Nutraceutical market in India to grow double in size in five years
October 15, 2013: The nutraceutical market in India is growing at a compound annual growth rate (CAGR) of 18.46 per cent and is expected to be worth Rs 19,500 crore (US$ 3 billion) by the end of 2013-14, as per a recent research report. For the uninitiated, nutraceuticals is a food containing health giving additives.
Divided into three segments – dietary supplements, functional foods and functional beverages – the Indian nutraceutical market is witnessing a shift in consumer buying behaviour. Traditionally, pharma-dominated dietary supplement segment has been dominating the nutraceutical market but the changing consumer preferences has paved way for segments like functional food and functional beverages capturing a strong 67 per cent market share in India.
It is interesting to note that the domestic nutraceutical market is mainly concentrated in southern region of the country, followed by the eastern region with leading top three states being Andhra Pradesh, Tamil Nadu and West Bengal. The urban-centric nutraceutical market is gradually gaining ground in rural India with the rural market capturing almost 1/3rd of the total nutraceutical market in India. However, in terms of penetration, urban India still scores high at 22.51 per cent while it stands at 6.32 per cent in rural India.
The Indian market current holds a two per cent market share of the global nutraceutical market and is expected to increase by manifold in the years to come. Clearly, the nutraceuticals market in India holds a lot of potential and is expected to double in the next five years and by almost five-folds between 2010 and 2020.