The growth of the nutraceutical market is creating new opportunities: can we say it is the business of the future?
The nutraceutical sector — both in Italy and abroad — is going through a period of
extraordinary growth and vitality, driven by growing consumer awareness of health and well-being.
The term "nutraceutical" comes from the combination of "nutrition" and "pharmaceutical" and refers to those foods or food components that offer health benefits beyond their nutritional value. This definition includes a wide range of products, including dietary supplements, functional foods and fortified beverages.
The reasons for this expansion are manifold. First of all, the ageing of the world's population is increasing demand for products that help maintain good health and prevent chronic diseases. In addition, the evolution of eating habits, increasingly oriented towards healthy choices, has favoured the development of new nutraceutical products. Last but not least, the growing interest in prevention, supported by greater information and accessibility of products, has made this market one of the most dynamic in the food sector.
Market Size and Trends
The global nutraceutical market is expanding at a fast pace, with a value that, according to the latest estimates, will exceed 600 billion dollars by 2028.
The growth is supported by factors such as the rise in chronic diseases, increased health awareness among consumers and continuous innovation by companies in the sector.
Demographic changes, urbanisation and rising disposable income in many regions are further fuelling demand.
In terms of trends, there is growing interest in "clean label" products — that is, foods and supplements with simple, natural ingredients — and in personalised formulations capable of meeting consumers' specific needs.
M&A Deals Abroad
Merger and acquisition (M&A) activity in the nutraceutical sector has been active, despite a slight reduction in transaction volume in 2023.
Some
recent transaction examples (
source "Forbes Partners") include:
-
- Roquette Freres acquired Qualicaps Co., Ltd., a producer and distributor of pharmaceutical and food capsules.
- DSM-Firmenich acquired Adare Pharmaceuticals, a company that develops and produces postbiotic drugs.
- Biofarma S.r.l. acquired US Pharma Lab, Inc., which develops and produces dietary supplements.
- Thorne HealthTech acquired PreCon Health, which develops and produces supplements for pre- and post-impact brain health.
Other relevant transactions
(source "Nutraceuticals World"):
-
- Nutrabolt led an investment in Bloom Nutrition, a superfoods and superfood brand.
- Lallemand finalised the acquisition of Evolva, a Swiss biotechnology company.
- Dr. Reddy's acquired the nutraceutical brand portfolio of MenoLabs.
- Pharmavite acquired the women's health brand Bonafide for 425 million dollars.
M&A Deals in Italy
In 2023, the mergers and acquisitions (M&A) market in Italy recorded growth of
8%, with
104 deals announced in the Health Industries sector, despite global macroeconomic difficulties. This increase was driven mainly by national pharmaceutical companies and by growing interest from private equity funds, which saw the nutraceutical sector as a strategic opportunity to expand their product offerings.
Among the most significant deals, the acquisitions of
Sofar and
Biofarma stand out, both active in the nutraceutical sector (
source "Farmacista33").
-
- Sofar acquired Alfasigma, a deal that highlights the company's intention to broaden its range of nutraceutical products. Sofar is a major player in the dietary supplements and health products market, and this acquisition represents a strategic step to strengthen its competitive position in the sector.
- Biofarma, a leader in the production of dietary supplements and medical devices, was acquired by Ardian for a value of around 1.1 billion euros. Based in Mereto di Tomba (Udine), Biofarma boasts extensive experience in the production and marketing of over 2,000 products, serving more than 500 customers in over 40 countries. This acquisition not only consolidates Biofarma's position in the nutraceutical market but also offers growth opportunities through the expansion of production capacity and innovation. These deals bear witness to the vitality of the nutraceutical market in Italy, which continues to attract significant investment and demonstrate growth potential in the global context.
Market Trends and Drivers
The push for innovation is one of the main drivers of the nutraceutical market. The integration of digital technology, such as artificial intelligence and big data, is revolutionising the way products are developed and marketed.
Companies are now able to analyse large-scale data to predict market trends and create products tailored to consumers. In addition, the rise in demand for sustainable products is pushing companies to invest in eco-friendly production practices and biodegradable packaging, thus responding to the needs of consumers who are increasingly attentive to the environment.
Italian Market
The Italian nutraceutical market stands out for its vibrancy and innovation: the growth of the nutraceutical market and the business opportunities in Italy in 2024 are attracting the attention of investors and companies keen to capitalise on this rapidly expanding trend.
According to a recent industry report, Italy is one of the leading European markets for nutraceutical products, with a value exceeding 4 billion euros per year.
Italian companies focus not only on the quality and innovation of products but also on their sustainability. Moreover, the role of scientific research in the country, often in collaboration with academic and medical institutes, contributes significantly to the development of new, effective and safe products. However, the Italian market also faces challenges related to regulation and the need to standardise product quality to ensure consumer trust.
Conclusion
The growth of the nutraceutical market and
the business opportunities in Italy in 2024 represent one of the most dynamic and promising areas of the global economic landscape.
With growing consumer awareness of health and well-being, supported by continuous innovation and favourable trends, the market is set to grow further in the years ahead.
Companies that succeed in seizing these opportunities, adapting quickly to market changes and investing in cutting-edge technologies, will have the potential to dominate a rapidly expanding sector. Italy, with its rich heritage of scientific and entrepreneurial expertise, is well placed to play a leading role in this evolution.
