“Nutraceuticals” is made up of a combination of two words ‘nutrition’ and ‘pharmaceuticals’. These are the products proving ‘prevention is always better than cure’ as it provides the medical and health benefits including the prevention and treatment of diseases in addition to the basic nutritional value found in food.
The market for nutraceuticals in India is primarily comprised of three segments – Dietary Supplements, Functional Food and Functional Beverages with the later two together holding the major chunk of the market. Currently the Indian nutraceuticals market is growing at a healthy double-digit rate and may reach to Rs 195 Billion mark in current fiscal (2013-14) itself as per IKON Marketing Consultant’s latest research report “The Indian Nutraceuticals Market: Poised from Neutral to TOP Gear”.
The growth of the nutraceuticals market in India is largely because of the increased affluence & life style diseases and change in the consumer perception and mindset. In addition, the increase in awareness about the extra supplements among the consumers, increasing health consciousness along with rising healthcare cost, are paving the way for the growth of the Indian Nutraceuticals market.
When compared to global nutraceuticals market, the Indian nutraceuticals market is still in nascent stage representing only 2% of the global market. In terms of per capita consumption of nutraceuticals with just US $ 2.5, India remained far behind than those of developed nations. The market penetration is just above 10% in India, making ‘Nutraceuticals’ an urban concept with the consumption of nutraceuticals products mainly driven by affordability, awareness and lifestyle related diseases. However, there is a latent market for nutraceuticals in rural India with the rising rural prosperity and life- style diseases no longer restricted to urban India. As per IKON’s estimates, Rural India occupies nearly one third of the total Indian nutraceuticals market.
The market is fragmented and becoming increasingly competitive with the entry of major ingredients manufacturers and suppliers, food fortification companies, ayurvedic and herbal extract manufacturers and distributors apart from the leading FMCG, Food & Beverages and pharmaceutical companies. These companies tried and tested the Indian market by launching a variety of Nutraceuticals products including Vitamins, Minerals, Protein, Herbal supplements, Energy drinks, Fortified foods and continuously kept on researching and developing the new products.
Though traditionally pharma dominated dietary supplements was having the major weight age in the market, the recent shift in consumerism resulted in the functional food and functional beverages together increasing its weight age in the Indian Nutraceuticals market. The Food & Beverages companies and FMCG players are no longer behind in manufacturing and marketing the fortified foods and beverages with various health benefits.
The future of the Indian Nutraceuticals market looks very promising for both, manufacturers and consumers. With greater health awareness, rise of disposable income with preventive consumerism in India and more clarity on regulatory environment the Indian Nutraceuticals market is ready to change the Gear from Neutral to TOP within the current decade.