The global nutraceutical industry, valued at US$ 182.6 bn in 2015, is one of the fastest growing industries today and expected to expand at a CAGR of 7.3% from 2015 to 2021.
Currently, the United States, Europe and Japan account for most (93%) of the total global nutraceutical market. The market, however, seems to have attained maturity in all the three regions. Therefore, the nutraceutical industries across the world are now turning their attention to emerging markets like India and China.
Tapping India’s market potential
The nutraceuticals industry in India is one of the rapid growing markets in the Asia-Pacific region. According to a recent report, the nutraceuticals industry in India is worth about $ 2.2 bn and is projected to grow at 20% to $ 6.1 bn by 2019-2020.
Why India?
The popularity and growth of this industry can be attributed to consumers’ increased inclination towards health and nutrition. Over the past decade, there has been a radical change in lifestyles of Indians. Adoption of fast foods and packaged foods and sedentary lifestyle, has led to an increase in the incidences of lifestyle diseases such as diabetes, cardiovascular diseases and obesity. As a result, Indian consumers, predominantly the higher socio-economic and upper middle class, are perceiving nutraceuticals as alternatives to prescription drugs. The usage of dietary supplements is not limited to fulfillment of the daily requirement of particular required nutrients, but consumers are also considering the functional health benefits of these supplements for prevention of diseases. Furthermore, they have been showing a keen interest in products for boosting energy and improving their physical endurance and mental alertness.
As a result, dietary supplements hold the largest share in the market.3 The Indian dietary supplement market is composed of over 500 participants. Vitamins and minerals supplement market is the most competitive with over 100 participants. Further, India is opening up its market to foreign players. This could lead to healthy competition in this sector.
To keep up with the growing competition, nutraceutical companies are focusing their energies in developing new product and innovative formulations and using proper advertising techniques to help consumers choose the right products.
Latest trends in nutraceutical formulations in India
Changing trends dosage forms
Nutraceutical ingredients have typically been positioned as natural and healthy alternatives to allopathic medicines. However one of the primary challenges being faced by these products is the difficulty in formulating these products using the right dosage form. Besides, flavor and fragrance masking, the dosage forms also need to increase the stability of ingredients in the final product. But lately consumers are seeking more variety and benefits from delivery methods beyond those possible through traditional (tablet and capsule) technologies. As a result, the formulator needs to work far harder to cater to increasing consumer demands. As the nutraceutical industries look to carve a niche of their own and create a differentiated product, an important trend is the growth and diversity of new dosage formulations. As a result, traditional tablets and chewables are slowly being replaced by capsules, particularly liquid-filled capsules.
Capsules: A suitable choice for consumers and manufacturers
The shift toward capsule formulation is consumer driven. Consumers prefer dosage forms like capsules as they are easier to swallow. Capsules, especially liquid-filled capsules, are also considered to work faster and better. For nutraceutical companies, capsules make for an ideal formulation as it requires fewer excipients and manufacturing steps, enables faster development, and offers more formulation flexibility. In addition, capsule formulations offer brand recognition in a crowded nutraceutical products market.7
Liquid Encapsulation Technology: The future of capsule technologies
Capsule technologies are also advancing with designs that provide superior protection of the ingredients through moisture protection, enhancing and preserving bioavailability and stability, and offering timed or targeted release of ingredients for maximum effect. One of the hottest trends in nutraceutical industry is use of innovative formulation for capsules. Encapsulation technology has made a lot of progress allowing multiple ingredients to be encapsulated in a single capsule. Vantage-Nutrition is one of the first companies in India that offers a unique solution to nutraceutical brand owners for the introduction of new products that allow them to expand their product portfolios and drive business growth. Their Liquid Encapsulation Technology (LET) is setting a new standard for nutritional ingredients in hard capsules. The novel formulations allow nutraceutical companies to incorporate liquids, pellets, tablets and powders in capsules.
Advantages of novel liquid-filled capsules
- Patient-friendly dosage form: As mentioned earlier, liquid-filled capsules have high acceptance amongst consumers, as they perceive them as being easy and familiar dosage forms.
- Convenience: Clean and convenient option for many inherently liquid products in nutraceutical and dietary supplement industry such as mineral extracts and essential oils
- Ideal for lipophilic compounds: Nutraceutical compounds, viz. omega-3 fatty acids, phytosterols, carotenoids, have poor aqueous solubility. This is one of biggest challenges concerning nutraceutical companies, who need to invest in developing methodologies to formulate these lipid based nutraceuticals. Liquid-fill encapsulation is therefore ideal for molecules that exhibit poor aqueous solubility.
- Protection and taste masking of ingredients: Through these multiple encapsulation offerings, the formulation can provide enhanced protection to multiple ingredients from degradation. These capsules are also ideal for taste and fragrance masking, an important consideration for some nutraceuticals like fish oils.
- Aids bioavailability: Liquid encapsulation can aid in improving bio-availability of certain ingredients
- Product differentiation: These features create distinct brand differentiation in line with latest trends in health and wellness. Moreover, the products are also visually attractive—an added benefits that guarantees instant consumer appeal.
- Brand life-cycle extension: Due to the novel and aesthetic dosage format, existing formulation can be re-introduced in a new attractive format that revitalizes the brand and helps extending the brand life.
- Stronger anti-counterfeiting: The high product differentiation also makes counterfeiting difficult.
Thus, the latest trend of capsule innovation and manufacturing technologies will undoubtedly help nutraceutical companies develop brands that boast of a differentiated dosage form that is preferred by nutritional supplement consumers.