Nootropics: A boost to our brain power
23 October 2019
Bottom line:
Some scientific studies have proved natural nootropics' efficacy and short term effects.
However, large scale trials and solid intellectual property are necessary for this market to take off.
Global nootropics supplements market is huge and potentially limitless as these substances are not regulated.
According to Market Insider, it is expected to reach $11bn by 2024 at a CAGR of 20% (2016–2024).
Companies in this sector are still private and might be for sure on the target list of larger pharma or nutrients companies.
Some nootropics players we monitor are Neurohacker Collective (not listed), TruBrain (not listed), Koios Beverage (not listed), Cognitive Clarity (not listed), Nootrobox (not listed)
What Are Nootropics?
- In the fast-growing brain enhancement market, we identified natural nootropics as an interesting opportunity for the larger pharma companies willing to enter this market. This market is dominated by privately owned players.
- The term ''nootropics'' was coined in the 1970s by chemist Corneliu E. Giurge. He was trying to invent a sleeping pill but instead ended up synthesizing a substance, piracetam, able to modulate cognitive function, that he called nootropic.
- The term nootropics refers to chemicals able to enhance cognitive functions such as concentration, memory, motivation, productivity, creativity, etc.
- Nootropics are often classified in two categories:
- Natural nootropics: Usually sold on their own or as dietary supplements (a blend of different brain enhancers available in various forms including powder, pills, liquid, capsules and snacks). Some examples include Lion's Mane, Caffeine, L-theanine, Panax ginseng, Ginkgo biloba, Bacopa monnieri, and Rhodiola rosea, CBD, Tryptophan, and Huperzine.
- Prescribed smart drugs: Substances approved for the treatment of different brain disorders such as Alzheimer's, Attention Deficit Hyperactivity Disorder (ADHD) and sleep disorders. Modafinil and Adrafinil by TEVA Pharmaceuticals (TEVA:US), Ritalin by Novartis AG (NOVN:SW), and Aderall by Shire PCL (SHP:LN).
Notable Moments In Nootropic History
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Potential & Limits
- Natural nootropics have been rising in popularity among healthy individuals
- They appeal mainly to students, chief executives and athletes, willing to boost creativity and productivity in a competitive environment.
- As of 2017, 1.8mn of Americans use ginseng and more than 296mn consume caffeine each day.
- Prescribed smart drugs have a more powerful effect, and a growing number of people is turning to these substances.
- As of 2018, according to the American Journal of Psychiatry, prescribed smart drugs were used by 16 million Americans over the age of 18 and approximately 5mn people aged 12 or older were using them illegally.
- Prescribed smart drugs have strong side effects and they should be taken only by a selected sick population for whom the benefits outweigh the potential risks.
- Most of natural nootropics have been consumed for hundreds of years and, at low doses, rarely caused side effects. Problems have arisen when these substances were taken in combination with non compatible pharmaceutical drugs or when contaminated with heavy metals.
- Today most of the companies selling natural nootropics are in compliance with Good Manufacturing Practices (GMP).
- Small pilot trials have shown natural nootropics' ability to improve cognitive function without the negative side effects of prescription smart drugs, but companies still need to provide reliable research results to prove efficacy and long term effects
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Catalysts:
- A rising trend among healthy people. Nootropics are increasingly used for academic, professional and athletic success.
- Easy accessibility and relatively low price. Natural nootropics sold as dietary supplements for lower than 100$ per month, are easily available online.
- Increasing consumer spending on wellness products. The increasing interest in wellness products is expected to boost the product demand.
- Large-scale research. Solid data demonstrating product's efficacy and long term effects could help dissipate concerns.
- Agreements with large retailers. Agreements with large retailers, such as Walmart and Amazon are allowing nootropics companies to reach mass audience.
Risks:
- Lack of solid research. The brain circuits involved in human cognition are very complicated and not fully understood. This makes difficult to prove nootropics' clinical value and safety.
- Nootropics' benefit is believed to be linked to a placebo effect.
- Lack of intellectual property protection. Nootropics companies will need to build their intellectual property in order to have an edge on their competitors.
- Nootropics supplements are not regulated. Some companies have been identified as having misleading ingredients and illegal marketing, increasing the already existing skepticism over these products.
- Federal Trade Commission is currently penalizing nootropics businesses for disclosing unproved scientific data of their products .
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