The Indian nutraceuticals market which has grown from $ one billion in 2008 to $1.8 billion in 2013, is likely to cross $ two billion in 2014 and is expected to top $ four billion by 2018.

There has been an increasing awareness among the rising affluent middle class about health and wellness. Nearly 400 million people in India belong to the middle class and have disposable income which have made them capable of buying nutraceuticals and dietary supplements. It is an inevitable fact that affluence is one of the causes of lifestyle diseases, which nutraceuticals and dietary supplements often address. These factors will support the double digit growth of the industry in the coming few years.

With the passage of time and due to many international and local players in this segment, the percentage share rose with a rapid pace, according to a report on Nutraceutical Sector Overview brought out by MM Active.

Nutraceuticals could complement drugs and can reduce over-dependence on medicines for treatment. There is considerable scope for value-addition of agri-by products. The biodiversity and traditional knowledge could make India a world leader in nutraceutical market, said Dr. BR Lokesh, chief scientist, Nutraceuticals, Central Food Technological Research Institute (CFTRI), Mysore.

According to experts, nutraceuticals & functional foods would help mitigate malnutrition in India. Although, there is a huge potential for the growth of the sector, yet its development is slow. The country has a long way to go to en-cash much of its bio-agri wealth.

Dietary supplements are the largest category accounting for 64 per cent of the nutraceuticals market, driven primarily by the pharmaceutical sector in the form of vitamin and mineral supplements. Functional foods will be the quickest growing category until 2015 followed by dietary supplements.

However, dietary supplements, specifically herbal and dietetic supplements, will form the greatest opportunity areas for nutraceutical manufacturers, driven by growing demand from an evolving consumer base, stated the report.

Most of the leading pharmaceuticals companies have ventured into nutrition and nutraceuticals space and have a growing portfolio of such products which targets various therapeutic segments. This trend is increasingly on the rise and will continue to grow to a large extent in turn adding to the growth of the nutraceuticals industry.

With the growing popularity of these supplemented foods, many multinationals are investing in the nutraceuticals market in India. These include Monsanto, American Home Products, DuPont, BioCorrex, Abbott Laboratories, GlaxoSmithKline Consumer Healthcare, Johnson & Johnson, Nestle, Novartis, Yakult-Danone India, Herbalife etc. These players are a major resource for nutraceuticals and related dietary supplements. Besides, India has many local players such as Dabur India, Cadila Healthcare, British Biologicals, Himalaya Global Holdings, Sami Labs, Sami Direct, Parry Nutraceuticals, Wockhardt etc.

The global demand for nutraceutical ingredients is forecast to rise 7.2 per cent annually to $30 billion in 2017 according to report by Reportlinker. The best growth prospects will exist in substances with clinically supported health benefits and broad applications in foods, beverages, dietary supplements and adult and pediatric nutritional preparations.

Included in this group are soy proteins; oat bran, psyllium, and soy fibers; Bifidobacterium and Lactobacillus probiotics; omega fatty acids; cranberry and garlic extracts; calcium,magnesium and zinc minerals and vitamins A and C.

Countries such as Brazil, China, India, Mexico and Turkey will be among the fastest growing consumers and producers of nutraceutical ingredients worldwide. Increasing economic prosperity will enable these countries to expand and diversify their food and beverage, processing, and pharmaceutical industries. In 2017, China, alone, will absorb more than 16 per cent of the value of global nutraceutical ingredient demand and will account for over 18 per cent of the value of related world shipments. Because of maturing markets, the supply and demand of nutraceutical ingredients in the United States, Western Europe, and other developed economies will increase more slowly than the average worldwide pace. Nonetheless, food, beverage and pharmaceutical companies in these economies will continue to pursue opportunities in conventional and speciality nutritional products and natural medicines. As a result, they will remain key customers for nutraceutical ingredients.

Nutrients, including proteins, fibres and various specialized functional additives, will remain the top-selling group of nutraceutical ingredients worldwide. Proteins will post the fastest demand gains as food and beverage makers throughout the world will introduce new high value-added nutritional preparations. Functional additives and fibre nutrients will also fare well in the global marketplace.

Demand for these ingredients will gain upward momentum from increasing clinical evidence of health benefits and expanding applications in speciality foods and beverages.

Naturally derived substances, consisting of herbal and botanical extracts and animal- and marine-based derivatives, will see the fastest growth among the three major groups of nutraceutical ingredients. Among these substances, omega fatty acids derived from fish oils and other marine sources will lead gains, reflecting clinically proven cardiovascular benefits and expanding use in dietary supplements and nutritional therapies.

The rising popularity of preventive medicine will impact favourably on global demand for numerous other natural extracts and derivatives, including cranberry, garlic, ginkgo biloba, ginseng; and glucosamine and chondroitin.

Well established applications in food and beverage fortification; infant, adult, and paediatric nutritionals; and dietary supplements will continue to be a large global market for mineral and vitamin ingredients. Within this group, essential minerals such as calcium, along with vitamin A and vitamin C substances, will post the fastest gains in world demand.

According to a recent survey , there are more than 8,000 registered and non-registered nutraceuticals, herbs and related companies in India but most of them are small and medium enterprises. The increasing need for additional nutrition and food security concerns in India has resulted in government to introduce schemes for vitamin fortification.

Overall, the Indian nutraceutical market is emerging with strong growth potential. With increasing health awareness, and the shift towards preventative health care and increased regulatory clarity, India’s future in nutraceuticals industry looks promising, for both manufacturers and consumers. However, there is a strong need of developing customized products, affordable pricing and distribution strategy.