Market Trends of Australia Nutraceuticals Industry
This section covers the major market trends shaping the Australia Nutraceuticals Market according to our research experts:
Increasing Elderly Population boosting Nutraceuticals Market in the Country
As Australians age and face rising healthcare costs, many are considering the link between health and diet. The functional food (Nutraceutical) industry is seizing opportunities with product innovation and market expansion. In Australia, consumers aged 35 & above are purchasing vitamins, minerals, and other supplements at a higher rate than consumers under 25. Additionally, Australian consumers are inclined to a healthy lifestyle, privileging natural, organic, and functional products that are friendly to the environment and by fair trade standards. Companies developing applicable food products have begun marketing to specific demographics, such as the aging population, young adults, and mothers. Nutraceutical products may be especially relevant for preventing or delaying several age-related diseases, such as arthritis, cancer, metabolic and cardiovascular diseases, osteoporosis, cataracts, brain disorders, etc. The Australian nutraceutical market is expanding due to the rising prevalence of chronic diseases and increased use among older women.
Functional foods such as cholesterol-reducing spreads, milk, and yogurt attract aging consumers. At the same time, parents are interested in products that may benefit their children's health, such as omega-3 and DHA-enriched products for brain development. Further, Australia's general rise in health consciousness was already boosting sales in this country, even before the pandemic arrived. At the same time, the aging of the Australian population offers fertile conditions for the further development of dietary supplements, particularly as consumers look to prevent the development of age-related diseases. This, in turn, is boosting the nutraceuticals market in the country.
Growing Demand for Dietary Supplements
Increasing demand for sports nutrition, on account of growing fitness trends and sports activities, and companies are launching new products that significantly impact the industry. For instance, in September 2022, Micro Mike in Australia introduced Protein Water, a clean and lean protein supplement with 12 grams of protein per serving, derived mainly from hydrolyzed pea protein peptides. Owing to suitable demographics, such as the increasing aging population and costs of healthcare, the preference for dietary supplements is also growing tremendously. Due to the rising number of personalized online systems available to consumers free of charge, manufacturers and retailers are beginning to offer free access to wellness tools, creating a customized vitamin list based on a consumer's specific conditions and needs. The major food groups that saw the greatest increase in dietary energy per capita per day between 2020-2021 were Dairy & meat substitutes rose 12.3% and Snack foods rose 2.3% according to the Australian Bureau of Statistics. In order to accommodate the rising demand, producers are developing new categories of dietary products. According to the Blackmores Annual Reports, the total grocery and pharmacy sales of vitamins and dietary supplements in Australia were AUD 1.8 billion in 2021. The growing prevalence of chronic diseases and advantages associated with botanical drugs over synthetic drugs, such as being safer with no adverse side effects and affordability, are driving the growth of this segment.
