14 February 2020 | Analysis
Functional beverages is slated to account for a share of 39.13% in 2018 in the Indonesia vitamins and nutraceuticals market
image credits: popular science
The online distribution channel of the Philippines vitamins and nutraceutical market is expected to expand at CAGR of 6.25% during the forecast period of 2020-2027. Online Philippines vitamins and nutraceutical market is projected to reach to a valuation of USD 213.58 Million by the end of 2027 from USD 126.02 Million in 2018 on the back of increasing internet penetration rate across the country.
Functional beverages is slated to account for a share of 39.13% in 2018 in the Indonesia vitamins and nutraceuticals market. The growth of this segment can be attributed to the rising health concerns, growth of key demographics, rising urbanization, and increasing consumer desire to lead a healthy life. Micronutrient deficiency is a key concern in Indonesia as it affects a large portion of the population due to malnutrition and lack of access to clean and nutritious energy sources. To address the nutritional needs, functional beverages with required micronutrients, and are expected to aid the market to grow.
Additionally, functional beverages segment of Indonesia vitamins and nutraceuticals market reached USD 804.99 Million in 2018 and is expected to reach USD 1,294.29 Million by the end of 2027, expanding at a CAGR of 5.65% over the forecast period i.e. 2020-2027.
The nutraceuticals market across Indonesia is vibrantly increasing on the back of increasing awareness of preventive health measures in the middle-income population of the country accompanied with a vast growth of the middle-class population with increasing disposable income and healthcare expenditure. In 2017, Indonesia was the 8th largest economy in the world based on the purchasing power parity. The country has been consistently growing economically and has driven itself into the upper-middle-income status in the past few years.
The combined value of exports and imports approximately equals to 37% of Indonesia's GDP, which makes trading a crucial activity in the economic growth of the country. According to the National Agency For Drug And Food (BPOM), the US is the major importer of health and food supplement products across Indonesia. At the same time, nutraceuticals are not yet viewed as necessities among Indonesian consumers due to which the revenue generation is low so far. However, intensified promotional and marketing activities to inform the public about the health values of vitamins, probiotics, functional food and beverages, and other products, is anticipated to propel the vitamins and nutraceuticals market, subsequently over the forthcoming years, in the country.
In the current market scenario, fortified and functional food and beverages segments have shown a high adoption rate as the country continues to fight against the double burden of malnutrition. On the other hand, Indonesia is constantly facing an increasingly obese and diabetic population contributing consequently towards the country's general health expenses. Additionally, growing purchasing power of consumers with an increasing population willing to spend more on food products promoting health benefits is attributed to promoting the vitamins and nutraceuticals market growth.
The Philippines nutraceuticals market is projected to expand on the back of affluent customers and young population becoming aware of numerous benefits of nutraceuticals through media, medical sources, and internet. Food companies offering modernization in food, manage to involve modest improvements such as reduced sugar, salt or fat levels, or novel-tasting products. While on the other hand, pharmaceutical companies with strong research bases, regulatory structures, and marketing resources can generate new medical professionals and pharmacists targeted consumer health compounds. These factors will attribute towards the expansion of the vitamins and nutraceuticals market with provision of higher revenue generation opportunities in the near future.
Additionally, increasing trends towards personalized medicines is anticipated to benefit the nutraceutical market coherently. The trend of personalization involves demonstration of genomics tailoring treatments very thoroughly to an individual's genetic profile. Nutrigenomics can aid with the identification of each individuals' different nutritional requirements, which can aid in linking one's diet to the genome and prevent the development of conditions including obesity, diabetes, cardiovascular diseases, and others. The ongoing-researches and increasing investments by the market players is projected to drive the market significantly over the forecast period.
Moreover, the increasing trend of internet retailing has gained rapid popularity among Filipinos for purchasing functional foods. This factor has paved a smooth path for the growth of nutraceuticals market in the Philippines, by making the accessibility of nutraceuticals easier for Filipinos. Besides, online pharmacies are contributing significantly towards the growth of the dietary supplements market across the country.