Indian Nutraceuticals industry to touch US$ 8.5 billion by 2022: study
Indian nutraceuticals market is expected to cross from a value of US$ 2.8 Billion in 2015 to a value of US$ 8.5 Billion by 2022, according to the joint study brought out by ASSOCHAM and RNCOS.
In 2015, India accounted for a share of around 2% of the global market. By 2022, this share is anticipated to increase to a value of approximately 3% owing to country’s large population base, increasing urban belt and awareness, according to a study on ‘Indian Nutraceuticals, Herbals, and Functional Foods Industry’, jointly conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) and RNCOS.
The overall market is classified into Dietary Supplements and Functional Food & Beverages, with the former estimated to occupy the larger chunk of around 65% in 2015. Functional food & beverages are expected to grow with a higher growth rate. This is due to the increasing visibility of such products in modern retail formats and promotional activities through TV advertisements.
In 2015, the Indian dietary supplements market was valued at US$ 1.8 Billion. However, with growing awareness, number of people opting for dietary supplements on their own has also increased. Higher purchasing power has prompted Indians to be more health conscious and adopt a healthy diet routine completed with consumption of nutritional supplements, said Mr. D S Rawat, Secretary General ASSOCHAM.
The demand for the vitamin and mineral supplements may increase in the future due to the unhealthy eating habits and stress in daily lifestyle. People may benefit from the extra nutrients found in these supplements. A multivitamin and mineral supplement will help in safeguarding against periodic nutrient shortfalls in the diet. Due to these reasons the vitamin and mineral market in India is anticipated to grow in the coming years and reach a value of US$ 2.1 Billion by 2022, adds the study.
Herbal supplements are type of dietary supplements that contain herbs plant or parts of a plant. These plants or plant parts are used for their scent, flavour or potential therapeutic properties. The flowers, leaves, bark, fruit, seeds, stems, and roots of a plant are used either singly or in mixtures. However, some herbs can cause serious health issues if they are not taken without prior consultation. Therefore, it is best to take herbal supplements under the guidance of a medical professional.
In 2015, the market for herbal supplements was at an approximate value of US$ 0.6 Billion in India. Owing to their natural ingredients and popularity among people, this market is forecasted to reach a value of US$ 1.7 Billion by 2022, noted the study.
Functional foods and beverages market in India has strengthened itself, fostered by its rising penetration amongst health conscious people in the country. Functional foods include food products such as functional biscuits, breads, cereals, vegetable oil, nutrition bars, yogurt and others. Functional beverages include functional fruits juices, milk, tea, coffees, and energy drinks. Rising knowledge about wellness and health along with inclining expenditure on food has increased the number of consumers accepting functional foods & beverages. This is propelling the growth of the functional foods and beverages market to reach a value of US$ 3.2 Billion by 2022.
Additionally, protein drinks have also showcased an increasing demand from a segment of people searching for weight management solutions while maintaining a sound lifestyle. Functional teas and coffees are slowly capturing the demand in the country.
The Indian Functional Foods and Beverages market can be segmented into Functional Foods Market and Functional Beverages Market. Among the two, functional foods occupy the major share of 70%. However, convenience, availability of innovative products and health benefits associated with functional beverages are the leading factors influencing the growth of this market.
Functional foods are food products that consist of vital nutrients that go beyond simply nurturing usual growth and development of an individual. These food products are fortified with nutritional and disease preventing qualities. The consumption of such food is done with an intention towards improved wellbeing, prolonged existence and prevention of chronic diseases. The functional foods available in the market include the likes of oats, soy, flaxseed, nutrition bars, probiotic yogurt, fortified baked goods, and fortified edible oils. The market for functional foods was valued at US$ 0.7 Billion in 2015. This market is forecasted to grow to an approximate value of US$ 2 Billion by 2022 owing to the increasing health consciousness of people and their awareness about availability of such products.
A functional beverage is an emerging segment of the Indian nutraceuticals industry that was valued at US$ 0.3 Billion in 2015. 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. The market for this type of beverages is forecasted to reach an approximate value of US$ 1.1 Billion by 2022. This exponential growth will be majorly due to the erratic eating habits of people and their efforts to make-up for the lost nutrients with the help of these easy-to-consume fortified beverages.
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