The nutraceutical market in India was valued at USD 4.4 billion in 2018 and is estimated to reach USD 5.23 billion by 2019.
It is expected to grow at the CAGR of 19% within the forecasted time period of 2019-2024 to reach USD 12.49 billion by 2024 because of the rising chronic illnesses and rising demand from health and fitness centres.
- Definition / Scope
- Market Overview
- Key Metrics
- Market Risks
- Market Trends
- Industry Challenges
- Pricing Trends
- Regulatory Trends
- Market Size and Forecast
- Market Outlook
- Competitive Landscape
- Key Market Players
- Strategic Conclusion
Definition / Scope
Nutraceuticals are the substances isolated from herbs, dietary supplements, and specific diet other than nutrition which are used as medicine for physiological benefit, protection of health, prevention from chronic illnesses. It is also known as bioceutical.
The nutraceuticals market is concerned with the production, distribution and sales of the nutraceutical product. It is segment into following types on the basis of the product type:
India is holding the largest market in the supply of herbal extracts and raw materials for the dietary supplement globally.
It contributes to the almost 2% of the global nutraceutical market. Its market size was valued at USD 4.4 billion in 2018, increased from USD 2.8 billion in 2015.
It is expected to grow at the CAGR of 19% within the forecasted time period of 2019-2024 because of the rising health awareness, efficacy of nutraceutical products, and rising demand for these products. It will reach USD 12.49 billion by 2024.
On the basis of type of product, the dietary supplements (protein, vitamin supplements, Herbal extracts) is leading the market with share of about 64% of total Indian Nutraceutical market and rest of it 36% is leaded by the functional food and beverages segment.
Dietary supplements is expected to grow at the CAGR of 19% within the forecasted time period of 2019-2024 because of the tradition of consuming natural healthy food in India.
The key market players in this market are Amway, Dabur, Britannia Industries, Nestle India, etc.
- Inadequate regulatory framework
In the context of India, around 60% of the dietary supplements are unregistered and unapproved. The clear and transparent regulations for the nutraceutical market aren’t available.
It might influence the level of acceptance towards the nutraceutical products as they aren’t approved and their efficacy isn’t examined. Because of this, the demand from the aware individuals regarding quality, safety and efficacy of the product might decline and restrain the growth of its market.
Top Market Opportunities
- Rising health and fitness centers
Rising number of the health and fitness centers such as gyms, yoga centers is growing the demand for the vitamins and dietary supplements. In the context of India, there are almost 21,000 health and wellness centers.
The fitness industry is growing at the CAGR of 16-18% annually. It is providing the significant opportunity for the demand and growth of its market.
- Increasing burden of chronic diseases
The burden of the chronic illnesses such as cancer, diabetes, cardiovascular diseases is in increasing trend. Cancer is the second leading cause of death and is expected to have 1.16 million new cases. India contribute to the 8.17% of total global cancer deaths comprising 9.6 million deaths in 2018.
Almost 69.2 million people in India are suffered from type 2 diabetes and is expected to reach 98 million by the year 2030. As the nutraceutical products have potentiality to prevent and control these chronic illnesses, this increasing trend of burden might favor the growth of its market.
- Potential health benefits and protection against chronic illnesses
The nutraceuticals provides the protection against chronic diseases such as Alzheimer’s disease, cardiovascular diseases, eye disorders, allergic conditions, etc, and also are used to improve health and increase life expectancy. For instance, nutraceutical products such as curcumin, lutein, beta-carotene are used to postpone the development of dementias.
The antioxidants, dietary fibers and omega-3 polyunsaturated fatty acids are used for the treatment of CVD. Beta-carotene as the antioxidant is used for the prevention of cancer.
A study conducted by Nithya Prem to evaluate the potentiality of the nutraceutical products has showed that nutraceuticals contains nutrient that manages the condition of cancer.
Along with this, nutraceuticals such as Echinacea, coneflowers, garlic, morphine, etc are well known as the immune boosters. The potential health benefits of these products are driving the demand for its use and growth of its market.
- Rising Consumer Awareness towards healthy products
In the context of India, the consumers are more aware about the benefits of nutraceutical products and are conscious about their health and fitness.
For instance, in a population based survey, almost 44.44% of participants believe that the health drinks are essential for health and 41.7% of them in the age group of 15-25 years were consuming that drinks daily. It is driving the market for the nutraceutical products.
- Increase in ageing population
The demographic composition of the Indian population is changing and shifting towards the greater proportion of the aged population. The proportion of the aged population (population above 60 years of age) is expected to increase from 8% to more than 20% by the year 2050, which is about 34 crore of people above 60 years of age in India.
As the aged population is more susceptible to chronic illnesses such as arthritis, Alzheimer, cardio vascular diseases, the demand for the nutraceutical products also increases. It will drive the market for the nutraceutical products in India.
- Irrational use and side effects of herbal medicines and supplements
Safety of the nutraceutical product remains the issue as the evidences regarding its efficacy and safety is limited. Sometimes, the irrational use of these products causes the harmful effects on the health.
For example, a research study from University of Adelaide has revealed that the herbal medicines can cause kidney failure and liver damages because of toxic chemicals and heavy metals.
In India, a women with osteoporosis using the herbal pills, nutritional supplements and home remedies for more than two years has experience the chronic digestive problems.
The physicians have suspected the over-dose of supplements as the cause for it. These incidences might restrain the demand for this products and decline growth of its market.
- Undifferentiating labeling of nutraceutical products
In the context of India, the regulatory framework for the labeling of the nutraceutical products is inadequate.
Along with this, authority for the approval and registration is also unavailable, which is creating the confusion regarding the quality and efficacy of the nutraceutical products among the consumer.
For instance, the product named Putrajeevak Beej produced by Patanjali has created the confusion among consumer in which they have perceived that consumption of this products promote the birth of male child birth.
It has happened due to the misleading name and labeling of the growth. Such instances and incidences of misleading products might affect the demand for the nutraceutical products and restrain the growth of its market.
- Geographical differences in penetration of the nutraceutical product
In the urban areas in India, the penetration of these products is quite high in comparison to the rural areas. The penetration in urban India is 22.51% while it is just 6.32% in rural India. It is quite challenging for the market players to increase its usage in the rural areas too.
The price of the nutraceutical product varies depending on the type of product, dosage form, production company, application, and availability of raw ingredients.
For instance, the price of the dietary supplement in capsule form ranges from USD 13.55 to USD 25.44 per bottle while in the tablets form its cost ranges from USD 7.35 to USD 14.68 per bottle.
The price of the multivitamin syrup costs USD 1.77 per bottle while the immune system booster costs USD 19.57 per piece. The price of the food supplement produced by Naturamore brand is USD 11.31 per piece while produced by Now foods is USD 9.89 per box.
On average, the price of the protein supplements is USD 9.19 per bottle, for herbal medicines is USD 28.25 per bottle, Vitamins is USD 9.19 per piece. The average price of the nutritional supplement is USD 141.33 per strip.
Food safety and standard authority of India (FSSAI) is the regulatory authority for health supplements and nutraceuticals market in the context of India. It has developed the standards for production, storage, distribution, sale and import of the food including nutraceuticals.
It has developed Food safety and standards act for its regulation. This act provides the guidance to develop the orders with a view to handle food related issues for eight categories of food i.e. foods for special dietary uses, nutraceuticals, health supplements, foods for special medical purpose, foods with added probiotic ingredients, foods with added prebiotic ingredients, novel foods and specialty food Containing plant ingredients. It also has developed Food safety and standards regulation, 2017.
It provides the legal regulatory framework for labeling of nutraceuticals Some of the others regulations related to this market are Prevention of Food Adulteration Act, Vegetables oil order, Edible oil packaging regulations, etc.
Market Size and Forecast
Asia pacific countries account for almost 30% of total global nutraceutical market. India contributes to the almost 2% of the global nutraceutical market. Its market size was valued at USD 4.4 billion in 2018, increased from USD 2.8 billion in 2015.
Its market value is expected at USD 5.23 billion in the year 2019. It is expected to grow at the CAGR of 19% within the forecasted time period of 2019-2024 because of the rising health awareness and rising demand for these products.
It will reach USD 12.49 billion by 2024. The per capita expenditure of Indians on nutraceuticals products is almost USD 2.5, which is quite low in comparison to the global average of USD 21.
In the context of India, the highly consumed nutraceuticals are Amway India’s Nutrilite, Zandu balm, Nestlé’s Actiplus, Danone’s Yakult, Chavanprash, Yakult, Dabur honey, Rose water, etc.
On the basis of type of product
- The dietary supplements segment is dominating the market with share of about 64% of total Indian Nutraceutical market. Its market size was valued at USD 2.81 billion in 2018 and is expected to grow at the CAGR of 19% within the forecasted time period of 2019-2024 because of the tradition of consuming natural healthy food and herbal products such as Chavanprash in India. It will reach USD 5.9 billion by the year 2022.
- The dietary supplement segment consists of protein supplements, vitamin and minerals, and herbal extracts. Here, vitamins and minerals segment is leading the dietary supplement market with market share 40% of the total dietary supplements market with market value of USD 1126 million. It is followed by herbal extracts segment (30%), protein supplements segment (25%) and other segments (5%).
- The functional food and beverages segment accounts for 36% of the total nutraceutical market in India. Its market size was valued at USD 1.58 billion in 2018. It is expected to grow at the CAGR of 15.6% within the forecasted time period of 2019-2024. The most widely used energy drinks in India are Red Bull, Hector, Goldwin Healthcare, etc.
Globally, the market size for nutraceuticals market expected to reach USD 250 billion in 2018. In the context of India, its market value is expected to reach USD 12.49 billion by 2024. It is expected to grow at the CAGR of 19% within the forecasted time period of 2019-2024.
In the context of India, Cargill India Private limited is dominating the functional food and beverages market with the share 20% of total Indian nutraceuticals market followed by Britannia Industries limited (15%), Gujarat Co-operative Milk Marketing Federation Limited (15%), and Nestle (8%) while in the context of the dietary supplements, Amway India enterprises Limited is leading the market with share of 12% followed by Dabur India Limited (11%) and Heinz India Private Limited (6%).
Key Market Players
The short profile of the nutraceutical companies in India are discussed as follows:
- Amway India Enterprises Limited: It is the leading manufacturer of dietary supplements with the total market share 33.8% of total Indian nutraceutical market. Nutrilite is the major selling vitamin and dietary supplements produced by this company.
- Dabur India: It is one of the India’slargest manufacturer of the ayurvedic medicine and natural products. It produced more than 260 products for common illnesses such as common cold to chronic paralysis.
- Herbalife Nutrition: It manufacturers the nutraceutical products such as vitamins and minerals, target nutrients for weight management, energy and fitness. Its market share is about 5% of total dietary supplements market in India.
- Cargill India: It is the company engaged in the production of protein supplements, agricultural products, animal nutrition and food ingredients. It is providing the services across 70 countries including India.
- Nestle India: It is a multinational company specialized in the production of the food and beverages. Its product includes energy drinks, medical food, frozen food, etc.
The nutraceutical market in India is growing at the rate of 19% because of the rising burden of chronic illnesses, increasing consumer consciousness, and potential health benefits of these products.
However, inadequate regulatory framework and side effects associated with its irrational use might restrain the growth of the nutraceutical market.
- CVD= Cardio Vascular Diseases
- CAGR= Compound Annual Growth Rate
- USD= United States Dollar