New Delhi: Indian nutraceuticals market is set to grow over two-fold to $6.1 billion by 2020 as consumers become more conscious towards health and fitness, according to a study.
The high growth rate of nutraceuticals – products that offer health as well as medicinal benefits – however, has been hindered by lack of proper regulatory framework, said the joint study by industry body Assocham and business consultancy services firm RNCOS.
As per the report titled ‘Emerging Indian Nutraceutical’ Market’, the Indian nutraceuticals market is estimated to be $2.8 billion at present and is projected to touch to $6.1 billion by 2020.
Commenting on the challenges faced by the segment, Assocham Secretary General D S Rawat said: “…In spite of the high growth rates of nutraceuticals in India, the growth… is restrained by lack of a solid regulatory framework which is crucial for medical credibility as it ensures high-quality products that can be relied on to do what they say they do.”
According to the report, “at present, India does not have any kind of regulatory guidelines for the approval or monitoring of the products under this segment.”
Citing reasons for the rapid growth of the segment, it said: “Higher purchasing power has prompted Indians to be more health conscious and adopt a healthy diet routine completed with consumption of nutritional supplements.”
Huge customer base, increasing co-prescription with regular drugs, focus on preventive healthcare, rapid retail growth and e-commerce are some of the major drivers for the growth of the sector, the report added.
The Food Safety and Standards Authority of India (FSSAI) had formed a taskforce with an aim to regulate the segment which submitted its recommendations in April 2015 based on a detailed study conducted on the market in consultation with all the stakeholders.
Once these recommendations get the nod from the authority, all manufacturers in the country falling under this category will have to get a no objection certificate and approval from the Centre prior to manufacturing and marketing the products.
Nutraceuticals are the products that offer health as well as medicinal benefits, consisting of prevention and treatment of disease. The word nutraceuticals is a combination of two words – nutrient and pharmaceuticals.