Owing to increasing health consciousness among consumers, the Indian nutraceuticals market is growing at a rapid pace. Since more and more people have begun consuming immunity-developing supplements and wellness-related products, the industry holds huge potential for growth aver nutraceutical evangelists.
Moreover increasing affluence of the working population and changing lifestyles are boosting the nutraceuticals industry in a big way. Further, product acceptance among the masses has also increased, with growing consumer awareness and preference of natural products over synthetic drugs. Overall the mood of the industry is upbeat and many companies are pumping in money into the nutraceuticals market in India.
As consumer demand for products grows across the world, the market in India has good potential both locally and internationally said one of the analysts of the sector and added that it is important to address the emerging opportunities in regulation and in customizing nutraceuticals.
The Indian nutraceuticals market is dominated primarily by pharmaceuticals and FMCG companies, with very few pure nutraceutical companies.
The nutraceuticals market comprises two segments i.e. food supplements and vitamins and minerals. This market is expected to reap benefits for those products which clearly provide health benefits to the consumers. Hence, the arrival of such new products will lead to the growth in demand of vitamins, minerals, calcium, magnesium, etc.
Moreover, growth is also likely in the herbal extracts segment, wherein, products like green tea as well as garlic and soy proteins show immense potential.
Two areas of health are very important in India – ‘immunity build up in children and growing adults’ and ‘boosting physical and mental strength of children.’ Rising health care costs, a greying population, huge levels of disposable incomes all these are driving the market for nutraceuticals.
Indian consumers have a penchant for anything that is “natural” or carries the “herbal” tag. Manufacturers of nutraceuticals products are trying hard to produce products that suit the Indian palate. The rural population in India is 72 per cent and until this market is penetrated, real success may elude the nutraceuticals industry.
The market will reap benefits for those products that can clearly provide health benefits to the consumers. Growth in herbal extracts segments is likely with green tea, herbal bread, garlic capsules, soya milk gaining popularity in the market. Probiotics, protein supplements, Omega 3 fatty acids, and antioxidants are products that can play a major role in the future growth of Nutraceuticals industry.
As far as the Indian market is concerned, nutraceuticals need to be targeted at the bottom of the pyramid population to achieve volume growth. Direct marketing efforts may take longer to reach the consumer but are a viable means of reaching out to the consumer.
India is an ideal location for manufacturing nutraceuticals products because of availability of natural products, good quality fruits and vegetables. India has advantages like qualified human resources, world-class R&D facilities and varied raw material aspects that give our country a leading edge.
The major factors that contribute to the growth are consumer awareness, greater health consciousness, changing lifestyle diseases, ageing population, increase in disposable income and booming retail growth.
However the total market size in India is still very small compared to the global market. Lack of awareness and absence of regulations are some of the ills plaguing the sector. The Indian market is largely a prescription-oriented market. Many pharmaceutical and nutraceuticals companies that were trying to promote their products through the doctor are now adopting a different route, the direct route to the identified end-user.
According to a recent study about 70 per cent of patients consulted a medical practitioner before going in for natural therapy. The problems faced by nutraceutical companies are keeping consistent quality, increase in market competition and increase in product cost. This has led companies to outsource products.
Nutraceuticals is still in its infancy in India due to low levels of awareness and market penetration. The manufacturers of such specialised products have increased the prices to capitalise on the high-margin-low-volume opportunity.
While in pharmaceutical development process, clinical test results from animal tests and studies are required for verification of results, in nutraceuticals, there is no such verification method.
With the right regulatory policies and initiatives taken by government for this g industry, India has several strengths in this sector like its tremendous bio-diversity, a long history of traditional knowledge and scientific know-how.
India will be a strong market for nutraceuticals products as the players in the industry will be a combination of large multi-nationals, Indian companies using proprietary formulations and the small players who constitute the unorganised market. Multinational companies have set up production facilities in India and this trend can only be expected to grow further. Convergence of food manufacturing companies with pharmaceutical companies to manufacture and market nutraceuticals is another emerging trend that will catch on in the future.
On the supply side, India will maintain a modest trade surplus in nutraceuticals ingredients as most of the country’s large pharmaceutical companies operate divisions that produce bulk medicinal and nutritional compounds. The distribution channels available for nutraceuticals shall play a vital role in the future growth of the business.
Some of the strategic actions needed are extensive market research, need-based product development, careful pricing, meaningful presentation and widespread availability. Similarlyy some of the crucial steps for the future development of nutraceuticals market in India are standardisation of GMP, a clear regulatory framework to support the industry, increased focus on R&D and sustained efforts in educating customers on the benefits of nutraceuticals.
Attractive pricing, wide spread availability, and cogent communication on health benefits of such nutraceuticals products are some of the steps that will catalyse the growth of the industry.