INDIAN NUTRACEUTICALS INDUSTRY - CURRENT SCENARIO & FUTURE TRENDS THE ASSOCIATED CHAMBERS OF COMMERCE AND INDUSTRY OF INDIA - MRSS INDIA

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Knowledge Partner

                   Indian
              Nutraceuticals
                 Industry
                    Current Scenario &
                      Future Trends

     The Associated Chambers of Commerce and Industry of India
Knowledge Partner

               Indian
          Nutraceuticals
             Industry
              Current Scenario &
                Future Trends

                                           2017

 The Associated Chambers of Commerce and Industry of India
                                   ASSOCHAM Corporate Office:
                      5, Sardar Patel Marg, Chanakyapuri, New Delhi-110 021
                Tel: 011-46550555 (Hunting Line) • Fax: 011-23017008, 23017009
                     Email: assocham@nic.in • Website: www.assocham.org
MESSAGE

It gives me immense pleasure to note that ASSOCHAM is organizing 3rd National Symposium on
Nutraceuticals.

Nutraceuticals which include functional foods (which pertains to Food companies) and dietary supplements
(which pertains to Pharmaceutical industry) is the only segment which amalgamates Pharma industry
and Food industry. The popularity and growth of this industry can be attributed to consumers’ increased
inclination towards health and nutrition. Indian consumers, predominantly the upper middle class,
perceive Nutraceuticals as alternatives to prescription drugs.

The usage of Nutraceuticals is not limited to fulfillment of the daily requirement of particular required
nutrients, but consumers are also considering the functional health benefits of these supplements for
prevention of diseases. Furthermore, products for boosting energy and improving physical endurance &
mental alertness are also in high demand.

I am sure that this Symposium shall help in promoting the use of Nutraceuticals for wellness and I heartily
wish the Symposium a great success in achieving its stated objectives.

                                                                                       (Sandeep Jajodia)
                                                                                    President-ASSOCHAM
ACKNOWLEDGEMENT

I am happy to note that ASSOCHAM is organizing 3rd National Symposium on Nutraceuticals.

India is witness to a spate of changes in lifestyles and rise in lifestyle diseases like Diabetes, blood pressure,
obesity, cardio-vascular problems among others, which has increased the demand for supplements to
nutrition among the upper and middle class. In such a scenario, nutraceutical intake is growing in
popularity as consumers are looking for products to boost energy and enhance physical perseverance,
mental sharpness and to become more dynamic and conscious. Dietary supplements in the form of
tablets, capsules, powders, liquids, soft caps and soft gels are available and market for these products is
continuously increasing.

I am sure that this Symposium will deliberate on all issues relating to Nutraceuticals. I also extend my
heartiest thanks to all the stakeholders including SERB, CSIR, ICMR, Abbott, Divis Laboratories, Phytotech
Extracts, Zeon Lifesciences, and others, for lending their support to this Symposium. I would also like to
thank our Knowledge Partner of this Confluence “MRSS India” for its wonderful efforts in putting up this
comprehensive report on Nutraceuticals.

I also acknowledge the efforts put in by Sandeep Kochhar and his team members Anuj Mathur, Anshul
Gupta and Payal Swami, for the organizing this Confluence.

I not only wish this Confluence a great success but also assume that ASSOCHAM shall continue to organize
such programs for larger public benefits with a great degree of excellence.

                                                                                                   D S Rawat
                                                                               Secretary General –ASSOCHAM
MESSAGE

It gives me great pleasure to note that ASSOCHAM is organizing 3rd National Symposium on Nutraceuticals.
It is a privilege for MRSS India to engage in this symposium as a knowledge Partner.

We are in exciting times. India is undergoing a significant transformation with regard to its consumer
attitude & behavior. Being a younger nation, our people are aspirational and are embracing more
progressive and faster-paced lifestyle. Simultaneously the need for a sense of well-being is stronger than
ever. Life expectancy, in general, has increased progressively.

The younger, burgeoning upper and middle class, today has more purchasing power and looks forward to
preventive measures to keep chronic ailments at bay. Incidence of lifestyle ailments like Cardio-vascular
problems, Diabetes, Obesity and various forms of Allergies are on the rise.

Nutraceuticals, a relatively new and emerging category, is poised to provide holistic solutions to this
end. Through its portfolio of Functional Foods & Beverages, Dietary Supplements, it has positioned itself
very well to offer higher levels of energy, performance in daily life. The category is expected to witness
accelerated growth in the next few years to come.

As a Knowledge Partner, MRSS India is committed to provide support in driving a higher level of consumer
and market understanding to all stakeholders. This will pave the way for a healthier level of flow of
investment into the sector, both from Indian and overseas strategic intent into this sector.

I am confident that this Symposium will dwell upon all critical factors impacting the industry today. I wish
the Symposium a resounding success in taking Nutraceuticals sector forward.

                                                                                            (Raj Sharma)
                                                                                     Chairman MRSS India
TABLE OF CONTENTS

1.   INTRODUCTION......................................................................................................................... 13
     1.1 Genesis..................................................................................................................................... 13
     1.2 Nutraceuticals in contrast to Pharmaceuticals......................................................................... 13
     1.3 How do consumers relate to it.................................................................................................. 14
     1.4 Product Landscape.................................................................................................................... 14
     1.5 Nutraceuticals in context of wellness....................................................................................... 16

2.   GLOBAL NUTRACEUTICALS MARKET........................................................................................... 17
     2.1 Global market size..................................................................................................................... 17
     2.2 Growth & general demand scenario......................................................................................... 17
     2.3 US & other markets.................................................................................................................. 18
     2.4 Drivers of growth...................................................................................................................... 18
     2.5 Major global players................................................................................................................. 19

3.   INDIAN NUTRACEUTICALS MARKET............................................................................................ 21
     3.1 Indian Market Size & growth.................................................................................................... 21
     3.2 Consumer/ market segmentation............................................................................................. 22
     3.3 Drivers of growth...................................................................................................................... 22
     3.4 Functional Food – overview...................................................................................................... 23
		          3.4.1 Functional Ingredients................................................................................................... 24
		          3.4.2 Local ingredients........................................................................................................... 26
     3.5 Functional Beverages - overview.............................................................................................. 27
     3.6 Dietary Supplements – overview.............................................................................................. 30
     3.7 Key players in Indian market..................................................................................................... 32
     3.8 Nature of competition.............................................................................................................. 35
     3.9 SWOT Analysis.......................................................................................................................... 35

4.   KEY STAKEHOLDERS................................................................................................................... 37
     4.1 Fitness Instructors/ Dieticians/ General Practitioners.............................................................. 37
		          4.1.1 Awareness..................................................................................................................... 38
4.1.2 Prescription behavior.................................................................................................... 38
		          4.1.3 Barriers to adoption...................................................................................................... 38
     4.2 New trends in Value Chain/ distribution................................................................................... 38

5.   TRENDS...................................................................................................................................... 40
     5.1 New trends among consumers................................................................................................. 40
     5.2 Probiotics.................................................................................................................................. 42

6.   REGULATORY.............................................................................................................................. 44
     6.1 Regulatory Elements – Laws/ Guidelines.................................................................................. 44
     6.2 Registration & Licensing............................................................................................................ 47
     6.3 Related Environmental Policies................................................................................................. 48

7.   BEST PRACTICES......................................................................................................................... 50

8.   ASSOCHAM-MRSS INDIA ROADMAP FOR NUTRACEUTICAL INDUSTRY........................................ 52
     8.1 Segment Attractiveness............................................................................................................ 52
     8.2 Options for Marketing Plan....................................................................................................... 53

9    RECOMMENDATIONS................................................................................................................. 55
EXECUTIVE SUMMARY

1.   Nutraceuticals refer to food or part of a food, including beverages and food products that provide
     incremental medical or health benefits, including prevention or treatment of a disease. It spans across
     Functional Foods, Functional Beverages and Dietary supplements. Some instances of Nutraceutical
     products are Probiotics, Fortified energy drinks, Vitamins and Minerals etc. The category is positioned
     in between Food & Beverages and Pharmaceuticals

2.   Globally, Nutraceuticals market is expected to witness huge growth. At the turn of the millennium,
     between 1999 and 2002, the industry grew at a CAGR of 7%. Subsequently till 2010, it doubled to
     14%. Currently every year $12-15 Bn is being added to the global revenue. The US and Japan have
     been pioneers in embracing Nutraceuticals. Western Europe also represents a large market, with
     strong footprints in Germany, Italy and France. Developing markets like India, Brazil and China are
     relatively smaller, yet have a huge growth opportunity. Indian market currently has a 2-3% share of
     the global market.

3.   The Indian Nutraceuticals market is estimated at around $ 4 Bn in 2017 and is expected to grow at
     a significant 21% CAGR to $ 10 Bn in 2022. This will likely be fueled by a significant 25% per annum
     growth in Functional Beverages market accompanied by similar potential growth from the other
     segments. More than 60% of this market is accounted for by Dietary supplements. Few industries in
     India today offer such spectacular growth potential.

4.   Key players in the Indian market feature both Indian and Multi-national companies. MNCs like GSK,
     HUL, Amway Nestle, Danone, Kellogg’s, and PepsiCo are trying to augment their market share and
     reinforce penetration. Strong Indian players like ITC, Dabur, Himalaya, Patanjali and Baidyanath are
     also launching new products to reach out to newer segments and geographies in India. Many players
     have stayed in identified niche markets to play on their strengths.

5.   Indian consumers are getting more aware of their fundamental needs for nutrition and proactive
     steps they can take to prevent chronic ailments and attain higher well-being. India has a significantly
     younger population and the younger generation is vigorously pursuing more active lifestyle to enjoy
     fitness, to guard against obesity, diabetes, cardio-vascular problems etc. In this context, the role of
     opinion-shapers like General Practitioners, Fitness Instructors and Nutritionists cannot be ignored.
     For accelerated penetration and growth, companies must develop programs for more extensive
     consumer understanding, decide which segments they would like to enter and compete. It is also
     important to formulate an effective communication strategy for the target audience to educate
     them on the benefits of this category. Side-effects and spurious products are two key concerns and a
     potential barrier for growth from all stakeholders and needs to be quickly addressed. It is here that
     the Regulatory may want to play a more active role.

                                   Indian Nutraceuticals Industry
                                      Current Scenario & Future Trends
                                                                                                        11
6.    Relevant framework is the Food Safety & Standards (Health Supplements, Nutraceuticals, Food for
      Special Dietary Use, Food for Special Medical Purpose and Novel Food) notified by FSSAI in December
      2016 in the Official Gazette. FSSAI has also issued guidelines for Labeling requirement and Health
      Claims. It is for the industry now to expedite implementation of the same.

7.    Pricing also can be deliberated as an effective driver for market-making. Mass market products with
      added Health benefits can be promoted in Class 2 or 3 towns with SKUs of different package sizes to
      facilitate trial and adoption.

8.    The category makes a strong case for investment as we have a growing market available and a potential
      for higher value-added product line as perceived by the consumers.

                                   Indian Nutraceuticals Industry
 12                                   Current Scenario & Future Trends
1. INTRODUCTION

1.1 GENESIS
Nutraceuticals, in various forms and formats have always
existed in the world. Both, general population and patients
would have benefitted from such products all along. It is only
in the late eighties or early nineties that a formal approach
and understanding started evolving.

Dr Stephen De Felice, Founder of the Foundation of Innovation
in medicine, coined the term ‘Nutraceuticals’ in 1989, which
became a newly accepted word in Oxford Dictionary. It was
in recognition with the growing need for such products and a space that conventional pharmaceutical
products were not treading upon.

The relevance and impact of Nutraceuticals became more relevant as the present generation is focusing
more on preventive healthcare than ever before.

1.2 Nutraceuticals in contrast to Pharmaceuticals
Although the word ‘nutraceuticals’ is now well understood and widely
accepted, it still does not have any one standard definition. The best
definition that we come across is ‘food or part of a food (including
drinks) that provides medical or health benefits, including prevention
or treatment of a disease’. In contrast to this, Pharmaceuticals focus
more on specific illness or treatment. The following table shares distinct
spaces occupied by both:

Nutraceuticals                                                Pharmaceuticals

Works on root causes and take longer time for recovery        Relatively more instant in effect

Do not have side effects                                      For severe illnesses have side effects

Focuses on prevention & wellness                              Focuses on illness & treatment

No prescription needed for buying                             Sold only on prescription except OTC

Needs no approval of FDA                                      Needs approval of FDA

                                   Indian Nutraceuticals Industry
                                      Current Scenario & Future Trends
                                                                                                       13
There are also a lot of natural sources of Nutraceuticals that clearly offers preventive benefits for a host
of commonly found ailments in emerging markets like Cardio-vascular diseases, Diabetes, Obesity, Allergy,
even Cancer

1.3 How Consumers relate to Nutraceuticals
Consumers’ modern-day lifestyles have significantly changed in the last three decades. Faster pace of life,
stress of work-life balance, has been taking its toll on health and wellness. At the same time, access to media
and information has allowed them to better understand latest developments in this space. Generally the
current generation is extremely conscious of food and beverages that are more natural, enhances energy
in a holistic way and have a balanced diet. Also routines and rituals like work-outs, swimming; running
needs a supplement that caters to nutrition needs well.

1.4 Product Landscape
Broadly product categories are divided into two major ones:

1.    Functional Foods& Beverages

2.    Dietary Supplements

Over the last 3 decades the product landscape has really expanded and today we have a wide product
portfolio in Nutraceuticals category.

                                    Indian Nutraceuticals Industry
 14                                    Current Scenario & Future Trends
Functional Foods
Functional Foods are foods that provide
health benefits beyond the provision
of essential nutrients, when consumed
at efficacious levels as part of a regular
diet. These types of foods provide added
physiological benefits, potentially reducing
chronic, commonly encountered disease
risks or otherwise optimize health. The
understanding of such benefits, however,
needs to be based on sound scientific
evidences, a lack of which may mislead
many a consumers.

Some instances of Functional Foods are Omega-3 enriched eggs, Oats, Fatty fish, Fortified margarines,
Iodized salts, Soy, Tomato & tomato products, Probiotic yoghurt, Nuts (Walnuts, Cashews, Pistachios
among others), and Leafy Greens are examples of Functional Foods.

Functional Beverages
Functional beverages are non-alcoholic
beverages containing ingredients that
provide specific health benefits beyond
those of general hydration. Traditionally,
beverages have been fortified with vitamins,
minerals, amino acids and antioxidants.
Nowadays, drinks containing natural and
organic ingredients including herbs, fruits
and vegetables have gained popularity to
support health and wellness across all age
groups. Examples of Functional Beverage
include performance & sports drinks, ready-to-drink teas, enhanced water, energy drinks, and soy
beverages, enhance fruit drinks.

Dietary Supplements
A dietary supplement is a product intended for ingestion that contains a “dietary ingredient” intended to
add further nutritional value to (supplement) the diet, which may otherwise not be consumed in sufficient

                                   Indian Nutraceuticals Industry
                                      Current Scenario & Future Trends
                                                                                                     15
quantities. Examples of dietary
supplements are Vitamins,
Minerals, Amino Acids, a herb
or other botanical source, a
concentrate or an extract.

All organic food also comes
under Nutraceuticals category
and the awareness and choice
of such food is majorly on the
increase.

1.5 Nutraceuticals in context of wellness
Wellness has broadly two pillars. The first is preventive so that illness does not set in at all. The second
is rejuvenation – where for most people the current work related stress levels being very high, needs to
address through compensatory elements.

There are many ingredients in the space of Nutraceuticals, which contributes to wellness.Vitamins &
Minerals directly contribute to this space. Of Minerals, macrominerals are required in large quantities.
These are minerals like Sodium, Potassium, Calcium, Magnesium, and Phosphorous. Microminerals are
required in smaller quantities. These are Zinc, Iodine, Copper, Selenium, Manganese, and Chromium.

                                   Indian Nutraceuticals Industry
 16                                   Current Scenario & Future Trends
2. GLOBAL NUTRACEUTICAL MARKET

2.1 Market2.SizeGLOBAL NUTR
                          RACEUTICAL MARKET
Globally, Nutraceuticals
              2.1      Marketmarket
                              Size      is going to experience huge growth in the next 10 years or so. Key
developed & health-conscious nations are primarily driving this. However, emerging market consumers
              Globally, Nutraceuticals market is goin
                                                    ng to experience huge growth in the next 10 years or so. Key
are also becoming     increasingly
              developed               awarenations
                         & health-conscious   of theare benefits    of such
                                                        primarily driving       products.
                                                                          this. However,   Alongside,
                                                                                         emerging          disposable income of
                                                                                                  markeet consumers
              are also becoming increasingly aware of
                                                   o the benefits of such products. Alongside, disposable income of
general population    is also increasing exponentially in many developing nations including India.
              general population is also increasingg exponentially in many developing nations including India.

                     1999                                 2010                                2019
                       38Bn                                140Bn                                241Bn

                                       2002                                 2014
                                          47Bn                                172Bn

2.2 Global2.2Market
                GlobalGrowth    & General
                      Market Growth            Demand
                                    & General Demand       Scenario
                                                     Scenario

                 As is evident, while in the initial years, between 1999 & 2002 industry grew at 7% per annu
                                                                                                           um, the next
As is evident, while  in up
               few years thetoinitial years,
                               2010 saw doublebetween     1999
                                                that growth      & per
                                                            at 14%  2002   industry
                                                                       annum.          grew
                                                                               Currently      at 7%
                                                                                          around $12-15per
                                                                                                        5 Bnannum,
                                                                                                             is being the next few
               added every year.
years up to 2010 saw double that growth at 14% per annum. Currently around $12-15 Bn is being added
every year. By 2020, the world will have 1 billion populations
                                                   p           of 60+ ages. 70% of this population live in developed
                nations & balance 30% in developingg nations.Nutraceutical demand will grow at a steeady rate in
                developed nations. Developing nations with their progressive disposable income will see a sudden surge
By 2020, the    world   will
                in growth     have
                          in the      1 billion
                                 next 5-10 years. populations of 60+ ages. 70% of this population live
                                                                                           in developed
nations & balance 30% in developing nations.Nutraceutical demand will grow at a steady rate in developed
              The below structure depicts Global Key & Emerging geographies
nations. Developing nations with their progressive disposable income will see a sudden surge in growth in
the next 5-10 years.

                                                                                                                     7

                                           Indian Nutraceuticals Industry
                                              Current Scenario & Future Trends
                                                                                                                             17
The below structure depicts Global Key & Emerging geographies

Region              Country      Potential
                                 Maturing market, growth with dietary supplements as healthcare costs
North America       US
                                 increase
                                 Pioneers in natural Nutraceuticals & Dietary supplements. Huge market
Asia-Pacific        Japan
                                 second to US
                                 Rapidly growing middle class and increasing disposable income will
                    China
                                 greatly expand Nutraceutical segment in China by 2020.
                                 Stringent Government regulation & approval process. Most players
Europe              Germany
                                 expanding product offerings
                                 Health-conscious, well-informed young middle class would drive
Latin America       Brazil
                                 growth

2.3 US & Other Markets
•     The US has been the largest Nutraceutical market so far and almost fully mature. Between 2010 &
      2015 it grew from $ 50 Bn to $ 65 Bn, a compounded growth of 10% annually.

•     The US market comprises of Functional Food & Beverages (65%) and Dietary Supplements (35%)

•     The European market has grown from $ 35 Bn in 2010 to $ 40 Bn in 2016. It is expected to grow to $
      51 Bn by 2021. This indicates an annual growth of 5%.

•     France, Germany & Switzerland are the biggest markets comprising almost 70% of the European
      market.

2.4 Drivers of Growth
The drivers of growth are diverse for different markets. It also depends on the level of maturity of the
market. Below is an account of what the drivers of growth are – for different markets.

                                  Indian Nutraceuticals Industry
 18                                  Current Scenario & Future Trends
Factors Driving Growth
       US              Europe               Japan              Brazil              China              India
                                                                                                     Rising
                                                                Organic         High cost of
 Increasing cost    Acceptance of           Aging                                                awareness of
                                                               is healthy       insurance &
  of Healthcare      Ingredients          population                                            health issues &
                                                              perception         healthcare
                                                                                                  alternatives
                                                                                                 Better access
    Erstwhile       Advertising &                          Over-nourished/      Influence of
                                       Healthcare costs                                         through newer
    recession        Marketing                             obesity problem          TCM
                                                                                                   channels
                                           Rising Eye        Awareness &
   Maturity of      Preference for       Health issues     perceived risk of   Expansion of     High incidence
    market         natural products        & Diabetes       diabetes, heart    modern retail     of Diabetes
                                           incidence       disease & cancer
                                         Obesity, high
    Clutter of
                                        lipid and sugar         Ageing                             Usage of
 products in the                                                                  Imports
                                        levels in blood,      population                           vitamins
     market
                                         hypertension
                                                                                 Consumer
                                                                                 awareness       Rising middle
 Shorter product
                                                                                on healthier    class and health
    life cycle
                                                                               alternatives &    consciousness
                                                                                  naturals
  Ageing baby                                                                      Ageing
   boomers                                                                       population

2.5 Major Global Players
Participation in Nutraceuticals comes from two critical avenues. Firstly, companies who are already have
strong equities in Food & Beverages sector. Secondly, pharmaceutical companies that are looking at
preventive products for certain range of ailments.

                                      Indian Nutraceuticals Industry
                                         Current Scenario & Future Trends
                                                                                                              19
The following are key global nutraceuticcal players
The following are key global nutraceutical players

                                                     USA-based:

                                                    Europe-based:

                                                    Europe-based:

                                                    Europe-based:

                                                                            10

                                                     China-based:

                                                     China-based:

                                                     China-based:

                                                     India-based:

                                                     India-based:

                                                     India-based:

                                      Indian Nutraceuticals Industry
 20                                      Current Scenario & Future Trends
3. INDIAN NUTRACEUTICAL MARKET
    3. INDIAN NUTRACEUTICAL MARKET
3.1 3.1Indian Market
           Indian      Size
                  Market Size&
                             & Growth
                               Growth

The The
    Indian Nutraceuticals
        Indian            market
               Nutraceuticals    is expected
                              market         to grow
                                     is expected      fromfrom
                                                 to grow    $ 4 Bn
                                                                 $ 4inBn
                                                                      2015
                                                                         in to $ 10toBn
                                                                            2015      $ in
                                                                                        102022.
                                                                                           Bn inThis represents
                                                                                                 2022. This
a huge growthaofhuge
    represents   21%growth
                      growth ofannually
                               21% growth annually

    CHART

                                       India Nutraceutical Market ($ bn)

                                                                                                10.01
                                                                                 8.31
                                                                6.90
                                                5.75
                                4.79
                4.00

               2017-E          2018-F          2019-F          2020-F           2021-F          2022-F

Transformation in food habits, less physical work, more of desk jobs have made Indians more vulnerable
     Transformation in food habits, less physical work, more of desk jobs have made Indians more vulnerable
to lifestyle  ailments.
     to lifestyle         TheThe
                  ailments.    average  urban
                                  average urban& &semi-urban
                                                    semi-urbanIndian
                                                               Indian is
                                                                       is becoming   moreconscious
                                                                          becoming more      consciousabout
                                                                                                       about  health &
                                                                                                            health
fitness.  This isThis
     & fitness.   providing   a massive
                      is providing       growth
                                   a massive      opportunity
                                             growth            forforNutraceuticals
                                                     opportunity      Nutraceuticals in
                                                                                      in India.
                                                                                         India.

The The entire
    entire     category
           category  of of Nutraceuticalsisisdivided
                         Nutraceuticals       divided into
                                                      into Functional
                                                           FunctionalFoods,
                                                                      Foods,Functional Beverages
                                                                              Functional         & Dietary
                                                                                          Beverages & Dietary
    Supplements. Functional Food & Beverages account for around 35% of the market in India and will
Supplements. Functional Food & Beverages account for around 35% of the market in India and will
    experience higher growth in India in the next few years to come.
experience higher growth in India in the next few years to come.

                                                                                                              12

                                        Indian Nutraceuticals Industry
                                           Current Scenario & Future Trends
                                                                                                                   21
3.2 Consumer Segments
India represents a huge and vast market for Nutraceuticals as almost every segment has a need for some
form of Nutraceuticals. Some segments have a more pronounced need for Nutraceuticals among others
1.    Growing children needs Functional food and beverage supplement to be able to perform well in
      academics and extra-curricular well
2.    Younger Age-groups 15-25 & 25-35 are stronger targets either due to active lifestyle or specific
      needs
3.    Pregnant and lactating mothers need to supplement their nutrition need
4.    Ages 60+ group are specifically vulnerable to Diabetes, Bone related diseases and other ailments
      and needs special preventive protection through Nutraceuticals.

3.3 Drivers of Growth
There are a host of factors which will drive
growth of nutraceutical industry in India.
Notable among them are:-
1.    Consumer awareness on health
      problems and their urge to take
      preventive steps
2.    Fitness intent – which is increasing at
      a fast pace
3.    Healthcare cost

                                    Indian Nutraceuticals Industry
 22                                    Current Scenario & Future Trends
4.   Low incidence of health insurance in India – large population still uncovered
5.   High incidence of diabetes, hypertension, Cardio-vascular ailments, Osteo-arthritis, Osteoporosis
     etc.

3.4 Functional food - Overview
Changing life style and food habits have raised health concerns.
It has created the need for the consumption of healthy product
ant that has fueled a growth of functional food market and
opened up new opportunities.

Although function foods may have been traditionally used
across many ancient cultures, Japan is the 1st country to have
regulations for functional foods.

Ancient Indian traditional medicinal system Ayurveda has
been practiced for millennia and is still quite accepted. Indians have been familiar with functional foods
such as chavanprash and many botanicals such as brahmi, ashwagandha etc.

In India, Food Safety & Standards Act 2006, loosely defines
functional foods along with foods for special dietary uses,
nutraceuticals and health supplements stating that they may
contain plants, botanicals, extracts as well as vitamins and
minerals etc. and may either be in food form or in the form of
powders, tablets etc.

As the definition is not very strict, there are products which are fortified with common nutrients such as
more protein, vitamins and minerals are also considered by many as functional foods.

Recently there have been regulations notified regarding these foods. Institute of Medicine, USA defines
functional foods as any food or food ingredients that may provide health benefit beyond the traditional
nutrient it contains.

Indian government has been a little slow in implementing many fortification programs. Years ago they
started addition of vitamin A to vanaspati. A few years ago they mandated addition of iodine to salt. Now
they have allowed fortification of milk by vitamin A and D. They should create awareness about good
dietary practices and importance of various nutrients and the relation of diet and many diseases.

Functional food & beverages and Dietary supplements are the two key elements of Indian nutraceuticals
market

                                   Indian Nutraceuticals Industry
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                                                                                                      23
These are further divided into different sub groups like:

A. Functional food and beverages
      a.   Functional foods:
      •    Omega fatty acid fortified food
      •    Probiotic fortified food
      •    Branded iodinated salt
      •    Branded wheat flour
      b.   Functional beverages:
      •    Energy drinks
      •    Sports drinks
      •    Fortified drinks

B. Dietary supplements
      a.   Vitamins and minerals
      b.   Herbal supplements
      c.   Protein supplements
      d.   Chavanprash

3.4.1 Functional ingredients
Functional Ingredients are natural ingredients that have health-promoting, energy boosting and/or disease
preventing benefits.

Many functional ingredients are being used in the kitchen on daily basis either directly or indirectly. Even
Chefs are using functional ingredients to drive menu trends.

More commercial ingredients and food science techniques are being used in restaurant kitchens. For
instance, cranberry beads, which can be a garnish on a dessert or a flavor component in a cocktail in a
restaurant, wouldn’t be possible without the food science—the gelling reaction of calcium chloride and
alginate through a process called spherification, says John Draz, executive research chef of Ed Miniat LLC
in South Holland, Illinois.

Many of the herbs have been investigated and their health benefits have been shown, but these are not
cultivated in organized manner although organized farming of many botanicals used in foods has already
started.

                                      Indian Nutraceuticals Industry
 24                                      Current Scenario & Future Trends
Thus sourcing of these substances becomes a challenge. The active substance e.g. curcumin in turmeric,
may vary in content depending on variety, growing conditions including environment conditions and
fertilizers, harvesting practices and storage conditions, and finally preparation of extract. All of these will
all affect the content of active substance. Standardization is necessary for effectiveness of the functional
food.

Markets have already started filling up with products containing substances such as probiotics, prebiotics,
DHA & EPA omega 3, oryzanol, antioxidants, lutein, isoflavones, as well as proteins, vitamins and minerals
which are claimed to have all kind of health benefits.

Best example is, flourished branded cooking oils in the market. Prices of these oils go up as per the
additional functional ingredients added to the cooking oil. Many Indian and multinationals have started
offering variety of cooking oils in the market.

Many global associations are reviewing the most relevant ingredients for the development of functional
foods, with more beneficial effects are Nutrients (NUT) (vitamins and minerals) and the Substances and
Health Claims (SPS)

Among the nutrients , fat-soluble vitamins (vitamins A, D and E); water-soluble vitamins ( vitamin C , B1 ,
B3 , B6 and B12 ) , and macro minerals , such as calcium , magnesium and potassium , and trace elements
, among which iron , chromium , zinc, iodine and selenium stand out . All elements that have multiple
beneficial properties for human organism, as health claims authorized by EFSA, highlighting its antioxidant
powers, to improve the cardiovascular system, stimulating the immune system, bone tissue and neuro –
vegetative, primarily apparatus.

As regards the group of substances with health claims , the prebiotics , probiotics polyphenols, beta-
glucans , fibers, oligosaccharides , fatty acids omega 3 and 6 and fitoestoroles / stanols , along with those
who also cites stilbene (trans-resveratrol ) anthocyanidins (blueberries) , superfungus and superalgae,
among others.

In the future, “innovation will increasingly be focused on the innoingredients in part some the ingredients
mentioned before, with the following core attributes:

High purity, high toxicological safety, high bioavailability, very broad applicability, and multiple health
effects”. Additionally, and consisting of a new food (novel food). As examples, superhongos, shiitake
(Lentinula edodes), particularly rich in beta-glucan to combat metabolic syndrome. Also among algae
include the functional properties of alga Noriy especially Klamath blue algae, which is a cianofícea with
wide and varied health benefits.

Among the macrominerals, the trace element zinc has more healthful properties among all nutrients, in
the form of picolinate and trionato among other molecules, it would also registered as an innoingredients.

                                    Indian Nutraceuticals Industry
                                       Current Scenario & Future Trends
                                                                                                          25
In the big picture of future development of new formulations of functional products , must take into account
the important role that can play the ” superfruits ”, such as the pomegranate fruit, blueberries, aronia or
goji berries . Not to mention the growing interest in the “supercereals” (chia, amaranth, quinoa…), and
“superbotanicals” which include extracts of aloe vera, ginkgo biloba extract and ginseng extract (source of
information - published interview of president of Spanish Association of Manufacturers and marketers of
Food Additive)

3.4.2 Local ingredients
Indians have been facing issues with proper food and nutrition. In general, protein intake is less so
need to consumer more of higher quality protein and if these are not available from the foods then
normally consumed necessary supplements. People are also getting less of omega 3 from their diet than
recommended and therefore consumption of fish, consumption of oils richer in omega 3 such as flax seed,
mustard oil, soya oil etc., or could take cod liver oil or omega 3 capsules.

Dietary b has not been a problem for Indians in the
past but more recently their fibre intake has gone down
because of their changes in diet. All these necessitate
that there is proper dietary care required and if there
are any deficiencies or if any possibility of some of
the non-communicable diseases are to be prevented,
then functional foods and/or dietary supplements are
necessary.

Indians have been using spices and herbs in cooking
for centuries so daily diet contains functional foods containing garlic, turmeric, chilies and many other
ingredients which have health benefits. Thus functional food concept is not new and Indians have already
accepted many newer forms of functional foods that contains probiotics, omega 3 etc.

India carry legacy of traditional herbal and ayurvedic medicines. Reliance on these products may dilute
demand for emerging nutraceuticals, particularly as less aware Indian consumers of newer ingredients
such as omega-3 fatty acids. On the other hand, herbal and ayurvedic medicines provide a rich local
ingredient base for incorporation into nutraceuticals.

Chavanprash, or herbal honey, has been a notable success. It is incorporated as a general health supplement
into anything from jam to chocolate to cheesecake to capsules. Traditional medicines also represent a
culture of natural products and self-care that dovetails with global trends in nutraceuticals.

                                   Indian Nutraceuticals Industry
 26                                   Current Scenario & Future Trends
3.5 Functional food & beverages - Overview
Functional food and beverages are form of food products which offer additional physiological benefits or
help to reduce risk of chronic diseases apart from its basic nutritional aspects. This is further divided into
different sub groups basis their functional characteristics:
     3.5 Functional food & beverages - Overview
                                         O
a. Functional
   Functional   foods:
              food and beverages are form
                                        m of food products which offer additional physiologicaal benefits or
    help
    • to    reducefatty
          Omega     risk of chronic
                         acid       diseases
                              fortified foodapart
                                             a     from its basic nutritional aspects. This is furtherr divided into
    different sub groups basis their functionnal characteristics:
     •    Probiotic fortified food
    • Functional
   a.   Branded iodinated
                 foods:      salt
    Omega fatty acid fortified food
    • Branded wheat floor
    Probiotic fortified food
    Branded iodinated salt
b. Functional beverages:
       Branded wheat   floor

    • Functional
    b. Energy drinks
                  beverages:
     Energy drinks
    • Sports drinks
     Sports drinks
    • Fortified
      Fortifieddrinks
                  drinks

Estimated market for Functional food and beverages is pegged at $ 1.5 bn
                    Estimated market for Fu
                                          unctional food and beverages is pegged at $ 1.5 bn

                                Functional
                               Beverages, 32
                                    %

                                                                                  Functional
                                                                                    Foods
                                                                                     68%

                                               Fu
                                                unctional Foods   Functional Beverages

     Functional
Functional   foodsfoods
                     andand  beveragesmarket
                           beverages    markeetininIndia
                                                    India has
                                                          has gained
                                                              gainedsubstantially
                                                                      substantiallybyby
                                                                                      targeting healt
                                                                                        targeting   th conscious
                                                                                                   health  conscious
     people in the country. Functional foodss include food products such as functional cereals, veegetable oils,
people in the country. Functional foods include food products such as functional cereals, vegetable oils,
     nutrition bars, biscuits, breads, yogurt and
                                              a others. Functional beverages include various drin  nks like fruits
nutrition
     juices,bars,
             milk,biscuits, breads,
                   tea, coffees,     yogurt and
                                 and energy  drinksothers. Functional
                                                     with added        beverages
                                                                functional         include various drinks like fruits
                                                                           ingredient.
juices, milk, tea, coffees, and energy drinks with added functional ingredient.
    Functional foods contribute to 3/4th of the market and major contributors are fortifieed products.
    Functional beverages too have shown demand
                                         d          recently due to increasing demand for fortifieed juices and
    energy drinks. PepsiCo expanded its poortfolio by launching hydrotonic drink 7UP Revive wh   hich contains
    vitamins, electrolytes that helpIndian
                                      consu Nutraceuticals
                                          umers    rehydrate andIndustry
                                                                     refresh. Entry of Patanjali in Ayurvedic
                                       Current
    products market has further fueled the      Scenario
                                           growth   in the&recent
                                                             Future2-3
                                                                    Trends
                                                                       years.
                                                                                                                27
Functional foods contribute to 3/4th of the market and major contributors are fortified products. Functional
beverages too have shown demand recently due to increasing demand for fortified juices and energy
drinks. PepsiCo expanded its portfolio by launching hydrotonic drink 7UP Revive which contains vitamins,
electrolytes that help consumers rehydrate and refresh. Entry of Patanjali in Ayurvedic products market
has further fueled the growth in the recent 2-3 years.

Market for functional foods and beverages is expected to touch $ 4.11 bn by 2022 at CAGR 22%
      Market for functional foods and beverages is expected to touch $ 4.11 bn by 2022 at CAGR 22%
                                                                                               2

                                  Functio
                                        onal F&B Market ($ bn)
         4.50                                                                             4.11
         4.00
                                                                            3.35
         3.50
         3.00                                                 2.73
         2.50                                   2.23
                                  1.83
         2.00       1.50
         1.50
         1.00
         0.50
         0.00
                   2017-E        2018-F        2019-F        2020-F        2021-F        2022-FF

                                Function
                                       nal Food Market ($ bn)
        3.00                                                                             2.67
        2.50                                                               2.20
        2.00                                                 1.81
                                               1.50
        1.50                     1.24
                   1.02
        1.00

        0.50

        0.00
                  2017-E        2018-F        2019-F        2020-F        2021-F        2022-F

                                   Indian Nutraceuticals Industry
 28                                   Current Scenario & Future Trends
Functional Bevverages Market ($ bn) - breakup by
                              types
                                                             Others
                                                              3%

       Weight Management
              15%

                                                                               Nutritional
                                                                                  55%

         Muscle Building
              27%

                Nutritional     M
                                Muscle Building   Weight Management       Others

                  Function
                         nal Beverages Market ($ bn)
2.00
1.80
1.60                                                                                         1.4
                                                                                               44
1.40
                                                                       1.15
1.20
1.00                                                  0.92
                                         0.74
0.80
                        0.59
0.60    0.47
0.40
0.20
0.00
       2017-E          2018-F           2019-F       2020-F           2021-F             202
                                                                                           22-F

                                                                                                    22
                           Indian Nutraceuticals Industry
                              Current Scenario & Future Trends
                                                                                                         29
3.6 Dietary supplements - Overview
A dietary
     3.6 supplement     is intended- Overvie
            Dietary supplements      to provide
                                            ew nutrients that may otherwise not be consumed in sufficient
quantities. Supplements as generally understood include vitamins, minerals, fiber, fatty acids, or amino
acids,Aamong
        dietary supplement is intended to pro
                other substances.           ovide nutrients that may otherwise not be consumed
                                                                                             d in sufficient
                                            nderstood include vitamins, minerals, fiber, fatty acids, or amino
      quantities. Supplements as generally un
      acids, among other substances.
Stressful lifestyles, hectic schedules and lack of time to cook meals at home among increasing number of
working  class lifestyles,
     Stressful  males and    females
                           hectic     is resulting
                                  schedules and     demand
                                               d lack of time for external
                                                              to cook mealsdietary
                                                                            at homesupplements.
                                                                                     among increasin
                                                                                                   ng number of
      working class males and females is resulting demand for external dietary supplements.
The Dietary Supplements Market is classified on the basis of product type
      The Dietary Supplements Market is classsified on the basis of product type
a.    Vitamins
      a.       and minerals
           Vitamins and minerals
b.    b.   Herbal
      Herbal      supplements
             supplements
      c.    Protein supplements
c.    Protein
      d.      supplements
            Chavanprash

d.    Chavanprash
      Market for Dietary supplements is expeected to touch $ 5.90 bn by 2022 at CAGR 19%.
Market for Dietary supplements is expected to touch $ 5.90 bn by 2022 at CAGR 19%.

                                Dietary Supplement
                                        S          Market ($ bn)

                                                                                               5.9
                                                                                                 90
         6.00
                                                                                    4.96
         5.00
                                                                  4.17
         4.00                                      3.51
                                    2.96
         3.00        2.50

         2.00

         1.00

         0.00
                    2017-E         2018-F         2019-F         2020-F            2021-F     2022
                                                                                                 2-F

                                     Indian Nutraceuticals Industry
 30                                     Current Scenario & Future Trends                                   23
Dietary supplemen
                                nt Market ($ bn) - breakup by types
                                                                        Others
                                                                         5%

                         Proteins
                           25%

                                                                                 Vitamins and Mineraals
                                                                                          40%
                           Herbal supplementts
                                   30%

                           Vitamins and Minerals   Herbal supplements   Proteins        Others

    Vitamin and minerals are the major con
                                         ntributors followed by Herbal supplements and proteiins.
Vitamin and minerals are the major contributors followed by Herbal supplements and proteins.

    Vitamin and minerals supplements:
Vitamin and minerals supplements:
    The vitamin and mineral supplements includes micronutrients which help the body to functtion properly
The vitamin
    and also and
             helpmineral  supplements
                  to improve            includes
                             mental health .     micronutrients which help the body to function properly
and also help to improve mental health.

                                                                                                          24
                                    Indian Nutraceuticals Industry
                                       Current Scenario & Future Trends
                                                                                                               31
Stressful lifestyle and unhealthy food habits cause poor health and that drives demand for a multivitamin
and mineral supplement to safeguard against deficiencies.

Herbal supplements:
Dietary supplements containherbs plant
or parts of a plant are called herbal
supplements.

For example, Aloe has been marketed
as a remedy for coughs, wounds, ulcers,
gastritis, diabetes, cancer, headaches,
arthritis, immune-system deficiencies,
and many other conditions.

3.7 Key players in the Indian market
The Indian nutraceutical market is mainly dominated by pharmaceuticals and FMCG companies with
very few companies that only specialize in nutraceutical products. Increasing health consciousness and
improved incomes and standard of living has boosted the growth of the Nutraceuticals markets in India,
making it one of the fastest growing segments.

Functional foods: In the functional food category, food for diabetes, weight management, cholesterol
management, cognitive and digestive food have gained popularity. Leading national players in the
functional-foods segment, such as Amul,Dabur, ITC, Britannia and Parle, as well as Indian companies
marketing ayurveda-based functional foods and dietary supplements (e.g., Dabur, Himalaya, Amway,
Hamdard Laboratories, Baidyanath,Pantanjali).

Food companies, such as Nestlé, Danone, Unilever, Kellogg, and Yakult, are more active in functional foods
and beverages, with a few exceptions such as GlaxoSmithKline’s Horlicks and Viva or Abbott’s longstanding
commitment to child-, adult- and medical-nutrition brands such as PediaSure, Ensure or Glucerna.

Functional beverages, like Yakult, Ocean, Gatorade, are available in the form of energy drinks, vitamin
water, fortified milk and buttermilk, and enhanced iced tea, among others. Various companies, including
Danone, Dabur, PepsiCo, Coca-Cola, Amul, Britannia and Rasna, are introducing innovative beverages with
enhanced nutritional value in order to woo the health conscious Indian consumers. An increase in uptake
of enhanced drinks, energy drinks, and fortified juices is expected to drive the growth in this category.

Dietary Supplements: Presently, vitamins supplements is the need of the hour; it has a strong brand
proposition followed by protein and iron.Growth in this category will likely be driven by dietetic supplements

                                   Indian Nutraceuticals Industry
 32                                   Current Scenario & Future Trends
consumption by urban, fitness-conscious young population. Himalaya, Abbot, Dabur, GlaxoSmithKline and
Amway are some of the major players operating in dietary supplements market in India.

The Major key players ruling the Indian Nutraceuticals market are Ranbaxy laboratory, Abbott India, Nicolas
Piramal, Dr Reddy’s lab and Pfizer, Dabur India, Zandu, Baidynath, GSK Consumer healthcare, Heinz, Yakult
Danone, Amul, Amway, Zydus wellness, EID Parry and Herbalife.

MNC
                       •    GlaxoSmithKline is a science based Fast Moving Healthcare Company.
                       •    Operate in over 150 Markets in three world-leading businesses that research,
                            develop and manufacture innovative products in pharmaceutical, vaccines
                            and consumer healthcare.
                       •    In consumer healthcare division its products include Horlicks, Horlicks
                            biscuits, maltova, Boost and viva.
                       •    Current market capitalization stands at Rs 20,752.24 crore.
                       •    Net worth: 17171.14Cr.
                       •    Nutrilite, the flagship health product from the Amway stable is a vitamins,
                            minerals and dietary supplements. Besides Nutrilite, Amway has 16
                            healthcare products in the Indian market under the nutrition and wellness
                            category.
                       •    Amway’s sales in India in the calendar year 2016 touched Rs 1,700 crore.
                       •    Amway India intends to set up 50 retail stores in the country by the end
                            of 2018 to underpin its global business model of direct and online sales,
                            underscoring the importance of Asia’s third-biggest economy in the growth
                            blueprint of the $9.5-billion US parent company.
                       •    It manufactures fortified B-complex capsules.
                       •    Its nutrition products like PediaSure for toddlers, Similac for infants, Ensure
                            for adults, Mama’s Best for pregnant women and lactating mothers and
                            Glucerna for diabetics.
                       •    The company had posted a net profit of Rs 67.79 crore in the year 2016
                       •    Abbott has worth Rs 450 crore nutrition product manufacturing plant in
                            Gujarat which has a capacity of 40 million pounds per annum.

                                  Indian Nutraceuticals Industry
                                     Current Scenario & Future Trends
                                                                                                        33
•   Danone’s nutrition business, which includes the acquired nutrition business
                     of Wockhardt Group in India, comes under the umbrella of Danone Nutricia
                     and has brands such as Protinex, Dexolac, Farex and Nusobee.
                 •   It is present in 200 cities, mainly through the indirect network of distributors
                     and stockists.
                 •   Company has invested Rs.1,800 crore to build manufacturing facilities in
                     Haryana and Punjab.
                 •   The world’s biggest breakfast cereal maker
                 •   Kellogg’s products are manufactured in 18 countries and marketed in over
                     180 countries.
                 •   Its fiberall and Metamucil are fall under dietary supplements.

Indian Players
                 •   India’s largest Ayurvedic medicine & related products manufacturer.
                 •   Its product range includes Nutrition products such as Chavanprash, Glucose‐D,
                     Real and Active Juices.
                 •   Market cap of ₹ 50643.71 Cr.
                 •   Products/Revenue Segments include Personal Care which contribute 53.07
                     %, Health Care which contribute 27.34%, Beverages which contribute 17.09
                     % of Total Sales.
                 •   Himalaya Drug Company, the Bangalore-based Rs 1,200 crore manufacturer
                     of ayurvedic drugs and cosmetics, has forayed into nutraceuticals market
                     with the launch of a prescription-based health supplement for kids.
                 •   Himalaya entered the nutraceutical market in July 2012 with its maiden
                     product HiOwna-Jr for kids, followed by HiOwna for adults and the elderly,
                     the same year.
                 •   Stating that the ₹743-crore ethical nutraceutical market (promoted via
                     doctors) is growing at 10 per cent, accounting for almost 8 per cent of the
                     total Indian pharmaceutical market
                 •   Of the 1.2 million doctors in India, Himalaya has built relationships with over
                     4,00,000 doctors who recommend HiOwna products to their patients.

                           Indian Nutraceuticals Industry
34                            Current Scenario & Future Trends
•    Emami Limited is an Indian producer of fast-moving consumer goods (FMCG),
                            engaged in the personal care/cosmetics and healthcare businesses.
                       •    The company is well known in India for its fairness cream products for men.
                       •    The company’s health products unit offers tonics for colds and coughs as well
                            as nutraceuticals.
                       •    One of the giant among FMCG companies operating in India as the firm has
                            started eating into the market share of MNCs and local players alike
                       •    In 2015-16, the Haridwar based company raked in revenues of Rs 5,000 crore,
                            up from around Rs 400 crore in 2011-12 and Rs 2,000 crore in 2014-15.
                       •    Patanjali has wide range of products like aloe vera juice, amla juice and many
                            more under food supplements.

3.8 Nature of Competition
Nutraceuticals market is becoming increasingly competitive with the entry of major ingredients
manufacturers and suppliers, food fortification companies, ayurvedic and herbal extract manufacturers
and distributors apart from the leading FMCG, Food & Beverages and pharmaceutical companies.

The nutraceuticals market in India penetrated just above 10% at all India level. The penetration rate is
high in Urban India at 22.51%, where as in Rural India it is merely 6.32%.India represents merely 2% of
the global nutraceuticals market and is way behind in terms of per capita spent on nutraceuticals with just
US$2.5 compared to global average of US$21.

Though traditionally pharmaceuticals dominated dietary supplements was having the major weight
age in market, the recent shift in consumerism resulted in the functional food and functional beverages
together occupy 67%, major chunk of market.Indian Nutraceuticals market is highly concentrated in South
India followed by East India with leading top three states Andhra Pradesh, Tamil Nadu and West Bengal.
The urban centric Indian nutraceuticals market is gradually gaining ground in rural India with the recent
penetration of life style diseases in rural India. Rural India occupy nearly one third of the market.

With India’s strong tradition of consuming natural healthy foods, the market of functional foods is likely
to boom in the next five years. The highest growth is likely to be in sub categories such as energy drinks,
enhanced shelf stable juices, probiotics, and omega fortified foods and beverages.These foods and
beverages, personalized to manage certain health conditions are the future of the functional health foods
market.

Dietary supplements targeted at women and children have a bright future. Preventive dietary supplements
for diseases such as cancer, diabetes, obesity and arthritis are also much sought after. The Indian dietary
supplement market is composed of over 500 participants. Vitamins and minerals supplement market is

                                  Indian Nutraceuticals Industry
                                     Current Scenario & Future Trends
                                                                                                       35
the most competitive with over 100 participants. Further,
India is opening up its market to foreign players. This
could lead to healthy competition in this sector.In recent
past many changes have occurred in spending habits of
the urban population of the country, they have become
more health conscious. Gymnasiums, health clubs, yoga
centers are contributing in growing vitamins and dietary
supplements demand.

SWOT Analysis
The following is a SWOT Analysis of Nutraceutical Industry in India

                   STRENGTHS                                               WEAKNESS
•     Huge opportunity for growth, driven by •               Nature of market fragmented – both from
      changing & busy lifestyle                              demand & supply perspective – this is so as
•     Relatively younger Indian population with              every player is identified some kind of niche
      significant nutritional deficiency                     for himself
•     There is a lineage/ history in India of Ayurveda •     Current lack of will to reinvent already existing
      and similar health enhancing products in a             rituals/ practices prevalent, which could
      natural way                                            develop into a big trend
•     Significant access to capital                    •     Lack of information to prove efficacy/ benefits
•     Good Manufacturing Practices and experience
      base in Food & Beverage, Pharmaceutical
      companies – across MNC and Indian
      manufacturers
                OPPORTUNITIES                                                THREATS
•     Consumer & stakeholders/ opinion holders’ •            Spurious products & brands
      education through communication           •            Most Nutraceutical brands/ products are sold
•     Digital execution most impactful                       as a premium product thereby limiting its trial
•     To position Local remedies in fully branded            in mostly in urban areas
      context. Patanjali is a pioneer in this aspect •       Lack of real stakeholder support
•     Sports related Nutraceuticals will have a
      major impact on consumer health as fitness
      enthusiasts start engaging with different
      sports
•     activities more      vigorously   and     even
      professionally

                                   Indian Nutraceuticals Industry
 36                                   Current Scenario & Future Trends
4. KEY STAKEHOLDERS

4.1 Fitness Instructors/ Dieticians/ General Practitioners
Fitness is the becoming a key Mantra for healthy and active living. Across all ages – there is an inner urge
to attain fitness through Yoga, workouts, exercise or sports. Gymnasiums are catering to this need of
helping Fitness Enthusiasts and aspirants to achieve their dreams of participative lifestyle with superior
physiological performance and well-being. In the urban setting, we observed a strong emergence of
Branded chain of gymnasiums like Talwalkars, as also a plethora of local and neighborhood gymnasiums
with more cost-effective options.

Fitness Instructors employed by
Gymnasiums are key influencers in
inspiring Fitness Enthusiasts and
recommending and implementing
Fitness Programs for their clients.
Hence, they are key agents in
promoting specific brand/ category/
product line of Nutraceuticals.

Dieticians assume the role of a key
influencers also, as Diet plays a very critical role in developing Fitness as well as prevention, treatment,
control and recovery from prevalent illness in India. It is evident that, diet has a primary role in building
physiological stamina and also recovery from chronic illnesses. Dieticians prescribe specific Nutraceuticals,
as part of diet, for commonly incident ailments like Diabetes, Obesity, Gastro-intestinal problems, Allergies
etc.

General Practitioners play a critical
role as well as they, in the current
circumstances evaluate lifestyle of
patients and prescribe/ recommend
supplements, healthier choice of
food & beverages and healthier
lifestyle. This stakeholder group,
evidently, has much higher influence
& impact as their advice is looked
upon as ‘Medical Advice’.

                                   Indian Nutraceuticals Industry
                                      Current Scenario & Future Trends
                                                                                                         37
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