Table of Contents
Introduction
The global functional gummies market, valued at USD 3.7 billion in 2023, is expected to reach USD 10 billion by 2033, growing at a strong CAGR of 10.5%. This growth is mainly driven by the rising demand for convenient, health-focused dietary supplements.
Functional gummies, easier to consume and often seen as a tastier alternative to pills, cater to a wide range of consumers, from children to adults, addressing issues like vitamin deficiencies and digestive health.
Despite this growth, challenges remain, such as balancing nutrient content with the demand for low-sugar products and maintaining the stability of vitamins and minerals in gummy form. Recent trends show a shift toward plant-based and vegan gummies, reflecting growing health and sustainability concerns.
Key players adapt by expanding their product offerings to reach new consumer groups. Catalent, Inc. stands out in this trend, having acquired Bettera Holdings, LLC, a leading manufacturer of gummies. This acquisition strengthens Catalent’s position in the nutraceuticals market, allowing it to meet the increasing demand for enjoyable and convenient nutritional supplements.
As the market grows, companies continue investing in product innovation and geographic expansion, tapping into online and offline channels to reach a wider audience.
Key Takeaways
- Functional Gummies Market to reach USD 10 billion by 2033, with 10.5% CAGR.
- Gelatin gummies hold a 61.4% market share in 2023.
- Vitamin gummies lead with a 43.2% market share in 2023.
- The adult segment commands a 32% market share in 2023.
- Offline stores dominate, capturing 78.3% market share in 2023.
- Demand fueled by ease of consumption and vegan suitability.
- North America leads, holding a 39.4% market share in 2023.
Functional Gummies Market Statistics
- Global Trends: Around 80% of consumers across 16 countries plan to maintain or increase their spending on health-related products in the coming years.
- Demographic Profile: The majority of functional gummy users are women aged 25 to 44, with significant uptake seen in metro cities and tier 2/3 cities.
- Bickford Flavors: The company offers a wide range of over 260 stock flavors for functional gummies.
- US Consumer Preferences: In the US, 54% of consumers prefer gummies that provide vitamins and minerals, 48% are looking for fiber, and 38% seek probiotics.
- Sales Growth: Collagen-containing snacks have experienced a notable sales growth of 46% compared to the previous year.
- Top Multivitamins: Multivitamins are the most popular choice among consumers, with 58% using them. Among them, vitamin D (31%) and vitamin C (28%) are the most commonly selected vitamins.
- Abelei’s Expertise: Abelei has over four decades of experience in flavoring functional products, offering tailored solutions to meet the needs of various customers.
- Market Expansion: Tier 2 and tier 3 cities have seen a 30-40% growth in demand for functional gummies, catching up with the demand in metro cities.
- Texture Innovation: CP Kelco, with 90 years of experience, provides nature-based ingredients that help improve both texture and taste in functional gummies.
- Fat Content in Spreadable Oleo Gels: The fat content in spreadable Oleo gels ranges between 35% and 47%.
- Protein Content:
- Spreadable doum and carrots have a protein content of 7.41%.
- Gummies contain between 10.25% and 12.78% protein.
- Gummy Characteristics:
- The hardness of gummies ranges from 6.22 N to 16.30 N.
- Antioxidant activity in gummies ranges from 40.37% to 51.44%.
- The oil binding capacity of gummies is higher than 99%.
- Enhanced Tolerance for Cations: Functional gummies are formulated to boost tolerance for cations, including 15% magnesium citrate, 15% calcium phosphate, 30% apple cider vinegar, 6% vitamin C, and 1% zinc citrate.
Emerging Trends
- Vegan Gummies Gain Popularity: Emerging trends in the functional gummies market show a significant shift towards vegan options, catering to the increasing demand for plant-based, cruelty-free products. Vegan gummies emphasize natural, organic ingredients, appealing to consumers interested in health, sustainability, and ethical dietary choices.
- Flavor and Formulation Diversification: The functional gummies market is diversifying with new flavors and health-oriented formulations. Beyond traditional vitamin gummies, new products include ingredients like probiotics, omega-3s, and plant extracts such as turmeric and ginger, targeting benefits like immune support, digestive health, and cognitive enhancement.
- Nutritional Enhancements in Gummies: There is a growing trend towards gummies with reduced sugar content and improved nutritional profiles to attract health-conscious consumers. This trend emphasizes creating dietary supplements that are not only effective but also enjoyable and easy to consume.
- Expansion of Online Sales Channels: The functional gummies market is increasingly leveraging e-commerce platforms, driven by the convenience of home shopping and a wider product selection. This trend is enhanced by strategic online brand campaigns and social media engagement to broaden consumer reach and market penetration.
Use Cases
- Nutritional Supplementation through Gummies: Functional gummies are a favored choice for delivering essential vitamins and minerals across all age groups due to their convenience and appealing form. Vitamin gummies, in particular, are popular for effectively supplementing diets with crucial nutrients and hold a significant market share.
- Cognitive and Cardiovascular Support Gummies: Omega-3 and DHA gummies are crucial for supporting brain and heart health. These gummies enhance cognitive functions and cardiovascular well-being, making them particularly beneficial for children and older adults who require support in these areas.
- Probiotic Gummies for Digestive and Immune Health: Probiotic gummies are increasingly popular for their digestive health and immune system benefits. These tasty, convenient gummies help incorporate beneficial bacteria into the diet, improving gut health and boosting immunity.
- Natural and Herbal Supplement Gummies: A growing market segment includes gummies with plant extracts like turmeric, ginger, and echinacea, which are known for their anti-inflammatory and immune-boosting properties. These gummies provide an easy way to consume natural and herbal health supplements.
- Targeted Gummies for Specific Demographics: Functional gummies are tailored to meet the specific health needs of different demographic groups, such as prenatal nutrients for pregnant women or particular vitamin blends for men’s and women’s health. This customization enhances their effectiveness and broadens their appeal.
Major Challenges
- Nutritional Supplementation: Vitamin gummies dominate the functional gummies market, capturing a significant share due to their convenience and taste. They are specially formulated to address specific vitamin deficiencies, appealing to various demographic groups including children, adults, and the elderly who seek to supplement their diet easily.
- Cognitive and Heart Health: DHA and Omega-3 gummies are growing in popularity due to their health benefits, particularly for brain and heart health. These gummies are favored for their role in enhancing cognitive function and cardiovascular well-being and are particularly beneficial for children, pregnant women, and older adults.
- Digestive and Immune Health: Probiotic gummies are gaining traction for their potential to improve digestion, boost immunity, and promote overall gut health. These gummies offer a tasty and convenient way to incorporate beneficial probiotics into daily routines, catering to health-conscious consumers.
- Natural and Herbal Supplements: There is an increasing demand for gummies containing natural and herbal extracts such as turmeric, ginger, and echinacea, which are known for their antioxidant, anti-inflammatory, and immune-boosting properties. These gummies cater to consumers looking for natural health solutions in an easy-to-consume format.
- Specialized Formulas for Targeted Benefits: The market also includes gummies formulated for specific health concerns or dietary preferences, such as those enhancing hair, skin, and nail health, boosting energy and vitality, or supporting sleep. This category allows for personalization and tailoring to individual health needs and preferences, with products often designed for niche consumer segments like athletes or seniors.
Market Growth Opportunities
- Expansion into Vegan and Plant-Based Options: With a significant rise in vegan lifestyles, there’s a growing demand for vegan gummies made from natural and organic ingredients. These products appeal to consumers looking for clean-label options that are free from artificial additives. Vegan gummies have captured a major market share and are expected to see further growth.
- Innovations in Product Formulation and Flavor: There is considerable potential for growth through innovations in taste, formulation, and the inclusion of unique ingredients like herbal blends and specialized nutrients. This approach can help cater to specific health needs and preferences, making gummies more appealing compared to traditional supplements.
- Increasing Market Penetration in Asia-Pacific and Other Emerging Markets: The functional gummies market is expanding globally, with significant opportunities in the Asia-Pacific region due to rising health awareness and increasing economic development. There’s a growing consumer base in emerging markets, which presents a substantial opportunity for market expansion.
- Online Sales and E-commerce Growth: Online platforms are becoming increasingly important for the sale of functional gummies. These platforms provide a convenient shopping experience and allow consumers to access a wider range of products. As e-commerce continues to grow, there’s a significant opportunity to reach more consumers and expand market presence.
- Targeting Adult Consumers with Tailored Health Benefits: While gummies have traditionally been popular among children, there’s a growing market segment of adults interested in functional gummies for health benefits such as immune support, energy boost, and overall wellness. Tailoring products to meet adult-specific nutritional needs can open new avenues for growth.
Key Players Analysis
- Pfizer Inc. Enhances Functional Gummies Offerings Pfizer Inc. is broadening its influence in the functional gummies market through its consumer health products division. Utilizing its robust R&D capabilities, Pfizer is innovating within various therapeutic segments, including nutritional supplements. This expansion is likely part of their strategy to meet healthcare needs through accessible and user-friendly products.
- Bayer AG’s Commitment to Nutritional Gummies Bayer AG has solidified its presence in the functional gummies market by integrating its expertise in health and nutrition into a diverse range of vitamin-enriched gummies. By focusing on easy-to-consume products, Bayer is dedicated to improving consumer health, offering nutritional support that appeals to both children and adults.
- Better Nutritionals LLC: Pioneering Gummy Vitamins Specializing in gummy vitamins and supplements, Better Nutritionals LLC has carved a niche in the functional gummies market. The company excels in producing high-quality, custom-formulated nutritional products, including options that are organic and vegan, using advanced manufacturing facilities to address varied consumer needs effectively.
- Catalent, Inc.’s Strategic Growth in Gummies Catalent, Inc. has expanded its presence in the functional gummies market through strategic acquisitions, including the $1 billion purchase of Better Holdings in 2021. This move enhances Catalent’s capabilities in the nutraceutical market and aligns with its goal to expand its consumer health technology platform.
- Church & Dwight Co. Inc.: Innovating in Health and Wellness Gummies Church & Dwight Co. Inc. has successfully entered the functional gummies sector, leveraging its expertise in consumer products. Through its Vitafusion brand, the company offers a variety of health-oriented gummies, focusing on integrating essential nutrients into enjoyable formats to meet the growing demand for dietary supplements.
- Herbaland’s Eco-Friendly Nutritional Gummies As Canada’s largest nutritional gummy manufacturer, Herbaland specializes in vegan, sugar-free, and eco-friendly supplements. Their commitment to sustainability is highlighted by their use of 100% compostable packaging and their status as a certified B Corporation, making them a leader in ethical and health-oriented supplement production.
- Nature’s Bounty Co.’s Diverse Gummy Offerings Nature’s Bounty Co. is actively broadening its functional gummy range to include options that support cardiovascular health, immune function, and energy levels. Their innovative products, like the Co Q-10 and Sleep3 Gummies, cater to various health needs through enjoyable and convenient formats.
- Olly Public Benefit Corporation: User-Friendly Wellness Gummies Established in 2013, Olly Public Benefit Corporation has made significant strides in the functional gummies market with a focus on health benefits across various needs, including sleep and digestive health. Their commitment to corporate responsibility and innovative product design is evident in their certification as a B Corporation.
- Pharmavite LLC’s Expansion in Gummy Manufacturing Pharmavite LLC is enhancing its market position in the functional gummies sector by building a new manufacturing facility in New Albany, Ohio. This expansion reflects their commitment to meeting the increasing consumer demand for gummy vitamins and supplements, supported by their Nature Made and MegaFood brands.
- Procter & Gamble Co. (P&G) Introduces Innovative Sleep Support Gummies P&G has introduced ZzzQuil PURE Zzzs Melatonin Gummies under its Vicks brand, featuring a unique blend of botanicals and melatonin to support natural sleep without grogginess. This innovation aligns with P&G’s strategy to address evolving health needs with vegan-friendly, drug-free options.
- Rexall Sundown Inc.’s Focus on High-Quality Gummies Part of NBTY, Rexall Sundown Inc. remains a key player in the functional gummies market, producing a variety of health-enhancing gummies free from GMOs, gluten, dairy, and artificial flavors. Their products are designed to cater to the health needs of both adults and children.
- Santa Cruz Nutritionals Leads in Nutraceutical Gummies Santa Cruz Nutritionals is a leader in the functional gummies sector, known for its innovative approach to nutraceutical and functional food products. The company’s expertise in food science and proprietary processes allows it to offer unique products like calcium and fiber gummies, continuously expanding its health-oriented product range.
- The Clorox Company’s Limited Presence in Functional Gummies The Clorox Company, primarily known for cleaning and disinfecting products, does not currently have a significant presence in the functional gummies market. Their health and wellness portfolio does not prominently include gummies, focusing instead on a broader range of consumer goods.
Conclusion
In conclusion, the functional gummies market is experiencing significant growth, fueled by rising consumer demand for health supplements that are both enjoyable and easy to consume. Valued notably in 2023, the market is projected to sustain its vigorous expansion into 2033.
This growth momentum is propelled by the wide appeal of these products among diverse age groups, from children to seniors, who benefit from customized gummies addressing specific health needs like cognitive enhancement, digestive wellness, and nutritional support. The introduction of innovations, including vegan and organic options, meets the shifting dietary preferences and sustainability priorities of today’s consumers.
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