Nootropics Market Size, Share & Trends Analysis Report By Form (Capsules/Tablets, Powder, Drinks), By Distribution Channel (Offline, Online), By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global nootropics market size to be valued at USD 29.24 billion by 2028 and is expected to grow at a compound annual growth rate (CAGR) of 15.0% during the forecast period. Rising demand for brain boosters and smart drugs is anticipated to fuel market growth. A large number of students and professionals consume these smart drugs to improve focus and memory. Continuous product development using both synthetic and natural raw materials is projected to further fuel the product demand. The COVID-19 pandemic made a significant contribution in boosting the demand for nootropics as the consumers' inclination has shifted towards brain-health boosting supplements, drinks, and bars to improve their cognitive health. Moreover, several startups and retailers were benefited from online sales of nootropics owing to the COVID-19 pandemic. Furthermore, the demand for organic nootropics such as coffee and supplements with natural ingredients like Brahmi, arctic root, turmeric, ginseng, and pine bark witnessed a surge as consumers are seeking natural nootropics products.

A significant amount of the adult U.S. population consumes multi-vitamin tablets for improving functional capabilities of the brain such as improving cognition, memory, alertness, concentration, creativity, and attention. Moreover, according to the article published on dualdiagnosis.org, in March 2021, smart drugs and nootropics are on the rise in the U.S. as various consumers consume them to improve mental power, which is expected to continue during the forecast period.

Nootropics help the brain to focus, which is highly beneficial for sports enthusiasts. Therefore, companies have been strategically targeting these consumers. For instance, Koios, a nootropic beverage firm located in Colorado, U.S. markets its products in the sports industry by appointing professional players for commercials and sponsoring famous e-sports teams. Citicoline, Choline bitartrate, Alpha-GPC, Caffeine, and N-Acetyl-L-Tyrosine are the naturally derived nootropics that help in improving focus.

Product manufacturers have been introducing new products to cater to the overwhelming demand from consumers. For instance, in April 2019, Gaia Herbs launched a new product - ‘Bacopa’, which is a vegan supplement made using natural ingredients. It contains lemon balm, saffron, and spearmint.

In May 2021, Neuratech (Zoii PTY LTD), a startup based in Brisbane, planned to launch 3x new nootropics. These products are designed to solve and support specific problems related to brain wellness and are available in powered and beverage form in flavors including vanilla and hot chocolate.

Nootropics Market Trends

The market is anticipated to grow as more organizations and companies are taking the necessary steps to raise awareness. Furthermore, the nootropics industry is expanding due to increased demand for organic nootropics such as coffee, supplements, and natural ingredients such as brahmi, arctic roots, ginseng, pine bark, and turmeric.  In addition, the market's growth rate is expected to be driven by the growing adult population, increased demand for brain boosters, and smart medications among them.

The high expense of some supplements, the lack of evidence regarding their effectiveness, and the potential adverse effects of overconsumption of these supplements are some of the key factors that limit the market expansion. Additionally, poor healthcare infrastructure in emerging economies and a lack of public awareness are expected to pose a challenge to the growth of this market.

Furthermore, the market’s expansion is supported by a rise in the number of R&D activities. Increasing drug approvals and introductions of new drugs help boost the market's growth rate. In addition, increased investment in advanced technology research and an increase in the number of developing markets are expected to benefit the market growth during the forecast period.

Form Insights

The capsules/tablets segment held the largest revenue share of over 45.0% in 2020 and is expected to maintain its lead over the forecast period. Capsules/tablets have seen an uptick in demand as the product manufacturers are marketing them in these forms, which is expected to continue during the forecast period.

The drinks segment is projected to register the fastest CAGR of 16.0% from 2021 to 2028. Nootropics ingredients are being incorporated into RTD drinks and shots to help improve functions such as focus and memory. Nootropics in drinks form are gaining popularity due to their ability to be digested more quickly than food, allowing them to boost the brain instantly.

The powder segment held the second-largest revenue share in 2020. Well-established players such as Reckitt Benckiser Group PLC are also planning to enter the nootropic market. For instance, in May 2019, it launched a new product Neuriva - Neurofactor and Sharp PS. Neurofactor is a pure coffee fruit extract and supports the general ability to boost brain-derived neurotrophic factor, which is healthier than other green coffee caffeine powder. Such product offerings are expected to drive the market.

Distribution Channel Insights

The offline segment held the largest revenue share of over 70.0% in 2020. The increasing penetration of independent retail giants such as Walmart, Walgreens, Tesco, and Costco is boosting product visibility and attracting a larger consumer base. Consumers prefer to explore these products before buying, which is driving the sales through these channels.

The online distribution channel is projected to register the highest CAGR of 15.4% from 2021 to 2028. Consumers are switching from offline to online channels owing to the change in their purchasing patterns and a considerable shift in lifestyles. Online platforms offer high levels of convenience, increased product visibility, and at-home delivery features, which is eventually driving the segment.

Regional Insights

North America held the largest revenue share of over 40.0% in 2020 and is expected to maintain its lead over the forecast period. The growth of the market in the region is supported by the increasing presence of key market players in the region, rising focus on health, and rising awareness regarding nootropics, which are among the key factors driving the product demand in this region.

Asia Pacific is projected to register the fastest CAGR of 16.0% from 2021 to 2028. After the outbreak of the COVID-19 pandemic, the consumers in the economies including China and India have intensified their attention toward personal wellness and are increasingly consuming such products, which has led to a surge in demand for natural, herbal nootropics for supporting the brain.

The Middle East and Africa is expected to witness significant growth from 2021 to 2028. Consumers in the region are developing prolonged attention towards overall wellness, which is boosting the market growth. Nootropix, an e-commerce store based in Abu Dhabi, UAE, offers pure nootropics and dietary supplements to consumers in UAE for addressing and supporting brain-related functions such as memory, focus, concentration, attention, motivation, relaxation, mood, alertness, stress, and other cognitive function aspects.

Key Companies & Market Share Insights

The market is characterized by the presence of a few well-established players and several small and medium players. Product launches are among the key strategic initiatives undertaken by the industry players to gain a competitive edge in the market. The product manufacturers are introducing new variants in the nootropics product categories to capture a larger consumer base.

For instance, in October 2021, Savvy Beverage is planning to launch instant coffee and soda drinks containing nootropic ingredients to enhance brain health. Similarly, in February 2021, Mind Cure Health Inc. announced the release of its original nootropic and adaptogen product offerings for promoting support across the spectrum of mental hygiene. The product offerings include three nootropics formulations in capsule and powder form and a teen-centric formulation in capsule form with added energy, focus, and protection from immune threats. Some prominent players in the global nootropics market include:

• Onnit Labs

• Reckitt Benckiser Group plc.

• Mental Mojo, LLC

• NooCube

• Mind Lab Pro

• TruBrain

• Neu Drinks

• Peak Nootropics

• Zhou Nutrition

• Kimera Koffee

Recent Developments

• In September 2022, Neuriva®, a Reckitt brand, announced a partnership with Alton Brown to inspire customers to think bigger. The partnership will pair Brown’s passion for nutrition and food with brain health to empower customers to do more for their brains.

• In April 2021, Unilever announced that it had signed an agreement to buy Onnit, a holistic company based in Austin, Texas (US) that focuses on supplements for maintaining physical fitness. This agreement resulted in a purposive vision to make improvements in the well-being of consumers through scientific solutions.

Nootropics Market Report Scope

Global Nootropics Market Segmentation 

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research has segmented the global nootropics market report on the basis of form, distribution channel, and region.

• Form Outlook (Revenue, USD Million, 2016 - 2028)

  • Capsules/Tablets

  • Powder

  • Drinks

  • Others

• Distribution Channel Outlook (Revenue, USD Million, 2016 - 2028)

  • Offline

  • Online

• Regional Outlook (Revenue, USD Million, 2016 - 2028)

  • North America

    • U.S.

  • Europe

    • Germany

    • Italy

  • Asia Pacific

    • China

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa

    • UAE