Future Outlook of the Indian Nutraceutical Industry

Karthik is a Partner at Herbochem and belongs to the 3^rd generation of the Herbochem family and brings a forward-thinking approach to the traditional business. He has a master’s degree in Pharmaceutical Sciences from University of Pacific in California, USA and has been able to seamlessly integrated cutting-edge technology with timeless traditions. He engaged in a conversation with the India Pharma Outlook magazine to state the future of the Indian nutraceutical industry.

Hippocrates said in 400 BC, "Let food be thy medicine and medicine be thy food." This still applies in the modern era. Food and nutrition hold supreme importance in preventing pathophysiological diseases especially those that are mostly caused by the change in lifestyle trends and the rise of infectious diseases once again. The modern man now requires allocating his food budget to food as well as medication. Well, if we were to try and save both our health and our hard-earned penny, we would need to shift our attitude and look towards nutraceutical care.

Originally coined by Dr Stephen DeFelice in 1989, nutraceuticals have had three whole decades to evolve, and with its evolution, it has shown a significant growth in its potential and usage in India. Nutraceuticals are naturally occurring substances that are isolated, refined, and extracted from food or non-food sources, rich in potential nutrients and micro-nutrients like Vitamins A, D, and C, selenium, folate, Zinc among other immunity-boosting substances. When ingested, these substances offer physiological advantages and support the receivers' overall health. Numerous components can be added to a regular diet to potentially increase immunity or provide protection against the coronavirus, per a study published in Nutrition and Dietary Supplements.

In a country riddled with lifestyle-related disorders like obesity and immune-compromission-related diseases, a significant need for nutraceuticals has been felt and noticed, so much so, that the Food Safety and Standards Authority of India (FSSAI) has issued a guidance note on August 28, 2020, clarifying that the purpose of health supplements is to add one or more nutrients with established health benefits to a person's regular diet. Nutraceuticals and health supplements are marketed to the healthy population above the age of two and five, respectively. The FSDU and FSMP, on the other hand, are only available to adults above the age of two who meet certain qualifications. The Indian Government has also launched initiatives to promote health and wellness which are expected to play a pivotal role in shaping the future of the nutraceutical industry. Initiatives such as the Ayushman Bharat Yojana aim to provide affordable healthcare to millions and underscore the government's commitment to improving public health outcomes. This is also set to attract interest and investment from foreign players in the nutraceutical field.

One can clearly make out an upward shift in the graph of nutraceutical consumption if one looks at the ever-increasing numbers. At USD 4-5 billion, India's nutraceutical business is ready to lead the world, indicating an anticipated growth of almost 18 billion USD by 2025 as India moves towards a ‘precautionary’ mindset from a ‘curative’ standstill. The present Indian consumers show more than just a shift in attitude, their buying pattern reflects their conviction in buying vitamin capsules, gummies, and chewable nutraceuticals through all sorts of market groves, be it wholesale, retail, or most recently e-commerce platforms, even more so as an aftermath of the coronavirus pandemic.

Moreover, the nutraceutical is the exact sort of product that the Indian market desires, rich in fish oil, vitamin B6, vitamin B12, beta-carotene, lycopene, and flaxseed oil, it reduces the risk of pre-term labour and regulates the menstrual cycle and thus has the potential to score big in the women’s health segment. While also being lucrative to an aging Indian population that wants preventative healthcare for neurodegenerative diseases like Alzheimer’s and Parkinson’s.

Now, 90% of the total global nutraceutical market is occupied by the USA, Japan, and Europe while India holds merely 2% of that global market but it is projected to hold at least a 3.5% market share soon. The Indian nutraceuticals industry has been growing at a healthy 25% annually and the Foreign Direct Investment has also increased from 131.4 million to USD 584.7 million. The market, notably, also occupies a 67% share beating the pharma-dominated supplement market and is set to scale higher in the future.

Despite the promising growth prospects, the Indian nutraceutical industry also faces several challenges, including regulatory complexities, lack of consumer awareness, and issues related to product quality and standardization. However, these challenges also present opportunities for industry players to innovate, educate consumers, and collaborate with regulatory authorities to create a conducive environment for future growth.

The outlook of the Indian nutraceutical industry is undeniably optimistic, driven by evolving consumer preferences, government support, technological advancements, and a growing emphasis on health and wellness. As the industry continues to mature, stakeholders must remain agile, proactive, and focused on delivering innovative solutions that address the evolving needs of consumers. By leveraging these opportunities and overcoming challenges, the Indian nutraceutical industry is poised to emerge as a key player in the global market landscape.