Nootropics Market Analysis Report By Application, By Distribution Channel And Segment Forecasts From 2019 To 2025

Industry Insights

The global nootropics market size was accounted for USD 2.17 billion in 2018 and is anticipated to grow at 12.5% CAGR over the forecast period. Increasing demand for smart and brain booster drugs is expected to drive market growth. A large number of professionals and students consume these smart drugs to improvise their memory and focus. Constant product development using both natural and synthetic raw materials is anticipated to propel the demand.

Over the last few years, consumers have been preferring natural nootropics like matcha tea, spinach, green tea, caffeine, kutcha tea, beets, eggs, Brahmi, liver, fish oil, arctic root, pine bark, ginseng, and turmeric. According to a report published by the American Council on Exercise (ACE), about 50% of American consumers prefer consuming products that have natural ingredients. The increase in the vegan population in economically developed regions like Europe and North America is anticipated to propel the demand for plant-based products. Nootropics manufacturers concentrate on natural ingredients to meet the increasing demand. For example, Gaia Herbs introduced Bacopa, a new vegan supplement in April 2019.

Increasing demand for multi-utility drugs that can be used as an energy booster, anxiety resistance, and antidepressants are anticipated to encourage investment in R&D of the market. Rising demand from the sports industry due to their ability to improve brainpower is anticipated to create growth opportunities for the major players.

Nootropics manufacturers also prioritize the packaging of the product. Metals, plastic, and glass are used for manufacturing bottles, cans, and pouches. Labeling and packaging play an important role in marketing the product as young professionals and students are mainly the target customers for this market. Moreover, constant innovation like new flavors, use of natural ingredients and gums is anticipated to propel the market growth as well as the consumer base.

Distribution Channel Insights

The offline channel of distribution dominated the nootropics market with more than 80% of the share in the total revenue in 2018. Drug stores dominated the offline segment owing to a large number of consumers prefer to buy from there. While on the other hand, the online segment is anticipated to grow at the fastest CAGR of 14.2% over the forecast period, owing to increasing preference by students. The convenience of shopping offered by Amazon and other online channels is anticipated to propel the demand of this segment. Ease of paying online that fits into the regulatory standards of various countries has made the operations easier for the online segment. Key nootropic producers focus on online distribution to reach a large consumer base.

Application Insights

Memory enhancement dominated the market with more than 30% of the market share in 2018. Rising competition amongst students with regards to academics has further propelled the demand for nootropics. Major players prefer to use natural ingredients over synthetic supplements, which are going to enhance their growth opportunities in the coming years. Further, increasing preference for smart drugs to handle the stress of examinations is expected to propel market growth. A large number of students from European universities consume these smart drugs to perform better in their academics. Memory enhancements supplements are gaining traction in the market. Some of the popular memory enhancement drugs are Modafinil, Adrafinil, Noopept, Phosphatidylserine, and Phenylalanine.

Over the last few years, smart drugs as antidepressants have gained significant demand in the market. Increasing awareness regarding mental health is anticipated to broaden the scope of using nootropics in the coming years. Attention and focus application segments are anticipated to grow at the fastest CAGR of 13.4% over the forecast period due to the increasing number of the working population. Rapidly growing participation in gaming and e-sports is also anticipated to uplift the product demand. Smart drugs help the brain to concentrate, which is beneficial for e-sports players.

Regional Insights

North America dominated the nootropics market with around 37% of the share in the total revenue in 2018. Vitamin supplements are consumed by almost half of the population in the U.S. The producers use innovative packaging and products to attract professional overachievers. Rising consumer awareness regarding mental health and the presence of a large number of manufacturers are anticipated to positively impact the market growth.

Asia Pacific is anticipated to grow at the fastest CAGR of above 18% over the forecast period. China is leading the market in this region. Australia is also a budding market for nootropics. Piracetam and Modafinil are the most renowned drugs in this nation. Multinational companies are partnering with domestic players in India and China to manufacture natural and herbal drugs. The rapidly growing education sector coupled with rising awareness regarding brain and mental health in emerging countries like India, Bangladesh, and China is anticipated to propel the product demand in the coming years.

Impact of COVID-19

The outbreak of COVID-19 has severely affected the growth of this market, owing to the disruption in the supply chain. Manufacturers are facing great difficulties in delivering their products to consumers. In addition, the poor supply chain has resulted in a shortage of raw materials. Further, consumer's spending on beauty and personal care products has reduced significantly, as a result, the market has witnessed a sharp decline. However, the COVID-19 impact is only for the short term and the market is projected to witness continuous demand post-pandemic.

Nootropics Market Share Insights

Some of the major players of the market includeAlternaScript; Accelerated Intelligence Inc.; HVMN; Peak Nootropics; Onnit Labs, Inc.; Teva Pharmaceutical Industries; United Pharmacies; Purelife bioscience Co., Ltd.; Powder City and SupNootropic bio co., Ltd. Constant product innovation and M&A are the key marketing strategies adopted by the major players in the industry. HVMN introduced chewable coffee cubes called Go Cubes that are sugar-coated and less expensive than regular coffee, in March 2016.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For this study, Million Insights has segmented the global nootropics market report based on application, distribution channel, and region:

• Application Outlook (Revenue, USD Million, 2015 - 2025)
    • Memory Enhancement
    • Mood & Depression
    • Attention & Focus
    • Longevity & Anti-aging
    • Sleep & Recovery
    • Anxiety

• Distribution Channel Outlook (Revenue, USD Million, 2015 - 2025)
    • Offline
    • Online

• Regional Outlook (Revenue, USD Million, 2015 - 2025)
    • North America
        • The U.S.
    • Europe
        • Germany
        • U.K.
    • The Asia Pacific
        • China
        • India
    • Central & South America
        • Brazil
    • Middle East & Africa
            • South Africa