The Indian nutraceuticals industry is expected to grow at 20 per cent to USD 6.1 billion by 2019-2020 due to rising awareness about health and fitness and changing lifestyle, according to a report.
At present, the nutraceuticals industry in India is about USD 2.2 billion and is mainly focused in the southern region, followed by the eastern region with three major states of Andhra Pradesh, Tamil Nadu and West Bengal, a report by business consulting services firm, RNCOS said.
"The nutraceuticals industry in India is one of the rapid growing markets in the Asia-Pacific region. Factors like rising awareness about health and fitness, ageing population, changing lifestyle are fostering this growth," it said.
The industry is anticipated to grow at around 20 per cent over the period to reach USD 6.1 billion by 2019-2020, the report said.
Nutraceuticals business is divided into three segments - functional food, functional beverages and dietary supplements.
Further, the report said the nutraceuticals market penetration in urban India is at around 22.5 per cent, while it is comparatively low in rural India at 6.3 per cent.
The urban penetration is more as demand for protein supplements is increasing among the urban youth due to rising desire towards maintaining fitness and building a strong physique, it added.
Along with entry of various international and local players in this market, there is an acceleration in growth, the report said.
In India, mainly the FMCG and pharmaceuticals sectors dominate the nutraceuticals market, it added.
The Indian nutraceuticals market is divided into functional food and beverages (68 per cent) and dietary supplements (32 per cent).
While oats, probiotics, nuts, tomato products, yogurt, sports and energy drinks, among others, fall under functional foods; vitamins, minerals, fibres and fatty acids, in the form of tablets and capsules, are part of dietary supplements, it said.
The report further said that even as nutraceuticals fall under the purview of Food Safety and Standards Act of India (FSSAI), 2006, it is not stringent enough to ensure safety for consumers.
It regulates manufacturing, storage, distribution, sales and imports of nutraceuticals in the country.
"FSSAI should play a significant role in defining standards to streamline the nutraceuticals market in India, which must include quality raw materials, safe manufacturing of products, health claims, labelling and distribution, and storage," it added.
