Gummy Market Growth & Trends
The global gummy market size is expected to reach USD 42.06 billion by 2028, according to a new report by Grand View Research, Inc., expanding at a CAGR of 12.6% over the forecast period. The advent of organic, clean, and natural formulated gummy supplements by key market participants; coupled with increasing customer demand for nutrition with taste and flavor is a major factor fueling the market growth.
Gummies are easy to chew and can be consumed on the go, thereby providing an easy supplementation solution during busy working schedules for adult consumers. Besides, gummies are highly popular among kids due to the availability of different flavors, colors, and attractive shapes.
Moreover, the prevailing trend of adopting preventive healthcare measures by parents since the birth of a baby is expected to drive the growth of the market in the coming years. In addition, the busy lifestyle of individuals has encouraged on-the-go eating habits; thus, a shifting focus towards an alternative form of nutrients which is expected to stimulate growth for convenient and easy-to-swallow gummy.
The vitamin gummies segment dominated the market in 2020. With the increasing complexity in consumer dynamics, owing to professional and personal commitments, along with stressful lifestyles and changes in eating habits, consumers are seeking dietary supplements to meet the daily vitamins & minerals requirement.
The increasing availability of gummy supplements for various health conditions, including heart health, brain health, or in nutricosmetic categories, such as skincare and hair care, is expected to augment the market growth. Moreover, prenatal vitamin gummies utilized by women during pregnancy are expected to boost the growth of the vitamin gummies segment in the coming years.
Asia Pacific is estimated to be the largest regional market by 2028 growing at the fastest CAGR over the forecast period. The presence of highly populous countries, such as China and India, where awareness regarding preventive health is increasing along with several untapped markets, such as Southeast Asian nations, is expected to boost the product demand in the region.
Non-store-based distribution channels, such as online distribution and network marketing or direct selling, are witnessing robust growth in the market. Increasing penetration of smartphones and the internet coupled with the convenience of shopping and lucrative discounts offered by e-commerce platforms are expected to drive the market over the forecast period.
Gummy Market Report Highlights
- In 2020, the vitamins application segment accounted for the highest revenue share of over 55% on account of high consumption of vitamin gummies due to benefits, such as enhanced bone, teeth & ophthalmic health and improvement in overall immunity
- North America dominated the market with a revenue share of more than 38% in 2020 due to high product awareness and high per capita spending on healthcare & wellness
- The non-store distribution channel segment is expected to register the fastest CAGR during the forecast period
- Easy availability of a wide range of brands, increasing internet penetration in developing economies, and convenience offered by online platforms are the key factors driving the segment growth
- Many companies are increasingly outsourcing manufacturing to Contract Manufacturing Organizations (CMOs) as it allows brands to focus more on research & development, product distribution, and branding & marketing activities
- In addition, outsourcing also reduces capital-intensive operations, such as the construction of their manufacturing unit, staff training, raw material procurement, procurement of machines, regulatory approvals, and certifications