Table of Contents
Introduction
The global functional gummies market, valued at USD 3.7 billion in 2023, is projected to surge to USD 10 billion by 2033, growing at a robust CAGR of 10.5%. This growth is primarily driven by the increasing consumer demand for convenient and health-oriented dietary supplements. Functional gummies, which are easy to consume and often perceived as a tastier alternative to pills, cater to a broad demographic, including adults and children, addressing various health concerns from vitamin deficiencies to digestive health.
However, the market faces challenges such as balancing nutrient content with consumer preferences for low-sugar products and ensuring the stability of vitamins and minerals in the gummy format. Recent developments in the industry reflect a shift towards plant-based and vegan gummy options, aligning with growing dietary trends and sustainability concerns. These innovations are part of a broader strategy by manufacturers to diversify their offerings and tap into new consumer segments, looking for health benefits without compromising on ethical standards or dietary restrictions. In the functional gummies market, several key players have made notable strides through acquisitions, new product launches, and strategic expansions to enhance their market presence and capabilities.
Catalent, Inc. has been particularly active, significantly enhancing its portfolio in the nutraceuticals market. Catalent acquired Bettera Holdings, LLC, a leading manufacturer of gummies and lozenges. Better Nutritionals LLC, now part of Catalent, has been recognized for its expertise in gummy production, which complements Catalent’s growth strategy in the consumer health sector. This acquisition aligns with Catalent’s aim to meet rising consumer demands for enjoyable and convenient nutritional supplement forms.
As the market evolves, key players continue to invest in new product development and expansion into new geographic regions, leveraging both online and offline distribution channels to maximize their reach and adapt to changing consumer shopping behaviors.
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 Statistics
- Global Interest: 80% of consumers across 16 countries plan to maintain or increase spending on health-related areas.
- Demographic Reach: The majority of users (25 to 44 years old) are women; uptake is seen in metro and tier 2/3 cities.
- Number of stock flavors offered by Bickford Flavors: Over 260.
- US consumer preferences: 54% seek vitamins/minerals, 48% fiber, 38% probiotics.
- Sales growth: Collagen-containing snacks up by 46% compared to last year.
- Top multivitamins: 58% of consumers, with vitamin D (31%) and vitamin C (28%) being popular.
- Abelei’s experience: Over 4 decades in flavoring functional products, offering tailored solutions.
- Market Expansion: Tier 2 and Tier 3 cities witness 30-40% demand growth, catching up with metro cities.
- Texture Innovation: CP Kelco, with 90 years of experience, offers nature-based ingredients for superior texture and taste.
- Fat content in spreadable oleo gels: Ranges from 35% to 47%.
- Protein content in spreadable doum and carrot: 7.41%.
- Protein content in gummies: Ranges from 10.25% to 12.78%.
- Hardness of gummies: Ranges from 6.22 N to 16.30 N.
- Antioxidant activity of gummies: Ranges from 51.44% to 40.37%.
- Oil binding capacity of formed gummies: Higher than 99%.
- Tolerance for cations boosted, enabling: 15% magnesium citrate, 15% calcium phosphate, 30% apple cider vinegar, 6% vitamin C, 1% zinc citrate
Emerging Trends
Emerging trends in the functional gummies market are shaping the industry significantly, driven by evolving consumer preferences and technological advancements. A major trend is the increasing popularity of vegan gummies, which cater to the growing demand for plant-based and cruelty-free products. This segment is seeing substantial growth due to consumer interest in health, sustainability, and ethical dietary choices. Vegan gummies are often made with natural and organic ingredients, appealing to those seeking clean-label products without artificial additives.
Another noteworthy trend is the diversification of flavors and formulations. Manufacturers are expanding their product lines to include not just traditional vitamin gummies but also options that support a range of health benefits such as immune support, digestive health, and cognitive enhancement. This includes the introduction of gummies with added probiotics, omega-3s, and plant extracts like turmeric and ginger, which are known for their health benefits.
The market is also experiencing a shift towards gummies formulated with reduced sugar and enhanced nutritional profiles to appeal to health-conscious consumers. This aligns with the broader trend of consumers preferring dietary supplements that are not only effective but also enjoyable and easy to consume.
In terms of market dynamics, there’s a significant push towards expanding online sales channels. E-commerce is becoming a crucial platform for the gummy market, driven by the convenience of shopping from home and the wider selection available online. This trend is supported by extensive brand campaigning and the use of social media to engage consumers and expand market reach.
Use Cases
- Nutritional Supplementation: Functional gummies are a popular choice for delivering essential vitamins and minerals. They are particularly favored for their ability to address specific nutritional deficiencies in a convenient and enjoyable form, making them suitable for all age groups, including children, adults, and the elderly. Vitamin gummies, for example, hold a significant market share due to their widespread appeal and effectiveness in supplementing diets with crucial nutrients.
- Supporting Cognitive and Cardiovascular Health: Omega-3 and DHA gummies have emerged as important for supporting brain and heart health. These gummies are valued for their role in enhancing cognitive functions and overall cardiovascular well-being, which makes them especially beneficial for children and older adults who may need support in these areas.
- Digestive and Immune Health: Probiotics gummies are gaining popularity due to their benefits for digestive health and immune system support. These gummies provide a tasty and convenient way to incorporate beneficial bacteria into the diet, which can help improve gut health and boost immunity.
- Natural and Herbal Supplements: There is a growing segment of gummies that include plant extracts like turmeric, ginger, and echinacea, known for their anti-inflammatory and immune-boosting properties. These gummies cater to consumers looking for natural and herbal health supplements in an easy-to-consume form.
- Targeted Formulas for Specific Demographics: Functional gummies are formulated to meet the unique health needs of different demographic groups, such as prenatal nutrients for pregnant women, or specific vitamin and mineral blends for men’s and women’s health. This customization enhances their effectiveness and market appeal.
Key Players Analysis
Pfizer Inc. has been expanding its presence in the functional gummies market, particularly through its consumer health products. As a leading pharmaceutical company, Pfizer leverages its extensive research and development capabilities to innovate in various therapeutic areas, including nutritional supplements. Their involvement in functional gummies likely aligns with their broader strategy of addressing unmet needs in healthcare through convenient and consumer-friendly products.
Bayer AG is well-established in the functional gummies sector, leveraging its expertise in health and nutrition to offer a range of vitamin-enriched gummy products. Bayer’s focus on integrating vitamins and essential nutrients into easy-to-consume gummies demonstrates its commitment to enhancing consumer health. These products cater to both children and adults, offering a tasty and convenient way to meet daily nutritional needs.
Better Nutritionals LLC has made significant strides in the functional gummies sector by specializing in the manufacture of gummy vitamins and supplements. This company focuses on providing high-quality, custom-formulated nutritional products, including organic and vegan options. Their state-of-the-art facilities and commitment to innovation enable them to meet diverse consumer needs effectively, making them a key player in the health and wellness industry.
Catalent, Inc. has significantly expanded its footprint in the functional gummies market through strategic acquisitions and by leveraging its robust manufacturing capabilities. In 2021, Catalent acquired Bettera Holdings, a leading gummies manufacturer, for $1 billion, enhancing its offerings in the rapidly growing nutraceutical market. This acquisition aligns with Catalent’s strategy to broaden its consumer health technology platform and tap into the increasing consumer demand for convenient, enjoyable health supplement options.
Church & Dwight Co. Inc. has been effectively leveraging its expertise in consumer products to make significant inroads into the functional gummies sector. Known for its diverse brand portfolio, the company has expanded into health and wellness gummies, offering a range of products that include vitamins and supplements designed to appeal to health-conscious consumers. Church & Dwight focuses on integrating essential nutrients into enjoyable and convenient gummy formats, thus catering to the growing demand for dietary supplements that support overall health and well-being.
Herbaland is a prominent player in the functional gummies market, specializing in vegan, sugar-free, and eco-friendly nutritional supplements. As Canada’s largest gummy manufacturer, Herbaland’s product lineup caters to a global audience with a strong emphasis on sustainable and health-conscious ingredients. Their commitment to high-quality, inclusive products is evident in their use of 100% compostable packaging and status as a certified B Corporation, reinforcing their role as a leader in the ethical and health-oriented supplement industry.
Church & Dwight Co. Inc. has effectively capitalized on the growing functional gummies market through its popular Vitafusion brand, which offers a wide range of vitamin and mineral supplements in gummy form. These products are designed to provide consumers with an enjoyable way to meet their dietary needs, featuring a variety of flavors and formulations tailored to different health benefits. Church & Dwight’s commitment to quality and innovation in the functional gummies sector helps them stand out as a leader in providing healthful, tasty, and convenient nutritional options.
Herbaland stands out in the functional gummies market as a leader in health-conscious and eco-friendly supplement products. As Canada’s largest nutritional gummy manufacturer, Herbaland specializes in vegan, sugar-free gummies that cater to a variety of health needs and dietary preferences. Emphasizing sustainability, all of their products are packaged in 100% compostable materials. Herbaland’s commitment to quality and environmental stewardship has earned it recognition as a certified B Corporation, further establishing its reputation as a responsible and innovative company in the supplement industry.
Nature’s Bounty Co. has actively expanded its offerings in the functional gummies sector, focusing on delivering a variety of health benefits through its gummy products. They offer a wide range of vitamin gummies tailored for different health needs, such as heart health, immune support, and energy enhancement. Particularly notable are their Co Q-10 gummies, which are designed to support cardiovascular health. Additionally, Nature’s Bounty has introduced innovative products like Sleep3 Gummies, which combine quick and time-release melatonin with L-theanine to support sleep. These initiatives highlight the company’s commitment to enhancing wellness through convenient and enjoyable formats, catering to diverse consumer needs.
Olly Public Benefit Corporation, established in 2013, has made a significant impact in the functional gummies sector with its focus on delivering user-friendly wellness products. Olly emphasizes the end benefits of its gummies, which cover a wide range of health needs including sleep, beauty, digestive health, and overall wellness. The company is recognized for its innovative approach, such as its popular Sleep3 Gummies, designed to support quality sleep with a blend of melatonin and L-theanine. Olly’s commitment to corporate responsibility is evident in its certification as a B Corporation, underscoring its dedication to social and environmental performance, accountability, and transparency.
Pharmavite LLC, a leader in the nutritional supplement industry, is significantly enhancing its presence in the functional gummies sector. Known for its Nature Made and MegaFood brands, the company is expanding its operations by constructing a new manufacturing facility in New Albany, Ohio. This development underscores Pharmavite’s commitment to meeting the growing consumer demand for gummy vitamins and supplements, which are increasingly popular for their convenience and appeal across various age groups. The facility is part of a broader strategy to innovate and increase production capabilities, further solidifying Pharmavite’s position in the market as a provider of health and wellness solutions.
Procter & Gamble Co. (P&G) has made notable advancements in the functional gummies sector through its Vicks brand. Particularly, they have introduced ZzzQuil PURE Zzzs Melatonin Gummies, which are designed to support sleep. These gummies contain a unique blend of botanicals like lavender and chamomile, along with an optimal level of melatonin to help users fall asleep naturally without next-day grogginess. This product expansion is part of P&G’s strategy to meet the diverse and evolving health needs of consumers, offering them a drug-free, vegan-friendly option that aligns with modern wellness trends.
Rexall Sundown Inc., now part of NBTY, continues to be a significant player in the functional gummies sector. The company focuses on producing high-quality, health-enhancing gummies, which include a variety of vitamins and minerals tailored to meet specific health needs. Their products are celebrated for being free from GMOs, gluten, dairy, and artificial flavors, adhering to their commitment to offer clean and wholesome nutritional options. Sundown’s functional gummies are particularly popular for their inclusive approach, catering to both adult and children’s health requirements.
Santa Cruz Nutritionals is a pioneering force in the functional gummies sector, renowned for its innovative approach to nutraceutical and functional food products. The company specializes in gummy formulations that deliver a variety of health benefits, including vitamins, minerals, and supplements tailored for children and adults. Their commitment to quality is evident in their unique food science expertise and proprietary processes, which have enabled them to introduce industry firsts such as calcium and fiber gummies. Santa Cruz Nutritionals continues to expand its product line and capabilities, solidifying its role as a leader in health-oriented confectionery delivery systems.
The Clorox Company does not appear to have a direct involvement or specific developments within the functional gummies sector based on the current information available. Known primarily for their cleaning and disinfecting products, Clorox focuses on a broad range of consumer goods including health and wellness products. However, their current portfolio does not prominently feature functional gummies, which are typically associated with dietary supplements and health-enhancing benefits. For more detailed information on their product offerings or potential future expansions into new sectors, monitoring their press releases and corporate announcements would be beneficial.
Conclusion
In conclusion, the functional gummies market is on a remarkable trajectory, underpinned by the increasing consumer preference for easy-to-consume, enjoyable health supplements. The market, valued significantly in 2023, is expected to continue its robust growth through 2033.
This surge is driven by the broad appeal of these products across various demographic groups—from children to the elderly—each benefiting from gummies tailored to specific health needs such as cognitive support, digestive health, and nutritional supplementation. Innovations in product formulation, such as the inclusion of vegan and organic options, cater to evolving dietary preferences and sustainability concerns.
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