG announced an offering of a Euro 100,000 grant to support clinical nutrition research in Latin America for people suffering from malnutrition.
Oral administration dominated the market with a share of 70.9% in 2020. This high share is attributable to the high commercial viability of orally administered products and high preference for orally administered medical foods owing to ease in consumption. Oral supplements are available in various forms such as powders, pills, puddings, and pre-thickened products. For instance, Modulen, a medical food provided by Nestle is useful in the restoration of nutritional requirements in patients suffering from Crohn’s disease.
The enteral administration segment is expected to register lucrative growth over the forecast period. The rising prevalence of chronic conditions such as cancer, cardiovascular diseases, resulting in several metabolic disorders that lead to difficulty in consumption of diet during the treatment and technological advancements in allied markets such as enteral feeding devices is positively impacting the market growth.
In 2020, the others' segment accounted for the highest revenue share of 52.0% in the medical foods market owing to increasing application areas of medical foods, high commercial availability, and easy administration of these products. The others' segment comprises of liquid, semi-liquid, and semi-solid products. Furthermore, owing to ease of consumption, liquid formulations are preferred by geriatric as well as pediatric populations, thereby increasing its overall market share. Some of the examples of liquid formulations are Nutrison Energy by Danone, Glucerna (Therapeutic Nutrition Shake) by Abbott, and Novasource by Nestle.
In addition, the powder segment is expected to expand at the highest CAGR. Growing preference for these products owing to ease of administration and convenience in consumption are some of the factors propelling the growth of the segment. Some examples of formulations in powder form are Kabisure by Fresenius Kabi, Cyclinx-2 by Abbott, Ketocal 3:1 by Danone, and Resource Diabetic by Nestle.
In 2020, diabetic neuropathy accounted for the highest revenue share of 23.2% owing to an increase in diabetes prevalence and a rise in the number of patients that are at risk of developing some level of neuropathy. For instance, according to Healthline, around 60 to 70% of people suffering from diabetes have some or other form of neuropathy. Furthermore, the risk of neuropathy significantly increases with aging, change in diet, and unhealthy lifestyle and this leads to an increased focus on nutritional management, thereby fueling the market growth.
In addition, the chronic kidney disease (CKD) segment is expected to expand at the highest CAGR during the forecast period. Changes in nutritional requirements of patients suffering from CKD and the rising prevalence of kidney diseases, mainly in the geriatric population are some of the major factors boosting the segment growth. For instance, according to the CDC estimates, in 2019, the prevalence of CKD in the U.S. was around 38% in people aged 65 years or above.
The institutional sales segment dominated the market with the highest revenue share of over 40% in 2020. Medical foods are consumed under medical supervision and the consumption of enteral and oral products is high in healthcare institutions such as hospitals, clinics, and care centers. In addition, there is an increase in demand for these products in inpatient facilities. These factors are responsible for the high market share of the institutional sales segment.
The online sales segment is expected to register lucrative growth over the forecast period. The shift in the trend toward e-commerce platforms, along with the convenience offered by this sales channel is positively impacting the market growth. Thus, with the penetration of e-commerce, there is a gradual shift toward the online purchase of medical foods, thereby offering lucrative market opportunities.
North America dominated the global market with a revenue share of 29.9% in 2020. The key factors contributing to the highest revenue share include the presence of key market players and high revenue generated by these players in this region. In addition, strategic initiatives by players, increasing prevalence of chronic conditions, and rising adoption of medical foods by healthcare professionals and patients are other factors supporting the regional market growth.
The Asia Pacific region is also expected to exhibit lucrative growth over the forecast period owing to an increase in the prevalence of target diseases such as diabetes, malnutrition, obesity, cancer, and cardiovascular diseases in this region. Furthermore, the local presence of key market players such as Abbott, Nestlé, Danone, and Fresenius Kabi and high revenue generated by these companies, coupled with untapped opportunities in the Asia Pacific region are among the key factors that can be attributed to the regional market growth.
Competition is high among existing players owing to the rise in demand for medical foods coupled with technological advancements. In addition, the market is consolidated in nature with the key players accounting for the majority share. The increasing demand in the market is expected to promote the entry of new players in the future, fueled by rising acceptance and awareness regarding medical foods. Strategic initiatives by companies in the form of collaborations, mergers, partnerships, acquisitions, etc. are expected to increase the competition and propel the growth of the market. For instance, in February 2020, Fresenius Kabi AG announced its collaboration with Vifor Pharma for the development of a joint venture in China. This venture will aim at catering to patients in China with iron deficiency. This will help in creating visibility of the brand in the Chinese market. Some of the prominent players operating in the medical foods market include:
Danone
Nestle Nutrition
Abbott Nutrition
Targeted Medical Pharma, Inc.
Primus Pharmaceuticals, Inc.
Mead Johnson & Company, LLC.
Medtrition, Inc.
Fresenius Kabi AG
Report Attribute |
Details |
Market size value in 2021 |
USD 21.24 billion |
Revenue forecast in 2028 |
USD 30.34 billion |
Growth Rate |
CAGR of 5.2% from 2021 to 2028 |
Base year for estimation |
2020 |
Historical data |
2014 - 2019 |
Forecast period |
2021 - 2028 |
Quantitative units |
Revenue in USD million/billion and CAGR from 2021 to 2028 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Route of administration, product, application, sales channel, region |
Regional scope |
North America; Europe; Asia Pacific; Latin America; MEA |
Country scope |
U.S.; Canada; U.K.; Germany; France; Spain; Italy; Russia; Japan; China; India; Australia; New Zealand; Singapore; South Korea; Brazil; Mexico; Argentina; UAE; South Africa; Saudi Arabia |
Key companies profiled |
Danone; Nestle; Abbott; Fresenius Kabi; Targeted Medical Pharma; Mead Johnson and Company, LLC.; Medtrition, Inc.; Primus Pharmaceuticals, Inc. |
Customization scope |
Free report customization (equivalent to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2028. For this study, Grand View Research, Inc. has segmented the global medical foods market report based on the route of administration, product, application, sales channel, and region:
Route of Administration Outlook (Revenue, USD Million, 2014 - 2028)
Oral
Enteral
Product Outlook (Revenue, USD Million, 2014 - 2028)
Pills
Powder
Others
Application Outlook (Revenue, USD Million, 2014 - 2028)
Chronic Kidney Disease
Minimal Hepatic Encephalopathy
Chemotherapy-induced Diarrhea
Pathogen Related Infections
Diabetic Neuropathy
ADHD
Depression
Alzheimer's Disease
Nutritional Deficiency
Orphan Diseases
Phenylketonuria
Eosinophilic Esophagitis
FPIES
Others
Other
Sales Channel Outlook (Revenue, USD Million, 2014 - 2028)
Online Sales
Retail Sales
Institutional Sales
Regional Outlook (Revenue, USD Million, 2014 - 2028)
North America
U.S.
Canada
Europe
U.K.
Germany
Italy
France
Spain
Russia
Asia-Pacific
Australia
China
Japan
South Korea
India
New Zealand
Singapore
Latin America
Brazil
Mexico
Argentina
Middle East Africa
South Africa
Saudi Arabia
UAE
b. The medical foods market is highly consolidated in nature with Danone, Nestlé, Abbott, Mead Fresenius Kabi, and Johnsons accounting for a majority of the share of the market.
b. The global medical foods market size was valued at USD 20.15 billion in 2020 and is expected to reach USD 21.24 billion in 2021.
b. The global medical foods market registering a CAGR of 5.2% from 2021 to 2028 and is expected to reach USD 30.34 billion by 2028.
b. The oral route of transmission segment dominated the medical foods market with a share of 70.9% in 2020 and is expected to grow at a compounded annual growth rate (CAGR) of 4.9% from 2021 to 2028.
b. North America dominated the global medical foods market with a revenue share of 29.9% in 2020. The key factors contributing to the highest revenue share include the presence of key market players and high revenue generated by these players in this region.
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Multiple therapeutic regimens are being followed across the globe in attempts to come up with a reliable treatment for Covid-19. One line of treatment includes the use of hydroxychloroquine, while a second treatment line focuses to use antiviral drugs used in the disease management of HIV. Both these approaches have surged demand from advanced antivirals and antimalarial drugs. This impacts the drug manufacturers as an off label indication for these drug classes has to be worked upon. At the moment, the WHO has not prescribed any of these approaches, neither they have commented if one is better than the other. The report will account for Covid19 as a key market contributor.