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Indian Nutraceuticals Market


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Published in: Health & Medicine

Indian Nutraceuticals Market

  1. 1. All India Food Processors’ AssociationThe nascent nutraceuticals market in India is poised for strong growth with increased awareness and health conscious consumers.Market Entry StrategiesBusiness EcosystemRaw material suppliers / ManufacturersE.g.: Pepsico, GlaxoSubsidiaryIndian Nutraceuticals Market Snapshot-740605-801859<br />E.g.: Himalaya for Global Reliance, Elder Pharma for Gnosis Labs, ItalyResearch Institutions / Consumer OrganizationsNational Institute of Nutrition, Central Food Technological Research InstituteMarket SizeUSD 1 billion (2009)Projected growthCAGR 18 percent<br />Joint Venture / Marketing Partner<br />Nutraceutical Companies<br />Sales ChannelsSubsectors (2009 market size) - Functional foods (54%) - Dietary supplements (32%) - Functional beverages (14%)Import Duties and Tax Structure<br />E.g.: Religare Wellness, Himalaya Store Distributor / Pharmacies/ Retail<br />Ministry of Food Processing<br />DriversFocus on wellness and preventive careIncreased awareness and health conscious consumersIncreased accessibility due to new distribution channels<br />Direct MarketingRegulatory Framework<br />E.g.: Amway, Herbalife Food Safety and Standards Authority of India<br />-478491-484094Nutraceuticals Market - India<br /><ul><li>Source: Economic Times,,, Press reportsPharmaceuticals and FMCG companies with an existing presence in India have relied on their existing distribution network for marketing nutraceuticals such as functional foods and beverages and dietary supplements.Pure play nutraceutical companies and new entrants should invest in directly marketing to physicians and medical professionals before mass marketing. These sales channels would continue to be pharmacies and retail chains.Market Entry StrategiesThe Indian nutraceuticals market is estimated to be USD 1 billion in 2009 and is growing at a CAGR of 18 percent driven by functional food and beverages category. According to a report by the Federation of Indian Chambers of Commerce and Industry (FICCI), the latent market potential is two to four times the current market size.The functional food and beverages categories consisting of nutrition fortified foods, sports and energy drinks, fortified juices and probiotic foods are growing faster driven by wider distribution across channels and aggressive mass marketing.Pharmaceuticals and FMCG companies dominate the Indian nutraceutical market with very few pure play nutraceutical companies..Market Size and ProjectionsThe absence of rules and regulations to govern quality and claims of nutraceutical products could hinder the growth of the market.Lack of awareness about product benefits and high prices could limit reach and growth of nutraceuticals.New entrants in the nutraceuticals market would have to compete with large established pharmaceutical and FMCG companies who have diversified by introducing product extensions and developing variants under existing brand names.Key ChallengesThe nutraceuticals market in India is in an infancy stage, but the prospects are good given the fact that in developing countries, 40 percent of deaths are attributable to risk factors linked to nutrition.Adverse outcomes as a result of inadequate nutrition levels are estimated to cost nearly one percent of India’s GDP and hence the government recognizes that improvement in nutrition status is a critical part of the country’s agenda for progress.Drivers