2019

NUTRACEUTICALS
MARKET
ASSESSMENT
EXECUTIVE SUMMARY

11911 Freedom Drive | Suite 600 | Reston, VA 20190 USA

2019 PMMI Nutraceuticals Market Assessment > Executive Summary • 1

2019 Nutraceuticals
Market Assessment

PMMI The Association for Packaging and Processing Technologies

11911 Freedom Drive, Suite 600 | Reston, VA 20190
Phone: (571) 612-3200 | pmmi.org/research

Publication Date: July 2019

Jorge Izquierdo, Vice President, Market Development, PMMI
Paula Feldman, Director, Business Intelligence, PMMI

2019 PMMI Nutraceuticals Market Assessment • 3

Nutraceuticals have so much value when
they can be used to replace a lot of what
healthcare currently provides. Healthcare
touches everyone’s lives and with increasing
dialogue over the healthcare system,
nutraceuticals may provide a more natural
replacement for traditional medicine.

Vice President of Operations,

Functional Food & Drink Company
CONTENTS 6 EXECUTIVE SUMMARY

7 Nutraceutical Market Overview

8 Market Share & Growth Drivers
9 2018 U.S. Nutraceutical Market
10 Global Trends in Nutraceuticals
11 Spotlight: CBD (Cannabidiol)
12 Flashback to 2012
13 Nutraceutical Packaging Machinery:Key Takeaways
14 Nutraceutical Packaging: Key Takeaways

15 APPENDIX

16 Respondent Demographics
17 References and Sources

2019 PMMI Nutraceuticals Market Assessment •5

 NUTRACEUTICAL MARKET OVERVIEW
SECTION ONE MARKET SHARE & GROWTH DRIVERS
EXECUTIVE SUMMARY GLOBAL TRENDS IN NUTRACEUTICALS
KEY TAKEAWAYS

92% of respondents cited

increasing CBD usage,
government regulations,
and ecommerce growth
as the three factors having
the most influence over the
nutraceutical market.

6 • 2019 PMMI Nutraceuticals Market Assessment > Executive Summary

NUTRACEUTICAL MARKET OVERVIEW

Nutraceuticals comprise vitamins & supplements, functional

beverages, and functional foods. Packaging styles are similar to those
in the pharma and food & beverage industries.
Similar to trends in those industries, the nutraceutical market is moving away from rigid plastic and
glass containers and toward portable stick packs and flexible pouches.

Global Market: Anticipated to grow from $55.2 billion in 2017 to $98.5

billion in 2025.*, **
Common Packaging Types: Bottles, stick packs, pouches, cartons, and
pill packs
Typical Equipment Requirements: X-rays, checkweighers, cartoners,
display boxes, and tamper evident banding
Vitamins
Key Takeaways: Pill formats can use older, existing equipment and are
& Dietary less labor intensive. However, the industry is shifting away from pills and
Supplements multivitamins and moving toward gummies, vitamin patches, and other
delivery methods for supplements.

Global Market: Estimated to grow from $74.4 billion in 2017 to $132.8

billion in 2025.*, **
Common Packaging Types: Bottles, stick packs, and cans
Typical Equipment Requirements: Aseptic brick tray packers, bottlers,
and fillers
Functional Key Takeaways: Portability is the key trend, with stick packs being the
go-to form for ready-to-mix beverage products. eCommerce and a need
Drinks for portability are driving packaging towards stick packs, more flexible
Tetrapaks, and low-material packaging.

Global Market: Likely to grow from $79.5 billion in 2017 to $141.7 billion
in 2025.*, **
Common Packaging Types: Pouches, sleeves, and cartons
Typical Equipment Requirements: Cartoners, pickers, pouch fillers, case
packers, over wrappers, and palletizers
Functional Key Takeaways: These products are much more labor intensive because
they come in such a wide variety of shapes, sizes, and packages. The
Foods ability to consume all nutrients in an everyday food product is driving the
growth of this sector, particularly as the demand for multivitamins in pill
format slows.

“Global Functional Foods and Beverages Market 2017-2021,” TechNavio, cited by Businesswire.com
“Nutraceutical ingredients market is projected to grow at a CAGR of 7.5%, Markets and Markets, cited by prnewswire.com

2019 PMMI Nutraceuticals Market Assessment > Executive Summary • 7

 MARKET SHARE & NUTRACEUTICAL
GROWTH DRIVERS
GROWTH DRIVERS

Baby Boomers and Primary Drivers

Millennials are driving
nutraceutical market growth Millennials Boomers
with their interests in
sports & energy, natural
pharmaceutical alternatives,
and general life extension.
Both demographic groups
have a growing interest
in nutraceuticals but wish
to incorporate them more
seamlessly into their diet
through functional foods and
drinks instead of by taking
traditional pill supplements.

Drivers Behind
Nutraceutical Demands
Boomers and Millennials both
drive nutraceutical growth, but for
different reasons. Aging consumers 1. Sports & Energy
look to nutraceuticals to live longer 2. Natural Pharmaceutical Alternatives
and treat ailments, and view them 3. Life Extension
as a more natural alternative to 4. Weight Loss
pharmaceuticals. Millennials, on 5. Protein
the other hand, use nutraceuticals 6. General Wellness
to live more cleanly, drive down
obesity, and negate the need for
pharmaceuticals as they age.

8 • 2019 PMMI Nutraceuticals Market Assessment > Executive Summary

 2018 U.S. NUTRACEUTICAL MARKET
($75.9 BILLION) By Market Share*,**

Vitamins &
Functional Dietary
Foods Supplements
36% 31%

33%

Functional
Drinks

U.S. consumers have traditionally ingested nutraceuticals

in pill form but have begun demanding alternative forms,
which is driving a growing market for functional foods &
drinks.

* “U.S. Nutraceuticals Market Progressing at a CAGR of 5.3% between 2016 & 2024”, Functional Foods and Beverage Market 2017-
2021, Transparency Market Research, cited by Openpr.com

2019 PMMI Nutraceuticals Market Assessment > Executive Summary • 9

 GLOBAL TRENDS IN NUTRACEUTICALS

Nutraceutical trends are driven worldwide by an established or

growing middle class with the available income to spend on filling
nutritional gaps.

2
1 6
3

1 U.S.
Consumers are more
focused on ease of
use and easy opening
rather than hermetically
sealed pill packs and
functional drinks.
2 EU
The EU has strict quality
control and product testing
regulations.
Consumers want clinical
proof of a nutraceutical’s
efficacy.
3 China
The nutraceutical industry
is government supported;
companies sell locally to
avoid tariffs.
Supplements are often given
as gifts and sold with a box
around them or as a part of
gift baskets.

4 South America 5 India 6 Japan

Brazil is the largest A growing middle class is Instead of pill bottles,
market for nutraceuticals purchasing more functional consumers require pouches
in South America, followed foods and drinks. for supplement products,
by Argentina, Peru and which are more portable
Colombia. and require less packaging
material.
This market is driven by
functional foods and drinks
for weight loss, as the
traditional Brazilian diet
has caused problems with
obesity.

10 • 2019 PMMI Nutraceuticals Market Assessment > Executive Summary

SPOTLIGHT: CBD (CANNABIDIOL)

Many companies interviewed view CBD as the biggest

innovation in the nutraceuticals market. CBD growth dictates a
need for small batch packaging equipment, integrated dosing, and
premium amber glass tincture bottles.

Requires more small
batch equipment as
opposed to fewer large
scale machines
• CBD products are often made to individual customer needs and
packaged in a variety of forms.
• Companies are looking for more small, tabletop machines to
accommodate a variety of packaging forms rather than large
packaging machines.

Exact dosing is • Specific dosing requirements with CBD require an eye dropper
required and must with specific measurements integrated into the cap of a
be integrated into tincture bottle, or a precise measuring spoon for CBD powder.
packaging

Glass bottles are • Tinctures – used for over 40% of CBD products – are
the most popular predominantly sold in amber glass bottles (these have less
packaging for tinctures oxidation, which prevents CBD from breaking down).
• Other types of packaging include pouches and spray bottles.
The most important requirements for these packaging types
are ease of opening and discreet use.

• CBD companies have been adding secondary packaging by

Customers want
premium packaging enclosing their tincture bottles in a box.
with childproof caps • Consumers also worry about the safety of CBD products, and
want secure containers that are still easy to use.

The U.S. retail market for CBD is

projected to grow from an estimated
$2 billion in 2018 to
$16 billion by 2025*

* Veiga, Alex, “Cannabis-derived CBD oil finding place in ever more products,” Concord Monitor

2019 PMMI Nutraceuticals Market Assessment > Executive Summary • 11

 FLASHBACK TO 2012*

The nutraceutical market hasn’t changed significantly since PMMI’s

last study in 2012. Nutraceutical manufacturers today still
want machinery that is easy to use, easy to adjust, and easy
to break down for quick cleaning. Convenience is still a key
packaging requirement, and respondents still report issues with
sourcing pouches locally.

1. Fast, Flexible, and Easy-to- significant consideration

Use Equipment:
Respondents in 2012
primarily looked at the
equipment’s speed,
flexibility, and ease of use,
Enduring and then they evaluated
Packaging the cost versus the value
3. Modular Systems:
Machinery delivered. These are still the
same factors used today.
Trends:
Flashback 2. Quick and Simple Cleaning:
to 2012 The ease and process of
cleaning equipment was a
for many respondents.
Companies often looked
for machines that could be
completely cleaned within
20 to 30 minutes.
Positioning a brand’s
equipment as modular
helped manufacturers see
equipment as adjusting to
the company as it grew.

1. Convenience: Single-serving format’s economies of

dosage packs, pill packs
with a variety of pills in a
single package, stick packs
with powder or gel that can
3. Full Body Shrink Sleeves:
be mixed with water, and
beverage shots are portable
packaging types that have
continued to grow in
popularity since 2012.
Enduring
Packaging 2. Pouches: Many respondents
Trends: in 2012 and today brought
Flashback to up the challenge of sourcing
high-quality pouches at
2012 good prices in the United
States. Currently, Asian
markets use pouches
extensively and are
taking advantage of the
scale when selling to U.S.
manufacturers.
Full body shrink sleeves
are very popular with
respondents. This type of
label offers distinct value to
nutraceutical manufacturers
such as a clean, sharp look,
and maximum space to
educate consumers about
the product. However,
this labeling method may
be less popular as the
industry moves towards
pouches and away from
rigid packaging that can use
shrink sleeves.

* Trends are taken from PMMI’s 2012 Nutraceuticals Market Assessment.

12 • 2019 PMMI Nutraceuticals Market Assessment > Executive Summary

 NUTRACEUTICAL PACKAGING MACHINERY: KEY TAKEAWAYS

Nutraceutical manufacturers want packaging machinery that can

quickly process individually-tailored products, is more modular
so it can grow and adjust with innovations, and can add easy-
open features to packaging. As the industry grows, requirements
will increase for machinery that is adaptable and can easily break
down to package individually-tailored products.
Current Market Future Impact
Small • Product packaging covers a very broad • Packaging machinery for the
Batch range: bottles, stick packs, pouches, nutraceutical industry is likely
Processing cartons, and others. to adapt to the small batch and
• As product formats evolve and tailored nature of the industry.
supplements and foods are tailored to Machinery suppliers are likely
the individual, manufacturers are looking to focus on selling more
for more smaller-volume packaging small-volume machines.
machinery that can quickly process small
Usage

batches.

Obtaining • Several companies interviewed • Packaging machinery

Pilot indicated that equipment manufacturers are likely to scale
Plant manufacturers don’t produce down their packaging machines
Equipment machinery for small volume testing to accommodate the continually
and pilot plant capabilities. evolving nature of packaging
and products.

Machinery • Several companies interviewed • For the few machines that cannot
That Is indicated they look for nutraceutical add these features to packages,
Easy Open

Easy to packaging machinery that can provide the upgrade will be less expensive
Use and easy-open notches or seals. and easy to add on.
Upgrade
• Some older nutraceutical packaging
machinery requires expensive, and
often difficult, upgrades to provide
easy-open capabilities.

2019 PMMI Nutraceuticals Market Assessment > Executive Summary • 13

 NUTRACEUTICAL PACKAGING:
KEY TAKEAWAYS

Nutraceutical packaging is leveraging cross sector

innovations; pushing towards effective, sustainable packaging;
and moving away from breakable packaging to flexible packaging
that is more ecommerce-friendly.

The future market

should be able to
make pouches an
industry standard,
moving away from
shrink labels and
towards space-
saving QR labeling
codes.

14 • 2019 PMMI Nutraceuticals Market Assessment > Executive Summary

 Current Market
Nutraceutical manufacturers are leveraging
packaging with integrated desiccant from
the can industry, dual chamber packaging
from the pharmaceutical industry, and taking
Innovations insights they learned from pharmaceuticals
into the pet supplement industry.
Consumers are pushing manufacturers
towards more sustainable packaging,
but manufacturers are having difficulty
Sustainability
achieving more than a six-month shelf life
from products with sustainable packaging.
Shrink sleeves are a clean and effective
way to educate consumers and make a
product stand out in stores.
Shrink sleeves are also an easy way to
Shrink
Sleeves integrate recycled plastic into product
packaging, as they can be made of recycled
materials without any loss in integrity.
Nutraceutical manufacturers still need
glass to maintain the integrity of certain
functional drink flavors and other
nutraceutical products.
Materials
eCommerce is motivating a trend away
from glass and toward pouches and easily
packable trays.
eCommerce
Nutraceutical manufacturers are moving or
looking to move toward pouches but still
have issues finding pouch suppliers in the
Pouches U.S.  This was an issue for manufacturers
in 2012 as well.
2019 PMMI Nutraceuticals Market Assessment > Executive Summary • 15
Future Impact
The industry will continue to leverage
packaging innovations from other industries
such as food, candy, pet supplements, and
pharmaceuticals.
Fully recyclable pouches are likely to be the
main form of packaging for supplements
and functional foods.  Biodegradable
packaging will also increase in popularity as
it achieves economies of scale.
Shrink sleeves will become less popular as
companies move toward using QR codes
and scannable chips on labels, and as the
industry moves away from rigid packaging
and toward more flexible pouches.
Manufacturers may move toward
aluminum and plastic packaging provided
they can still maintain product integrity.
eCommerce will become an increasingly
important factor in the industry, forcing
packaging designed to maximize packing
space.
Pouches will become the dominant form of
recyclable packaging for functional foods,
supplements, and ready-to-mix functional
drinks. 
 SECTION THREE
RESPONDENT DEMOGRAPHICS
APPENDIX REFERENCES AND SOURCES

16 • 2019 PMMI Nutraceuticals Market Assessment > Appendix

 APPENDIX

RESPONDENT DEMOGRAPHICS

Research targeted a mix of companies that focus on dietary

supplements, functional foods, and functional drinks. A majority of
respondents focus on more than one nutraceutical product.

Respondent Roles

Principal Procurement
15% Manager
5%
Procurement Vice President Of
GlobalPrincipal
Insights
15% Manager Operations
Manager
5% 10%
3% Vice President Of
Global Insights
Business
Manager Operations
Plant Manager
Manager3% 10%
8%
5%
Business
Plant Maintenance
Manager
Manager
8%
5% Manager
Director of Maintenance5%
Research & Manager
Development
Director of 5% Marketing
10%
Research & Consultant
Development CEO
Marketing 3%
10% 3%
Consultant
CEO
VP of Global 3%
3%
Sourcing
VP of Global Senior Engineer
8% Packaging
Sourcing 15%
8% Engineer Senior Engineer
Packaging
10%
Engineer 15%
10%

Nutraceutical Product Type Produced by Respondents’ Company*

35
35

30
30

25
25

20
20

15 15

10 10
* A majority of respondents
indicated their company
5 produces more than one
5
type of nutraceutical.

0
0
Dietary Supplements Functional Foods Functional Beverages
Dietary Supplements Functional Foods Functional Beverages

2019 PMMI Nutraceuticals Market Assessment > Appendix • 17

 REFERENCES AND SOURCES

“Effective Messaging, Evidence Key to Growth of Niche Functional Brands,” Bevnet.com

https://www.bevnet.com/news/2019/effective-messaging-evidence-key-to-growth-of-niche-
functional-brands

Feldman, Monica, “The Impact of Regulation on the Market Value of Nutraceuticals,”

Euromonitor International, November 2014 https://www.foodbusinessnews.net/
articles/13466-collagen-rising-in-functional-food-formulations

“Global Functional Foods and Beverages Market 2017-2021,” TechNavio; https://www.

businesswire.com/news/home/20170110005663/en/Global-Functional-Foods-Beverages-
Market-2017-2021--

“Key Trends in Functional Foods and Beverages for 2019,” https://www.nutraceuticalsworld.

com/issues/2018-11/view_features/key-trends-in-functional-foods-beverages-for-2019

Kazarian, Kristen, ”Cannabis Packaging Goes Luxe,” Packaging Strategies https://www.

packagingstrategies.com/articles/91065-cannabis-packaging-goes-luxe

“Nutraceutical ingredients market is projected to grow at a CAGR of 7.5%,” Markets and

Markets; https://www.prnewswire.com/news-releases/nutraceutical-ingredients-market-is-
projected-to-grow-at-a-cagr-of-75-300597862.html

Riley, Sean, ”The Future of Nutraceuticals Packaging,” Nutraceuticals World https://www.

nutraceuticalsworld.com/issues/2018-04/view_features/the-future-of-nutraceuticals-
packaging/1877

“Sabinsa Wins Latest Curcumin Patent Infringement Lawsuit,” http://www.nutritionaloutlook.

com/herbs-botanicals/sabinsa-wins-latest-curcumin-patent-infringement-lawsuit

“U.S. Nutraceuticals Market Progressing at a CAGR of 5.3% between 2016 & 2024,” Functional
Foods and Beverages Market 2017-2021,” Transparency Market Research; https://www.
openpr.com/news/1658576/U-S-Nutraceuticals-Market-Progressing-at-a-CAGR-of-5-3-
between-2016-2024.html

Veiga, Alex, “Cannabis-derived CBD oil finding place in ever more products,” Concord Monitor
https://www.concordmonitor.com/Cannabis-derived-CBD-oil-finding-place-in-ever-more-
products-24319200

Watrous, Monica “Collagen rising in functional food formulations,” Foodbusinessnews.net

https://www.foodbusinessnews.net/articles/13466-collagen-rising-in-functional-food-
formulations

18 • 2019 PMMI Nutraceuticals Market Assessment > Appendix

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and Processing Technologies

Visit pmmi.org or contact

Paula Feldman, Director, Business
Intelligence, at 571-612-3194 or
PMMl's Business Intelligence Reports pfeldman@pmmi.org.

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