Indian Nutraceuticals, Herbals, and Functional Foods Industry: Emerging on Global Map Organized by Knowledge Partner
Dec 25, 2015
Indian Nutraceuticals, Herbals, and Functional Foods Industry: Emerging on Global Map
Organized by
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 - An Introduction
“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
Nutraceuticals - An Introduction
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
Indian Nutraceuticals Market
2015e 2016f 2017f 2018f 2019f 2020f
1.8
2.1
2.4
2.8
3.3
3.8India Dietary Supplements Market (Billion
US$)
CAGR: 16%
Source: RNCOS
Vitamins & Min-erals40%
Probiotic10%
Omega-3 Fatty Acids5%
Herbal30%
Others15%
India Dietary Supplements Market Segmenta-tion (%), 2015
Source: RNCOS
– Dietary supplements are predominantly prescription-based
– Physicians, Nutritionists, and Health Instructors are major influencers
– With growing awareness, OTC demand is increasing
– Higher purchasing power also promoting growth
– Middle class is the major consumer
– Vitamins & Minerals continue to dominate
– Proteins, Omega -3, Probiotics and Herbal supplements to show strong growth
– Export opportunities for Herbal supplements; US is one of the major exporting destination
Indian Nutraceuticals Market
2015e 2016f 2017f 2018f 2019f 2020f
1.01.1
1.4
1.6
1.9
2.3
India Functional Food & Beverages Market Market (Billion US$)
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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