Forecast Period
|
2025-2029
|
Market Size (2023)
|
USD 6113.20 Million
|
CAGR (2024-2029)
|
11.39%
|
Fastest Growing Segment
|
Functional Beverages
|
Largest Market
|
West
|
Market Overview
India Nutraceuticals Market has
valued at USD 6113.20 million in 2023 and is anticipated to project impressive
growth in the forecast period with a CAGR of 11.39% through 2029. The
nutraceutical market in India is experiencing remarkable growth, fueled by
several key factors. Firstly, India's large and diverse population is becoming
increasingly health-conscious, driving the demand for nutraceutical products.
The rising awareness of preventive healthcare and the desire for
wellness-oriented solutions have contributed to this trend.
Additionally, the aging
population in India has created a significant market for nutraceuticals. As
individuals seek ways to address age-related health concerns, such as joint
health and cognitive function, the demand for supplements and functional foods
has surged. Chronic diseases like diabetes, obesity, and heart disease are on
the rise in India. Nutraceuticals offer a holistic approach to manage these
conditions, promoting their adoption.
Consumer awareness regarding the
benefits of natural ingredients and traditional remedies has led to the
popularity of herbal and Ayurvedic nutraceuticals in the Indian market. These
products resonate with the cultural preferences and preferences of Indian
consumers. The government's initiatives to promote wellness and regulate the
nutraceutical industry have also played a crucial role in its growth. These
factors, coupled with the expansion of e-commerce platforms, are driving the
nutraceutical market in India, making it a vibrant and promising sector within
the country's healthcare and wellness landscape.
Key Market Drivers
Rising Incidence of Chronic
Diseases and Geriatric Population
The rising incidence of chronic
diseases and the growing geriatric population are significant drivers
propelling the nutraceutical market in India. India is experiencing a surge in
chronic health conditions, including diabetes, cardiovascular diseases, and
obesity. This increase can be attributed to changing lifestyles, urbanization,
and dietary habits. Nutraceuticals offer a valuable solution for managing and
preventing these chronic ailments. They provide a bridge between
pharmaceuticals and dietary supplements, emphasizing holistic health
management.
The aging demographic in India
is another crucial driver. As the population ages, there is a heightened
awareness of age-related health concerns. Nutraceuticals, with their focus on
maintaining wellness and addressing age-associated issues, have gained immense
popularity among the elderly. Products designed to support joint health,
cognitive function, and overall vitality are particularly sought after in this
segment. Furthermore, the geriatric population often prefers natural and
holistic approaches to health and wellness. This aligns well with the concept
of nutraceuticals, which emphasize the use of natural ingredients and
traditional remedies. Ayurvedic and herbal nutraceuticals, rooted in India's
rich cultural heritage, resonate strongly with both the elderly and the broader
population.
In response to these demographic
and health trends, the Indian government has also recognized the potential of
the nutraceutical industry. Initiatives to promote wellness and regulate the
market have created a conducive environment for the growth of this sector. The
combination of a rising burden of chronic diseases, a burgeoning elderly
population, and government support has positioned India as a thriving
nutraceutical market. As consumers become more health-conscious and seek
preventive healthcare solutions, the nutraceutical industry is likely to
continue its upward trajectory, offering a wide array of products that cater to
diverse wellness needs.
Intensification of Preventive
Healthcare
In India, the use of
nutraceuticals is on the rise, especially for preventive health care. More and
more people are using nutraceuticals to strengthen their immune system and
improve overall health. The preventive healthcare sector in India is estimated to
be worth USD 197 billion in 2025 at a compound annual growth rate (CAGR) of
22%.
The intake of essential vitamins
and micronutrients, such as vitamins A, vitamin D, and vitamin C, and folate,
as well as minerals, such as selenium and zinc, has significantly increased in
support of improved immunity.
Consumers are getting inclined
towards nutraceuticals products because they are free from additives,
preservatives, and artificial agents. Due to this, the nutraceuticals industry
is making constant efforts to blend science and healthy food to contribute
towards the overall health of the people.
Personalized nutrition is
becoming increasingly popular, as people are now aware of their nutritional
needs, which can differ based on age, gender, genetic, and lifestyle patterns.
Nutritional supplements can be customized to address specific health issues or
nutritional deficiencies. FMHG stands for Fast Moving Healthcare Goods, a name
given to the sale of nutraceutical products and nutritional supplements in
India. With a global market share of between 1% and 2%, India has a huge
opportunity for growth. Functional foods and beverages make up 60% of the
market, while dietary supplements account for 40%.
Companies operating in
nutraceuticals product are launching different products to meet the demand of
consumer. For instance, malnutrition can take many forms, including
underweight, low height, stunting, and micronutrient deficiencies. To combat
this, in September 2021, Abbott launched New PediaSure in India to support the
growth of children. This launch by Abbott contained arginine and natural
vitamin K2 which supports children’s growth and development through proper
nutrition.
Additionally, in December 2022,
Nutrilitius launched Nutraceuticals Capsules to promote health and wellness. It
was launched with the intention for offering the best and moist affordable
products to health-conscious customers. This range of supplements can be
consumed to improve metabolism, immunity, digestion, liver health, vision,
sexual performance, and bone health. They have been certified by FDA, Non-GMO,
Make in India, and Startup India.
Increasing Government
Initiatives
The government’s efforts to
address the growing lifestyle issues have raised awareness about dietary
supplements and nutritional supplements in India. As a result, favorable
business climate has emerged. Nutraceuticals fall somewhere between food and
pharmaceuticals, so the market is driven by research, health outcomes, clinical
trials, and other factors. The foundation for nutraceutical market growth in
India is made up of traditional medicines, ANI formulations, the start-up
scene, and academia.
In 2006, the Indian Food Safety
and Standards Authority (FSSA) was established, which is a modern integrated
food legislation that covers nutraceutical products, dietary supplements and
functional foods.
Moreover, Health Foods &
Dietary Supplements Association (HDSA) is a national non-profit organization
dedicated to advancing the interests of health food, dietary supplement,
nutraceutical, and the healthcare industry. It was founded in April 2002.
In addition, the
government approved a PLI (Production Liked Incentive) plan for the
pharmaceutical sector. Expanding the scope of the PLI scheme to include the
nutraceutical industry would certainly support research, innovation, and
clinical trials, allowing for additional domestic patent and product
developments.
In the Union Budget 2021, few
initiatives were highlighted to improve healthcare and infrastructure in India,
including programs and new healthcare collaborations. According to this
provision, the government proposed to increase healthcare funding by 137% to
USD 30 billion to invest in the development of nutraceutical products.
India can use power of the
“Atmanirbhar Bharat” and use its traditional medicine practice along with
modern alternatives to provide the world with the premium quality food and
health supplements.
A new ministry was established
on November 9, 2014, namely, the Ministry of Ayush, to promote traditional
healthcare practices in India. The intent to move into this vision had been
provided by the Government of India. This way, both the parties can collaborate
to initiate nutraceutical parks in the country, which will promote
manufacturing of the goods.
India currently accounts for
approximately 57% of the Active Pharmaceutical Ingredient (API) category and
69% of the Finished Pharmaceutical Product (FPP) category on the World Health
Organization's pre-qualified list. This is largely due to the government's
various efforts to strengthen the domestic pharmaceutical sector.
Rising Shift towards E-commerce
and Online Retailing
E-commerce channel is driving
the demand of nutraceuticals in the Indian market. Few nutraceutical segments
are in high demand, such as, sports nutrition because the target consumer is
younger, and online penetration rates are higher among younger consumers. This
consistently rising demand from the sports industry is also a major driver,
which is helping the nutraceuticals industry to take up online space.
Since nutraceuticals need a huge
amount of education for their customers, content and mobile are going to play a
big role in growing the online market for nutraceutical. Health awareness and
per capita income will also contribute to the growth of the nutraceutical
industry. The emergence of e-commerce platforms has enabled nutraceutical
products to reach a wider audience in India. Consumers are now able to browse
and purchase a vast selection of nutraceuticals from a variety of brands and
sellers, without the need to be physically present. Nutraceutical brands, both
established and new, have access to online platforms to promote their products.
As a result, consumers can choose products, based on their individual health
requirements and preferences. Nutraceutical online platforms provide
comprehensive product information, ingredient lists, and customer reviews to
assist consumers in making informed decisions about their nutraceutical
purchase. This level of transparency builds trust and confidence, allowing consumers
to comprehend the potential advantages and make informed decisions.
Shopping for nutraceuticals
online eliminates the need to visit multiple physical stores in order to find
the product. Consumers can access the product online and place their orders
from the convenience of their own homes. The convenience and saving of time
associated with online shopping have driven a greater number of consumers
towards purchasing nutraceuticals through online channels. Manufacturers are
attracted to e-commerce mode because it places a strong emphasis on
establishing uniqueness on global level. Market participants who focus on
developing an online presence will be better equipped to cope with unexpected
supply chain issues in the future. Therefore, increasing adoption of e-commerce
to purchase healthcare items will accelerate the demand of nutraceuticals
products in India.
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Key Market Challenges
Counterfeit Products
As the demand for dietary
supplements continues to grow, the prevalence of counterfeit nutraceuticals
grow as well. The packaging of both the original and counterfeit products is
often so similar that it is difficult for consumers to distinguish between the
two. Fake dietary supplements are made in unsanitary environments and may not
contain any active ingredients. Additionally, they may contain hazardous
chemicals and can have a detrimental effect on the consumer's health.
The reputation of supplement
brands is severely damaged by counterfeiting, resulting in a loss of revenue
and a loss of customer trust. To safeguard their brand and protect their
customers from fraudulent customers, dietary supplement manufacturers can utilize
NeuroTags' reliable anti-counterfeiting solution.
Regulatory Framework
A license from FSSAI (Functional
Safety and Standard Authority) must be obtained by nutraceuticals
manufacturers, importers, distributors, retailers, wholesalers, and
transporters. Moreover, the license and approval should be attained for health
supplements and nutraceuticals that are covered under the Food Safety And
Standard Regulations, 2016.
On March 7, 2022, the Food
and Drug Administration (FSSAI) issued an advisory regarding the implementation
of specific enforcement procedures for the verification of nutraceutical and
health supplement compliance. The grounds of action are sale of nutraceuticals
and health supplements that aren’t in compliance with the relevant regulations
and the false and fraudulent labelling and health claims that accompany them.
These benchmarks ensures quality product.
Variation in Prices
Nutraceuticals are in high
demand from quiet long; however, the high cost of these products restricts
their uptake in the Indian market. Nutraceutical manufacturers attempt to
recoup their R&D costs in a short time by pricing their products high, however,
in a price sensitive market like India, high production costs (or high profit
margins) can be a major obstacle.
Moreover, with the introduction
of GST, nutraceuticals and other health supplements are subjected to 18% tax
(with some of the categories even taxed at 28%), making these products more
expensive than before. High taxes associated with these products also affect
the entry of new players in the market as they would be pressured to launch
their products at lower prices to get a fair slice of market.
Key Market Trends
Growing Product Innovation
Rising demand for nutraceuticals
is addressed in the Indian nutraceutical companies and is contributed by the
new innovations in the nutraceutical markets. Drink mixes, nutritional shake,
protein powder, herbal tea concentrate, herbal aloe concentrate, biotin drinks,
and gummies are examples of the latest plant-based nutrition in demand in the
country. For instance, biotin and multivitamin gummies for hair growth from
OZiva brand are quite popular. It is a healthy blend of plant-based biotin with
keratin-building ayurvedic herbs and hair vitamins, which help in controlling
hair fall, supports hair growth, and helps in management of hair quality.
Similarly, in 2018, Power Gummies launched its hair vitamin gummies and
menstrual health gummies which covers a good sale in Indian markets, including
Amazon, Flipkart, and Nykaa
Adoption of Immunity-boosting
Supplements
Immunity-boosting supplements
has driven a significant shift in consumer buying patterns for nutraceuticals.
Nutraceuticals are high in demand today to support and develop immunity and
address certain health needs, like bone, sleep, brain, heart, and eye health,
along with overall physical and mental wellness. Additionally, due to busy
lifestyles, supplements are no longer perceived as medicines but as a daily
nutritional intake. Thus, the need for cleaner alternatives for nutrition is
being developed among consumers and this in turn has established a demand for
nutraceuticals including herbal supplements and vitamins. Supplement’s demand
is tracked in terms of its source and quality and are chosen depending on
brands that are transparent about the ingredients used and backed by adequate
scientific research and evidence.
Growing Focus Towards Preventive
Healthcare
Preventive healthcare has become
a significant line of defense during the pandemic substantiating the
nutraceuticals sector to be a strong aid to the consumer’s health. The intake
of potential nutrients and micro-nutrients such as vitamin C, vitamin A, vitamin
D, calcium, folate, selenium, and zinc has substantially increased for improved
immunity. Moreover, there is an observed shift from curative to preventive care
in the Indian market. With more focus on immunity due to the onset of the
pandemic, consumers are relying more on functional foods.
Growing Start-Up Ecosystem in
India
With the rising demand for clean
nutrition that adds value to overall health, India nutraceutical market is
pacing at an excellent speed and is therefore, experiencing addition of several
new start ups in the country’s nutraceutical market. For instance, Neuherbs, a
company established in year 2016, established a broad product portfolio in
Natural & Clean Nutrition including its diverse range for fitness, weight
loss, hair & skin, immunity, and digestion, and is growing at a substantial
rate within the industry. Additionally, Kapiva Ayurveda, another homegrown
direct-to-consumer brand established in the year 2016 is flourishing its
product portfolio with an extensive product range of juices, capsules, tea,
gummies, and breakfast mix. Similarly, in May 2023, Pure Nutrition, a 100%
vegetarian health and wellness brand introduced its range of sports nutrition
products, which comprises whey blend, mass gainer, creatine, BCAA, pre-workout,
and EAA powders, designed specially to support the needs of athletes, gym, and
fitness enthusiasts.
Segmental Insights
Source Insights
In the Indian nutraceuticals
market, source plays a pivotal role, and it can be categorized into three
primary segments: plant, microbial, and animal. Among these, the plant-based
segment emerged as the dominant force in 2023 and is poised to maintain its
leadership position through 2029, exhibiting a robust compound annual growth
rate (CAGR) of 11.78%.
The prevalence of plant-based
nutraceuticals can be attributed to several compelling factors. First and
foremost, plant sources are a rich and abundant reservoir of essential
nutraceutical components. These botanicals harbor a vast array of bioactive compounds
that offer significant health and medicinal benefits. Leveraging these
properties, herbal supplements have gained widespread popularity within the
Indian market.
India has a profound cultural
and historical connection with traditional medicine systems such as Ayurveda,
which places a strong emphasis on the use of plant-derived substances for
therapeutic and wellness purposes. This alignment with the nation's traditional
healing practices reinforces the preference for plant-based nutraceuticals
among the populace. Additionally, the plant-based approach aligns harmoniously
with the dietary choices and preferences of the Indian population, many of whom
adhere to vegetarian or plant-centric diets. This natural synergy between
plant-based nutraceuticals and the dietary habits of consumers further bolsters
the segment's dominance. In essence, the plant-based nutraceutical segment's
ascendancy in the Indian market reflects not only the abundant availability of
bioactive compounds from botanical sources but also the resonance of
traditional healing wisdom and dietary patterns with contemporary wellness
trends. This synergy positions plant-based nutraceuticals as a driving force in
the Indian nutraceuticals market, poised for continued growth and prominence.
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Region Insights
In terms of regional
distribution, the Indian nutraceuticals market can be segmented into four key
regions: East, West, North, and South. Among these regions, the West region is
poised to assert its dominance throughout the forecast period. Several compelling
factors contribute to the West region's prominence in the Indian nutraceuticals
landscape. The Western region, encompassing states like Gujarat and
Maharashtra, stands out as a hub for the nutraceutical industry. It is home to
numerous leading players in the nutraceutical market, primarily due to its
well-established industrial infrastructure and business-friendly environment.
This concentration of industry leaders and established businesses positions the
West region at the forefront of market activities.
Furthermore, the Western region
boasts rich agricultural resources and a favorable climate for the cultivation
of medicinal plants and crops essential for nutraceutical production. Key
ingredients like turmeric, amla, and ashwagandha are readily available in this
region, facilitating the sourcing of essential raw materials. Moreover, the
West region is home to several prestigious research institutions and
pharmaceutical companies, fostering a climate of innovation. These institutions
and companies have the expertise and resources to develop and manufacture
innovative nutraceutical formulations harnessing the potential of traditional
Indian plants and herbs.
In summary, the West region's
dominance in the Indian nutraceuticals market is driven by its robust
industrial infrastructure, abundant agricultural resources, and the presence of
renowned research institutions and pharmaceutical firms. These factors collectively
position the Western region as a powerhouse for nutraceutical production and
innovation, underscoring its leadership in the Indian nutraceutical landscape.
Key Market Players
- Haleon
Plc.
- Dabur
India Limited
- Abbott
India Limited
- Bayer
India Limited
- Merck
India Limited
- Himalaya
Wellness Company
- Amway
India
- Baidyanath
Group
- Wockhardt
Limited
- Herbalife
- Neuherbs
- Pure
Nutrition
By Category
|
By Source
|
By Distribution Channel
|
By Sector
|
By Region
|
- Dietary Supplements
- Functional Beverages Functional Foods
|
|
- Pharmacies & Drug Stores Online
Supermarkets & Hypermarkets
- Others
|
|
|
Report Scope:
In this report, the India
Nutraceuticals Market has been segmented into the following categories, in
addition to the industry trends which have also been detailed below:
· India Nutraceuticals Market, By Category:
o Dietary Supplements
o Functional Beverages
o Functional Foods
· India Nutraceuticals Market, By Source:
o Plants
o Animals
o Microbial
· India Nutraceuticals Market, By Distribution
Channel:
o Pharmacies & Drug Stores
o Online
o Supermarkets & Hypermarkets
o Others
· India Nutraceuticals Market, By Sector:
o Urban
o Rural
· India Nutraceuticals Market, By Country:
o North
o South
o West
o East
Competitive Landscape
Company Profiles: Detailed analysis of the major companies
present in the India Nutraceuticals Market.
Available Customizations:
India Nutraceuticals Market
report with the given market data, Tech Sci Research offers customizations
according to a company's specific needs. The following customization options
are available for the report:
Company Information
· Detailed analysis and profiling of additional
market players (up to five).
India Nutraceuticals Marketis an
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