Written by Dr R. B. Smarta.

Known for its global spice exportation, India is once again experiencing spices come into focus thanks to their value in nutrition. From very early beginnings, spices have been central to Indian cuisine and culinary art. However, in light of recent practice and the influence of modernisation as well as globalisation, the focus has shifted.

India on the map

There are many factors leading to the growth of nutraceutical industry in India. One of those is heritage from herbals and Ayurveda. India has a rich heritage of herbal, Ayurvedic medicines and spices that position the country’s nutraceutical industry for expansion and progress. The herbal segment is likely to contribute 30% to the dietary supplements market in India, expected to grow at 20% CAGR from 2015 to 2023.

Another factor is a rich biodiversity, robust agricultural research infrastructure, and abundant availability of nutraceutical ingredients. India is a leading caterer of the world’s ingredient needs, providing highly bioavailable curcumin, ashwagandha, fibres like fenugreek, natural astaxanthin and black garlic—to name a few.

Additionally, India is also a global pharma powerhouse due to its ability to produce high-quality and low-cost generic drugs. Nutraceutical manufacturing uses many of the same technologies as the pharma industry, and low cost, high quality manufacturing supports India as a global leader in the finished nutraceutical product space as well.

Data shows that India has 108 large contract manufacturers in nutraceuticals which has opened up a vast opportunity for new FDI (Foreign Direct Investment) entrants, however, this potential needs to be leveraged properly for growth of the industry. 

India is the second most populated country in the world with a population of around 1.3 billion. Currently, only the urban population has seen traction of nutraceutical products, but there are considerable opportunities beyond the urban segment, as populations in rural parts of the country represent a huge untapped potential for nutraceutical sales.

Market opportunities

There are as many as 11 opportunities in India for those who want to enter. Those are as follows:

Expanding on some, growing disposable income coupled with lifestyle disease awareness is making the Indian population take more proactive steps toward protection and prevention. In addition to that, lowering food quality has become an accelerating trend for creating real time opportunity in India.

Besides being self-conscious, social media is also increasing health awareness of medical consumers. As a result, individuals and healthcare providers are changing their treatment protocols to promote health.

All this is happening very quickly due to government focus on AYUSH (The Ministry of Ayurveda, Yoga & Naturopathy, Unani, Siddha and Homoeopathy) and integrated medicine platforms whereby nutrition, nutraceuticals, Ayurveda and other alternative medicines have chances to flourish.

India being an IT hub and having an excellent intervention of artificial intelligence and machine learning is creating space for start-ups to disrupt the industry, and as a result, the competitive landscape is evolving very differently.

Market challenges

While there are opportunities, challenges also create barriers to entry. Among these are:

A nutra-hub in the making?

India being an emerging market, players from U.S., Japan and European countries are venturing here and are ready to leverage the potential by launching their products and expanding their portfolio according to the needs of Indian consumers.

New entrants must leverage India’s chemistry and pharma expertise and natural base with e-commerce expertise which will lead them to be a sizable player in India.  

India being on the path of Aatmanirbhar (self-reliance), opportunities to develop this concept and forming an eco-system to boost this industry will be an additional benefit for those looking to enter.

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