Nutraceuticals Market in India - Healthy or Wealthy?

'Live Healthy life' - this tag becomes centric point of people's day to day life across the India. People are becoming more health conscious nowadays by triggering themselves with daily exercise, favoring low calorie and nutritious food intake. This attitude of people towards health consciousness has lightened many opportunities for the nutraceuticals products in India. The demand for nutraceuticals products have gone up as more people are turning to natural products for treating lifestyle diseases. These products are highly backed by right from the influencers in form of dieticians, fitness experts, doctors, certification agencies/bodies to the celebrity endorsements. It is estimated that the market of nutraceuticals in India penetrated just above 10% at all India level and it represents merely 2% of the global market of nutraceuticals and is way behind in terms of per capita spent with just US $ 2.5 compared to global average of US $ 21.

The market of nutraceuticals in India is highly concentrated in South India followed by East India with leading top three states Andhra Pradesh, Tamil Nadu and West Bengal. The market is growing at a healthy double digit CAGR of 18.5%, says latest research report "The Indian Nutraceuticals Market: Poised from NEUTRAL to TOP Gear" by IKON Marketing Consultants, a leading marketing consulting firm in India. The Functional Beverages is growing much faster at a CAGR of around 21% among the three segments namely Dietary Supplements and Functional Foods. The report also point out that down the five years from now, by FY 2017-18, the market is poised to be of US $ 6.4 billions with significant shift in the segment shares. With the rise of lifestyle related diseases in urban India and penetration in rural India, the nutraceuticals products going to remain in high demand. The urban centric market is gradually gaining ground in rural India, which occupy nearly one third of the market.

From the perspective of Indian healthcare marketing consulting firms, entry of major ingredients manufacturers and suppliers, food fortification companies, ayurvedic and herbal extract manufacturers and distributors apart from the leading FMCG, Food & Beverages and pharmaceutical companies in India made this market more competitive. Though the major players like Ranbaxy laboratory, Abbott India, Nicolas Piramal, Dr Reddy's lab and Pfizer, Dabur India, Zandu, Baidyanath, GSK Consumer healthcare, etc. have effectively deployed the rise of media penetration, lack of awareness coupled with lack of proper marketing and distribution, price skimming and low spending on food research are tough challenges hampering growth of Indian nutraceuticals Industry. Azaz Motiwala, Founder & CMD of IKON Marketing Consultants says, "Though having healthy size of health conscious consumer segment in India, still market has not adopted nutraceuticals for regular consumption. Indian consumers are still at 'awareness' or somewhat 'interest' stage of product adoption cycle. Nutraceuticals players need to redefine their marketing strategies to bring customers at 'trial' and 'evaluation' stage to harness the immense growth potential of nutraceuticals in India".

Despite the fact that the Indian nutraceuticals market is in a nascent stage and accepted by the upper middle segment of the Indian population, it is poised from Neutral to TOP Gear by becoming fivefold at the end of the current decade, Functional Food & Beverages going to dominate the market. However, the increased awareness and preventive mind set with the rising ageing population, life style diseases and increased purchasing power will remain the key demand generators for nutraceuticals in India for the upcoming years.

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Morgan Rytz has published 1 article. Article submitted on August 24, 2013. Word count: 567

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