Within the past few years, the nutraceutical and dietary supplement market in India has grown robustly due to the rising health consciousness, increasing disposable incomes and an ageing population aware of preventive healthcare. In the nutraceutical world, the contract manufacturing side has expanded rapidly as it is a scalable solution for companies who are looking to get in this thriving market but not with a large investment in infrastructure. The industry enables nutraceutical brands to exploit specialized manufacturing capabilities to deliver high quality products and concentrate on branding and marketing.

Recent industry analysis indicates that the Indian nutraceutical market is expected to grow at a CAGR of more than 10 percent in the next five years fueled by a rise in demand for supplements that boost immunity, vitamins, minerals, and herbal extracts. The pandemic increased the health focused consumer spending, signifying the role of nutritional supplementation in sustaining overall wellness. This has attracted numerous domestic and foreign players to tap this growing market by partnering in the contract manufacturing.

Government policies are also favorable that help promote domestic production, along with a smooth regulatory environment that is being institutionalized by bodies such as the Food Safety and Standards Authority of India (FSSAI). The country's enhanced quality standards and transparent...