EDITORIAL COVERAGE

The Future of Nutraceuticals 2022-2030:

Industry Overview and Growth Drivers
The Editors | March 21, 2022 | nutraceuticalinsights.com

Nutraceutical Insights (NI) is committed to providing the latest industry, company, and financial news in our coverage and
analysis of the global nutraceutical market, with a particular emphasis on up-and-coming public companies listed on senior
exchanges. Today’s editorial focuses on the ten year growth trajectory of the nutraceuticals market, growth drivers, and notable
market players.

Nutraceutical Market Overview

The nutraceutical market is a broad category that includes functional foods and
IN THIS ISSUE
beverages, vitamins, food-derived and other dietary supplements, and other health • M
 arket Overview
and wellness products that can be obtained without a prescription. Though used for • M
 arket Growth Projections
medicinal and health purposes, nutraceuticals are categorized as foods and thus can
• M
 arket Drivers
be easily purchased over-the-counter (OTC) in drug stores, supermarkets, and sports
nutrition and vitamin stores. Several parallel and reinforcing economic and demographic • N
 otable Nutraceutical
factors are forecast to sustain growth in the market for the coming decade, maintaining Companies
decades of trends that have built this multibillion-dollar global sector.

Nutraceutical Market Growth Projections

Industry forecasts project the global nutraceutical market to expand from
approximately $413 billion in the year 2020 to $720 billion by 2027, representing a CAGR
of 8.26%. This projected market growth reflects increasing consumer desires to prevent
disease, increase overall well-being, and take greater control of their own health.

Americans, for example, spent more than $35 billion annually on dietary supplements
in recent years, in support of such goals as disease-prevention and healthy sexual
function; the global marketplace for these products represents tens of billions of dollars more. An aging demographic of baby-
boomers and Gen X consumers, for example, turn increasingly to nutraceuticals as an aid in promoting wellness and maintaining
active lifestyles well into old age. Meanwhile, the younger millennial and Gen Z demographic segments, according to research,
are less likely than older Americans to trust doctors and established medical providers, and more likely to use nutraceuticals and
supplements for such health goals as supporting immune function, among others.

Nutraceuticals play a central role in the sports nutrition marketplace, where consumers in search of increased athletic
performance such as muscle-building and weight loss were early adopters of consumer health products, among them
supplements and protein shakes. The global sports nutrition marketplace, estimated at $43 billion in 2022, is forecast to
approximately double by the end of the decade to reach $83.3 billion, for a CAGR of 8.5%. (Continues on next page)

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 The Editors | March 21, 2022 | nutraceuticalinsights.com

The Future of Nutraceuticals 2022-2030: Industry Overview and Growth Drivers

Nutraceutical Market Drivers

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The high costs of healthcare, prescription drugs, and health coverage—particularly in the United
States—continue to drive the shift to non-prescription nutraceuticals as consumers seek to minimize
spending on doctors and within the formal healthcare industry. The market for nutraceuticals has also
grown along with increased awareness of traditional health modalities, such as Traditional Chinese
Medicine (TCM). In 2018, for example, the World Health Organization (WHO) announced it would include
TCM in its global reference source, the International Statistical Classification of Diseases and Related
Health Problems. Interest in these traditional modalities parallels the global shift towards natural/
organic products by consumers seeking alternatives to prescription drugs.

The COVID-19 pandemic is simply the most recent event to drive global consumer focus on self-care. As people further empower
themselves to optimize their own health and wellness, the market will be receptive to existing nutraceutical products and will
fuel development of new research-based products in diverse product delivery systems, from capsules to chewables to functional
beverages, among other technologies and innovations.

Notable Nutraceutical Market Companies

The growth trajectory in the nutraceutical space represents a real opportunity for nimble, properly positioned companies in a
variety of sub-sectors, from contract manufacturing to consumer brands.

• H
 erbalife (NYSE: HLF), a global nutrition company offering its nutrition and wellness products through an individual
distribution model, recently announced their second year of record financial performance, which its management
attributed to continued growing global demand for nutraceutical products.

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 annatech, Incorporated (NASDAQ: MTEX), a pioneer in glyconutrition and a provider of aloe-based nutrition, health,
and wellness products, saw year-end 2021 increases in net sales, net income, and gross profit.

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 ediFast, Inc. (NYSE: MED), the company behind the OPTAVIA® health and wellness brand, has roughly doubled its
quarterly revenues from 2020 to 2021 and boasts a roughly $2 billion market cap.

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 ature’s Sunshine Products, Inc. (NASDAQ: NATR), a manufacturer of natural herbal and nutritional products, recently
reported a record quarter in Q4 of 2021; its sixth consecutive quarter of record net sales.

• S
 mart for Life, Inc. (NASDAQ: SMFL), a leading developer, marketer, and manufacturer of nutritional and related wellness
products, recently made several major announcements, including that a number of its Doctors Scientific Organica-branded
products had been selected by Amazon for its launch in Singapore. SMFL also announced that it had acquired Ceautamed,
maker of the Greens First brand of nutritional products, and GSP Nutrition Inc., the exclusive licensee of the Sports
Illustrated Nutrition brand of supplements.

NI will be tracking and reporting on the progress of these companies and other newsmakers in the nutraceutical space.
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17(b) Disclosure: The author of this report was compensated $1,000 by Smart for Life, Inc. (Nasdaq: SMFL) in consideration for
writing this report. No securities were issued to the author or any other party as compensation for writing or publishing this
report. The website Nutraceuticalinsights.com is owned by an agency employed by Smart for Life, Inc. on an ongoing basis to
provide a broad array of advertising agency services.