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Summary
The global nutraceutical market, valued at over $200 billion, is experiencing shifts marked by consumer skepticism and regulatory clampdowns which aim to ensure truthful health benefit claims. Growth prospects remain positive, with an expected annual market growth of 3.14% between 2021 and 2025. The Asia-Pacific region is set to be the future growth driver, with its market expected to expand from 391 billion euros in 2020 to 573 billion by 2030, at a CAGR of 3.9%. Consumer trends point to a demand for products that address an aging population's health, cognitive functions, and well-being, with probiotics experiencing significant growth and FoodTech innovations advancing the sector. Regulatory scrutiny in Europe, with over 85% negative opinions by EFSA on health claims, shapes the market, requiring clear, scientifically substantiated communications from companies.
Despite challenges, societal factors such as an increase in health concerns and an aging population present opportunities for growth within the nutraceutical space.
French Market Demand for Health-conscious Food and Nutraceuticals: A Blending Arena of Nutritional Needs and Medical Benefits
In recent years, the French market for nutraceuticals and health-conscious food, often referred to as alicaments, has shown a complex dynamic of growth and stagnation. The French health food market, once growing at a formidable pace of 9 to 10% annually, faced a moment of deceleration primarily due to increased scrutiny over inflated health benefit claims. Nevertheless, the industry remains significant and is estimated to have achieved a market size of between 10 and 20 billion euros by 2022. This segment, while marking time, could see rejuvenation due to a convergence of factors such as the aging population, the rise in chronic health concerns like obesity, an increased quest for well-being, and the technological advancements in FoodTech.
Tapping into the demographic shifts, it becomes apparent that France is grappling with a progressively aging population and obesity concerns. Projections indicate that by 2050, over a quarter of the French population will be over the age of 65, with as many as one in ten above 90.This demographic shift will likely drive demand for products that cater to age-related health concerns, offering strong growth prospects for the nutraceutical sector.
Moreover, nearly half of the French population is expected to be overweight or obese. This troubling statistic, coupled with a heightened awareness of health and physical well-being, sets the stage for a growing demand for products that contribute to weight management, improved nutrition, and overall health maintenance.
The concern for health has also been underscored by surveys revealing that up to 92% of French citizens place healthcare among their top priorities for political action. Amid these demand trends, particular market niches such as probiotics have witnessed impressive growth. Probiotics, especially, have seen a market value exceeding 100 million euros in France with significant growth opportunities foreseen across Europe. Alongside probiotics, segments concerning stress relief, sleep enhancement, and cognitive function (nootropics) continue to attract consumer interest, with notable growth patterns identified in respective sectors.
Major Contenders in the Nutraceutical Arena
Within the bustling domain of nutraceuticals—a diverse landscape where food and pharmaceutical properties intersect—several key players stand out, carving their unique niches and pushing the boundaries of health and nutrition. Each of these companies brings a distinct approach to the table, leveraging innovation, strategic market penetration, and astute acquisitions to secure their stronghold in a market teeming with competition.
- Danone: As an archetype of success in the functional food industry, Danone has cast an indelible imprint, particularly with its probiotic-rich products like Actimel and Activia. Despite encountering regulatory hurdles and hefty fines in the past, the company's commitment to emerging markets and continual product innovation keeps it at the forefront of the industry.
- Nestlé: With a rich heritage that spans across various sectors in the food and beverage industry, Nestlé reinvigorated its portfolio by entering the nutraceutical market. The acquisition of Novartis' medical nutrition division catapulted Nestlé into a position of prominence, reflecting the company's strategic agility and desire to capitalize on health trends.
- Lesieur: By infusing its Isio Mémo oil with DHA, an omega-3 fatty acid critical for brain health, Lesieur has managed to establish itself as an early mover in the cognitive well-being niche. Such innovations demonstrate Lesieur's understanding of demographic trends and consumer needs, particularly within an aging population.
- Lactalis: Recognized in the field of dairy products, Lactalis has broadened its horizon with interests in sports nutrition—a segment registering remarkable growth and capturing the essence of modern consumers' focus on health and well-being.
- St Hubert: With products such as omega-3 enriched margarine, St Hubert has found its lane in the fight against cholesterol and cardiovascular disease. Its strategic positioning in the market allows customers to make healthier choices without sacrificing taste or convenience.
- Innocent: Known for its juices and smoothies, Innocent keeps a finger on the pulse of consumer demands for vitality and antioxidants. The brand's "Super Smoothie" exemplifies its effort to marry health benefits with the convenience and appeal of a ready-to-drink format.
- Orangina Schweppes France: While some companies invest deeply in the health foods movement, Orangina Schweppes France stands out for its decision to sidestep the trend.
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- Number of pages : 30 pages
- Format : Digital and PDF versions
- Last update : 12/12/2019
Summary and extracts
1 Market overview
1.1 Introduction
An alicament (or "medicaliment", or "nutraceutical") is a food with pharmaceutical properties. It may be a natural food containing active molecules, or an artificially enriched industrial food. This designation can be detrimental to the nutraceutical trade, as it raises a number of ethical and commercial issues. the current market segmentation distinguishes between industrial foods (such as Omega-3 enriched foods, foods rich in active Bifidus, etc.) and natural foods (such as herbal or phytotherapeutic products).
The health food market seems to be marking time after a rather flourishing 1990-2000 period. This is due to marketing abuses extolling the virtues of products with health benefits far in excess of their actual effects on the body, prompting consumers to speak of a veritable "scam". In the United States, Danone was fined tens of millions of dollars following a complaint from consumers who doubted the benefits ofActimel. European regulations ensure that advertising deemed to be misleading is eradicated.
All the companies present in this market are heavyweights in the food industry. Competition is therefore extreme in a global health food market worth over $200 billion.
The problem for the sector is to justify the price difference to consumers (Bifidus yoghurt costs twice as much as conventional yoghurt). The European Food Safety Agency (EFSA), which is responsible for examining claims, has examined 1,750 of the 4,200 submitted, with 85% of negative opinions to date.
List of charts
- Sales growth forecast for the food sector
- Sales forecast for the nutraceuticals market
- High estimate of growth in the health food market
- Nearly one French person in two is overweight or obese
- Share of population by age bracket
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Latest news
Danone opens a second plant for plant-based products in France - 12/02/2024
- Danone inaugurates a new plant dedicated to the manufacture of dairy alternatives in France
- Danone has completely converted its Villecomtal-sur-Arros yogurt plant in the Gers department into a unit dedicated to Alpro-brand plant-based beverages. 43 million euros of investment
- Production, mainly of oat juice cartons, is 90% destined for Europe.
- Danone now has four milk-alternative production units in Europe. Two in France, at Issenheim and Villecomtal in the Gers region, one in Sweden, at Lunnarp, and the fourth at Wevelgem in Belgium.
- Vegetable-based products have become "a strategic focus" for the world's number one in ultra-fresh products.
- Danone took the t turn in 2017 with the $12.5 billion acquisition of US group WhiteWave.
- In France, ultra-fresh products are deeply rooted in diets.
- Plant milk accounts for just 4% of the traditional dairy products market by volume and 7.4% by value.
- The plant-based milk market is worth 165 million euros, according to FranceAgriMer.
- More than 6 out of ten people in France in the 18-24 age bracket eat plant-based products several times a week, according to lDanone
- Many dairy groups, including Triballat, Nestlé and Bel, have chosen to develop plant-based ranges.
- Retail chains are present under their own brands (MDD).
Danone sells its US organic dairy business to Platinum Equity - 02/01/2024
- Danone has signed an agreement to sell its US organic dairy business to Platinum Equity.
- The sale concerns the Horizon Organic and Wallaby businesses.
- By 2022, Horizon Organic and Wallaby represented around 3% of Danone's total sales.
Danone finds buyers for its two organic brands in the United States - 02/01/2024
- Platinum Equity's portfolio of assets totals $47 billion.
- The two brands Horizon Organic and Wallaby accounted for around 3% of Danone's sales in 2022, or $800 million.
- Dairy products make up a large part of Danone's sales.
- Danone has sold various parts of its business in different countries, including yoghurts in China and fresh dairy products in Brazil.
- Danone recorded eight quarters of growth thanks to price increases, although volumes remained stable.
- Danone succeeded in halting a steady decline in dairy sales that had lasted since 2015.
Danone, Antoine de Saint-Affrique's silent revolution - 26/09/2023
- Investment of 50 million euros in medical nutrition plant in Opole, Poland.
- Danone sales of 27.7 billion euros.
- Sales growth from 2.5% to 3% on average per year (before Covid) to 7% to 8% by mid-2023.
- Groupe Danone employs around 100,000 people.
- Disposal of certain non-strategic activities (Vega, Horizon Organic and Wallaby in North America, Aqua d'Or waters in Denmark, etc.).
Danone: Efforts Rewarded - 26/07/2023
- Danone's net income for the first half of fiscal 2023 jumped 48% to over €1 billion.
- In Spain, Danone reduced the number of brands from 13 to 5.
- Danone's operations in Russia were expropriated by the Kremlin in July 2023
- The group had estimated losses linked to the departure from Russia at 1 billion euros.
- 15% volume-driven growth for Mizone water in China.
- Counter-performance: plant-based products in North America
Danone, collateral victim of Vladimir Putin's new hard line - 17/07/2023
- Two major European groups, Danone and Carlsberg, were engaged in discussions to sell their Russian operations.
- They were surprised by a Russian presidential decree that transferred most of their Russian assets to the state agency, Rosimushestvo
- Danone had planned to sell 12 of its dairy and plant-based products plants in Russia, while retaining a plant dedicated to infant nutrition.
- President Putin issued decrees earlier that tightened national control over Western assets sold in Russia, including eliminating foreign shareholders from buyers.
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the alicaments market | France
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