India Nutraceutical Food Market Outlook to 2028

India Nutraceutical Food Market Overview

The India nutraceutical food market has experienced significant growth over recent years, valued at USD 26 billion in 2023. The market is driven by increasing health awareness, preventive healthcare demand, and the rising prevalence of lifestyle-related diseases such as diabetes and cardiovascular disorders.

Key players in the India nutraceutical food market include Dabur India, Patanjali Ayurved, Amway India, Herbalife Nutrition, and Zydus Wellness. These companies hold substantial market shares due to their diverse product portfolios, strong distribution networks, and significant investments in research and development aimed at launching innovative health-oriented products.

In 2023, the Indian government formed a high-level committee to review the regulatory challenges in nutraceuticals and drugs to ensure consumer safety.The committee, chaired by the Secretary of the Ministry of Health, includes members from various ministries and regulatory bodies such as AYUSH, Food Processing Industries, Pharmaceuticals, FSSAI, CDSCO, ICMR, and DGHS.
North India leads the market in terms of nutraceutical product adoption, driven by urbanization, higher disposable income, and the presence of leading market players in the region. Delhi, Haryana, and Uttar Pradesh are significant contributors, with strong demand for immunity-boosting and wellness products.

India Nutraceutical Food Market Segmentation

By Product Type: The India nutraceutical food market is segmented by product type into functional foods, dietary supplements, and functional beverages. In 2023, functional foods held the dominant market position, driven by consumer preference for products like fortified cereals, protein-enriched snacks, and probiotic yogurts, which cater to wellness and disease prevention. The strong market presence of established brands, coupled with product innovation, has contributed to the dominance of functional foods.

By Consumer Age Group: The market is also segmented by consumer age group into children, adults, and the elderly. In 2023, adults held a dominant market share, as this age group shows increasing interest in health and wellness products targeting lifestyle disease prevention. Companies like Amway India and Zydus Wellness have expanded their offerings to meet the health needs of this demographic, including meal replacement shakes and omega-3 supplements.

By Region: The regional segmentation of the India nutraceutical market includes North India, South India, West India, and East India. In 2023, North India dominated the market with a significant share, driven by higher urbanization rates, disposable income, and a growing middle class. Major cities like Delhi, Mumbai, and Bangalore are key regions of demand due to increasing awareness of preventive healthcare.

India Nutraceutical Food Market Competitive Landscape

Company

Establishment Year

Headquarters

Dabur India

1884

Ghaziabad, India

Patanjali Ayurved

2006

Haridwar, India

Amway India

1995

Gurugram, India

Herbalife Nutrition

1980

Los Angeles, USA

Zydus Wellness

1988

Ahmedabad, India

Dabur Indias Expansion into Herbal Supplements: In 2023, Dabur India expanded its nutraceutical product line to include herbal supplements aimed at improving immunity and digestion. This expansion contributed to a 12% revenue increase by the third quarter of 2023, reflecting the growing demand for plant-based nutraceuticals across both urban and rural markets.

Amway Indias Investment in Product Innovation: In 2024, Amway India has announced a $4 million (approximately INR 33 crore) investment to establish four R&D labs in Gurugram, Chennai, Bengaluru, and Dindigul.The investment aims to strengthen scientific capabilities and support in health and wellbeing, with a focus on nutrition, lifestyle, and gut health.

India Nutraceutical Food Market Analysis

India Nutraceutical Food Market Growth Drivers

Rise in Lifestyle-Related Health Issues: The increasing prevalence of lifestyle diseases like diabetes, cardiovascular conditions, and obesity in India is a significant driver of the nutraceutical food market. The Indian Council of Medical Research reported that lifestyle diseases were the leading cause of mortality in 2023, which has fueled the demand for functional foods and dietary supplements aimed at preventive healthcare.

Government Health Initiatives: The Indian governments focus on improving public health through initiatives like the Poshan Abhiyan and Ayushman Bharat has driven demand for nutraceutical products. These programs emphasize the importance of dietary supplements and fortified foods in addressing nutritional deficiencies, contributing to the growth of the market in 2023.

Growing Consumer Awareness: Increased awareness among consumers regarding the importance of preventive healthcare has led to a surge in the demand for nutraceutical products. A survey conducted by the Ministry of Health in 2023 revealed that more than 60% of Indian consumers were actively seeking information on products that support immune health, digestive health, and overall wellness.

India Nutraceutical Food Market Challenges

High Raw Material Costs: In 2023, the rising cost of key raw materials like omega-3 fatty acids and probiotics posed a challenge for nutraceutical manufacturers. The increase in raw material prices has pressured companies to either reduce their margins or increase product prices, which could limit access to a broader consumer base.

Regulatory Compliance: Although the Food Safety and Standards Authority of India (FSSAI) has made efforts to regulate the nutraceutical market, many small and medium enterprises (SMEs) face challenges in complying with labeling and quality standards. This has led to delays in product launches and has hindered market expansion in certain segments.

India Nutraceutical Food Market Government Initiatives

Poshan Abhiyan (National Nutrition Mission): The Indian government's Poshan Abhiyan, launched in 2018, aims to combat malnutrition by promoting the use of fortified foods and dietary supplements. Poshan Pakhwada (2024), scheduled from March 9 to March 23, 2024, this event will focus on mass sensitization and community activities. Key themes include promoting early childhood care and education, traditional dietary practices, and improving health for pregnant women and infants.

FSSAIs Nutra Regulation Framework: The Food Safety and Standards Authority of India (FSSAI)introduced new regulatory frameworks for nutraceuticals in April 2023, which included the re-operationalization of the FSS (Health Supplements, Nutraceuticals, Food for Special Dietary Use, Food for Special Medical Purpose, and Prebiotic and Probiotic Food) Regulations, 2022.

India Nutraceutical Food Market Outlook

The India Nutraceutical Food Market Outlook highlights the growing demand for dietary supplements, functional foods, and beverages aimed at improving overall health and wellness.

Future Trends

Expansion of Personalized Nutrition Solutions: By 2028, personalized nutrition will dominate the Indian nutraceutical market. Advances in genomics and biotechnology will allow companies to offer more precise, customized solutions for consumers. This will include tailored dietary supplements based on individual health data, such as genetic profiles and microbiome analysis.

Growth in E-Commerce and Direct-to-Consumer Sales
By 2028, the e-commerce segment is projected to experience substantial growth, with more nutraceutical companies adopting direct-to-consumer (DTC) sales models. E-commerce platforms will expand to include interactive tools for personalized product recommendations, subscription-based models, and loyalty programs.
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