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India’s Nutraceutical Industry is poised for Global Growth with supportive initiatives.
Nutraceuticals are products that aren’t exactly food or medicine but have qualities of both. They help keep us healthy, control symptoms, and prevent certain serious diseases.
The word "nutraceutical" combines "nutrient" (a part of food that nourishes us) and "pharmaceutical" (a medical drug). This term was created in 1989 by Stephen DeFelice, who founded the Foundation for Innovation in Medicine.
The idea behind nutraceuticals is to focus on prevention – to stop health issues before they start. This idea comes from the famous saying by Hippocrates, the “father of medicine,” who said, "Let food be your medicine."
Nutraceuticals can help our body in many ways, such as:
Nutraceuticals may improve the immune system and lower the risk of certain health conditions. They also help fight oxidative stress (damage caused by free radicals) and can be helpful in managing:
The global nutraceutical market is approximately $400 billion. This market combines aspects of food, pharmaceuticals, and biotechnology.
Currently, 90% of the total global nutraceutical market is captured by the USA, Japan and Europe.
India has a unique position due to its rich history in Ayurveda and traditional health sciences. However, despite its advantages, India’s share in the global nutraceutical market remains under 2%.
India's nutraceutical market is prepped to be a global leader at USD 4-5 billion. It is expected to grow approximately USD 18 billion by 2025.
The dietary supplements market in India is valued at USD 3924.44 million in 2020 and reports say that it will reach USD 10,198.57 million by 2026 that is 22% growth rate year on year.
The pandemic and the rising importance about preventive healthcare has led to the exponential growth of this sector.
The Indian nutraceuticals industry grew at 25% annually during the pandemic. The Foreign Direct Investment (FDI) has also increased from USD 131.4 million (FY12) to USD 584.7 million (FY19).
Indian population has begun to believe in immunity-boosting supplements and has led to a significant shift in buying patterns and market behaviour. Vitamin capsules, chewable tablets and gummies are examples of the open-minded buying behaviour of consumers of healthcare products.
The urban population across India have become health and fitness conscious like never before. This is providing a massive growth opportunity for Nutraceuticals Industry in India.
Nutraceutical manufacturers and marketers have come up with new ways to make the consumer aware about the product, its benefits and role in preventative healthcare as well as medical treatment.
The nutraceutical market already occupies 67% share beating the pharma dominated supplement market.
India’s limited share in the global nutraceutical market can be attributed to:
Traditional health knowledge, especially in Ayurveda, provides a unique foundation.
India’s 52 agroclimatic zones allow for the cultivation of diverse medicinal plants.
Over 1,700 medicinal plants are grown in India, including popular nutraceuticals like curcumin, bacopa, and ashwagandha.
India’s expertise in pharmaceutical formulations supports high-quality nutraceutical production.
Numerous nutraceutical startups have emerged, boosting innovation and contributing to sector growth.
To address these challenges, the Council of Scientific and Industrial Research (CSIR) formed a Nutraceutical Sector Task Force (TF) in November 2021.
The Nutraceutical Sector Task Force has led to important developments that benefit the industry:
The first-ever Harmonized System of Nomenclature (HSN) codes have been developed, which streamline trade and ease the export process.
A Production-Linked Incentive (PLI) scheme was created specifically for nutraceuticals, providing financial support for industry growth.
Under SHEFEXIL (Shellac & Forest Products Export Promotion Council), a nutraceutical industry panel was formed to enhance regulatory support and assist with export challenges.
SHEFEXIL recommended that nutraceuticals remain classified as food products under FSSAI’s jurisdiction. Nutraceutical exporters are now included in the Remission of Duties and Taxes on Export Products (RoDTEP) Scheme, which aligns with the Biodiversity Act 2023 to reduce export costs.
Facilities like NIFTEM-Kundli, Centurion University, and AIC-CSIR-CCMB serve as incubation hubs, supporting research and product development.
In 2024, the Kerala government launched India’s first government-backed Nutraceutical Centre of Excellence, further promoting innovation.
Herbal Supplements is expected to make up 30% of India’s nutraceutical market by 2023, with a 20% CAGR.
There’s a shift from curative to preventive care, with high demand for immunity-boosting foods due to COVID-19.
Products such as plant-based protein, vegan Omega-3, sea minerals, and probiotics are popular in India’s nutraceutical market, growing through B2C and D2C channels.
With these strategic developments, India’s nutraceutical sector is on track for rapid growth. India aims to combine traditional Ayurvedic knowledge with modern science to become a global leader in nutraceuticals.
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PRACTICE QUESTION Q.Examine the growth potential and challenges of the nutraceutical industry in India. How can this industry contribute to public health and the economy? (250 Words) |
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