Steve Katz, Contributing Editor04.04.23
The global nutraceutical packaging market size grew from $3.76 billion in 2022 to $4.03 billion in 2023 at a compound annual growth rate (CAGR) of 7.3%. It was considered a booming market prior to Covid, and post-pandemic its surge has only ramped up. The nutraceutical packaging market size is expected to grow to $5.13 billion in 2027 at a CAGR of 6.2%, according to The Business Research Company, a market research firm.
Long before Covid, the global consumer population was increasingly focused on improving health and longevity, and the pandemic served to up the ante, bringing into focus consumer demand for products that promote strengthened immunity to germs, sickness and disease.
“The shift towards a healthier lifestyle is expected to propel the growth of the nutraceutical packaging market going forward,” states The Business Research Company in a recent report on the global nutraceuticals packaging market. “People are getting more interested in natural food products that provide a direct therapeutic advantage because consumer awareness and knowledge about the relationship between health and nutrition is increasing. Nutraceutical food provides medical or health benefits that include the prevention or treatment of a disease. For instance, according to a poll by E times in 2021, the Covid-19 pandemic has transformed attitudes toward health, with 70% saying they will prioritize food and lifestyle adjustments in 2021 to manage both physical and emotional health. Therefore, the increasing adaption of a healthy lifestyle is driving the growth of the nutraceutical packaging market.”
According to the firm, Artificial Intelligence (AI) is a key trend gaining popularity in nutraceuticals packaging. Companies operating in the sector are adopting new technologies, such as AI, to meet customer demands. For instance, recently, Efficacy AI, a US-based firm, launched MedicascyAI, which employs artificial intelligence to help nutraceutical and supplement companies bring new products to market faster.
MedicascyAI uses artificial intelligence to predict, in just a few weeks, where ingredients will have significant impact, cutting R&D time by months or years while improving products. Determining how specific plant-based molecules may benefit health, and identifying adverse side-effects, can require years and millions of dollars in research.
Technology such as AI will only serve to grow the market even further, paving the way for more types of products and product launches.
Sean Moloughney, editor of Nutraceuticals World, a sister publication to L&NW, comments, “The discovery, development, and commercialization of bioactive dietary ingredients may be reaching a new inflection point as technological developments like artificial intelligence (AI) increasingly find avenues into our lives and businesses.
“The sophistication of screening the natural world for molecules that can be scaled to enhance human health has advanced significantly in the nearly 30 years since the Dietary Supplement Health and Education Act (DSHEA) was passed,” Moloughney continues. “Like most disciplines, the language used to translate complex issues to people will greatly influence how they are perceived. How will companies and brands that adopt new technologies communicate with their customers? Will consumers be able to tell what they’re buying based on a product label?”
Speaking of labels, Adam Moffitt, business development manager for label material supplier UPM Raflatac Americas, says, “We are seeing the nutraceutical market outpace other traditional industries in the labeling space. Covid-19 really put an emphasis on self-care and looking at alternative ways of healing. In turn, that really fueled growth in this area. An emphasis on gut health has remained strong in this space along with immune health and children’s health. Preventative health in all its forms has become a really hot topic over the last three years, so consumers are really looking at what will give them an edge on their health and are more in tune with their mental and physical being.”
All forms of media, social media in particular, have had a direct impact on growth in the nutraceutical market. Moffitt explains, “Companies in these spaces are growing as influencers and have used this ability to promote products in ways we have never seen before. Most importantly, the on-shelf impact has really stuck out in these spaces so you have to be creative in design.”
According to Joe Hamway, Mark Andy’s Northeast regional sales manager, brand proliferation is probably the single biggest growth driver in the nutraceuticals space. “The choices are enormous in terms of brand,” he says. “In terms of label design, the competition for shelf space and/or point of purchase impact in less established brands is being addressed by the use of a more impactful color palate, rather than the more muted color designs of the past. Established brands, however, are staying with their brand identity and rarely changing design/colors unless absolutely necessary. Foils seem to be waning in terms of design preferences.
“Paper labels are still predominant in this market, as certain segments are engaged in cost-cutting measures,” Hamway adds. “Meanwhile, the highest end products are beginning to use ‘soft-touch’ filmic facestocks.”
Palmer echoes the emphasis on tactile effects, noting, “There are two label design attributes we see driving success for nutraceutical clients: strong design choices and the use of tactile finishes like soft-touch coatings. These contribute to stand-out designs to foster brand recognition. The rising popularity of strategic packaging designs ensures our clients’ products have the right branding for the right selling channel environment – whether it’s on a shelf or online – to position our clients’ products for success.”
Lori Bitar, product manager – Healthcare, FLEXcon, points out that many of the same label formats, materials, designs and finishing techniques implemented for personal care and cosmetics are applicable to the labeling of nutraceuticals. She says, “These include high-speed auto dispensing and going beyond the barcode on label design. Bringing in the brand element is key for these products in order to gain and maintain engagement at the shelf.
“In addition,” Bitar adds, “Nutraceuticals are classified as dietary supplements in line with vitamins and minerals, and are required to be registered with the FDA. They fall under a different set of regulations than conventional food or drug products. However, the goal is the same – safety in labeling.”
With that said, there’s the real estate factor to consider when labeling nutraceuticals. In addition to aesthetics, there’s a need for printing a good amount of information, which, according to Hamway, is fueling growth in shrink sleeve usage. He explains, “Shrink film is being used more extensively for several reasons. Among them is 360-degree decoration and the ability to add more product information without extended content constructions, coupled with enhanced shelf presence. Plus, shrink sleeves are more suitable for large containers. For example, jugs of protein supplements are difficult to label given the container size. Security concerns are also addressed – full body shrink and shrink neckbands enhance the consumer’s feeling of product safety and tamper resistance.”
UPM Raflatac’s Moffitt remarks that with tremendous growth comes tremendous responsibility. He says, “Brands are doubling down, now more than ever, on their impact on this planet. If you look in-store at some of your favorite brands, they are carefully climbing that ladder. Whether their focus is recyclability, reuse or reducing the materials they use in their packaging, they are always looking for that new, exciting, scalable product that will help them reach their goals. There is so much emphasis on the primary package that other parts of the value chain can be ignored. The label should help you with your sustainability goals, not hinder you. That’s why our sustainable materials in this space have really taken off and are fueling our growth in nutraceuticals.”
According to RRD’s Palmer, some of the biggest challenges – and opportunities – within the nutraceuticals market relate to sustainability. “Consumer demand for recyclability is quickly increasing, which puts pressure on companies to implement sustainable substrates or ensure that labels are easily removable so the containers can be processed. Since every substrate and overall package is different, it’s important to work closely with clients to find the right solution for their needs. Consumers who regularly purchase health-related products are paying more attention to the sustainability of these products.
“Agility and adaptability in sourcing is also critical,” Palmer adds. “If the past few years have taught us anything, it’s that conditions can change fast with sudden material shortages, rising costs, and unmet labor needs. It’s important to be flexible and prepared to help our clients source alternative materials, inks, embellishments, etc. whenever challenges arise while keeping products in brand specifications,” he says.
Palmer reveals that RRD clients are seeking out solutions that will minimize environmental footprint such as soy-based inks or sustainability in substrates. “On the distribution side of labeling operations, we also see an increased interest in linerless labels, which eliminate the backing paper liner, therefore increasing operational efficiencies and providing a sustainable solution,” Palmer says, adding, “When we think about sustainability in labeling for any product category, it is important to consider both the decorative labels for primary packaging and the labels used in warehousing and distribution. This is especially true for nutraceutical brands that rely on e-commerce. Sustainability-minded decisions on materials, inks and other features can be made in both types of labeling operations, but the latter is often overlooked in sustainability initiatives.”
“Digital is meeting the needs of the ‘boutique’ suppliers, as well as the proliferation of high multiple SKUs,” notes Hamway. “Also, digital’s ability to add serialization, barcoding, etc. as part of the native artwork is beneficial versus ancillary equipment adding this feature. The contribution of digital imaging in this space in particular is significant in these niches. Store brands and economy brands are not affected by this, as they are longer run and lower value added in terms of decoration. They fit better on conventional equipment from both a production and cost standpoint. Also, QR codes allow much more product information without complex multi-layer label constructions for the consumer.”
Scott Conrad, senior product manager, UPM Raflatac Americas, points out that when selling to the nutraceutical industry the most important label function is clear and easily readable wording. “Without easily readable ingredients, it renders the packaging useless for sellers and consumers. The second most important label function is artwork that gives packaging an edge in shelf appeal,” he says.
To provide the best paper label for the nutraceutical industry UPM Raflatac typically recommends its Raflasilk line of products. “Raflasilk is an FSC-certified paper and is widely recognized as the best printing semi-gloss on the market,” Conrad says. “This face allows for printing fine detail, including text and intricate artwork, that is vital to the success of a nutraceutical label.
“UPM Raflatac also provides a line of digitally-printable papers specifically designed for a wide range of on-demand printers. These options are great for upstart nutraceutical companies looking to invest in onsite digital print technologies. Our on-demand print products are optimized for use in a wide range of digital printers offering flexibility and the highest possible image quality to the brand,” says Conrad.
“CBD, gut health and immune support are the fastest growing segments that we have seen,” says UPM Raflatac’s Moffitt. “Brain function is a big one, as well as sleep aids. There are never-ending choices when a consumer looks on the shelf, so we aim to stay ahead by looking at trending media, whether its health-related podcasts, trending hashtags in the health and self-care space or retailer emphasis on shelf and in-store.”
The real estate on the shelf in-store is now more important than ever, Moffitt states. “With growth comes competition so you have to stand out where you sell. Gummy supplements and vitamins are really fueling growth. They are much more palatable than pills and much easier to take. Whether you are using HDPE, PET or BOPP primary packages, the label still has the in-store and even online impact. Clear messaging and highlighting the benefits of your product are really best served on the product itself. Purchases are driven that way traditionally and will remain that way as along as we have retail.”
FLEXcon’s Bitar notes that dietary supplements, probiotics and prebiotics are gaining traction as there is an increasing number of patients with gut-related medical conditions such as celiac disease and gluten allergies. “This is prompting a growing trend of personalized nutrition,” she says, adding, “Print service providers must consider what label materials they will be using for flexible pouches. Unlike a rigid pill container, labels for pouches must be more flexible so as to move with the contours of the package during use. This could require a more flexible polyethylene label as opposed to a polyester or polypropylene that would be suitable for a rigid or semi-squeeze container.”
Andrew Palmer says RRD is seeing exceptional growth in two categories – CBD and online or subscription supplement services. “Both are relatively young market categories that have seen pretty radical changes just over the past 10 years. It was not that long ago that nutraceuticals were predominantly available at brick-and-mortar stores and pharmacies, then eventually in dedicated e-commerce platforms. Now there are many emerging nutraceutical supplement brands catering to online shoppers or subscribed consumers who want customized, aesthetically pleasing products delivered to their doorstep.
“We believe the nutraceutical labels and packaging space will only continue to grow from here and is a major opportunity for companies. However, that growth coincides with increasing competition in the space. As consumers continue to prioritize their health and wellness, brands can, and should, leverage their label selections to enhance differentiation, brand recognition, nutritional and safety information, and sustainability efforts,” Palmer concludes.
Long before Covid, the global consumer population was increasingly focused on improving health and longevity, and the pandemic served to up the ante, bringing into focus consumer demand for products that promote strengthened immunity to germs, sickness and disease.
“The shift towards a healthier lifestyle is expected to propel the growth of the nutraceutical packaging market going forward,” states The Business Research Company in a recent report on the global nutraceuticals packaging market. “People are getting more interested in natural food products that provide a direct therapeutic advantage because consumer awareness and knowledge about the relationship between health and nutrition is increasing. Nutraceutical food provides medical or health benefits that include the prevention or treatment of a disease. For instance, according to a poll by E times in 2021, the Covid-19 pandemic has transformed attitudes toward health, with 70% saying they will prioritize food and lifestyle adjustments in 2021 to manage both physical and emotional health. Therefore, the increasing adaption of a healthy lifestyle is driving the growth of the nutraceutical packaging market.”
According to the firm, Artificial Intelligence (AI) is a key trend gaining popularity in nutraceuticals packaging. Companies operating in the sector are adopting new technologies, such as AI, to meet customer demands. For instance, recently, Efficacy AI, a US-based firm, launched MedicascyAI, which employs artificial intelligence to help nutraceutical and supplement companies bring new products to market faster.
MedicascyAI uses artificial intelligence to predict, in just a few weeks, where ingredients will have significant impact, cutting R&D time by months or years while improving products. Determining how specific plant-based molecules may benefit health, and identifying adverse side-effects, can require years and millions of dollars in research.
Technology such as AI will only serve to grow the market even further, paving the way for more types of products and product launches.
Sean Moloughney, editor of Nutraceuticals World, a sister publication to L&NW, comments, “The discovery, development, and commercialization of bioactive dietary ingredients may be reaching a new inflection point as technological developments like artificial intelligence (AI) increasingly find avenues into our lives and businesses.
“The sophistication of screening the natural world for molecules that can be scaled to enhance human health has advanced significantly in the nearly 30 years since the Dietary Supplement Health and Education Act (DSHEA) was passed,” Moloughney continues. “Like most disciplines, the language used to translate complex issues to people will greatly influence how they are perceived. How will companies and brands that adopt new technologies communicate with their customers? Will consumers be able to tell what they’re buying based on a product label?”
Speaking of labels, Adam Moffitt, business development manager for label material supplier UPM Raflatac Americas, says, “We are seeing the nutraceutical market outpace other traditional industries in the labeling space. Covid-19 really put an emphasis on self-care and looking at alternative ways of healing. In turn, that really fueled growth in this area. An emphasis on gut health has remained strong in this space along with immune health and children’s health. Preventative health in all its forms has become a really hot topic over the last three years, so consumers are really looking at what will give them an edge on their health and are more in tune with their mental and physical being.”
All forms of media, social media in particular, have had a direct impact on growth in the nutraceutical market. Moffitt explains, “Companies in these spaces are growing as influencers and have used this ability to promote products in ways we have never seen before. Most importantly, the on-shelf impact has really stuck out in these spaces so you have to be creative in design.”
Emphasizing Embellishment, Tactile Effects
Andrew Palmer, director of sales, RRD Label Solutions, says the nutraceuticals space is not only an incredibly fast-growing market but one that’s also quite competitive – both in-store and online. “With consumers becoming much more health conscious, brands are applying unique embellishments to make their products stand out on the physical or virtual shelf. However, there is still an interest in making these embellishments compatible with sustainability goals.”According to Joe Hamway, Mark Andy’s Northeast regional sales manager, brand proliferation is probably the single biggest growth driver in the nutraceuticals space. “The choices are enormous in terms of brand,” he says. “In terms of label design, the competition for shelf space and/or point of purchase impact in less established brands is being addressed by the use of a more impactful color palate, rather than the more muted color designs of the past. Established brands, however, are staying with their brand identity and rarely changing design/colors unless absolutely necessary. Foils seem to be waning in terms of design preferences.
“Paper labels are still predominant in this market, as certain segments are engaged in cost-cutting measures,” Hamway adds. “Meanwhile, the highest end products are beginning to use ‘soft-touch’ filmic facestocks.”
Palmer echoes the emphasis on tactile effects, noting, “There are two label design attributes we see driving success for nutraceutical clients: strong design choices and the use of tactile finishes like soft-touch coatings. These contribute to stand-out designs to foster brand recognition. The rising popularity of strategic packaging designs ensures our clients’ products have the right branding for the right selling channel environment – whether it’s on a shelf or online – to position our clients’ products for success.”
Lori Bitar, product manager – Healthcare, FLEXcon, points out that many of the same label formats, materials, designs and finishing techniques implemented for personal care and cosmetics are applicable to the labeling of nutraceuticals. She says, “These include high-speed auto dispensing and going beyond the barcode on label design. Bringing in the brand element is key for these products in order to gain and maintain engagement at the shelf.
“In addition,” Bitar adds, “Nutraceuticals are classified as dietary supplements in line with vitamins and minerals, and are required to be registered with the FDA. They fall under a different set of regulations than conventional food or drug products. However, the goal is the same – safety in labeling.”
With that said, there’s the real estate factor to consider when labeling nutraceuticals. In addition to aesthetics, there’s a need for printing a good amount of information, which, according to Hamway, is fueling growth in shrink sleeve usage. He explains, “Shrink film is being used more extensively for several reasons. Among them is 360-degree decoration and the ability to add more product information without extended content constructions, coupled with enhanced shelf presence. Plus, shrink sleeves are more suitable for large containers. For example, jugs of protein supplements are difficult to label given the container size. Security concerns are also addressed – full body shrink and shrink neckbands enhance the consumer’s feeling of product safety and tamper resistance.”
Stressing Sustainability
Sustainability is having a significant impact on nutraceutical labels, too. FLEXcon’s Bitar explains, “Large box brands are quickly becoming more aware and sustainably conscious and adjusting their packaging designs as a result. Much like other packaging segments, nutraceuticals packaging is being redesigned to maximize sustainability. This includes using small containers to reduce head space, and seeking more sustainable label substrates such as downgauged constructions, label materials and containers made partially of post-consumer waste, and products that better facilitate recyclability,” she says.UPM Raflatac’s Moffitt remarks that with tremendous growth comes tremendous responsibility. He says, “Brands are doubling down, now more than ever, on their impact on this planet. If you look in-store at some of your favorite brands, they are carefully climbing that ladder. Whether their focus is recyclability, reuse or reducing the materials they use in their packaging, they are always looking for that new, exciting, scalable product that will help them reach their goals. There is so much emphasis on the primary package that other parts of the value chain can be ignored. The label should help you with your sustainability goals, not hinder you. That’s why our sustainable materials in this space have really taken off and are fueling our growth in nutraceuticals.”
According to RRD’s Palmer, some of the biggest challenges – and opportunities – within the nutraceuticals market relate to sustainability. “Consumer demand for recyclability is quickly increasing, which puts pressure on companies to implement sustainable substrates or ensure that labels are easily removable so the containers can be processed. Since every substrate and overall package is different, it’s important to work closely with clients to find the right solution for their needs. Consumers who regularly purchase health-related products are paying more attention to the sustainability of these products.
“Agility and adaptability in sourcing is also critical,” Palmer adds. “If the past few years have taught us anything, it’s that conditions can change fast with sudden material shortages, rising costs, and unmet labor needs. It’s important to be flexible and prepared to help our clients source alternative materials, inks, embellishments, etc. whenever challenges arise while keeping products in brand specifications,” he says.
Palmer reveals that RRD clients are seeking out solutions that will minimize environmental footprint such as soy-based inks or sustainability in substrates. “On the distribution side of labeling operations, we also see an increased interest in linerless labels, which eliminate the backing paper liner, therefore increasing operational efficiencies and providing a sustainable solution,” Palmer says, adding, “When we think about sustainability in labeling for any product category, it is important to consider both the decorative labels for primary packaging and the labels used in warehousing and distribution. This is especially true for nutraceutical brands that rely on e-commerce. Sustainability-minded decisions on materials, inks and other features can be made in both types of labeling operations, but the latter is often overlooked in sustainability initiatives.”
Digital Delights, Intricate Artwork
In the nutraceuticals space, as the market grows so too does SKU proliferation, thus opening the doors for digital printing to enter the conversation.“Digital is meeting the needs of the ‘boutique’ suppliers, as well as the proliferation of high multiple SKUs,” notes Hamway. “Also, digital’s ability to add serialization, barcoding, etc. as part of the native artwork is beneficial versus ancillary equipment adding this feature. The contribution of digital imaging in this space in particular is significant in these niches. Store brands and economy brands are not affected by this, as they are longer run and lower value added in terms of decoration. They fit better on conventional equipment from both a production and cost standpoint. Also, QR codes allow much more product information without complex multi-layer label constructions for the consumer.”
Scott Conrad, senior product manager, UPM Raflatac Americas, points out that when selling to the nutraceutical industry the most important label function is clear and easily readable wording. “Without easily readable ingredients, it renders the packaging useless for sellers and consumers. The second most important label function is artwork that gives packaging an edge in shelf appeal,” he says.
To provide the best paper label for the nutraceutical industry UPM Raflatac typically recommends its Raflasilk line of products. “Raflasilk is an FSC-certified paper and is widely recognized as the best printing semi-gloss on the market,” Conrad says. “This face allows for printing fine detail, including text and intricate artwork, that is vital to the success of a nutraceutical label.
“UPM Raflatac also provides a line of digitally-printable papers specifically designed for a wide range of on-demand printers. These options are great for upstart nutraceutical companies looking to invest in onsite digital print technologies. Our on-demand print products are optimized for use in a wide range of digital printers offering flexibility and the highest possible image quality to the brand,” says Conrad.
Plethora of Products
Nutraceuticals come in all shapes and sizes, and so too does the packaging. There are pills, capsules, gummies, powders, tinctures and much more. It benefits the label converter to stay on top of what’s trending.“CBD, gut health and immune support are the fastest growing segments that we have seen,” says UPM Raflatac’s Moffitt. “Brain function is a big one, as well as sleep aids. There are never-ending choices when a consumer looks on the shelf, so we aim to stay ahead by looking at trending media, whether its health-related podcasts, trending hashtags in the health and self-care space or retailer emphasis on shelf and in-store.”
The real estate on the shelf in-store is now more important than ever, Moffitt states. “With growth comes competition so you have to stand out where you sell. Gummy supplements and vitamins are really fueling growth. They are much more palatable than pills and much easier to take. Whether you are using HDPE, PET or BOPP primary packages, the label still has the in-store and even online impact. Clear messaging and highlighting the benefits of your product are really best served on the product itself. Purchases are driven that way traditionally and will remain that way as along as we have retail.”
FLEXcon’s Bitar notes that dietary supplements, probiotics and prebiotics are gaining traction as there is an increasing number of patients with gut-related medical conditions such as celiac disease and gluten allergies. “This is prompting a growing trend of personalized nutrition,” she says, adding, “Print service providers must consider what label materials they will be using for flexible pouches. Unlike a rigid pill container, labels for pouches must be more flexible so as to move with the contours of the package during use. This could require a more flexible polyethylene label as opposed to a polyester or polypropylene that would be suitable for a rigid or semi-squeeze container.”
Andrew Palmer says RRD is seeing exceptional growth in two categories – CBD and online or subscription supplement services. “Both are relatively young market categories that have seen pretty radical changes just over the past 10 years. It was not that long ago that nutraceuticals were predominantly available at brick-and-mortar stores and pharmacies, then eventually in dedicated e-commerce platforms. Now there are many emerging nutraceutical supplement brands catering to online shoppers or subscribed consumers who want customized, aesthetically pleasing products delivered to their doorstep.
“We believe the nutraceutical labels and packaging space will only continue to grow from here and is a major opportunity for companies. However, that growth coincides with increasing competition in the space. As consumers continue to prioritize their health and wellness, brands can, and should, leverage their label selections to enhance differentiation, brand recognition, nutritional and safety information, and sustainability efforts,” Palmer concludes.
