The nutraceuticals industry has seen a noticeable rise in popularity over the last few years, not only in India but across the world. The wide range of supplements serve a number of needs – from preventive healthcare management to personal wellness needs, nutraceutical market can become one of the leading markets in the world.
Increased consumer interest in a healthy diet has led to an extensive growth in the food and beverage market over the forecast period. Uplift in the demand for functional foods and supplements have in turn affected to boost the growth of the market for nutraceuticals.
Nutraceutical ingredients are derived from sources such as animal, plant, microbial, and synthetic, which provide health benefits. Their consumption keeps diseases at bay and allows humans to maintain an overall good health.
Current Demand of Nutraceutical Ingredients
Nutraceutical ingredient manufacturers are quickly adopting personalized healthcare technologies in order to create better-suited and personalized end products for customers.
Consumer shift towards nutraceuticals is in accordance with the principle of “prevention is better than cure”. Convenience, being a vital factor, the growing distribution channels for these products, such as online retail stores, ensures high availability of the products in the market. Functional beverage is one of the fastest-growing segments, and developing markets have a growth potential for these beverages.
The major factor driving the growth of Nutraceutical Ingredients market size:
- Growing demand for fortified food due to the increasing health consciousness amongst consumers.
- Benefits due to their potential nutritional, safety and therapeutic effects help to improve health, prevent chronic diseases, postpone the aging process, or just support functions and integrity of the body.
Current market scenario, 2020
Global Nutraceutical Ingredients Market is projected to grow at a CAGR of 7.1%.According to the Journal of Basic and Clinical Pharmacy, the Indian market has been growing at a CAGR of 18% during the forecast period. However, the latent market in India is two to four times the current market size and is between USD 2 billion to USD 4 billion with almost 148 million potential customers. In USD 1 billion market size functional food having 54% market share followed by 32% market share of Dietary supplement and 14% share of Functional beverages.
The nutraceutical ingredients markets, when categorised is dominated by the probiotic segment in 2020. Probiotic ingredients have witnessed positive effects on the overall human health and are becoming one of the essential ingredients for various health & nutritional applications. The nutraceutical ingredients market, by form, is estimated to be dominated by the dry segment in 2020. A number of nutraceutical ingredients that are used in the dry form are vitamins, amino acids, prebiotic & probiotic premixes, proteins, and some minerals such as zinc and folic acid.
Future Prospects in the Nutraceutical segment
Nutraceuticals products and supplements are becoming an integral part of the lives of the urban population. Considering the on-going lifestyle and public health scenario, people are looking for solutions to relieve stress, improve their lifestyle and health. Hence, the urban Indian population, are inclined towards trying nutraceuticals products. Many industry’s from all over the world including the US, Europe, and Japan have seen the potential in the Indian market and have been entering it to obtain benefits by making their products available to the consumers.
Nutraceuticals as a segment, has scope for tremendous growth and can evolve to a form that is cognisant of the needs and trends of the new generation, mainly the millennials.
- Deepthi Devatha