New Players to Make Most of Untapped Avenues for Sports Nutrition Products in Emerging Economies, Says TMR
The global sports nutrition products market has a large number of players selling similar range of products. Players are engaged in constant promotional activities and marketing strategies, states a new report by Transparency Market Research (TMR). Key players operating in the global sports nutrition products market include MaxiNutrition, Glanbia Plc, Yakult Honsha Co. Ltd, Nestle S.A., and Monster Beverage Corporation.
Extensive investments in research and development activities are expected by manufacturers. R&D activities are resulting in the manufacturing of newer products with ingredients that caters to the specific health requirements of consumers. For instance, Abbott Nutrition Inc. recently inaugurated the first nutrition research and development center in collaboration with Syngene in India. Maxinutrition Ltd. has launched two new products – Biomax, a protein bar, and Cyclone Milk, which is a milk-based creatine drink.
The market faces substantial threat from substitutes. New entrants may face challenges owing to brand loyalty by consumers. The high capital investment required for the building of the manufacturing utility is another factor restraining new entrants in the global sports nutrition products market. Additionally, government regulations pose as yet another barrier for the new entrants. For instance, the FDA dismissed the weight management claims made by a few concerned companies. Such regulations and disapprovals by regulatory bodies can be major setbacks for players.
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Innovative, Effective and Proven Ingredients to Boost Demand for Sports Nutrition Products
Increasing obesity and other health concerns have gripped the attention of people across the globe. “A rising consciousness about physical appearance is popularizing protein as a super ingredient, thus driving the demand for sports nutrition products”, states a TMR analyst. The use of innovative, effective, and proven ingredients, which helps in muscle building and improves endurance, is increasing the popularity of these products. Rapid urbanization and rising disposable income of consumers across the globe are also behind the growth of the global sports nutrition products market.
Widening Distribution Channels Could Complicate Supply Strategy
Expanding distribution channels lead to more intermediaries, which could result in higher cost and subsequently result into delay in the product supply and increase the chance of products getting damaged. Thus, companies should avoid widening their distribution channels to overcome these challenges. Although government intervention is currently low in this space, the possibility is likely to become stronger in the coming years. This could bring distribution channels under tighter regulation in the coming years.
Another factor threatening the sale of sports nutrition products is the availability of counterfeit products at lower price. Consumers are attracted to the lower priced fake nutrition products owing to low awareness regarding the healthier and real products.
Developing Nations to Offer Expansion Opportunities
Although sports nutrition products are quite popular among consumers in developed countries, they are relatively new for developing countries. Since consumers in developing nations are yet to be fully aware about the health benefits of sports nutrition products, manufacturers can penetrate the markets in these countries. Taking advantage of this, many new entrants are expected to explore developing nations for establishing their business. Thus, the untapped market in developing nations will emerge as a growth opportunity for players in the sports nutrition products industry.
By type, the sports drink segment led the market not only in the recent past but is also expected to lead in the coming years. The sports drink segment is expected to account for 60.1% of the global sports nutrition products market by 2020. The sports supplements segment followed the sports drink segment in terms of holding significant shares in the market. By geography, North America is expected to lead in the global sports nutrition products market. The region is expected to account for 18.1% of the global market by the end of 2020.
According to the report, the global market opportunity in sports nutrition products will rise from US$35.01 bn in 2015 to US$52.55 bn by 2020.
This information is based on the findings of a report published by Transparency Market Research titled “Sports Nutrition Products Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2014 – 2020.”
The global sports nutrition products market is segmented as follows:
Rest of the World