Year: 2020 and 2028
Market size: $20.15 billion and $30.34 billion, respectively
“An apple a day keeps the doctor away.” Most of us are familiar with this quaint expression from 1913. Although research studies have confirmed that an apple a day does not, in fact, result in fewer doctor’s visits, almost everyone can agree that eating nutrient-dense foods such as apples and other fruits, vegetables, whole grains, and various types of proteins can lead to a healthier life.
But, what happens when a person cannot tolerate many of these healthy foods due to age or a chronic medical condition? In that case, physicians may prescribe medical foods so that their patients can continue to get the nutrition that they need. “Medical foods are foods that are specifically formulated and processed for a patient who requires [the] use of the product as a major component of a disease or condition’s specific dietary management.”1 In 2020, more than 70% of medical foods were administered orally. They can also be administered enterally through a feeding tube. They are always used under medical supervision. Sales at institutions such as hospitals, clinics, and care centers had the highest revenue share in 2020. Today’s market size shows total global revenues for medical foods in 2020 and projected for 2028.Major contributing factors to growth in this market are the growing prevalence of malnutrition and diabetes worldwide. According to the World Health Organization, 462 million adults are underweight. Medical foods are considered the first choice to provide nutrients to malnourished patients. The number of people with diabetes has been increasing, reaching 463 million adults in 2019. By 2045, the number of adults with diabetes is projected to be 700 million. About 60-70% of diabetics suffer from neuropathy, damage to the nerves outside of the brain and spinal cord. The risk for neuropathy increases with age, unhealthy lifestyles, and poor nutrition. Medical foods for the prevention and treatment of diabetic neuropathy held the highest share of the market in 2020.
Other conditions that may require medical foods include neurological conditions such as cystic fibrosis, stroke, and dementia which causes difficulty in swallowing; Crohn’s disease and ulcerative colitis which inhibit nutrient absorption from conventional foods; chemotherapy-induced diarrhea; and chronic kidney disease among others. Revenues for medical foods geared toward patients with chronic kidney disease are expected to have the highest compound annual growth rate (CAGR) through 2028 due to the rising incidence of chronic kidney disease, especially in those 65 years old and over, and patients’ changing nutritional needs.
Due to their commercial availability and their ease of consumption, more than half of medical foods sold are in liquid, semi-liquid, or semi-solid form. The market share for liquid formulations is expected to increase due to this form being preferred by both the geriatric and pediatric populations. Some of the examples of liquid formulations are Nutrison Energy by Danone, Glucerna Therapeutic Nutrition Shake by Abbott Nutrition, and Novasource by Nestlé Nutrition. Revenues for powder formulation are expected to grow at the highest CAGR through 2028. Powder formulations are easy to administer and are convenient, having a longer shelf-life than other non-pill formulations, do not require refrigeration, and may be less expensive. Medical foods in pill form constitute the smallest market share.
By region, North America had the highest market share in 2020, 29.9%. The presence of leading companies in the industry along with an increasing prevalence of chronic conditions and a willingness by health care professionals and patients to utilize medical foods will lead to growth in this region. The Asia-Pacific region also has a strong presence from companies in this industry. As well, incidences of diabetes, malnutrition, obesity, cancer, and cardiovascular diseases are on the rise. Combined, the regions of North America, the Asia-Pacific, and Europe held more than three-quarters of the global market share in the medical foods industry.
In addition to the companies mentioned earlier, other leading companies in this industry include Fresenius Kabi AG, Targeted Medical Pharma Inc., Primus Pharmaceuticals Inc., Mead Johnson & Company LLC, and Metrition Inc. Primus Pharmaceuticals is the “first and only company specializing in prescription medical nutrition.”2 The company is headquartered in Scottsdale, Arizona.1 Source: “Frequently Asked Questions About Medical Foods; Second Edition,” U.S. Department of Health and Human Services, Food and Drug Administration, Center for Food Safety and Applied Nutrition, May 2016 available online here. Only the United States and Europe have clear guidelines for medical foods defined by regulatory agencies.
2 According to the company’s website here.
Sources: “Medical Foods Market Size, Share & Trends Analysis Report by Route of Administration, by Product (Pills, Powder), by Application, by Sales Channel, by Region, and Segment Forecasts, 2021 – 2028,” Grand View Research Report Summary, January 2021 available online here; “Medical Foods Market Size Worth $30.34 Billion by 2028 | CAGR: 5.2%: Grand View Research, Inc.,” CISION PR Newswire, February 3, 2021 available online here; “Frequently Asked Questions About Medical Foods; Second Edition,” U.S. Department of Health and Human Services, Food and Drug Administration, Center for Food Safety and Applied Nutrition, May 2016 available online here; Rachael Link, “An Apple a Day Keeps the Doctor Away — Fact or Fiction?” Healthline, July 6, 2020 available online here; “Serving the Underserved…Safely,” Primus Pharmaceuticals available online here.
Image source: tookapic, “milk-liquid-flowing-pouring-bottle-933106,” Pixabay, October 7, 2015 available online here. Picture is used for illustration purposes only. Milk is not considered a medical food.