A Review Of The Phytonutrient Market In APAC

Friday, October 12th, 2018 | 2307 Views

The total revenue of the global phytonutrient ingredients market is projected to increase at CAGR of 7.6 percent by 2022 to reach $7,385.2 million while the volume of the industry is expected to grow at CAGR of 4.7 percent during the same period to reach 63,488.4 thousand metric tons. This is due to the growing affluence and awareness for healthy living within developed and emerging countries and the surge in chronic diseases globally which has in turn led to rising consumer demands for dietary supplements and functional food.

By itself, the APAC phytonutrients market represented 27 percent of the global market revenue in 2017. Driven by factors such as an ageing population, increasing disposable income and changes in consumer preferences, the market share for the region is projected to grow at 8.7 percent CAGR by 2022. In addition, the UN has also reported that APAC’s aging population will grow at CAGR of 2.6 percent and will rise from 0.5 billion in 2015 to approximately 1.3 billion by 2050. This would equate to 61.8 percent of the global elderly population in 2050, with Taiwan, followed by Japan and South Korea, projected to contribute the most to the geriatric population. Thus, this is expected to increase the demand for products containing nutritional benefits as well as those with pharmaceutical properties which, in turn, will drive the growth of the phytonutrient ingredients market across different ingredient types.

In terms of future market demands, there is a strong market potential in the areas of innovative extracts for diverse ingredient types such as carotenoids, flavonoids, and phytosterols as well as the use of clinically based evidence such as therapeutic benefits, innovative delivery system, solubility, and stability for end applicants.

However, among the diverse phytonutrient ingredient types, revenues derived from Vitamin E tocotrienol and polyphenols are anticipated to grow significantly at CAGRs of 23.5 percent and 12.8 percent respectively until 2022.

APAC regulatory landscape: Recently, in countries such as China and South Korea there has been an implementation of stricter regulations for the approval of herbal supplements. This is aimed at subjecting herbal supplements to the same regulatory standards as chemical drugs which includes stringent testing and certification processes equivalent to chemical drugs. Manufacturers that seek to register new products will also be required to provide origin data, health benefits, clinical trials, stability, toxicity, its use in other countries, and the relative comparison of their products to others registered in the country. By imposing stricter regulations, China is intending to level the playing field between domestic manufacturers and western competitors.

Tocotrienol marketing and its impacts on phytonutrient demands

Major players in the natural tocotrienol industry such as Davos Life Science Private Limited and Excelvite have been developing R&D resources pertaining to tocotrienol extraction from crude palm oil as they have identified China as a potential market for tocotrienols. This aligns with the global movement by manufacturers to increase consumer awareness on the benefits of tocotrienols which will in turn drive demand for tocotrienols in APAC, leading to the growth of the phytonutrient ingredients market in the region.

Rise of instant food products and its impacts on phytonutrient demands

Due to the rapid proliferation and market for instant food products across Asia, the use of flavonoids is expected to surge. This is attributed to the use of flavonoids for the lengthening of  shelf lives in instant food products. Thus, the growth in consumption of instant foods will drive increases in the flavonoids industry which will lead to an increased demand for phytonutrient ingredients.

Novel R&D developments and phytonutrient discoveries in APAC

Novel R&D developments have led to the discovery of novel properties as well as newly discovered extracts for existing phytonutrients such as carotenoids and flavonoids.

For example, Lycium barbarum L. which is a new extract from a traditional Chinese herb, has been shown to inhibit HT-29 colon cancer cells and prevent chronic diseases such as AMD. In total nine carotenoids from the herb have been extracted during the solvent (hexane–ethanol–acetone) extraction process. While, researchers in Yeungnam University, South Korea, have found high concentrations of flavonoids in citrus fruits. This means ingredient manufacturers can now consider converting citrus wastes into value-added flavonoid based products that will further drive demand for the phytonutrients market.

Corporate and academic endorsements for phytonutrients in APAC

ExcelVite, a Malaysia company, has endorsed its tocotrienol based product, EVNol SupraBio, as beneficial for the brain, liver, heart, skin and hair. This product is also projected to possess an increased absorption rate of up to 300 percent in individuals. While Shanghai Jiao Tong University, has uncovered that milk fortified with phytosterols lowers LDL cholesterol in rats in 2017.

What’s In Store For The Future?

The aging population in Asia-Pacific coupled with growing incidences of chronic diseases, and healthier lifestyle preferences are key factors for the rise of the phytonutrient market. In addition, the regions socio-economic growth, legislative regulations and consumption of instant products, functional food, and dietary supplements have further supported the growth of the phytonutrient industry.