The U.S. nutraceutical market has experienced rapid growth over the past five years. Fueled by consumer demand, product innovation and low regulatory hurdles, the market is currently worth approximately $75 billion and is expected to grow at roughly 8% per year through 2018.

This fast-growing product segment is already blurring the traditional boundaries between food and pharma. Products as diverse as nutritional shakes for Alzheimer’s patients to vitamin drink mixes for children are lining the shelves at drugstores, specialty shops and even supermarkets.

Both traditional food and beverage and pharmaceutical companies see an opening to compete but high margins and low barrier-to-entry alone are not enough to capitalize on this rapidly growing opportunity.

In this new Executive Insights, L.E.K. Consulting proposes that winners in the food versus pharma battle for nutraceutical market share will be those companies that can most quickly and effectively harness the core strengths of both industries; these hybrid products, unsurprisingly, require the best of both worlds.

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