India Nutraceuticals Market Overview, 2027

Nutraceuticals have their constitutional pillars very deeply established in Ayurveda. Absurdly, India, the land of Ayurveda, has a low consumption and compliance of nutraceuticals (as low as 14%). Surprisingly, nutraceuticals met low acceptance as an industry, despite a large section of the population in India dynamically adopting traditional cures. The nutraceutical industry also found itself continuously on the edge over regulatory matters in the Indian market. According to the Bonafide Research report titled, "India Nutraceutical Market Overview 2027", the Indian nutraceutical market is expected to grow at a CAGR of more than 22%. The Indian nutraceutical market is categorised into different types, namely by product type, by dietary supplement type, by functional beverage type, and by functional food type. Moreover, the Indian nutraceutical market accounts for 2% of the global nutraceutical market. The future demands will be rising for dietary supplements from the upper and middle classes. The pandemic has played a role in the tremendous growth of the nutraceutical industry in India. The COVID-19 crisis laid huge importance on building strong immunity using natural herbs and plants. Be it Ashwagandha or herbal kaadha for building strong immunity, the nutraceutical market in India has grown multitudinous since 2020. The pandemic has made the middle class shift from pharmaceuticals to nutraceuticals and dietary supplements.

Furthermore, the market is examined by product type, with functional food showing the highest market attractiveness with a CAGR of more than 27%.India's functional foods market is still very small, but as the food industry develops, it could offer a notable opportunity for functional food makers. Functional food, also termed as "nutraceutical" products (a hybrid of nutrition and pharmaceutical), is any fresh or processed food asserted to have health-promoting ingredients apart from its basic nutritional function. Moreover, functional food in India is currently still in its early stages, catering mostly to enlightened city dwellers, but the young population of dual-income households, with a rising income and a growing awareness of healthier eating, has led to muscular growth in this sector. Furthermore, in the dietary supplement market, botanicals show the highest market attractiveness index with a CAGR of more than 16%. Botanical extracts are an important component in the food and beverage segment. Botanical extracts are found in a growing number of product launches across all major segments, from beverages to baked goods and dairy products or savoury categories such as soups, sauces, and snacks. Moreover, factors such as an increase in the dietary supplements industry and rising disposable income will increase the market's mark during the forecast period. Additionally, rising awareness regarding consumer health will increase the growth of this market. The functional beverage market is another segment that drives India’s nutraceutical market. The segment is further divided into energy drinks, sports drinks, fortified drinks, and dairy and dairy alternatives. Dairy and dairy alternatives are the fastest growing markets in India with a CAGR of more than 31%. Major factors propelling market growth include animal-based traditional dairy products, which play a large role in causing food allergies. As a result, dairy product consumers are opting for vegan protein-based dairy alternatives, which are additionally fuelling demand for dairy alternatives in India. Moreover, the functional food market is seeing soy products as one of the fastest growing markets with a CAGR of more than 29%. The market is majorly driven by the increasing number of consumers seeking non-dairy beverage alternatives. As a result, the market for soy milk beverages has grown significantly. Further, new food production technology and new varieties of soybeans result in new flavours and create competition with cow’s milk and dairy products. However, the various health benefits of soy milk, such as lower cholesterol, heart disease reduction, and the increasing number of health-conscious consumers, are also some of the factors driving the market.

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Manmayi Raval

Research Consultant

Considered in this report • Geography: India • Historic Year: 2016 • Base year: 2021 • Estimated year: 2022 • Forecast year: 2027 Aspects covered in this report • India dietary supplements • by supplement type market analysis • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation Based on by product type in the report: • Dietary supplement • Functional foods • Functional beverages

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Based on by Dietary Supplement type in the report: • Vitamins • Minerals • Botanicals • Amino acids/ protein • Probiotics • Other type Based on by functional beverages type market in the report: • Energy drinks • Sports drinks • Fortified juice • Dairy and Dairy alternatives • Other functional beverages Based on by other functional food type market in the report: • Bakery and cereals • Dairy products • Meat, Fish & Eggs • Soy products • Fats & Oils • Other functional foods The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analysing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to medical industry, dietary supplement manufacturers, suppliers, associations & organizations related to nutraceutical supplements market, trends and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.