Aging Demographics Drive Growth in Nutraceuticals Sector

The Indian nutraceuticals industry was valued at $26.87 billion in 2023, with predictions of a 13.5% CAGR from 2024 to 2030. This growth is largely fueled by a growing consumer emphasis on health-conscious eating, the rise of lifestyle-related health issues, and a shift towards preventative healthcare.

Consumers’ increasing inclination to modify their diets is anticipated to escalate the demand for nutraceuticals. The perception that an improper diet leads to higher pharmaceutical costs is expected to drive the nutraceutical market, providing a dual benefit of reducing government expenses on healthcare and social security.

In 2023, the Indian nutraceuticals market contributed 9.22% to the global nutraceuticals industry revenue. Concerns among the older population about heart health and obesity are predicted to spur nutraceutical demand within their demographics.

The elderly are increasingly open to customized nutrition solutions, presenting growth avenues for nutraceutical producers, supplemented by educational initiatives targeting this group. Raised awareness regarding health issues among this demographic is anticipated to drive strong product demand.

Nutraceutical companies are heavily investing in R&D for purposes such as exploring new ingredients, meeting regulatory standards, protecting intellectual property, and distinguishing their products to gain an edge in the market. The importance of patents for ensuring revenue is evident in the significant investments in patenting potential future revenue-generating compounds and procedures.

As health consciousness and disease prevention become more prevalent, the nutraceuticals market is expected to see significant growth. The proliferation of the Internet has enabled consumers to become more informed about chronic diseases and preventive measures, including nutraceutical use.

Consumers are showing greater interest in nutraceuticals crafted from natural ingredients or produced using traditional methods. New technologies and innovations, such as AI, are facilitating more personalized dietary and health data-driven solutions, and are expected to play a crucial role in market expansion.

Market Characteristics

The Indian nutraceuticals market is marked by considerable innovation due to technological evolution and shifting consumer tastes. Companies are actively crafting new formulas, including enhanced foods and dietary supplements, and using scientific research to tailor products for specific health needs. Breakthroughs in delivery systems, such as improved bioavailability technologies, are further enhancing product effectiveness.

Mergers and acquisitions are frequent among leading market players, aiming to expand product lines, access new markets, and bolster R&D capacity.

The market is populated by both established and local firms, leading to segmentations based on nutritional needs, dosages, and health conditions.

Nutritional product development has resulted in market saturation, with industry regulators enforcing standards for product safety, quality, and labeling to foster consumer trust and protection.

Various government standards assure the safety, efficacy, and manufacturing quality of nutraceutical products. Transparent labeling and dosage recommendations influence consumer buying choices and perceptions. Home-user concentration is a notable trend in the Indian nutraceuticals arena.

Ingredient Insights

In 2023, probiotics made up 24.66% of the revenue, driven by demand for components that enhance digestive and immune health. These ingredients are integrated into foods to provide strain-specific benefits related to their GI tract interactions. Consumers widely incorporate prebiotics and probiotics to boost gut and immune health functions.

Product Insights

Functional foods commanded a 37.75% market share in 2023, offering benefits like combatting fatigue, modulating immune responses, and providing nutritional support. Their increasing penetration in rural India presents lucrative opportunities for manufacturers.

The dietary supplements sector is projected to grow at a 13.8% CAGR between 2024 and 2030. Factors like rising urbanization, demanding lifestyles, and increasing disposable incomes contribute to higher dietary supplement sales. Collaborations between supplement producers and local distributors in India are expected to be favorable for market growth.

Application Insights

Weight management and satiety applications held a 20.22% revenue share in 2023, linked to rising awareness of healthy weight practices. Overcoming hectic lifestyles and poor dietary habits are essential for combating obesity and related health conditions.

One-fifth of India’s population experiences chronic diseases like respiratory, metabolic, and cardiovascular conditions. The alarmingly widespread prevalence of these issues has promoted extensive weight management strategies.

Key Industry Player Insights

Top players in the market include E.I.D. – Parry (India) Limited, Zoic Pharmaceuticals, and Uniray Lifesciences. E.I.D. – Parry, from the Murugappa Group, offers products such as Organic Spirulina and Moringa. Zoic Pharmaceuticals is recognized for high-quality and cost-effective products.

Emerging players such as Lifevision Healthcare and United Laboratories are notable for their contributions to the Indian nutraceuticals market. Lifevision specializes in capsules, syrups, and gels, while United Laboratories, established in 2015, offers quality-approved products.

(The author is an assistant professor in the Department of Pharmaceutical Sciences at Bengal College of Pharmaceutical Sciences & Research, Durgapur, West Bengal.)