We are hearing that global nutraceuticals market which was valued at around US$200 billion in 2015 is expected to grow at CAGR 7 per cent (for period 2016 to 2022) and would cross US$300 billion by 2022. With respect to the global scenario, nutraceutical market in India is growing at a faster pace of 17 per cent CAGR with product clutter business of around US$2.5 billion. Though India is at a very beginning stage but truly positioned for growth mostly due to nuta-cluster formation, increasing awareness as well as consciousness among people towards their health.
Nutra-cluster trends
“Nutraceutical” literally is combination of two sciences — nutrition and pharmaceutical. Further, Nutraceutical is forming alliance with varied discipline. It is also forming alliance within industry to address needs of customised nutrition for people of different age , gender, geographic region. It is interesting to observe that a nutrition could be so customised and well segmented into several other need-based nutrition products such as for special performance and health needs, for preventive health nutrition such as heart health, bone health, liver health, eye health, intestine health, brain health, general health or even medical nutrition products for patients whose nutrition needs could not be sufficed with their routine diet. Very new segment is anti-aging products and intervention of nutrition into cosmetics.
The products with such nutraceutical benefits could also be segmented based on various food formats such as beverages and/or food, and oral dosage forms. Oral dosage forms like pills (tablets, capsule, soft gel) are already there since the very beginning of segmentation.
With growing awareness, customised need/choice of nutraceutical products, there is segmentation or cluster-formation in the industry. Growing knowledge, convergence of different disciplines and business interests results into clustered nutraceutical. When the industry of different disciplines seeks to converge for innovation and new product development, the need for alliances also hold attention. The resulting nutra-cluster generates diverse range of products which clutter from different segments of such nutra-clusters.
Nutra-alliances based on various disciplines include following
A) Alliance of foods & beverages with nutraceuticals: Functional foods & beverages
Despite huge growth in the food and beverage industry, there is significant shift at global level due to increasing concern about health as compensation of their lifestyle. Thus, functional foods and beverages are more preferred over conventional foods and beverages. Product clutter within this alliance includes probiotic fortified, omega fatty acid fortified, dairy and dairy alternative drinks, dietary supplements, fruit and vegetable juices, etc.
B) Alliance with Ayurveda: Ayurceuticals
Around 700 natural species are well documented from Ayurveda which could be incorporated for specific or general health claims for nutraceutuical products. The scope of Ayurvedic herbs is enormous in nutraceuticals.
C) Alliance with Genomics: Nutrigenomics
Nutrigenomics promises us the ability to personalise diet on individual genetic make-up which is genome. There are nutrigenomic test which evaluate individual genomic differences in the clinical laboratory. The ability to interpret from these tests and recommending specific nutraceuticals and functional foods which are specific to person is new era of personalised nutraceutical segment.
D) Alliance with Cosmetics: Nutricosmetics
It is one of the newest alliance in the sector of dietary supplements and cosmetics. It promotes the beauty through health. Nutricosmetics have active ingredients, which connects health with cosmetic properties of functional ingredients. The major ingredients used currently are soy-isoflavone proteins, lycopene, lutein, vitamin (A, B6, E), omega-3 fatty acids, prebiotics & probiotics, beta-carotene, sterol esters, chondrotin, Coenzyme Q10. They act as antioxidants which control effect of free radicals, which are primary cause of aging of skin. From our older culture of removing dark circles through cucumber slices hints such effect of antioxidants in rejuvenating skin cells. Nutricosmetic are of two main categories: drinkable and oral forms. You can find it in the form of yoghurts or other forms. Several alliances have taken place in this segment. And it is a big opportunity of nutraceutical ingredient companies to form alliance/partnerships with cosmetic companies for a new range of products in this segment. After all, people are nowadays equally conscious to maintain their beauty and topical health along with their overall health.
E) Alliance of Artificial Intelligence with Nutraceuticals:
It is really fascinating how science is progressing towards combination of artificial intelligence and its application in developing nutraceuticals for anti-aging. Anti-aging nutraceutical indicates such products which hold the capacity to increase life on molecular level by increasing the telomere length or by prevention of telomere shortening. Telomere is present towards the end of chromosome which is interestingly a marker of aging mechanism. These bioinformatics methods and deep learning algorithms which are highly advanced are used to screen natural compounds. These compounds functions by slowing down or even reversing the aging mechanism at cellular and molecular level.
Organisations dealing with artificial intelligence for screening of such naturally occurring compounds are now partnered with or will be partnered with nutraceutical giants in coming future for market delivery of excellent and clinical proven nutraceutical with GRAS status.
However, literal industrial alliances could also be for strategic & business interests such as Alliance with CRO (Clinical Research Organisations); Alliance for R&D infrastructure; Alliance for manufacturing; Alliance for regulatory support and product approval; Alliance for product marketing and distribution, etc. All the alliance irrespective of its type will ultimately result in competitive price and sustained quality competencies in the market.
Contribution of Alliance to the qualitative side for nutra industry:
When saying qualitative side of nutra-industry, it usually refers to improved quality products which will be more preferred than conventional.
Eg. Functional Foods in form of confectionary indicates high benefits in comparison to conventional confectionary. If addition of nutraceutical actives for development of nutri-confectionary gives benefit to the health, then at the same time industry needs to reduce sugar content. Now this is where alliance are taking place. Nutraceutical industry are slowly forming alliances for such needs. Xylitol, Steviol/steviosides and Polyglycol are commercial produced for sustained production and availability of such ingredients to those industry.
Challenges faced by industry due to this new indulgence in the market
Premium Pricing is made due to low competition and higher investment during product development and related research. Market acceptability and penetration at that premium pricing and set of health claims is a challenge. In urban India, penetration is around 24 per cent whereas in rural it is as low as 6-7 per cent as consumer awareness is low and needs to be increased with time. Turn-around time for product development is high and regulatory norms are restraint parameter for quick delivery of products into the market.
Benefits of segments and respective alliances to nutra industry
Through alliances of different segments, there is no need to start from scrap. The available infrastructure and knowledge of one industry could be efficiently utilised by the other. This minimises the turnaround time as well as helps in optimising the price. The quality nutraceutical product at optimised price will be more competent to attract and benefit consumers of specific target groups.