Indian Nutraceuticals Market Expected to Reach US $4 bn by 2018: Frost & Sullivan

Must Read

According to a study by Frost & Sullivan titled ‘Indian Nutraceuticals: Insights into Changing Market Dynamics’,Frost & Sullivan analysis, the penetration of nutraceuticals in India was around 1 percent in 2013.

Globally, the nutraceuticals market earned around US $168 billion in revenues in 2013, in which India had a demand share of around 2 percent, earning around $2 billion. Growing at a CAGR of 17.1 percent, the Indian market is expected to reach $4 billion by 2018. China, Southeast Asia and India are the fast-growing markets, with each experiencing growth in double digits. In the last 1-2 years, functional beverages have emerged as the fastest growing category for the Indian market, with companies expanding their portfolio in the segment. Driven by high penetration potential, the category is expected to grow at a CAGR of 21.7 percent by 2018.

“The Indian nutraceuticals industry has evolved from an ingredient export-focused industry to one that is looking to cater to the domestic market. With specific focus on the market, the industry has evolved from foods that started out as ‘with natural ingredients’ to, currently, foods that are positioned as ‘preventive care’,” said Vishnu Shankar, Associate Director & Head, Chemicals, Materials & Food Practice, Frost & Sullivan.

Compared to developed counterparts such as the USA, Europe and Japan, the percentage of total population consuming nutraceuticals in India is considerably low. It constitutes of primarily the higher socio-economic classes and a very small percentage of the lower classes. The middle to high income groups are the dominant consumers of functional foods and beverages along with dietary supplements, while the lower income groups consume mainly prescription-based dietary supplements. Health awareness and an increase in the penetration of organised retail stores are expected to play a major role in driving the nutraceutical consumption in India.

“The Indian market is currently evolving at a rapid pace, one that needs to be matched by increasing consumer awareness, regulations, supply chain infrastructure, and product affordability to allow the industry to develop holistically,” notes Shankar. Currently, the market is dominated by pharmaceutical and FMCG giants. While dietary supplements such as vitamin and mineral supplements have been captured by pharmaceutical companies, functional foods and beverages are now being brought to the market by FMCG companies. However, certain segments like dietetic supplements are now being catered to by pure-play nutraceutical companies, apart from their pharmaceutical and FMCG counterparts.

Latest News

Bakery chain Monginis to harness the power of ONDC with the help of nStore

With the help of the retail management platform nStore, Monginis will be able to leverage its omnichannel capabilities through...

More Articles Like This