Medical Foods Market Size, Share & Trends Analysis Report By Route of Administration (Oral, Enteral), By Product (Pills, Powder, Liquid), By Application, By Sales Channel, And Segment Forecasts, 2023 - 2030

Report Overview

The global medical foods market size was valued at USD 22.4 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 5.2% from 2023 to 2030. The growing prevalence of communicable and non-communicable diseases and increasing effort for the dietary management of those diseases are anticipated to propel the market growth over the forecast years. For instance, as per the research data published by the University of Liege, it has been estimated that in Europe, the sarcopenia population will increase to 12.9% by 2045 from 11.1% in 2016. 

The increasing geriatric population suffering from several chronic and neurogenic disorders such as dementia, stroke, multiple sclerosis, and difficulty in swallowing requires specific dietary management, which, in turn, is expected to drive the market over the forecast years. For instance, according to the WHO, the world population aged over 60 years of age is expected to be doubled from 12% to 22% between the years 2015 and 2050. Furthermore, increasing preference to consume specific foods in order to manage chronic diseases such as obesity, diabetes, and other nutritional diseases is anticipated to drive the adoption of medical foods. 

In addition, medical foods are intended for specific dietary management with distinctive nutritional requirements to treat specific diseases, which are expected to drive the market.

Growing product launch activities by the manufacturers and constant innovations in product development are the major factors anticipated to propel the product demand. Besides, in order to treat new inherited metabolic disorders and manage their incurable condition, there is a growing demand for the development of new food for special medical purposes. 

For instance, in October 2020, Nestle Health Science launched protein-based ready-to-drink nutritional food in China for special medical purposes (FSMPs). The main component of that drink is a galactomannan, a highly soluble dietary fiber, which can improve and prevent gastrointestinal intolerance and diarrhea. In addition, in June 2018, VAYA Pharma, Inc. introduced Vayarin Plus, an extra-strength formula, and expanded its medical food product offerings, which offer clinical dietary management for ADHD adults weighing more than 97 lbs and in adolescents. 

In addition, increasing consideration of medical foods to manage and control diabetic neuropathy and diabetes is expected to accelerate the market growth. Diabetes is one of the major chronic diseases and the prevalence has been constantly rising. According to the WHO data published in 2019, approximately 1.5 million deaths are caused directly due to diabetes and it was considered to be the ninth leading cause of death. An unhealthy lifestyle and diet are the leading causes of diabetic neuropathy and medical foods act as a remedy to improve and manage these kinds of disorders. For instance, as per the International Diabetic Federation data in 2019, about 463 million adults are living with diabetes and this number will rise to 700 million by 2045. 

Several industry consolidation activities by the manufacturers in the clinical nutrition industry are also expected to propel the market growth over the forecast years. Activities by the manufacturers such as acquisitions, mergers, product launches, and partnerships to enhance their product reach are expected to propel market growth over the coming years. For instance, in January 2020, Nestle entered into an Asset Purchase Agreement to expand its business of clinical nutrition by acquiring Zenpen. 

 COVID-19 medical foods market impact: 9.2% increase in revenue growth from 2019 to 2020

In addition, the COVID-19 pandemic is boosting the growth of the market and is projected to support the growth in the coming years. For instance, as per an article published in 2020 in The House, medical foods are expected to play a significant role in the recovery and rehabilitation process of patients suffering from the disease. Moreover, owing to the rising burden on critical care services due to the pandemic, the demand for nutritional support and dietetic care is rising, thereby propelling the market growth, penetration, and adoption of medical foods. Hence, the COVID-19 pandemic is projected to fuel the growth of the market during the forecast period. 

Route of Administration Insights

The oral segment dominated the market with a revenue share of over 65.0% in 2022. The common practice of oral route for the administration of clinical foods is the major factor anticipated to drive the segment over the years. In addition, increasing manufacturing of oral products in the form of powder, pills, and pre-thickened products is expected to drive the segment adoption over the years. For instance, Modulen is a medical food product provided by Nestle and is beneficial in the restoration of the nutritional requirements in patients suffering from Crohn’s disease. 

The enteral route of the administration segment is expected to witness the fastest growth over the forecast years. The growing prevalence of cardiovascular and chronic diseases resulting from several metabolic disorders leads to difficulty in oral food consumption and increases the preference for medical food feeding through enteral mode. Moreover, the growing focus of the manufacturers to develop technologically advanced enteral feeding devices is positively impacting the segment growth. 

Product Insights

The powder segment accounted for the largest revenue share of over 35.0% in 2022 owing to the high commercial availability of medical foods in the form of powder. In addition, increasing preference and ease in consumption by the pediatric and geriatric patients suffering from different chronic diseases are fueling the segment growth. Powder formulations are also highly advised by the physicians, which can be administered through enteral and oral routes to all ages of patients, which is expected to boost the segment growth. Manufacturers are also focusing on developing medical foods as per consumer preference. For instance, recently, in January 2022, Danone launched Souvenaid, a powder version of medical nutrition drink. 

The liquid segment is anticipated to grow at the fastest rate during the forecast period owing to the rising adoption of liquid formulations in the pediatric and geriatric population, where the intake of solid formulations is limited or impossible and in case of clinically diagnosed dysphagia or when oral physiology is limited. In addition, the ease of administration of liquid-based medical foods and the commercial viability of these products will drive the segment. Increasing functional gastrointestinal disorders and the recommendation of doctors to intake liquid formulated medical food who suffer from these illnesses before or after surgeries support the segment growth. Moreover, the increasing benefits of taking liquid formulated food to maintain sufficient hydration and electrolyte balance favor the segment growth. 

Application Insights

Chemotherapy-induced diarrhea accounted for the largest revenue share of over 15.0% in 2022. Diarrheal episodes interfere with the chemotherapy process and dosage pattern. Therefore, the rising need for adopting medical foods in dietary management is expected to boost the segment growth. In addition, patients treated with several cytotoxic drugs such as irinotecan and fluoropyrimidines are associated with chemotherapy-induced diarrhea. The frequency of severe diarrhea caused by chemotherapy with these cytotoxic drugs ranges from 5 to 44 percent and the rates vary according to the schedule of administration and the specific drug agents administered. Medical foods play an essential role to manage and treat such types of diarrhea.

 Because of loss of absorptive surfaces and potential mucosal damage due to chemotherapy-related diarrhea, patients should ingest specific easy-to-digest medical food, which is expected to fuel the segment growth over the forecast years. Moreover, to resolve diarrhea, patients are instructed to stop the medication and consume clear liquid medical food under the supervision of a physician, which can provide bowel rest. Consequently, a growing preference for medical foods to resolve chemotherapy-related diarrhea is anticipated to drive the segment over the forecast years. 

Diabetic neuropathy is anticipated to be the fastest-growing segment over the forecast period owing to the growing prevalence of diabetes and a rise in the number of patients that are at risk of developing some level of neuropathy. In addition, various initiatives that are being undertaken for the dietary management of diabetes are fueling the market growth. Moreover, an increase in the preference to consume medical foods loaded with vitamin B-12, omega 3 fatty acids, and lipoid acid to manage diabetic neuropathy is anticipated to boost the segment growth over the coming years. 

Furthermore, the growing number of patients suffering from diabetic neuropathy and increasing prescription by medical professionals for medical food consumption to manage the disease are the major factors propelling the segment growth. The growing prevalence of diabetic neuropathy all over the globe is further supporting the growth of the segment. For instance, according to a study published by the Current Diabetes Reports journal in 2019, diabetic peripheral neuropathy eventually affects about 50% of adults with diabetes during their lifetime. 

Sales Channel Insights

The institutional sales channel, which includes hospitals, home care settings, and disability facilities, accounted for the largest revenue share of over 40.0% in 2022. The growing number of patient visits to the hospitals and other healthcare facilities for the diagnosis and treatment of several chronic and dietary disorders is driving the segment. Medical foods are prescribed by doctors for particular disease management. In addition, the increasing preference among the patients to consult a doctor in the hospitals for their chronic disease management will drive the segment. Moreover, the growing number of private and public healthcare institutions and the increasing chronic disease patient population across the globe will support the segment growth. 

The online sales segment is anticipated to expand at the fastest rate over the forecast period. Preference for the online purchase of medical foods is rising owing to the convenience offered by this sales channel. Although medical foods are mainly consumed under medical surveillance, these are intended for long-term nutrition management, which is resulting in surging sales through e-commerce. Thus, with the e-commerce penetration, there is a shift from traditional methods of purchase to online purchase of medical foods, thereby offering various market growth opportunities. 

Regional Insights

In 2022, North America held the largest revenue share of over 30.0%. The presence of international companies such as Abbott Laboratories and Mead Johnson & Company and the high revenue generation of these companies are driving the market. In addition, strategic developments by key players in the form of mergers, acquisitions, and product launches, rising prevalence of chronic conditions, and increasing adoption of medical food products by healthcare professionals and patients are boosting the market growth. The Asia Pacific region is anticipated to be the fastest-growing regional market over the forecast period owing to the increasing rate of cancer and diabetic patients, along with several government initiatives in the healthcare segment.

For instance, according to Janssen, Asia Pacific hosts about 50% of new cancer cases in the world each year. Further, this report stated that the death due to cancer is estimated to increase by 36% in the Asia Pacific region by 203o, which, in turn, is expected to propel the growth of the market in this region over the coming years. Furthermore, a larger population in the region and growing awareness among patients with chronic diseases to consume medical food for better health management are anticipated to drive the market in the Asia Pacific. In addition, the local presence of key players and untapped opportunities provided by the region are among the major factors propelling the regional market growth. 

Key Companies & Market Share Insights

Increasing demand for medical foods by patients and healthcare professionals and the growing market consolidation activities by the market players to hold a strong position is resulting in strong competition among the competitors. Several strategies have been adopted by the key players such as high investments in new product development and geographic expansion to increase their revenue share. In addition, the top market players are looking for strategic acquisitions, mergers, and partnerships to expand their product reach and increase revenue share in the global market. 

For instance, in August 2020, Nestle Health Science acquired IM HealthScience to expand its medical food portfolio. The companies are also focusing on new product development to broaden their product portfolio for different indications, which assists to hold a strong grip on the market. Moreover, the continuous effort in the promotion and marketing by the manufacturers for the high adoption of their products is anticipated to increase their revenue share in the global market. Some prominent players in the global medical foods market include:

• Nestle

• Danone

• Abbott

• Mead Johnson & Company, LLC

• Fresenius Kabi

• Targeted Medical Pharma, Inc.

• Primus Pharmaceuticals, Inc.

• Medtrition, Inc. 

Medical Foods 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 and opportunities in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research, Inc. has segmented the global medical foods market report on the basis of route of administration, product, application, sales channel, and region:

• Route of Administration Outlook (Revenue, USD Million, 2018 - 2030)

  • Oral

  • Enteral

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Pills

  • Powder

  • Liquid

  • Others

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Chronic Kidney Disease

  • Minimal Hepatic Encephalopathy

  • Chemotherapy Induced Diarrhea

  • Pathogen Related Infections

  • Diabetic Neuropathy

  • ADHD

  • Depression

  • Alzheimer's Disease

  • Nutritional Deficiency

  • Orphan diseases

    • Phenylketonuria

    • Tyrosinemia

    • Eosinophilic esophagitis

    • FPIES

    • MSUD

    • Homocystinuria

    • Others

  • Wound Healing

  • Chronic Diarrhea

  • Constipation Relief

  • Protein Booster

  • Dysphagia

  • Pain Management

  • Parkinson's Disease

  • Epilepsy

  • Other Cancer related treatments

  • Severe protein allergy

  • Other

• Sales Channel Outlook (Revenue, USD Million, 2018 - 2030)

  • Online Sales

  • Institutional Sales

  • Retail Sales

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Spain

    • Italy

    • Russia

    • Denmark

    • Norway

    • Sweden

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia

    • New Zealand

    • Singapore

    • South Korea

    • Thailand

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE

    • Kuwait