The global medical foods market is expected to grow at a CAGR of 6.5% during the forecast period of 2024 to 2032. It is projected that the increasing prevalence of communicable and non-communicable diseases, as well as the increasing effort for the nutritional treatment of those diseases, will fuel the market expansion throughout the forecast years. The key factors driving expansion include an increase in the prevalence of chronic diseases, a growing senior population that prefers medicinal meals, and an enhanced understanding of clinical nutrition among both healthcare professionals and patients.
Increasing Geriatric Population Suffering Various Health Conditions
The growing population of elderly people who suffer from a variety of persistent and neurogenic conditions, including dementia, stroke, multiple sclerosis, and trouble swallowing, necessitates specific nutritional treatment, which, in turn, is predicted to drive the market during the projection years. For instance, the World Health Organization (WHO) projects that the percentage of the global population that is over the age of 60 will more than double from 12% to 22% between the years 2015 and 2050. Additionally, an increasing tendency to consume particular foods in order to manage chronic conditions such as obesity, diabetes, and other nutritional diseases is anticipated to boost the adoption of medical foods. This trend is expected to be a primary driver of the market for medical foods.
Increasing Prevalence Rate of Certain Disorders
The number of people who are diagnosed with inflammatory bowel disorders like Crohn's disease and ulcerative colitis is on the rise. Because of this, there is a growing need for medicinal food products all over the world. There are around 1.6 million people in the United States who are living with Crohn's disease or ulcerative colitis, according to the numbers that were provided by the Crohn's and Colitis Foundation of America. The group also reported that more than 70,000 new cases of Crohn's disease and ulcerative colitis are diagnosed each year in the United States. Additionally, according to the National Renal Foundation, approximately 10% of the total population of the world is impacted annually by chronic kidney disease. Additionally, each year in the United States, more than 20 million people are diagnosed with chronic renal disease, according to the Centers for Disease Control and Prevention (CDC). In addition, medical foods are designed for the management of various dietary conditions, each of which has distinct nutritional requirements, in order to treat specific diseases. It is anticipated that these disorders would be the primary drivers of market growth.
Focus on Product Development through R&D Initiatives
Growing product launch activities by the manufacturers and ongoing advancements in product development are important drivers anticipated to propel the demand for medical foods. Besides, in order to treat new hereditary metabolic illnesses and control their incurable condition, there is a growing demand for the development of new food for special medical uses. For instance, Nestle Health Science introduced a ready-to-drink nutritional meal based on protein in China in October 2020 for the treatment of specific medical conditions (FSMPs). The main component of that drink is galactomannan, a highly soluble dietary fibre, which helps improve and avoid gastrointestinal intolerance and diarrhoea.
Enabling the Control of Diabetes
In addition, increased consideration of medicinal meals to manage and control diabetic neuropathy and diabetes is likely to fuel the market expansion. Diabetes is one of the most significant chronic diseases, and its incidence has been steadily increasing over the past few decades. According to data that was published by the WHO in 2019, diabetes was ranked as the ninth largest cause of mortality in the world. This means that diabetes is directly responsible for around 1.5 million deaths. An unhealthy lifestyle and diet are the major causes of diabetic neuropathy and medical foods function as a cure to improve and manage these kinds of illnesses. For example, according to the data provided by the International Diabetic Federation in 2019, there were around 463 million adults living with diabetes, and this figure is expected to climb to 700 million by 2045.
Protein Substitutes That Are Cutting Edge Are in High Demand Within the Pediatrics Industry
The significant number of patients who suffer from metabolic problems in the United Kingdom. as a result of an increase in the number of insurance claims has developed into a rising worry for medical insurance firms. As a consequence of this, businesses operating in the medical foods sector, such as the dominant pharmaceutical firm Galen, have divulged plans to introduce PKU EASY Microtabs to the market in February 2020 for patients suffering from metabolic disorders. These kinds of product offerings are contributing to the expansion of the medical foods industry, which is anticipated to be worth approximately $35 billion by the year 2031. It is anticipated that the revenue generated by metabolic diseases will experience meteoric expansion in the market for medical foods. As a result, companies that specialise in pharmaceuticals are developing novel, more palatable alternatives to the traditional protein substitutes that are currently in the market. These cutting-edge alternatives to protein are being marketed for children aged eight and older in order to assist in the management of chronic medical problems such as phenylketonuria. Because a significant number of infants are diagnosed with inherited metabolic disorders at birth each year, businesses are placing a greater emphasis on research and development of novel protein substitutes.
Medical Foods That Meet All Nutritional Requirements Are the Focus Among Manufacturers
Companies in the medical foods sector, such as SternLife, a provider of functional nutrition solutions, are gathering the expertise to produce additional medical meals for the prevention of malnutrition in addition to metabolic disorders. Patients who are suffering from malnutrition are driving up the need for medical diets that are comprehensive from a nutritional standpoint. As a consequence of this, businesses that operate in the medical foods sector are expanding their capacities for the production of bars, powders, and thickening agents. This is obvious due to the fact that it is anticipated that the revenue generated by powdered products would see rapid expansion in the market for medical meals. Emerging pharmaceutical businesses are teaming up with established market players to assist the latter in expanding their private-label clinical nutrition product lines. They are ramping up their efforts to provide comprehensive help in order to achieve more efficacy in the development of medicinal food supplements.
Companies Are Investing in Innovation Centres with The Intention of Introducing Products That Are Manufactured Locally
The industry pioneer Nestlé Health Science is making strides in the field of nutritional therapy. The company recently made the announcement that it will be investing in a product innovation centre in Taizhou, which is located in the province of Jiangsu in China. Their goal is to capitalise on opportunities in the clinical nutrition sector. This helps to explain why it is anticipated that the Asia Pacific would have a significant increase in income within the medical foods market. As a result of this, innovation centres in China are teaming up with clinical nutrition institutes in the United States in order to make strides forward in fundamental R&D technologies. The medical foods industry is through a period of innovation as companies strive to establish locally relevant product offerings that are in line with China's national standards and the requirements of its consumers. They are stepping up their efforts to ensure compliance with the rules in China that are associated with Foods for Special Medical Purposes (FSMPs). As a result, businesses are capitalising on the rising demand for locally manufactured goods, and high approval rates for products such as new-born and baby formula are generating more chances for businesses in China.
Stringent Regulations Increasing Complexity Among Market Players
Stringent regulations addressing medicinal foods, such as the prevention of adulteration and compliance with standards regarding Current Good Manufacturing Practice (CGMP), are presenting as a hurdle for the licencing of products. As a result of this, businesses operating in the medical foods market are making greater efforts to refer to published guidelines produced by the FDA (Food and Drug Association). These guidelines emphasise some of the questions that manufacturers ask the most frequently. These frequently asked questions and other suggestions are assisting manufacturers in developing a deeper comprehension of the regulations. As a result of the Food and Drug Administration's (FDA) employment of post-market enforcement methods such as adverse event report monitoring, consumers are ensured that the products they buy are of high quality. As a result, producers are turning to post-market enforcement measures in order to bring their products into compliance with standards governing food safety.
An Increase in the Number of Cases of Malnutrition
Malnutrition occurs when the body is unable to get enough of the nutrients it needs. This may be the result of a poor diet, persistent diseases, or problems that affect the digestive system. Malnutrition has a number of negative impacts on morbidity, the most prominent of which are a delay in the healing of wounds, a decline in functional status, poor immunological function, and the length of time required to recover from sickness. Patients in oncology are at an increased risk of suffering from malnutrition. Because it affects 70% of hospitalised patients around the world, malnutrition is a significant financial burden on the world's healthcare systems, according to the findings of multiple researches. The increased likelihood of experiencing problems, together with longer hospital stays and more frequent visits, are the primary contributors to the high financial burden. Parenteral nutrition plays a vital role in situations in which malnourished patients need to be given nutrition. On the other hand, enteral nutrition is not sufficient to meet the body's nutritional requirements of these individuals. It is anticipated that an increase in the prevalence of malnutrition, along with an increase in the utilisation of nutrition for the treatment of cancer, will boost the global market.
An Optimistic Model for the Payment of Expenses Related to Medical Foods
The market for medical meals is spreading into geographical areas that do not currently have any means of providing nutritional treatment for their residents. A small number of companies control the majority of the market share. The United States and Europe are examples that are home to the vast majority of the world's medicinal foods market. Insurance companies provide healthcare plans that, depending on the reimbursement plan in each location, may or may not support the cost of prescription pharmaceuticals. As a result, the propensity to implement such insurance-mandated medical food reimbursement rules generates a favourable environment for the company that is active in the market. These kinds of activities have an effect on the market as a whole, and market participants stand to gain from initiatives that are beneficial to the medical foods market as a whole. Differences in policy make it possible for producers to reduce the prices of the medical food products they sell, which, in turn, helps make these products more affordable for customers and facilitates market penetration. However, the situation is not that simple for insurance companies, which have a long history of opposing such restrictions for medical foods, given that doing so would practically result in a reduction of their earnings. The situation is made more complicated by the lack of rules and appropriate standards that apply to medical meals. It's possible that this would make it simple to include other things in the list of medical foods that aren't actually considered to be real medicinal foods.
The Powder Segment Dominates the Market While Pill Segment Leads the Growth
In 2021, the oral segment had a revenue share that was greater than 68%, making it the dominant segment in the market. The most popular method of administering therapeutic meals through the oral route is the primary factor that is expected to be the primary driver of the segment over the next years. Powder formulations are also highly recommended by doctors. Since these formulations can be given via enteral and oral routes to patients of any age, it is anticipated that they will contribute to the growth of the segment. The development of medicinal foods tailored to the preferences of customers is another area of emphasis for manufacturers. Souvenaid is a powder form of medical nutrition drink that was introduced by Danone not too long ago, in January of 2023.
The pills segment is expected to grow at the highest CAGR during the forecast period of 2024 to 2032. On the other hand, powder form dominated the market in terms of revenues in 2021. Consumers' increasing awareness of the numerous advantages provided by medical food products, such as the fact that these products provide a combination of vitamins and minerals and are designed to address certain nutritional deficiencies, is one of the primary factors contributing to the expansion of this market segment. In addition, this product category is easy to consume, which is one of the primary reasons for the surge in popularity of this product type among younger and older generations alike.
Chemotherapy Induced Diarrhoea Remained the Largest Application Segment
In 2021, chemotherapy-induced diarrhoea was the greatest revenue portion, accounting for more than 15.0% of the total. The process of chemotherapy and the dosage pattern can be disrupted when the patient experiences bouts of diarrhoea. As a result, the expanding need for the utilisation of medical foods in the administration of dietary management is anticipated to improve the segment's expansion. In addition, patients who have been treated with a number of different cytotoxic drugs, such as irinotecan and fluoropyrimidines, are associated with chemotherapy-induced diarrhoea. The frequency of severe diarrhoea brought on by chemotherapy with these cytotoxic medications ranges from 5 to 44%, and the rates change depending on the timing of delivery and the particular pharmacological agents that are given. Medical meals are an important component in the overall management and treatment of diarrhoea of this kind. As a result of the loss of absorptive surfaces and the risk for mucosal damage caused by chemotherapy-related diarrhoea, patients should consume certain easy-to-digest medicinal foods. This is projected to fuel the segment's expansion over the forthcoming years. In addition, in order to get rid of diarrhoea, patients are told to stop taking the medication and to consume medical food that is in the form of clear liquids under the supervision of a doctor. This will give the bowels a chance to rest. It is projected that during the next several years, the market would be driven by increasing demand for medical foods to treat diarrhoea caused by chemotherapy.
Diabetic Neuropathy to Promise Significant Opportunities During the Forecast Period
Due to the increasing incidence of diabetes and the rise in the number of patients who are at risk of developing some level of neuropathy, it is projected that diabetic neuropathy will be the segment that will have the highest CAGR during the forecast period of 2024 to 2032. In addition, the expansion of the market is being fuelled by the numerous initiatives that are now being conducted for the nutritional treatment of diabetes. It is projected that an increase in the choice to eat medical foods loaded with vitamin B-12, omega-3 fatty acids, and lipoid acid to manage diabetic neuropathy will drive segment growth over the future years. This preference is expected to help manage diabetic neuropathy. In addition, the rise in the number of people who suffer from diabetic neuropathy and the rise in the number of prescriptions written by medical professionals for the intake of medicinal foods in order to control the condition are the primary reasons driving the expansion of this market sector. The increasing incidence of diabetic neuropathy in every region of the world is another factor that is contributing to the sector's expansion. For example, a study that was conducted and published in 2019 by the journal Current Diabetes Reports found that diabetic peripheral neuropathy eventually affects approximately 50% of persons who have diabetes throughout the course of their lifespan.
Institutional Sales Channel Dominated the Market, Online Sales to Be the Fastest Growing Market
In 2021, the institutional sales channel accounted for more than 35% of the total revenue. The expansion of patient visits to hospitals and other healthcare facilities for the diagnosis and treatment of a variety of persistent and dietary diseases is the primary factor propelling growth in this market segment. In order to treat or manage a patient's condition, their physician may recommend certain medical foods. In addition, the growing preference among patients to consult a physician in a hospital setting for the management of their chronic disease will drive demand for services within this market segment. In addition, the expansion of both private and public healthcare facilities, as well as the rise in the number of people suffering from chronic diseases, will contribute to the growth of this market segment around the world. During the forecast period, it is anticipated that the online sales sector will increase at a rate that is the most rapid. The increasing popularity of buying medical foods online can be attributed to the convenience that comes with shopping through this particular distribution channel. Despite the fact that medical foods are typically consumed under the supervision of a physician, the fact that these meals are designed for the management of a patient's nutrition over the long term has led to a surge in online sales. Therefore, as a result of the increased penetration of e-commerce, there is a change away from the traditional means of purchase toward the purchase of medical foods online, which offers numerous chances for the expansion of the market.
North America Remains the Global Leader, APAC to Lead the Growth
North America held the greatest revenue share in 2021, with more than 35.0% contribution. The market is being driven by the presence of international firms such as Abbott Laboratories and Mead Johnson & Company as well as the substantial income that these companies generate. According to National Health Council, more than 40% of Americans are suffering from chronic ailments. People living in the U.S. are suffering from diabetes, heart disease and despair. In addition, the increased prevalence of cancer is a matter of concern in the U.S. This, in turn, has led to consumers investing in medical food products for a healthy lifestyle that helps to cope with illnesses and enhances immunity. It is anticipated that the Asia Pacific region will be the regional market with the highest rate of growth over the forecast period of 2024 to 2032. This is due to the increasing number of patients suffering from cancer and diabetes, in addition to the numerous initiatives taken by the government in the field of healthcare. Each year approximately half of the newly diagnosed cases of cancer in the world are found in the Asia-Pacific region, as reported by Janssen. Further, this study mentioned that death due to cancer is anticipated to climb by 36% in the Asia Pacific region by 2031, which, in turn, is expected to boost the expansion of the market in this region over the following years. Furthermore, a larger population in the area and increased awareness among patients with chronic conditions to eat medicinal food for better health management are projected to drive the market in the Asia Pacific. In addition, the local presence of key players and untapped prospects presented by the region are among the significant drivers fuelling the regional market expansion.
Top Players Contribute over 70% of Market Revenues
The market remains consolidated with a few major players contributing over 70% of the market revenues. Companies such as Nestlé S.A., Abbott, and Danone S.A. account for the vast majority of revenue generated in the market for medicinal meals. Smaller companies in the medical foods market include Targeted Medical Pharma Inc., Primus Pharmaceuticals Inc., Fresenius Kabi AG and others. It is also anticipated that several industry consolidation efforts carried out by manufacturers in the clinical nutrition sector will contribute to the growth of the market over the course of the forthcoming years. It is anticipated that actions were taken by manufacturers, such as acquisitions, mergers, product launches, and collaborations, to expand the availability of their wares will be a primary factor in the expansion of the market in the years to come. For example, in January 2020, Nestlé entered into an Asset Purchase Agreement with Zenpen in order to broaden its clinical nutrition business and acquire that company. The growing demand for medical foods from patients and healthcare professionals, as well as the expanding market consolidation actions by market players to maintain a strong position, are both contributing factors that have resulted in fierce competition among market participants. In order to grow their revenue share, the leading companies have implemented a number of varied strategies, such as substantial investments in product development and global expansion. In addition, the leading companies in the market are searching for strategic acquisitions, mergers, and partnerships in order to broaden the scope of their product offerings and boost their revenue share in the global market.
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Medical Foods market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
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| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
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Key questions answered in this report
