World Nutraceutical chemicals demand to grow over 6% annually through the year 2006. (News...

World demand for nutraceutical chemicals will expand over 6 percent per year to $8.6 billion in 2006, supplying a $155 billion nutritional products industry. Herbal and non-herbal extracts will post the strongest gains as several compounds, including ginkgo biloba, glucosamine and saw palmetto,

establish strong clinical evidence of efficacy and replace more expensive ethical drugs. Functional additives, particularly soy isoflavones, polyunsaturated fatty acids (PUFAs) and lycopene, will also fare well in the marketplace based on health benefits and broad adaptability to fortified foods and beverages, specialty nutritionals and dietary supplements. China will see the fastest sales gains among nutraceutical markets. These and other trends are presented in World Nutraceuticals, a new study from The Freedonia Group, Inc., a Cleveland-based industrial market research firm.

Through 2006, the developing nations of Asia/Pacific, Latin America, Eastern Europe and Africa/Mideast will provide the fastest growth opportunities for nutraceutical chemicals, reflecting rising consumer income levels, increasing investment in bulk and end-use product industries, and expanding per capita consumption of nutritional preparations and natural medicines. However, the US, Japan and major West European countries will remain the largest global producers and consumers of nutraceutical chemicals.

World demand for nutrients and minerals, the largest segment, will reach $4.4 billion in 2006, up 5.5 percent annually from 2001. Soy proteins and isoflavones, psyllium fibers, polyunsaturated fatty acids and lycopene will generate the fastest gains based on applications in meal substitutes, energy-boosting shakes, sports beverages and fortified foods. Natural forms of vitamins A and E will provide the best growth opportunities among bulk vitamins due to performance and cost-effectiveness advantages over synthetic versions. Due to widespread deficiencies throughout the world, potassium, calcium and magnesium will continue to hold the largest share of nutraceutical demand among minerals.

Widely perceived health and wellness benefits among consumers will drive world demand for herbal and non-herbal extracts up ten percent annually through 2006. Ginkgo biloba for enhanced cognitive properties, saw palmetto for benign prostatic hyperplasia, ginseng for energy boosting and black cohosh for post-menopausal symptoms will provide the best growth prospects among herbs. Glucosamine (in combination with chondroitin) will generate the fastest sales gains among non-herbal compounds due to proven benefits in arthritis management.

WORLD NUTRACEUTICALS DEMAND
(million US dollars)

                                                 % Annual Growth
Item                          1996   2001   2006   01/96   06/01

World Nutraceuticals Demand   4580   6370   8600     6.8     6.2
  By Type:
    Nutrients & Minerals      2460   3330   4350     6.2     5.5
    Vitamins                  1380   1780   2220     5.2     4.5
    Herbal & Nonherbal         740   1260   2030    11.2    10.0
      Extracts
  By Region:
    North America             1745   2350   3040     6.1     5.3
    Western Europe            1120   1520   1990     6.3     5.5
    Asia Pacific              1190   1735   2470     7.8     7.3
    Other World                525    765   1100     7.8     7.5

[c] 2002 by The Freedonia Group, Inc.

World Nutraceuticals (published 06/2002, 351 pages) is available for $4,900 from The Freedonia Group, Inc., 767 Beta Drive, Cleveland, OH 44143-2326. For further details, please contact Corinne Gangloff by phone 440.684.9600, fax 440.646.0484 or e-mail pr@freedoniagroup.com. Information may also be obtained through www.freedoniagroup.com.