Nutraceuticals encompass a wide range of products, including:
Dietary Supplements: Vitamins, minerals, amino acids, and probiotics that support bodily functions.
Functional Foods: Fortified cereals, dairy products, and beverages enriched with nutrients.
Herbal and Natural Extracts: Products containing plant-based ingredients known for their medicinal properties, such as turmeric, ashwagandha, and green tea extracts.
Medical Foods: Formulated products designed to manage specific health conditions under medical supervision.Why Are Nutraceuticals Becoming Popular in India?
Several factors are driving the demand for nutraceuticals in India:
1. Increasing Health Awareness
Consumers are becoming more health-conscious, leading to a preference for preventive healthcare solutions. Nutraceuticals are perceived as a natural and effective way to maintain good health and immunity.
2. Rising Burden of Lifestyle Diseases
The prevalence of conditions like diabetes, obesity, cardiovascular diseases, and hypertension has surged. Many people are turning to nutraceuticals as a preventive measure and to supplement traditional treatments.
3. Shift Towards Natural and Plant-Based Products
There is a growing inclination towards herbal and organic products, driven by concerns about synthetic medicines’ side effects. Ayurveda-based nutraceuticals, in particular, are gaining traction.
4. Growing Middle-Class and Disposable Income
With an expanding middle-class population and increasing purchasing power, more people are willing to invest in health and wellness products.
5. Government Initiatives and Regulations
The Food Safety and Standards Authority of India (FSSAI) has set guidelines to regulate the nutraceutical industry, ensuring product quality and safety. This has enhanced consumer trust and market credibility.
A recent event related to the nutraceutical industry, Vitafoods India 2025, was also organised in Mumbai to raise awareness about the sector. The event featured 136 domestic and 23 international exhibitors, along with more than 35 industry experts discussing market trends and innovations. Speaking on the occasion, Yogesh Mudras, MD, Informa Markets in India said, “In 2024, the sector experienced remarkable growth driven by consumer demand for personalised and science-backed health solutions, and 2025 is set to build on this momentum. With increasing emphasis on supply chain transparency, digital health integration, and regulatory compliance, stakeholders are well-positioned to address emerging challenges and seize opportunities in this dynamic market.”
Market Growth and Future Prospects
India’s nutraceutical market is expected to grow at a rapid pace, with estimates suggesting it could reach $18 billion by 2025 and $68.42 billion by 2030. Key players in the market include pharmaceutical companies, startups, and FMCG brands diversifying into health-focused products. Online retail and direct-to-consumer models are also playing a crucial role in expanding accessibility.
“India’s $8 billion nutraceutical market, particularly in Ayurveda, holds immense potential within the $520 billion global nutrition landscape. Standardization, research, and sustainable practices are key to unlocking this potential and establishing India as a leader in natural wellness,” Subrata Gupta, IAS, Secretary, Union Ministry of Food Processing Industries said.
Challenges in the Industry
Despite its growth, the sector faces challenges such as:
Lack of Awareness: Many consumers are still unfamiliar with nutraceuticals and their benefits.
Regulatory Hurdles: Continuous updates in compliance norms require businesses to adapt.
Product Standardisation: Variability in ingredient quality and effectiveness remains a concern.
“Policies such as reducing the GST on nutraceuticals from the current 18% to a more consumer-friendly 5–12% and introducing PLI-based schemes for manufacturers could enhance affordability and accessibility, especially in tier-2 and tier-3 cities,” Salman Mehkri, Head of Business Development, Bio-gen Extracts said.
