The discovery, development and marketing of food supplements, nutraceuticals and related products are currently the fastest growing segments of the food industry. The first and dominant being ‘Natural is good’, and other secondary, such as increasing cost of many pharmaceuticals and their negative secondary effects, the insistent marketing campaign, the increasing perception of the need of a healthy diet and its importance in health. Nutraceuticals enables consumers to cope with health concerns.
Indian nutraceuticals market is expected to more than double in the next four years at over Rs 9,500 crore. As the total market size in India is still very small, compared to the global market, there is a huge potential for these products. Currently, the domestic market for nutraceutical is around Rs 4,400 crore, which is just 0.9% of the total global business in the category.
The global market for nutraceuticals is projected to reach $250 billion by 2018, driven primarily by people’s growing affinity towards a healthy lifestyle; their higher disposable income in developing regions; their inclination to avoid dependence on synthetic drugs; evolution of innovative products, particularly for the beauty care segment; and emerging opportunities in newer areas.
Major trends influencing the market include growing competition, maturing markets in developed regions, people’s liking towards greater personal care, growing fixation with beauty, and launch of supplements enhancing beauty. Nutraceuticals are also delving into new areas with products. Growth also emanates from specific products developed for gender groups, kid groups, and age related treatment.
Performance-wise, nutraceuticals registered a steady growth pattern in the post-recession years. An aging population has been a major factor contributing to this growth of the nutraceuticals market. By 2020, the number of individuals who are 60 years and above is expected to surpass 1.0 billion, with 70% of this populace dwelling in the developing nations. The nutraceuticals industry is geared to meet the rising demand for health foods and products as companies with sufficient capital for scientific research enter the nutraceuticals space. The trend towards personalised health nutrition is expected to provide solutions to successfully prevent, manage, and treat chronic medical illnesses. Also, availability and accessibility of healthy foods in developing nations, evolving understanding of the concepts that promote healthy living, and launch of targeted foods and products scientifically formulated to address disease conditions are expected to support the growth of nutraceuticals market in the near future.
The beauty industry is also emerging as one of the major growth drivers for nutraceuticals market. Skin care in general, and anti-aging products in particular, are driving growth in the beauty segment. Moreover, with growing maturity of the skincare market, producers are developing specialised products addressed to different parts of body as well as the problems they treat.
Further the marketing of products such as sports and energy drinks is primarily targeted at niche segments of the urban population, resulting in low penetration for these products, even amongst the urban population.
Growth of the dietary supplements will be spurred forward by the growing demand for dietetic supplements, due to an urban, fitness conscious, young population.
With increasing sophistication among nutraceutical, consumer demand for products with specific health benefits has been on the rise. Nutraceutical products have now been cordoned into various segments based on health benefits. These sectors such as heart health, eye health, in India and allow manufacturers to position themselves better.
Various risk factors related to health result from an imbalance in nutrition. Such imbalances in India are widely prevalent leading to adverse outcomes. These adverse outcomes are estimated to cost nearly 1% point to India’s GDP and therefore improvement in nutrition status is a critical part of the country’s agenda for progress.