Updated on 10 April 2013
The nutraceutical market in India is expected to grow at a CAGR of 13 percent till 2016
Bangalore: The Indian nutraceutical market earned revenues of $1480 Million in 2011 and could grow to $2731 million in 2016 at a CAGR of 13 percent. Dietary supplements were the largest category accounting for 64 percent of the nutraceuticals market, driven primarily by the pharmaceutical sector in the form of vitamin and mineral supplements, according to the latest analysis from Frost & Sullivan.
The analysis noted that the 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.
The analysis further pointed out that the global nutraceutical market in 2011 was estimated to be $149.5 billion, with the US, Europe and Japan being the largest regional markets, accounting for nearly 93 percent of the global nutraceutical demand. These markets are nearing maturity, with exceedingly high per capita spends on nutraceutical products (Japan has a per capita spend of $51 per person per year, while the US and Europe have $40 and $35 each. The global average is only $21 per person per year.) This compels nutraceutical manufacturers to look at developing countries such as India and China, which have considerably lower per capita spends on these products, as key growth regions.
Other factors that support the growth of nutraceuticals in India are:
• Between 1998 and 2005, India's overweight rates increased by 20 percent. The national family health survey has found 13 percent of women and 9 percent of men in the 15-49 age groups to be overweight or obese.
• India has become the diabetic capital of the world with 55 million diabetics in 2010.
• Of all deaths in the last decade, 40 percent have been Cardiovascular related. The number is expected
to cross the 50 percent mark by 2020.
Increasing food security concerns in India and need for additional nutrition, has resulted in government-funded vitamin fortification initiatives. Pharmaceutical and FMCG giants dominate the Indian Nutraceutical Market. While Dietary supplements such as vitamin and mineral supplements have been captured by pharmaceutical companies, FMCG companies are now bringing functional food and beverages to the market.