The Global Medical Food industry reached USD 20,721.9 million in 2019. Demand for Medical Food registered a 5.4% Compound Annual Growth Rate from 2019 to 2023, indicating that the global industry would reach USD 27,351.0 million in 2024. Over the projection period (2024 to 2034), global sales of Medical Food are expected to exhibit a 6.2% CAGR, ultimately totaling a sales value of USD 49,913.5 million by the end of 2034.
The Global Medical Food Industry is expected to grow robustly within the forecasted period, driven by the increase in demand for nutritional alternatives for treating different ailments. It comprises basal, amino acid, vitamin/mineral, dietary supplements, neuronal, lipid medical foods and so on. These products are aimed at preventing and treating nutrition-related diseases including malnutrition, gastrointestinal and genetic disorders.
Most players in the market are global conglomerates however there are some niche regional players and start-ups who are bringing in new strategies which transform the market. Influence also comes from research & development initiatives that carry on growing within the industry to create better medical foods.
Changing consumer preferences and consumer behavior constantly shapes the Global Medical Food Industry. Also, industry development and marketing of medical foods are governed by strict rules and guidelines so that the medical foods do not compromise the health of the patients.
| Attributes | Description |
|---|---|
| Estimated Global Industry Size (2024E) | USD 27,351.0 Million |
| Projected Global Value (2034F) | USD 49,913.5 Million |
| Value-based CAGR (2024 to 2034) | 6.2% |
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Medical foods find major usage in treating nutritional deficiencies
Medical foods are indirect therapies that help to solve the problem of malnutrition, which is a significant health hazard. Such deficiencies can result from multiple reasons such as lack of proper diet or some chronic diseases. Medical foods are adjusted to serve the purpose of assisting in reducing the nutrient gap in the body with vitamins and minerals.
Most of these foods are prescribed by doctors to patients who need particular nutritional help. By making sure that certain nutrients are provided, medical foods can help ease symptoms, aid recovery from conditions and ensure that health is improved. This is why they are very important in therapies concerning malnutrition states.
Rising demand for convenient access to medical products leading to higher online pharmacy sales
Many patients prefer using online pharmacies in the market of medical foods which fuels its further growth due to a more convenient access arrangement. Patients are looking for more hassle-free means and ways of obtaining medical foods and as a result, there are medical foods available in online pharmacies.
With the increasing technology and its application in marketing, more advantages are arising from online platforms including browsing foods and ordering them from the house, more alternative options and generally fast delivery. Therefore, online pharmacies have become a growing marketing channel for the sales of medical foods, increasing the comfort of the patients in the management of their medical treatment.
Increased Focus on Gut Health and Microbiome in Medical Foods
The Medical Food Industry is noticing a shift towards gut health and enhancing the gut microbiome. There has been enough research evidence that the gut microbiome is an important aspect of health and therefore, therapeutic foods are being developed to enhance gut health and maintain a healthy microbiota.
This trend is due to the increased awareness of the role of gut health in health maintenance, not only from digestive disorders but also from several diseases such as immune disorders. They are also gaining popularity because they naturally promote overall health without the use of drugs.
Global sales increased at a CAGR of 5.4% from 2019 to 2023. For the next ten years (2024 to 2034), projections are that expenditure on the industry will rise at 6.2% forecast CAGR.
From a historical viewpoint, the market for the Global Medical Food Industry has been stable, with increasing numbers of cases of health disorders aiding the rise of medical nutrition. Such an improvement opportunity and growth is relied on the stimulating advancement of modern medical science, where nutrition is increasingly regarded as an integral component in managing diseases.
In addition, the economy has also improved as there is increasing knowledge of how nutrition is vital for one's health and well-being. More recent evidence from the field also suggests that the market for medical foods is beginning to develop in emerging markets, where the demand for treating chronic diseases through nutrition is rising.
The industry has also experienced customers demanding more and more precise nutrition, which is providing new growth directions.
In terms of the future outlook, the Global Medical Food Industry is projected to remain on the growth path as there will be an increasing need for nutritional therapy for the treatment of chronic diseases such as diabetes, obesity and disorders of the gastrointestinal system.
Besides, the market will be enhanced by developing technologies such as genomics and artificial intelligence which will help in the creation of more effective and tailored nutrition. In addition, increasing adoption of medical foods due to the rising knowledge on the contribution of diet towards overall health will remain a major driving factor for this market.
Principal Consultant
The Medical Food Industry consists of a favorable competitive landscape with a mix of multinationals and regional players, where the market remains moderately concentrated. The market is generally divided into three tiers, on the basis of targeted revenues.
Tier-1 players are large corporations that actively operate within a global economic block with large resources. These companies have a wide range of products and a strong distribution network that enable them to obtain a considerable proportion of the Market share.
Tier-1 example includes Abbott Nutrition, Danone Nutricia and Nestle Health Science. These companies have average brand equity well beyond the industry levels and considerable funds into R&D, advertising and selling activities. They account for nearly 60 percent of the market.
Tier-2 players refer to the small-sized MNCs or large regional players which are quite active in certain countries. The Tier-2 players may be more product-focused than Tier-1 players, but there is extensive presence and brand visibility. The companies in this segment include Fresenius Kabi, Baxter International and Mead Johnson Nutrition, for example. They contribute about a quarter of the portion of the market.
Tier-3 players are regional players or newly established firms that are small and offer few products. These companies remain specialized in a certain niche segment of the market but tend to be outdone by big competition. The Tier-3 players consist mainly of companies in the smaller regions or new entries aimed at the production of specific medical food products, for instance. They contribute about 15% to the entire market share.
Among the numerous medical foods provided by Abbott Nutrition are Ensure, Glucerna, and EleCare and these are directed at issues such as malnutrition, diabetes, gastrointestinal disorders and such. It is committed to broadening the scope of its product offerings through new developments and acquisitions.
The organization is also putting its money into engaging in digital health solutions in order to drive engagement and outcomes for its patients. According to the plans of Abbott Nutrition, it intends to progress in the direction of these emerging markets, especially Asia and Latin America which have a high demand for medical foods.
The company also hopes to enhance nutrition more affordably and effectively using emerging technologies in genomics and artificial intelligence. To achieve this goal, they will invest further into nutrition science and strategy, developing new technologies and cost solutions for nutrition.
Nestle Health Science includes medical foods such as Peptamen, Impact and Resource that are tailored for different patient needs including malnutrition, gastrointestinal disorders and critical care. Nestle Health Science is looking at growing its share in the market of personalized nutrition and investing in digital platforms for better engagement and outcomes for patients.
The company intends to increase its activities in developing regions, especially Asia and Latin America, with growing markets for medical foods. This company also intends to make use of other technologies, such as genetic makeup and artificial intelligence to provide better and eco-friendly nutrition styles.
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The following table shows the estimated growth rates of the top five markets. These countries are set to exhibit high consumption, recording high CAGRs through 2034.
| Countries | CAGR 2024 to 2034 |
|---|---|
| USA | 6.4% |
| UK | 5.7% |
| Germany | 5.9% |
| China | 7.3% |
| Japan | 6.0% |
The healthcare system in the United States is well developed extending an opportunity for the expansion of its medical food industry. There are favorable conditions for a big appetite for medical foods within the country because of the developed healthcare system, high living standards, and preventive measures employed.
However, the capitalist nation also promotes creativity and market rivalry, thus leading companies to come up with advanced and efficient medical foods. Furthermore, the USA healthcare system's emphasis on patient participation and choices offers opportunities for medical foods regarding treatment to be sought, which in turn give rise to such sales in the country.
The industry for Medical Food in USA is projected to exhibit a CAGR of 6.4% during the assessment period and revenue from the sales of Medical Food in the country is expected to reach USD 13,476.7 million with a market share of 27%.
The barriers to the growth of the medical food industry in China are decreasing as populations and augmenting per capita income. As China's economic growth continues on an upward trend, so does the willingness of people to spend on health and nutrition products, including medical foods.
The large population of the country also implies that there would be a considerable number of people who would need to take medical foods so as to help in treating a number of conditions such as nutrient deficiency and stomach disorders.
In addition, as people become more health conscious and look for medical foods as an option, government's efforts to improve healthcare services are also supporting the expansion of the medical food industry. These trends are leading to a projected value of USD 8,984.4 million by 2034 with Medical Food demand calculated to rise at a value CAGR of 7.3% during the forecast period (2024 to 2034) with a value share of 18%.
The increasing demand for medical food products within the Japanese market can be attributed to declining population rates in Japan. The rise in the old population leads to the growing demand for such medical foods, capable of combating age-related diseases, which include under-nutrition, gut problems and even mental degeneration.
The Japanese government has also embarked on several campaigns that aim at healthy aging and the management of diseases associated with aging, which pushes the increase of the medical food market as healthy maintenance-seeking households choose more medical food.
Furthermore, the increasing purchasing power of the population in the country and the focus on maintaining health rather than treating patients is also leading to rise in consumption of medical foods. These factors are responsible for the robust projected forecast CAGR of 6.0% from 2024 to 2034, with the country achieving a global value share of 11% in 2034 with a value of USD 5,490.5 million.
| Segment | Amino Acid-Based |
|---|---|
| Main Segment | Product Type |
| Value Share (2034) | 33% |
The usage of amino acids is another prominent trend in the sphere of medical foods as they are often used for the nutrition of children with many serious and rare genetic diseases. In some metabolic disorders such as PKU, a restrictive metabolic diet with a low content of one or several amino acids is necessary.
These amino acid-containing medical foods are meant to be free of certain nutrients but instead, deliver the appropriate effects needed. Such products are usually designed around the patient's special metabolic needs as they often suffer from genetic disorders. This growth has propelled the segment's value to USD 16,471.5 million in 2034 with a market share of 33% and further projections suggest its growth at a CAGR of 6.8%.
| Segment | Enteral |
|---|---|
| Main Segment | Route of Administration |
| Value Share (2034) | 17% |
There is a rising demand for enteral foods within the medical food market due to the increasing prevalence of diseases associated with gastrointestinal disorders as well as malnutrition. The term 'enteral nutrition' refers to the delivery of nutrients directly into the gastrointestinal tract by way of a tube, which excludes the mouth and the esophagus.
Such interventions are common for patients suffering from Crohn's disease, UC or short bowel syndrome. It is also used to feed people with low nutrients, vitamins and minerals in order to handle those diseases and fight for recovery.
This changes as the incidence of gastrointestinal disorders and malnourished patients increases, signifying an increase in the market size of enteral foods and the growth of this industry segment. Bolstering from these trends, this segment is set to achieve a market share of 17% with a market value of USD 8,485.3 million by 2034 due to growth at a forecast CAGR of 7.1%.
The dynamics of the medical food market are likely to bring about a tough and competitive spirit in the industry. The increasing burden of chronic diseases, coupled with demographic changes in the population, is generating demand for more specialized nutritional products and companies in this industry are exploring every option in order to gain and retain competitive advantage.
This is why M&A is one of the key trends because all big players need to grow their product range and geographical presence.
There is a constant launch of new products, which is being achieved by companies investing a lot of money into R&D in order to provide innovative solutions in the area of medical foods. These new products are expected to satisfy unfulfilled needs, elevate healthcare and deliver disease-specific nutritional supplements more effectively.
Moreover, the players involved in the global market for medical foods are focusing on forming strategic alliances and partnerships to enhance their market share. Such players can increase their coverage, broaden the availability of their products and stay competitive by collaborating with healthcare providers, research organizations and distribution channels.
As per Product Type, the industry has been categorized into Amino Acid-Based, Vitamin/Mineral-Supplemented, Lipid-Based, Carbohydrate-Based, Protein-Based and Others.
As per Route of Administration, the industry has been categorized into Oral, Enteral and Parenteral.
As per Application, the industry has been categorized into Nutritional deficiencies, Gastrointestinal disorders, Metabolic disorders, Neurological disorders, Renal disorders, Paediatric nutrition and Others.
As per Distribution Channel, the industry has been categorized into Hospital Pharmacies, Retail Pharmacies, Online Pharmacies, Nursing Homes and Others.
Industry analysis has been carried out in key countries of North America, Latin America, Western Europe Eastern Europe, Balkans & Baltic, Russia & Belarus, Central Asia, East Asia, South Asia & Pacific and Middle East & Africa.
The global market is estimated at a value of USD 27,351.0 million in 2024.
Prominent players in the landscape include Abbott Nutrition, Danone Nutricia, Nestle Health Science, Mead Johnson Nutrition, Fresenius Kabi, Nutricia, Sanofi, and Baxter International.
The Global Industry grew at a Historical CAGR of 5.4% from 2019 to 2023.
The USA sales are projected to hold a revenue share of 25% over the forecast period.
The industry is projected to grow at a forecast CAGR of 6.2% from 2024 to 2034.
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