Innovation opportunities in the nutraceutical market
One of the most important effects of the pandemic, two years after its emergence, is the boost it gave to certain markets, such as OTC drugs or nutraceuticals, due to people’s desire to improve and maintain their health.
The latter market alone grew by 13.1% in 2021 (USD140,300) vs. the previous year (Amit Shukla, 2021) and is expected to reach USD274,400 by 2028. This growth was largely driven by the North American market, which accounted for 35.7% of the regional share (Amit Shukla, 2021)2.
Within the nutraceutical market, one of the best performing categories in 2021 was vitamins, of which vitamins C, B and D stood out for their contribution to the immune system. However, in 2022 and after having overcome the worst effects of the pandemic, new important players have emerged in the nutraceutical sector, which we will see below.
Best sellers
According to Amazon, one of the largest e-commerce companies in the world, in June 2022, within the top 10 of its best-selling vitamin products, several versions of vitamin D will appear, either as a single product or as part of multivitamins.
Vitamin D helps the absorption of calcium and phosphorus and is part of the fat-soluble vitamins (A, D, E, and K). These vitamins have presented an important boom in the last year, mainly due to the fact that they strengthen the immune system.
Another nutraceutical product that maintains a sustained performance and that will pick up strength in 2022 is Omega 3, within which DHA and Omega 6 stand out. These fatty acids are considered essential for their role in the health of cell membranes and their benefits for the circulatory and nervous system.
Opportunity formats
All these products have one characteristic in common and that is that they have an oily composition (Omegas) or are fat-soluble (vitamins A, D, E, and K). This represents a great opportunity for manufacturers, since the major advantage of “liquid” formulations is that they are the most bioavailable and therefore more easily absorbed by the body.
Liquid formats are very attractive to consumers, who are no longer satisfied with the traditional tablet and who, on the contrary, find new ways of consuming their favorite vitamins and nutritional supplements in the new presentations.
The best medium for a nutritional product
Considering that 4 of the top 10 best-selling nutritional products on Amazon have a liquid formulation, it is interesting to evaluate all the presentations under which this type of product can be marketed.
The first of these is the liquid presentation, which can be marketed as a ready-to-drink beverage or packaged in a dropper. Either of these presentations is very convenient for the consumer, but it has the disadvantage of not having a container medium such as a capsule, which can present a higher rate of abuse or incorrect dosage, so it is not recommended for all types of patients.
On the other hand, we have the encapsulation of liquid formulations in hard capsules or soft capsules; presentations that in the eyes of the consumer may not have major differences other than their appearance, but that lead to multiple considerations both at production and consumption levels.
Soft capsules
Liquid-filled soft capsules are very visually appealing and, thanks to their soft texture, may appear easier to consume. However, they have complex production processes, which involve specialized equipment and, in most cases, outsourcing. In terms of production, this means higher costs and longer lead times, not to mention the risks of sharing the formula with a third party.
In addition to this, soft capsules are made with plasticizing substances to give them flexibility, which allow greater absorption of humidity from the environment and even possible migration of substances from the formulation to the shell. This can affect the composition of the capsules and their life cycle.
Furthermore, when the formula has a very strong odor and/or flavor such as that of Omega 3 (commonly fish-based), such flavors and odors are not desirable to be transferred to the coating and to be perceived by the consumer.
Hard Capsules
Liquid-filled hard capsules are also very visually appealing and, because of their more consistent texture, give an appearance of greater strength. Moreover, because gelatin or HPMC, the materials from which the capsules are made, are not very permeable, they are more suitable for products with strong odors and flavors such as vitamin D (from animal sources).
On the other hand, hard capsules are pre-manufactured and encapsulation can be done at the manufacturer’s facilities. Additionally, they come in a wide variety of sizes, which provides greater flexibility in commercialization and allows a high degree of customization through multiple color, printing and finishing options, thus favoring product differentiation and identification with the brand image.
In conclusion
The rise of fat-soluble vitamins and essential fatty acids is a response to the global trend of increasing the intake of products that promote health, the immune system and good mood.
This trend opens a window of opportunity for nutraceutical manufacturers to develop new formulation avenues in tune with market preferences.
Liquid formulations, in turn, present great advantages for multiple products because of their ease of absorption. They also offer significant manufacturing advantages, especially if packaged in cost-efficient and safe media such as hard capsules.
With a growing market such as nutraceuticals, competition will be increasing, so it is essential to develop attractive products that stand out on the shelf, but more importantly, that represent health benefits for the consumer’s health and pocketbook.
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References
1Amit Shukla, IQVIA’s Global Vice President of Consulting and Leadership Services at the 57th Annual Meeting of the European Marketing Industry Association. Autocuidado -AESGP, 2021
2NutraScience Labs, Types of Suplement Trends 2022-2023, 2022.
