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How Is The Rise Of Nutraceutical Beverages Disrupting The Industry?

The global nutraceuticals industry is expected to grow from $267.4 Billion in 2019 to $404.8 billion by 2025, with a CAGR record of 7.2 percent throughout the forecast period(1). The increasing number of chronic illnesses and the growing aging population are encouraging companies to manufacture nutrition-rich products.

Furthermore, the growing demand for fortified foods because of their health benefits will be one of the factors to drive the growth in desire for nutraceutical products. In this article, we’ll be covering everything on nutraceuticals, the rise of nutraceutical beverages, and its impact on the industry.

rise of nutraceutical beverages

Nutraceuticals: An Overview

Nutraceuticals are functional or nutritional foods that are known to possess the possibility to help alleviate some parts of the body. This can include joint pain, cognitive function, sleep health and more. Both aging baby boomers and young millennials are significant contributors to the growth of these products.

Today, nutraceuticals are gaining much interest because of their potential therapeutic and nutritional effects. Some of the popular nutraceuticals include cod liver oil, folic acid, lutein, omega-3, glucosamine, green tea, Echinacea, and ginseng. (2)

The nutraceuticals industry primarily constitutes dietary supplements, beverages, food, pharmaceutical, and personal care products. Because there are minimal regulatory requirements and relatively high profit margins involved, they are quite promising for food & beverage companies. Factors such as the growth of key demographics, rising health concerns, and the continual search for proactive health are the key drivers contributing to this industry’s growth.

The amino acids & protein segment is expected to hold a large portion of the market share during the forecast period. Because of their functional and nutritional properties, proteins are primarily utilized in industrial applications. Their potential to boost nutritional value makes them a key ingredient in the nutraceuticals industry.

That said, extensive R&D on proteins and its beneficial properties have led to the identification of innovative uses in the pharmaceuticals and personal care industries. Also, since amino acids help in building healthy muscular tissues, improving the immune system, and the development of organs, their usage in snacks and convenience foods has increased.

Furthermore, factors including new mergers and acquisitions, product launches, and nutraceuticals targeted towards improving cardiac health will likely enhance this market’s growth. The growing market of minerals and vitamins-enriched herbal creams and shampoos is another primary driver behind the increasing demand for nutraceuticals.

However, customer skepticism concerning the adoption of nutraceutical products and their high costs are some factors expected to hamper the market growth of these products.

rise of nutraceutical beverages

The Rise Of Nutraceutical Beverages

The nutraceutical beverage market is projected to be the largest and fastest-growing market in the nutraceuticals industry(1). Nutraceutical beverages are non-alcoholic drinks that contain non-traditional ingredients like added raw fruits, probiotics, dietary fibers, amino acids, vitamins, minerals, etc.

By 2017, the global nutraceutical beverages market was approximately $1347 billion. This massive growth is due to the increasing middle-class population, growing urbanization, growing health concerns, a rise in double-income families, and a significant focus on health promotion. (3)

Regionally, the functional or nutraceutical beverages market is classified into North Africa, Middle East, Eastern Europe, Western Europe, North America(Mexico, Canada, US), Asia-Pacific, and other parts of the world, which include South Africa and Latin America.

Nutraceutical beverages play a crucial role in the contemporary world. Current efforts to comprehend and develop nutraceutical beverages for promoting health have grown in recent years. Nutraceutical beverages like juices, energy drinks, sports drinks, ready-to-drink coffee, and tea-based beverages are experiencing increasing demand because of the increasing inclination towards active nutrition and the growth of sports enthusiasts.

Private Label Sports & Energy Drinks

The sports and energy drinks are the key segments of the functional beverages market worldwide. The energy drink sector was worth $50 billion in 2014. Furthermore, there’s a rise in demand for “beauty beverages” or functional hydration containing collagen, soft drinks containing cinnamon extracts, and omega-3s.

Also, the protein-based beverages are witnessing increased consumption due to the rising demand for these beverages among consumers with a healthy lifestyle. Furthermore, manufacturers are trying to introduce new fortified nutraceutical or functional beverages as the demand for healthy beverages infused with several nutraceuticals, and organic ingredients are growing among consumers.

There has been an increase in the consumption of superfruits juices around the world, with China being the first (1587 million ltr a year), followed by the US and Japan. Aloe vera, pomegranate, and blueberry are other favorites worldwide.

Some popular nutraceutical beverages are natural mineral water aimed at providing optimum hydration, drinks with mineral and vitamin fortification, high-polyphenol, or antioxidant beverages containing ingredients such as green tea, berries, or specific herbs, and plant-based beverages. All of these beverages claim to have a host of health benefits as well as a focus on sustainable or organic sourcing.

However, this doesn’t mean that these environmentally-conscious and health-conscious products have to be bland. Multiple ingredients that have been used to conceal the foul taste of certain omega-three fatty acids and amino acids have been revolutionizing the market.

Exotic fruit flavorings like acai, jaboticaba, goji berry, or mangosteen are also added to alter the unpleasant taste. Many nutraceutical beverages have also made use of tamarind or cardamom, making it surprisingly tasty. Other botanic infusions like lavender or hibiscus have also become quite popular.

When it comes to masking odor or taste, the most straightforward approaches are diluting it with an inert carrier or infusing a suitable flavor that overpowers the unpleasant odor or taste. Tart flavors like ascorbic acid, malic acid, and citric acid are ideal for concealing bitter flavors. Also, salty products are effective in improving the bitter taste.

Nutraceutical beverages that are coming up in the market generally reflect the present health concerns, including women’s health, beauty from within, immunity, energy, heart health, and cognitive function. There is also a demand among consumers for beverages that offer the required minerals and vitamins that are lacking in their diet and for the infusion of antioxidants and herbs. The savvy formulator must know which mixture of ingredients is aimed to treat these health concerns.

Another important concern regarding the formulation of nutraceutical beverages is its solubility. Often, this issue of solubility prevents manufacturers from adding the required amount of an ingredient in order to give a beverage its desired level of health benefits.

Furthermore, stability enhancement is a crucial issue in the development of beverages. In the presence of water, there are various concerns such as product stability, the need for preservatives along with potential reaction between ingredients. Some of these problems range from off-flavors to reduced shelf life and the loss of the active ingredients’ potency. In RTD beverages, the stability of the product can sometimes be enhanced by controlling and maintaining the pH level of the product carefully.

Some ingredients are stable in nature and can, thus, withstand heat, light, and there are some that tend to require special handling. For instance, there are natural probiotic ingredients that can withstand the pasteurization process and heat of hot beverages, as well as the stomach’s acidic pH level. For every probiotic, creating a shelf-stable product is the hardest thing.

rise of nutraceutical beverages: a new niche

A New Niche Market

Several ingredients can be added to beverages. Protein additions are concentrated in dairy and soy beverages, such as yogurt-like beverages and smoothies. Such beverages are quite popular among athletes who want a protein boost. Soy protein and isoflavones can also benefit women who are experiencing menopausal symptoms.

Fiber-enriched beverages are also quite popular among people with digestive problems and those with weight management concerns. Although most fiber ingredients have no flavor and are entirely dissolvable, beverages with added fibers are expected to turn up in the supplement markets.

In the weight-loss sector, an extract of Garcinia cambogia, which is a South Asian fruit, has shown to induce satiety, inhibit fat production, and suppress appetite without affecting the central nervous system. In two 8-week studies, it revealed that overweight and obese adults who took garcinia cambogia experienced a reduction in their body weight and BMI by 5-6%. (4)

Many nutraceutical beverages use maltodextrins as an energy source. They possess low osmolality, are easily digestible carbohydrate sources, and are used to help complete the beverages’ flavor profile. Aside from the legal constraints of foods and dietary supplements, there are not many limitations on what ingredients are to be used in nutraceutical beverages.

Supplement Beverages Overview

Nutraceutical beverages originate mainly from vegetables and fruit sources, but also include those from other plants such as tea, coffee, cocoa, soybean as well as animal products such as milk and dairy-based and alcoholic drinks. The health benefits of these beverages are rendered through various mechanistic pathways. Nevertheless, the main criterion for the acceptance of Nutraceutical beverages is their flavor and taste quality.

Thus, it’s crucial to formulate high-quality beverages that have a good aroma, taste, and shelf-life stability for their adequate levels of consumption that are required for improving health(5). The most crucial factor in the formulation of nutraceutical beverages is the consumers’ approval for new ingredients, their awareness, and their perception of the possible health benefits.

Manufacture Your Private Label Beverage Supplements With SMP Nutra

With the emergence of beverages and other types of supplements in the nutraceutical industry, now is a great time to get into the market. Partnering with us at SMP to manufacture your supplements would lead to an increase in product quality, and fast lead times and unbeatable pricing. We are capable of manufacturing any type of nutraceutical formula that you would need.


  1. https://www.reportlinker.com/p05806384/Nutraceutical-Products-Market-by-Type-Source-Distribution-Channel-Region-Global-Forecast-to.html?utm_source=GNW
  2. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4336979/
  3. https://www.sciencedirect.com/topics/agricultural-and-biological-sciences/functional-beverage
  4. https://selfhacked.com/blog/garcinia-cambogia/
  5. https://pubs.acs.org/doi/abs/10.1021/bk-2004-0871.ch001

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