India’s health supplements and nutraceuticals market is growing owing to rapid urbanization, changes in lifestyle and an increased focus on nutrition. The rising popularity of health-conscious living combined with increased disposable income is creating a wave of new customers looking for health supplements and nutraceuticals to complement their nutritional needs.
With benefits ranging from enhanced physical performance and mental alertness to disease prevention, these products are fast becoming an everyday lifestyle necessity.
The global nutraceuticals market is set to develop at a 7.3% CAGR until 2021 with an estimated value of US $278.96 billion. Previously fuelled by developed countries, this growth is now being driven by emerging markets like India and China. In fact, India’s nutraceutical industry is growing at an exponential rate (21% CAGR) and is set to touch US $10 billion by 2022. We look at the factors that will drive the growth of the market.
Health benefits
Nutraceuticals can provide significant health benefits by supplementing nutrition from food. They can be used to address malnutrition, micronutrient deficiencies, and other specific requirements that everyday diet may be unable to fulfil. Further evidence of their effectiveness through research and testing will increase the demand for these products.
Increased awareness
As with any new product, awareness is essential for popularity and demand. Easy access to information through the internet, mass media, testimonials, clinical trials, and sampling is allowing customers to see the advantages of nutraceuticals. Initiatives by the government and private sector are driving knowledge about nutraceuticals on a large scale. The rise of nutrition care professionals and products (dieticians, nutritionists, online nutrition plans) is also creating an emerging community of nutrition-conscious consumers. As the industry expands in India, consumers will have even more knowledge to make an informed decision about their preferences.
Disposable income
Busy and fast-paced living in urban areas has increased the incidences of lifestyle-based diseases like diabetes and cardiovascular problems while the hospitalization costs are also rising. These factors together have contributed to the shift to a healthier lifestyle focussed on preventive health measures. Indians today are going for exercises and sports activities, doing regular check-ups, monitoring their health through various apps and gadgets and also adding health supplements and nutraceuticals to their regular diet. The rise of disposable income has also facilitated this lifestyle change and will continue to boost the growth of this sector.
Price and access
As a developing market, the price is a limiting factor for access in India, but this is changing fast with supplements becoming affordable. Several companies, both Indian and international, are looking to grow their presence in the Indian market. Multinational companies are bringing their global portfolio to India and also localising products while domestic players are using their reach to enter untapped markets and trial new products. This competition and choice will reduce the price of these products even further and drive their demand. Additionally, the growth of e-commerce channels is allowing customers across the country to purchase nutraceuticals of their choice irrespective of location.
Trust
A robust regulatory framework is ensuring the success of genuine products offered by trusted companies. The acceptance of fortified and functional foods with added nutrients and supplements shows the Indian market’s appetite for nutraceuticals and supplements. While these factors are making nutraceuticals and supplements a safe choice, consumers must be careful to buy genuine products from trusted companies to avoid any health risks.
Market Penetration
India is one of the most populous countries in the world and is also set to be the youngest nation by 2020. With just 10% market penetration, a mere 6.32% in rural India, the nutraceutical and supplements industry has grown exponentially. Broadband penetration, education, and increased disposable income will ensure that these products reach more regions in the country so consumers across locations will have access to better health and nutrition.
Boosted by proven benefits, affordability, and access, nutraceuticals are fast becoming an essential commodity. QNet India has been playing an integral role in driving this growth. In its mission of helping others live a more balanced and healthier life, it has created a range of natural health supplements. These supplements are designed specifically to help individuals have access to complete wellbeing and in the process live a happier and healthier life.
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