Medical Foods Market Size, Share & Trends Analysis Report By Route Of Administration, By Product (Pills, Powder), By Application, By Sales Channel, By Region, And Segment Forecasts, 2021 - 2028

Report Overview

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.

COVID19 medical foods market impact: 9.2% increase in sales

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.

The pandemic of COVID-19 is anticipated to support the growth of the market in the coming years. According to an article published in The House in 2020, medical foods will play a substantial role in the rehabilitation and recovery process of patients suffering from the disease. In addition, due to increase in burden on the critical care services, the demand for dietetic care and nutritional support is increasing, thereby supporting the growth and adoption of medical foods. Therefore, the pandemic is expected to boost the growth of medical foods market during the forecast period.

Route of Administration Insights

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.

Product Insights

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.

Application Insights

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.

Sales Channel Insights

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.

Regional Insights

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.

Key Companies & Market Share Insights

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

Medical Foods Market Report Scope

Segments Covered in the Report

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