Global Medical Foods Market Analysis, Industry Trends and Opportunities Across R
Posted by Alex Werner on January 6th, 2018
The global medical foods market size is estimated to be valued at USD 10.6 billion in 2017 and will exhibit strong growth to create higher revenue opportunity not only for leading players but also regional players. Changes has been observed in the industry in last few years wherein healthcare spending has risen by nearly 2.5% globally – resulting in net increase in overall opportunities. The resulting improvement in the industry will open a host of opportunities for industry players to capitalize on.
Bekryl’s market research, Global Medical Foods Market Size Analysis and Industry Opportunity finds that North America region accounted for 33% of global sales. However, the region will lose significant market share to developing regions by 545 basis points between 2016 and 2027. Competition is very high in the region. Presence of large number of hospital facilities along with higher healthcare spending has certainly created a favorable market opportunity for industry players. As such, the region hosts leading medical foods companies.
There has been noticeable changes seen in North America. Competition has heightened among industry players to capture a major chunk of the medical foods market size citing the profit margins. Recently, few developments took place in the region. In 2017, Ajinomoto Corp, Inc. has acquired equity position in Cambrooke Therapeutics for nearly USD 64 million. Another leading company – BASF Corporation – entered in distribution agreement with DIEM Labs LLC to commercialize its first U.S. medical food products for Non-Alcoholic Fatty Liver Disease (NAFLD) patients. The move is expected to help company address ~25% of NAFLD patients in Europe and North America. Such long term strategic execution could help engaged players to generate higher ROI.
Europe has amounted to profits, though, marginal and quite sluggish in last few years. The Europe medical foods market size witnessed tumbling phase in-between 2008 to 2012, before achieving average annual growth of 2.5% in 2017. It is expected that the Western Europe medical foods industry will register annual growth of 3.3% between 2017 and 2027 – higher than historical business growth. Various macroeconomic factor are expected to create opportunity for players – most prominent being old age demographics and better healthcare infrastructure. There are over 510 million old age population in EU -28 alone, with median age being 42.6. This is expected to partially shift to 55 by 2030. As such, dependency on medical foods will increase significantly.
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Globally, changing business outlook has led to emergence of many mid-scale players. As of 2017, there are nearly over 60 key companies engaged in the sector. Nestle, Danone Group, Abbott Laboratories, Targeted Medical Pharma, and BASF are some of the key medical foods market companies. Nestle and Abbott Laboratories hold a major chunk of the industry share. According to Bekryl Market Analysts, these two players collectively accounted for nearly 55% of total share in 2016.
Several inorganic growth strategies are being adopted by the medical foods market industry leaders to maintain their market dominance. For instance, Nutricia – a prominent medical food company in Europe – was acquired by Danone Group in 2007. Souvenaid for Alzheimer’s patients is one such key product of Nutricia. Acquisition has helped Danone to strengthen its distribution channel in Europe. Another key player – Nestle – has entered in mergers and acquisitions with several medical foods companies to gain competitive advantage. Accera, CM&D Pharma, Nutrition Science Partner, Pamlab, Prometheus Laboratories, Vital foods, and Vitaflo are now part of Nestle Division.
Medical foods market outlook is set to be competitive in future owing to increasing demand and emerging small scale players. Opportunity will exist due to large presence of geriatrics population. Personalized medicine is also acting as a major catalyst for medical foods demand.
To know more about medical foods market, please visit https://bekryl.com/industry-trends/medical-foods-market-size-analysis
The industry is gaining wide scale recognition with few products coming in capsules form. Companies are spending on marketing strategies to assure the success rate. These players are distributing information sheets as well as conducting various seminars to bridge the gap regarding awareness. As such, Medical foods market is set to create lucrative market opportunity for industry players provided the companies adopt winning strategies.
Bekryl Market Analysts is global market research and consulting service firm that helps industry stakeholders to take smarter decisions and achieve remarkable growth in today's disruptive business environment. We bring together data, leader's opinion and analytical service to help client define their growth strategy ranging from mergers and acquisitions based strategic decisions to finding market opportunity in business verticals namely chemicals, food & beverages, automotive, electronics and industrial production.
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About the AuthorAlex Werner
Joined: December 7th, 2017
Articles Posted: 25
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