South America Nutraceuticals Market Outlook, 2027

The South American population has a history of high prevalence of chronic diseases such as diabetes, hypertension, and metabolic diseases. As per the WHO (World Health Organization), more than 60% of the male and female population is overweight or obese across the South American region. Also, the South American region has the highest prevalence of nonalcoholic fatty liver disease (nearly 31%). These factors are creating higher demand for alternative medicine, which can provide health benefits. South America is considered the fourth largest market for functional/healthy foods and nutraceuticals in the world. The population of South America is relatively young and growing. This next generation of South Americans is being raised in a "globalized" world, which means they are aware of global trends and are participating in global economies as consumers and producers. Nutraceuticals are used to improve health, delay the ageing process, avoid chronic diseases, augment life expectancy, or support the structure or function of the body. Nowadays, nutraceuticals have received extensive interest due to their potential nutritional, safety, and remedial effects. In South America, immunity-boosting supplements accounted for the majority of the nutritional supplements purchased during the pandemic. The increase in awareness levels and the increase in adoption of the various products are driving the market growth.

According to the research report titled "South America Nutraceuticals Market Outlook, 2027", published by Bonafide Research, the market is expected to have more than USD 65 billion in size during the forecast period. Growing health consciousness in the South American region has created a perfect environment for nutraceutical products. The rising cost of healthcare, the number of entrepreneurs in the nutraceutical industry and the introduction of innovative and effective products are some of the driving factors for the South American nutraceutical market. A shift is observed from synthetic supplements to natural or organic ingredients across various emerging economies in the South American nutraceutical market. From the research, it has been found that 3 out of 4 people in Peru have been including immunity-boosting supplements in their diet. The South American nutraceutical market is segmented into three prominent countries, including Brazil, Argentina, and Colombia. Among these countries, Brazil is anticipated to occupy more than half of the market share during the forecast period.

Brazil’s government is taking diverse initiatives to spread awareness about functional food and beverage consumption across the country. These initiatives have been supporting the population towards moving away from poverty. However, people are becoming more conscious of leading a healthy lifestyle. Brazil was the worst-hit country during the COVID-19 outbreak. The maximum number of deaths was recorded in Brazil; this has made the population more alert in terms of maintaining a healthy diet and supplementing their food with nutritional supplements to complete their dietary requirements, which has been the key to the growth of the market in the country. Based on these factors, Brazilians have experienced a significant change in their perception of the nutraceutical industry. In addition to that, the Brazilian market is composed of relatively young and increasingly well-informed people, as well as a mounting middle class that has the potential for growth.

The South American nutraceutical market, according to the report, is divided into various distribution channels such as supermarkets/hypermarkets, convenience stores, drug and pharmacies, online retail stores, and specialty stores, among others. Among these types, the supermarkets/hypermarkets segment is leading the market by occupying a larger portion of the market share. However, increasing internet penetration across the region is expected to change the overall scenario. Based on the obtained data, the online retail store segment is gaining higher momentum and is expected to expand at a prominent growth rate by 2027. Further, the market is segmented into three product types, including dietary supplements, functional food, and functional beverages. Among these types, the functional food segment is projected to dominate the market during the upcoming time frame owing to the rapid adoption of healthy diet plans across the region.

Based on the dietary supplement types, the vitamin segment is dominating the market in South America's nutraceutical market and is expected to continue growing by 2027. The majority of the population is including vitamin and mineral supplements into their daily diets, which is expected to boost the demand. Further, based on functional food types, the dairy product segment is projected to acquire a larger portion of the market share by 2027. There is a rising demand for functional food items, especially in the functional snacks segment, that are associated to a precise health positioning. These products offer added value to consumers as compared to regular food products. Portable snacks and nutrition bars made with simple, clean-label ingredients that deliver functionality are popular among South American consumers. In addition to that, based on functional beverage types, the energy drink segment is dominating the market with high revenue generation during the forecast period.

COVID-19 impacts:
South America was one of the regions to suffer the worst of the impact of the COVID-19 pandemic. Due to a high number of already existing co-morbidities, the pandemic claimed many lives across the region. As a result, South America became the largest hotspot for COVID-19 patients. However, preventative health has been gaining momentum ever since COVID-19, which has led to stronger growth of the regional market. Also, South American countries have been keenly increasing their uptake of nutritional supplements, and more so since the COVID-19 pandemic. These factors are expected to boost the market growth for South America's nutraceutical market.

Major Companies present in the market:
Herbalife Nutrition, AMWAY Corp., Bayer AG, Pfizer Inc., GlaxoSmithKline plc., Abbott Laboratories, Glanbia plc, Archer Daniels Midland Company, Nu Skin Enterprises, Inc., Nestle SA, Danone SA, General Mills Inc., Tyson Foods, Monster Beverage Corporation, The Coca-Cola Company, Arla Foods amba, PepsiCo Inc.

Considered in this report
• Geography: South America
• Historic Year: 2016
• Base year: 2021
• Estimated year: 2022
• Forecast year: 2027

Aspects covered in this report
• South America nutraceuticals market with its value and forecast along with its segments
• Country wise nutraceuticals market analysis
• Application wise nutraceuticals market distribution
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report
• Brazil
• Argentina
• Colombia

Based on product type of nutraceuticals market in the report:
• Dietary Supplements (Vitamin, Minerals, Herbal Supplements, Probiotic, Amino acid/Protein& Others)
• Functional Foods (Bakery & Cereals, Dairy Products, Meat, Fish & Eggs, Soy Products, Fats & Oils & Others)
• Functional Beverages (Energy Drinks, Sports Drinks, Dairy & Dairy Alternative Drinks, Fortified Juices & Others)

Based on Distribution channel type of nutraceuticals in the report:
• Supermarkets & Hypermarkets
• Convenience Stores
• Drug and Pharmacies
• Online Retail Stores
• Other Distribution Channels

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to food & beverage industry, nutrition industry, pharmaceutical industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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Manmayi Raval

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