indian nutraceuticals, herbals, and functional foods industry emerging on global

Indian Nutraceuticals, Herbals, and Functional Foods Industry: Emerging on Global Map

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Knowledge Partner

About Us

• Started in 2002, with the aim of providing multiple services to companies wishing to engage in any business expansion

• Provide actionable insights to companies across a range of industries such as Food, and Healthcare

• Well equipped offices in India and Dubai, also present in 20 countries and 5 cities in India through channel partners

• Dedicated team of over 35 employees and 15 freelancers, with rich industry experience and domain expertise

Services

Strategic Consulting

• In-Depth Market Assessment

• Market Entry Strategies

• Concept & Product Testing

• Existing Business Optimization

• Strategic Advisory

Nutraceuticals - An Introduction

• The term “Nutraceuticals” was coined from “Nutrition” & “Pharmaceutical” in 1989 by Stephen DeFelice MD, Founder and Chairman of the Foundation for Innovation in Medicine (FIM).

• Offers health benefits and are majorly used to prevent from lifestyle disorders (CVD, Diabetes, and malnutrition among others).

• Plants, Animals and Micro-organisms are the source of Nutraceuticals ingredients.

• Vitamins, Minerals, Proteins, Probiotics, Fatty acids, Amino Acid are some of the major ingredients.

• Formulations are available in the form of Powder, Pills, Tablets, Capsules, Bars, Food and Drinks.


“Nutraceuticals” viz-a-viz “Pharmaceuticals”

Parameters Nutraceuticals Pharmaceuticals

Prevention and Wellness Primary FOCUS Secondary FOCUS

Medical Supervision Not Required Required

FDA Approval Not Required Required

Prescription Not Required Required

Results Slow but effective Fast; may have side effects

Some Major Health Issues/Diseases

Diseases Nutraceuticals Used

Cardiovascular Diseases Soya foods, Antioxidants, Dietary fibers, Omega-3, Poly unsaturated fatty acids, Vitamins, Minerals, Polyphenol, Flavonoids

Diabetes Lipoic acid, Dietary fibers (Psyllium)

Obesity Herbal stimulants (Caffeine, Green Tea), Buckwheat seed proteins, Glucomannan, Chitosan, Fenugreek, Gymnema sylvestre, Vitamin C

Cancer Flavonoids, Soyfoods, Lycopene, Saponins, Beet roots, Turmeric rhizomes

Anti Inflammatory Activities Curcumin, Gamma Linolenic acid

Source: International Journal of Recent Advances in Pharmaceutical Research


Classification of Nutraceuticals

Functional BeveragesFunctional Foods

Nutraceuticals

Dietary Supplements

Vitamins & Minerals Herbal

Ayurvedic Extracts

Algai Extracts

Functional F&B

Probiotic & OthersProtein Supplements

Protein Powder

Plant Extracts

Probiotic Fortified

Omega Fatty Acid Fortified

Protein Bars & Others

Energy Drinks

Sports Drinks

Fortified Juices

Global Nutraceuticals Market

2015e 2016f 2017f 2018f 2019f 2020f

183195

209225

242263

Global Nutraceuticals Market (Billion US$)

CAGR: 8%

Source: RNCOS

US36%

Asia Pacific30%

Euro-pean Union26%

Rest of the World8%

Global Nutraceuticals Market by Region (%), 2015

Source: RNCOS

The core factors promoting the growth of this industry include:– Increasing health consciousness– Ageing population – Rising personal disposable income– Increasing penetration of large retail set-up, such as

hypermarkets and supermarkets– Marketing and promotional activities by companies

India with about 2% share is emerging on the global map

Japan (14%) and China (10%) are the major markets from Asia-pacific

Industry Trends:

– Rising demand of herbal nutraceuticals in the Asian region

– Rising penetration of foreign companies in the Asian region

– Energy-boosting products gaining grip in the US

– Interest shifting to nutraceuticals against prescription medicine in developed economies

Indian Nutraceuticals Market

2015e 2016f 2017f 2018f 2019f 2020f

2.83.2

3.8

4.4

5.2

6.1

India Nutraceuticals Market (Billion US$)

CAGR: 17%

Source: RNCOS

Dietary Sup-ple-

ments65%

Functional Foods and Beverages

35%

India Nutraceuticals Market Segmentation (%), 2015

Source: RNCOS

Industry Drivers:

– Ageing Population: Elderly population to reach 143 Million by 2021 from current 100 Million

– Increasing Co-prescription: In 16% of the prescriptions, a multivitamin product is prescribed

– Focus on Preventive Healthcare: Consumers have started realizing the importance of nutraceuticals in dealing with health issues

– Rapid Retail Growth: India’s retail market to double to US$ 1.3 Trillion by 2020 from US$ 600 Billion in 2015.

– India is one of the major economies among the developing countries

– Per capita GDP grew at 11% CAGR during 2011-12 to 2014-15

– Changing lifestyle; increasing sedentary jobs propelled the incidence of lifestyle diseases.

– Rising health awareness among consumers providing platform for nutraceuticals to grow


2015e 2016f 2017f 2018f 2019f 2020f

1.8

2.1

2.4

2.8

3.3

3.8India Dietary Supplements Market (Billion

US$)

CAGR: 16%

Source: RNCOS

Vitamins & Min-erals40%

Probiotic10%

Omega-3 Fatty Acids5%

Herbal30%

Others15%

India Dietary Supplements Market Segmenta-tion (%), 2015

Source: RNCOS

– Dietary supplements are predominantly prescription-based

– Physicians, Nutritionists, and Health Instructors are major influencers

– With growing awareness, OTC demand is increasing

– Higher purchasing power also promoting growth

– Middle class is the major consumer

– Vitamins & Minerals continue to dominate

– Proteins, Omega -3, Probiotics and Herbal supplements to show strong growth

– Export opportunities for Herbal supplements; US is one of the major exporting destination


2015e 2016f 2017f 2018f 2019f 2020f

1.01.1

1.4

1.6

1.9

2.3

India Functional Food & Beverages Market Market (Billion US$)

CAGR: 18%

Source: RNCOS

– Functional foods and beverages are majorly alike in appearance to conventional food and beverages

– These are consumed as part of regular diet

– Fortified with essential nutrients, these provide physiological benefits and reduce the jeopardy of chronic diseases

– Rising expenditure on quality food products driving the market

– Functional food and beverages will grow strongly

– Area of experimenting with food & beverages is much wider than dietary supplements

– Functional food have captured major chunk of fortified food and beverages market

– Under functional beverages, protein drinks is an opportunity area for consumers searching for weight management solutions

Nutraceuticals Marketing Model

Small Companies

Manufacturing Unit

CFA’s

Stockiest/Dealers

Direct Sales

End Consumer

End Consumer

RetailersHospitals

Hospitals Retailers

End Consumer

End Consumer

E-Commerce

Regulatory Framework for Nutraceuticals

• Nutraceuticals have been categorized as non-standardized/special food products under Section 22 of Food Safety & Standards Act, 2006.

• No regulatory guidelines for the approval or monitoring of these products.

• Created taskforce that has submitted its recommendations to FSSAI in April 2015.

• As of May 2015, draft regulations presently under consultations for legal vetting.

Regulatory Implications Better clarity in the definition of nutraceuticals Products which need to undergo a stringent approval process under the drugs and cosmetics act will not be

available in the market as a dietary or nutraceuticals All manufacturers of nutraceuticals in India will be required to take NOC and approval prior to manufacturing and

marketing such products No activity will go unaccounted; it would become easy to track the market information

Nutraceuticals Industry: The Road Ahead

FSSAI should come up with properly framed guidelines to bring clarity in regulations

Private players and government should create awareness through campaigns, social media and television

Product approvals should be made fast and efficient

To curb malnutrition children should be provided with nutraceuticals in mid-day meal

Strong control over counterfeit and un-registered/un-approved products is required

Focus on improving the number of Food Safety Testing Laboratories and Training Centers

Funding, incentives and subsidies should be provided to aid technology uptake and improve R&D

SHUSHMUL MAHESHWARICEO

RNCOSE mail: [email protected]

Website: www.rncos.comPhone: +91 120 4224700 /01 / 02/

03Address: B 129, Sector 6,

Noida, Uttar PradeshIndia - 201301

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