According to our estimates, the global nutricosmetics market was worth more than $4bn in 2024 and should grow at high single digit CAGR until 2030. While demand for holistic beauty solutions, particularly in skincare, hair health, and anti-aging, continues to rise, the market is undergoing a pivotal shift. The era of broad, wellness-driven growth has ended, replaced by a focus on scientific validation, operational efficiency, and strategic differentiation.
The end of undifferentiated growth: lessons from the market contraction
The nutricosmetics sector experienced rapid growth during the pandemic, with multivitamin sales in the U.S. spiking 51% in March 2020 according to the Financial Times. However, growth plateaued by 2021, leading to a contraction in venture capital investment from $980m across 222 deals in 2021 to $580m across 119 deals in 2023 based on data from Pitchbook.
The 2024 failure of Care/of, a once promising personalized supplements startup acquired by Bayer’s for $225 million in 2020, reveals some of the fundamental challenges of the supplement market.
The company’s supplement customization model proved unsustainable due to three weaknesses: prohibitively high CAC compared to CLTV, operational complexities in producing customized packs at scale and insufficient proprietary science to differentiate from conventional vitamin brands. When Bayer began divesting non-core consumer health assets in 2023, Care/of’s lack of clinical validation left it vulnerable.
This shows that undifferentiated brands relying on marketing claims alone are no longer viable.
Key opportunities: science, new formats, niche specialization and Asia
1 – Clinical validation as a competitive edge
Consumer skepticism around supplement efficacy has pushed brands to invest in clinical research. For example Nutrafol, a hair wellness specialist, and Ritual, a vitamin subscription service, began conducting studies on product formulations as early as 2018. These investments are substantial with third party clinical trials typically costing between $25K and $100K. However, they are increasingly necessary to differentiate in a market where 58% of adults aged 20–39 use no supplements at all according to the U.S. National Center for Health Statistics.
2 – Beyond traditional formats
The decline of pill-based supplements has led to experimentation with alternative delivery systems. Seed, an oral probiotic brand focused on gut microbiome science, now offers vaginal suppositories that apply its research-backed bacterial strains to feminine health. Meanwhile, Elix, which formulates herbal supplements based on traditional Chinese medicine, has expanded beyond herbal supplements to offer personalized health coaching, creating an integrated wellness ecosystem. Functional foods are also gaining traction: Balchem, a specialty ingredients manufacturer, developed protein and collagen-infused crisp additives designed to enhance snacks and cereals while delivering beauty nutrition benefits.
3 – The benefits of niche specialization
Today, growth opportunities are concentrated in category-specific formulations rather than broad-spectrum supplements. Products focused on women’s health and gut-skin products are outperforming traditional multivitamins.
For example Love Wellness established itself in the women’s health sector with supplements targeting underserved physiological needs like vaginal microbiome balance and digestive discomfort. The company’s “Bye Bye Bloat” supplement emerged as a market leader, utilizing a proprietary enzyme blend to address water retention and digestive discomfort. In March 2024, the brand expanded beyond pills, introducing topical skincare and lymphatic massage tools under its “Bye Bye Bloat” line. Since the launch of these complementary products in March 2024, sales of the original bloat supplement increased by 75% showing how product diversification can also reinforce core offerings.
4 – Asia Pacific as the growth engine
Asia Pacific accounts for the largest share of nutricosmetic sales, driven by Japan, South Korea, and China. Shiseido has been investing heavily in Ultimune, a probiotic powder supplement designed to support skin immunity and barrier function through gut-skin axis modulation. Shiseido’s recent partnership with Kagome, a tomato extract specialist, also highlights the convergence of food science and cosmetics – a trend likely to expand globally.
Similarly in Korea, LG Household & Health Care’s Vital Garden line combines traditional Korean herbal ingredients with clinically tested anti-aging compounds in capsule form.
Challenges: funding, regulation, and market saturation
1 – Shifting investment landscape
The nutricosmetics sector faces a more conservative funding environment. Pharmaceutical firms, once active acquirers, are divesting from consumer health divisions. Bayer’s exit from Care/of and other spin-offs reflect a recognition that supplement brands require CPG-like agility, distinct from pharmaceutical R&D cycles. Startups must now demonstrate profitability earlier, as seen with Ritual’s focus on subscription models and clinically validated ingredients.
2 – Regulatory and consumer trust hurdles
Compliance with regulations such as the Dietary Supplement Health and Education Act (DSHEA) is critical, particularly as the FDA increases scrutiny on label claims. Brands like The Nue Co., known for its traceable ingredient sourcing and minimalist formulations, and Advanced Nutrition Programme, which specializes in clinically validated skin supplements, are responding by emphasizing transparency through detailed product dossiers and third-party testing. Some are further adopting clean-label and vegan formulations to align with evolving consumer preferences for purity and sustainability.
3 – Differentiation in a crowded space
With over 3,000 new collagen products launched annually according to data from Innova Market Insights, standing out requires more than ingredient claims.
Bioiberica’s Dermial, a hyaluronic acid matrix supplement, clinically demonstrated a 34% increase in skin brightness after 12 weeks, a measurable outcome that resonates with results-driven consumers. Similarly, Balchem’s combination of collagen and MSM (methylsulfonylmethane) was shown in trials to improve skin thickness and hydration, offering a competitive edge in a saturated category.
Strategic takeaways
The nutricosmetics market is maturing, requiring brands to refine their approaches:
- Prioritize clinical validation to build consumer trust and justify premium pricing
- Expand beyond pills with functional foods, topicals, and hybrid wellness solutions
- Leverage Asia’s innovation pipeline, particularly in food-beauty convergence
- Focus on profitability early, as investor patience for unproven models wanes
For established players like L’Oréal, which announced in February 2025 its entry into nutricosmetics, the opportunity lies in leveraging existing R&D capabilities to develop science-backed ingestibles. For startups, the path forward involves niching down, whether through personalized formulations, novel delivery systems, or clinically proven efficacy.
Nutricosmetics still offer a lot of growth opportunities, but to succeed companies will have to increasingly specialize and adapt rather than to rely on a broad consumer appeal for wellness.
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