Indian health ingredients and nutraceutical industry is confident and optimistic on the potential growth prospects. This conviction emanates from the country’s more than 6,000 years of tradition in the herbal medicine. China and India are perhaps the two countries endowed with this inherent strength and on the top of the list. Both the nations have a long and strong traditional background in the science of efficacy and safety in the area of herbal products for wellness and therapy. Being a store-house of grandmother remedies, the scientifically supported medication will allow us to reach markets faster.
The total size of the industry in the global sector for food ingredients touched $30 billion in 2010 with a growth rate of around six per cent. Indian food ingredient industry is estimated at US$500 million.
Leading companies in the space include Amway, Pristine, British Biologicals, HerbalLife, Abbot, Nestle Nutrition and Herbz among others.
The nutra industry is food-based and consumer-oriented. Now India is in the focus with its expertise in the basics of nutritional health and the enormous scientific innovation and strong basic work which are the backbone Dr. V Prakash, former director, Central Food Technological Research Institute(CFTRI).
Considerable efforts have been made to improve the quality of products to become globally competitive through innovation. For instance, with a single spice or herb, several value- added products are developed. The food industry is looking to collaborate and maximize opportunities to grow in this area. It is also assessing the research of a wide range of nutritional products to automatically accelerate growth. The need of the hour is right infrastructure and self regulation and documentation as we move towards quality products and repose a firm faith in the consumer which is a challenge, added Dr. Prakash.
The factors which need to be given adequate importance are sustainability and dynamics of growth and to look at projects which are scalable and viable. The sector should not be bubble which can burst. We need to create ample awareness, comprehend changing consumer preferences to be on the track for rapid growth driven by cost competitiveness and product reliability. Therefore, robust generation of ideas and driving them towards the end-products are needed to sustain growth. Perhaps that is what happens in Nutra Summits year after year.
Food research hubs
Like any research institute CFTRI is the knowledge funnel and the ideas which emanate from here are spread across the industry. However in a broader perspective , kitchens are the biggest factory of the nutra sector perhaps. The novel applications of spices and coarse cereals need to capitalized. For instance, a simple methi leaf can be scaled up to develop value- added products. We need to ensure that laws of IPR are adhered. Ethical claims supported in every product development are crucial for the industry since one bad product can sometimes destroy the credibility of the whole industry, he added.
Therefore research labs and industry together have a major role to play and ensure that every product is supported firmly by science. We also have to look at food engineering innovations and hard core competence to take nutra products from India to global markets, said Dr. Prakash.
Leading cos gearing up for bigger pie
Herbalife India, a leading weight management, nutrition and personal care company have introduced products that are customized to the Indian palate and are expanding their range of desi-centric products. “Having been present for over a decade in India and grown to a distributor base on 75,000 we have aggressive plans for the year ahead”, said Ajay Khanna, Country Head, Herbalife India.
Amway’s nutrition and wellness brand Nutrilite,has emerged as the top selling brand of nutritional supplements in 2011. The product is a combination of “The Best of Nature” and “The Best of Science. Product. The company currently has 13 brand experience centres and plan to add another 20-25 more over the next two years. “We will also be expanding our infrastructure from the current 135 Amway Touch Points to about 250 in the next two to three years, said William S Pinckney, MD & CEO, Amway India.
Amway being a direct selling FMCG company has realised the importance of advertising & marketing to further strengthen their foothold in the Indian market. Apart from the main mother brand advertising, Amway also ventured into category advertising by launching the “Nutrilite” advertisement.
“Our lead categories – Nutrition & Wellness and Cosmetics contributes over 60 per cent to our revenues, While Nutrition & Wellness is the largest category contributing Rs. 903 crore to the total revenues. In 2010, in addition to the brand advertisement, we launched the Nutrilite advertisement which not only communicates the USPs and benefits of Nutrilite thus facilitating our Amway Business Owners to sell our products more effectively, but also gave a fillip to the category. This year, we have earmarked Rs. 30 crore towards advertising,” William Pinckney added.
Global major Abbott Nutrition has been developing and marketing science-based nutritional products. Some of the internationally recognized brands include Ensure, Glucerna and Mama’s Best for adults, as well as the PediaSure brand of nutritional supplement for children and is now ranked as the number one paediatrician recommended children’s nutrition supplement in India and a trusted brand on over 80 countries.
With constantly increasing awareness of good nutrition for healthy living, the consumption of millet which was the grain of the poor , is now being increasingly accepted among the affluent class too. There is ample scope for bringing refinements in the processing and diversified utilization of these grains at farm, home and trade level for end use. Such activities not only encourage economic empowerment of farming communities but would also generate employment and sustainable entrepreneurial opportunities to millions of people,said Prof B Ranganna, Emeritus Scientist (ICAR) and former head, division of agricultural services University of Agricultural Sciences (UAS).
Millets are being increasing used as an value-addition during the food fortification. Viewed as a life-style friendly grain, there are ample studies to prove that it is good for diabetic control among other conditions. A visible trends ensuing out of its nutritive value is that the grain finds its presence in many flours processed by leading food processing companies. This is primarily because the grains of small millets have nutritional properties.
These millets are good source of phosphorous and iron and contain significant quantities of important vitamins like thiamin, riboflavin, folin and niacin. The protein content of small millets range from 7-12 per cent and the amino acid profile of these proteins is well balanced. These grains are diabetic friendly due to their low glycemic index and are superior to rice and wheat in certain constituents. The carbohydrates (65 per cent) found in these millets contain appreciable amount of non-starchy polysaccharides and dietary fibre that help lowering blood cholesterol and release glucose at a lower rate to the blood during digestion. Therefore with a 50 million diabetic population in the country, these millets should be an indispensable part of a person’s diet either to control or prevent the condition, added Dr. Ranganna.
Although the food ingredients industry has promising growth prospects in India, , there are considerable hiccups mainly due to the low production of raw materials. There is also no single window clearance for farmers to get the right price like for vanilla which is a key ingredient for flavour. The serious shortage of cold storages also has hampered the growth of this sector. There are food safety norms are too stringent and need a re-look. Although we have the Agricultural Produce Marketign Committee (APMC) and the Food Safety and Standards Act, there is need for more comprehension on the need to simplify the clearances. At the same time we also need is to encourage the farmers and educate them on quality practices and the value addition to processed foods which could help them fetch a price, pointed out industry sources,
India has promising prospects to become a manufacturing hub for health ingredients and nutraceuticals. Since the country is already a leader in the area of milk, fruits, vegetables and cereals production , there is a lot of scope for the development and use of health ingredients and nutraceuticals.