Desire to lead a healthy life and increasing scientific evidence supporting health foods continue to drive the 'nutraceuticals" market. Trends influencing the demand for nutritional products include changing consumer demographics, growing awareness of diet/disease relationships and increasing acceptance of alternative healthcare practices.

Nutraceuticals enhance the body's abilities to withstand the stresses and strains that challenge our health through a changed and impulsive lifestyle. This industry consists of various categories of nutrition products such as functional food, dietary supplements (vitamins, minerals, herbs/botanicals, sports nutrition, meal replacement and specialty), natural/organic food, and personal care and household products. The primary markets for nutraceuticals and functional foods are the industrialized countries or regions with greater levels of economic development such as the US, Sweden, Switzerland and the UK.

The Indian nutraceutical market is in a nascent stage and growing at a faster pace. The market size of the Indian nutraceutical market is about USD 43.80 million (Rs 1,840 crore). Higher disposable incomes and greater awareness on health is one of the reasons for the nutraceuticals sector growing at about 40 percent.

Reliance on fast food and imbalanced diet further complicates the health cycle rendering it incomplete. This change reflects on health - heart attacks in mid 30's is seen, cholesterol in late 20's, chronic Acidity, diabetes, etc.

The pattern of demand in global healthcare industry is changing significantly, where preventive and supportive healthcare solutions have gained importance. Awareness about benefits of using alternative medicines is increasing due to greater awareness about the link between lifestyle and diseases. Ageing population, increase in medical costs and increase in malnutrition-led diseases are other factors contributes to the increasing demand for nutraceuticals.

According to Peter Zambetti from the International Alliance of Dietary/Food Supplement Association's (IADSA) global market affairs department in India, the biggest selling products in the nutraceuticals category in 2006 were minerals, which recorded sales of almost $ 120 million. Vitamins were close behind, with sales of almost $100million. Protein powder came third, with sales of around $90million. Fourth in line was Chyawanprash, which contains 48 different ingredients which cross the $60m mark. Multivitamins sold almost $60million, and glucose powder was next at just over $40million. Ginseng saw sales of around $30million, vitamin B and calcium sold around $20 each, while the vitamin C market was worth just over $10million.

India in the future global scene

Global nutraceuticals market is estimated at USD120 billion in 2007 growing at 7% (CAGR) and is projected to witness healthy growth to cross US$187 billion in sales by 2010.
The US has been the major market for nutraceuticals with India and China becoming fastest growing markets. Nutraceuticals are gaining acceptance for their ability to address several diseases. Vitamins, Minerals and Nutrients constitute about 85% of the market while antioxidants and anti-agents account for 10% other segments such as herbal extracts occupy 5% of the market, globally.

India has rich bio-diversity and many natural ingredients, based on plant species that are locally available, which are used in production of nutraceuticals. Most of the spices grown in India have medicinal characteristics, and are valued in international markets.

The key players in the Indian nutraceuticals market are Glaxosmithkline consumer healthcare, Dabur India, Cadila Health care, EID Parry's, Zandu Pharmaceuticals, Himalaya herbal Healthcare, Amway, Sami labs, Elder pharmaceuticals and Ranbaxy.

Issues & challenges

Major snags faced by the nutraceuticals sector include the regulatory framework, availability of quality raw materials, storage and transportation infrastructure, issues associated with quality, and standardization.

Another problem is the lack of adequate awareness among the masses. "The awareness itself is a risk, because we hardly have seven to eight percent people who are aware, whereas about 82 percent does not know what the term nutraceutical means. They call them functional foods, dietary supplements and are of the opinion that nutraceuticals are for sick people.

Most nutraceuticals are highly priced, which is one of the deterrent factors, as the target consumer remains the urban elite.

Suggestions

There is a need to take the nutritional supplement industry from the 'belief-based' to the 'evidence-based' status. The industry should initiate active partnership with academic institutions to support the product claims with appropriate data.

Indian manufacturers must focus on quality to match the international arena. Innovative positioning and communication strategy adopted by leading companies will further help in increasing the equity of the nutraceutical industry.

Although urban markets have very high potential, the rural market is also fast expanding which will drive future expansion strategies of nutraceutical brands. Increased awareness, disposable income and improved access to healthcare will narrow the divide between the rural and urban consumer. The future of Indian nutraceutical market looks very bright and move up to be amongst the top three global nutraceutical markets in the near future.