Indian nutraceutical market is expected to touch US $ 18 bn by 2025: Dr R.B Smarta

The nutraceutical sector is on the cusp of exponential growth and Covid-19 has accelerated the pace of its applications. Dr R.B Smarta, CMD, Interlink, shares his perspective on the growth opportunities and challenges for the sector

  • November 18, 2021

How has the nutraceutical sector fared during the last two years? Has the demand in India surpassed expectations in India?

The demand for nutraceuticals has surpassed expectations in India. The nutraceutical sector had always shown promise of growth right since its inception. Over the last two years, particularly after the advent of Covid-19, the Indian nutraceutical market has shown rapid and tremendous progress.

This is primarily because the buying pattern of consumers has changed. The pandemic has resulted in a shift of focus towards preventative healthcare.

The consumption of immune-boosters, dietary supplements and multivitamin products has increased, contributing to the growth. With an estimated market size of US $ 18 billion by 2025, the demand in India for nutraceuticals has significantly risen.

Covid-19 has led to awareness about health and wellbeing. India has traditionally relied on natural foods and ingredients to combat disease. They relied more on remedies such as herbs and everyday items to fulfil their needs. In this context, is there an opportunity for nutraceutical companies in India?

Although the traditional concept of natural foods and ingredients was prevalent, the overall behaviour of patients towards nutraceuticals was highly influenced by doctors who understand little about nutrition and nutraceuticals. Hence before Covid-19, significant growth was seen in the area of vitamins and minerals owing to the higher prescription rate of doctors towards them considering that they are nutritional supplements for patients. However, covid has made a drastic change in the mind of consumers, the doctors and patients are now more informed about the nutraceuticals beyond vitamins and minerals supplements.

As preventive health is established, consumers are increasingly focusing on options other than vitamins and minerals supplements. Such options include Ashwgandha, Amla, Curcumin (Turmeric), Indian Basil, ginger, etc. Hence, consumers are now holistically looking towards the applicability of such ingredients than ever before.
In this scenario, classic nutraceutical ingredients like gluten, zeaxanthin, melatonin, etc. will now play an active role. Hence, there is a huge opportunity for nutraceutical companies to boost their businesses in India.

The government has given a thrust to AYUSH and it is keen on exploring this system of medicine as an alternate to allopathy. Will this be a blessing in disguise for your industry?

AYUSH consists of Ayurveda, Yoga, Unani, Siddha and Homeopathy, hence, its holistic nature is only a blessing for nutraceuticals. Moreover, as the ministry has included Ayurveda syllabus in medical education, this will help allopathy to explore nutraceuticals more efficiently.

During the pandemic, the AYUSH ministry of India promoted supplements to boost the immunity to battle against Covid-19. The ministry had prescribed concoctions using plenty of natural ingredients such as Tulsi (Basil), Dalchini (Cinnamon), Kalimirch (Black pepper), Shunthi (Dry Ginger) and Curcumin (Turmeric) to boost immunity and maintain the well-being especially during the time of Covid.

Talking about the nutraceutical perspective, it is quite interesting to observe the effect of AYUSH on nutraceuticals. As fundamentals of nutraceuticals are heavily influenced by herbs and natural ingredients, the increased usage and acceptance of an alternative system of medicine would facilitate the growth and development of nutraceuticals as well.

There are also reports that many companies have come out with products that exaggerate claims on efficacy and this gives a bad name to the whole sector? What should the government and industry do to correct this?

It is still early days for the nutraceutical sector and consumers have gradually started accepting the products. In such a situation, fraudulent claims can be an obstacle for the industry. Furthermore, adulterated products are also a cause for concern.

To tackle such a situation, stringent and vigilant monitoring and assessment is necessary to detect such false claims. Adverse drug reactions and Pharmacovigilance which is prominent for pharmaceuticals must also be strengthened for this industry. There should be strict monitoring guidelines that will ensure that any claim made by a company, no matter how big or small never goes undetected and unassessed. Governing bodies have to be more specific in terms of regulations, marketing, quality standards of nutraceuticals.

Industrial procedures including testing, standardization of products, quality standards, etc. should be specific and evidence-based. Moreover, applying novel technologies like Blockchain can help a lot in strengthening the industrial procedures more efficiently.

Safety aspects of nutraceuticals should be prioritized as most of the nutraceuticals are directly purchased by patients without any medicinal knowledge. Hence, educating patients about medical applications of nutraceuticals is a need of the hour.

With the Indian population being more urban, the emphasis is on preventive healthcare. How can the nutraceutical sector play a role in addressing this unmet demand?

Stand-alone nutraceuticals provide the preventive remedy to any consumer who is likely to have deficiencies as well as possibilities of falling sick. However, many conditions which require correction such as weight management, energy requirement and others need to be supported by exercise and other regimens along with nutraceuticals. The urban population being more lifestyle-oriented, these consumers are more informed about the usage of nutraceuticals.

However, from a preventive health context, even the rural population, those who by nature exercise and follow traditional diets, need a lot of nutrients as the food quality, right from the plantation, is losing nutrition and hence even they are susceptible to deficiencies. Moreover, hidden hunger is one of the critical issues in rural areas, even they require some nutrition. These gaps can be filled with an innovative approach towards nutraceuticals which should cover various crucial aspects like accessibility, affordability, efficacy and safety.

India is home to a rich diversity of medicinal plants and ingredients that are raw materials for this industry. What should the government do to encourage the stakeholders who rely on them?

Medicinal plants are the basis of not only nutraceuticals but also many allied medicinal systems. We must conserve them, not only for the benefit of the industry but also from an ethical perspective. Various government initiatives such as the Wild Life (Protection) Act, 1972 and Biological Diversity Act, 2002 are essential to protect the environment. Strict monitoring and assessment followed by stringent penalties in case of misuse and endangering the environment will assist in enhancing the protection of nature.

Moreover, the government should promote good agriculture practices which require strategic planning, policies and efficient implementation. Some interventions in terms of promoting and preserving the quality of soil will also go a long way in boosting the nutraceutical industry. Such approaches will not only preserve the Indian heritage but also will promote the business significantly.

Is there interest among global companies to partner with Indian companies to tap the potential of this segment?

India is a lucrative market for global nutraceutical companies. A significant vegetarian population, larger market size and increase in spending power are some of the growth drivers for investments.

Global companies like Qualitas Health, US-based microalgae technology company, Euro Alliance, based in Switzerland, Legacy Healthcare – Swiss-based botanical firm are some of the international nutraceutical companies entering into the Indian market.

On the other hand, Indian companies are increasingly exploring the international markets for nutraceuticals and establishing a global presence.

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