From the current level of $2.8 billion, India’s nutraceuticals market is growing at CAGR of 17 per cent to touch $6.1 billion by 2020
India’s nutraceuticals market is growing at a phenomenal pace- a CAGR of 17 percent, attributed to an increased awareness of health, fitness, and lifestyle. From the current size of $2.8 billion, the industry size is estimated to touch $6.1 billion by 2020, a study concluded.
India accounts for around 1.5 per cent of the global market; the estimated size of the global nutraceuticals market is $262.9 billion from the 4182.6 billion at present. With a global CAGR of about 8 percent reported, India’s own anticipated size is reasoned out well, owing to country’s large population base, increasing urban belt and awareness, noted the study.
There is still a lot of scope for improvement in context of market penetration; in urban India it is around 22.5 per cent while it is comparatively low in rural India at around 6 per cent due to the lack of awareness.
According to a joint study by Assocham and RNCOS, the US has the largest market for nutraceuticals, followed by Asia-Pacific and European Union. Functional food is the fastest growing segment in the US nutraceuticals market. Germany, France, the UK and Italy are the major markets in the European Union for nutraceuticals, as reported by PTI.
Japan (14 per cent) is the major consumer of nutraceuticals in Asia-Pacific, followed by China (10 per cent).
Nutraceutical product is a food or fortified food product that not only supplements the diet but also assists in treating or preventing diseases (apart from anaemia), providing medical benefits.
“Nutraceuticals, herbal and functional foods in India are covered under the definition of food as per Section 22 of Food Safety & Standards Act, 2006. These food products have been categorised as non-standardised/special food products.
“At present, India does not have any kind of regulatory guidelines for the approval or monitoring of the products under this segment.
“These products are regulated under the guidelines of FSSAI, 2006 amended in 2011 for registration, licensing, approval, labeling & packaging, import, marketing & distribution, laboratory testing like conventional food products,” Assocham Secretary General D S Rawat said.
He said the Food Safety and Standards Authority of India (FSSAI) should come up with properly framed guidelines related to manufacturing, storage, packaging & labeling, distribution, sales, claims and imports of nutraceuticals.
“This will bring clarity to the industry stakeholders and they can invest into the industry with no fear of counterfeiting,” Rawat added.
“In the absence of regulations, the products take much longer to reach the market. For industry growth, it is utmost necessary to give faster approvals for eligible nutraceuticals,” he further said.