Indian Nutraceutical Industry

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

ASSOCHAM Corporate Office:
5, Sardar Patel Marg, Chanakyapuri, New Delhi-110 021
Tel: 011-46550555 (Hunting Line) • Fax: 011-23017008, 23017009
Email: [email protected] • 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.

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

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.

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

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.

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.

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.

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.

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:

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

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

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

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.

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.

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.

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

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
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. Herbal
b. 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

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
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

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.

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.

• 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

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

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’.

37
4.1.2 Prescription Behavior
We observed a certain amount of gap between awareness and prescription behavior of Nutraceuticals.
While, Tier 1 cities have the highest possibility of Nutraceuticals being prescribed, there are some level of
concerns of side-effects due to overdose of prescription or consumption. A majority of non-prescribers
among General Practitioners/ Dieticians/ Fitness Instructors expressed this concern.
In Tier 2 & 3 cities, it is a combination of the above problem and limited marketing reach. Although there
is awareness, it may be at a very basic and general level. There is some level of inadequacy of actionable
information.
In Tier 1 cities, imported brands are generally trusted more. Brands like Muscletech, Muscleblaze, Whey
On, SSN, Protinex, Ultimate have been salient and mentioned. Bodygear which is a local brand, has some
salience. It is perceived that in local
brands, mixing of inferior quality
ingredients may happen to the
detriment of the impact.
Prescription behavior is also

influenced by age of the individual.
Below 18 years of age – pure protein
is recommended, for instance.
Nutritionists/ Dieticians usually provide low calorie/ high nutrient beverages and/ or shakes that are rich in
vitamins/ minerals and other supplements. Herbalife, a multi-national brand, has a strong equity in India
as it has a manufacturing base here.
4.1.3 Barriers to Adoption

There are various myths as narrated in the article above which are coming in the way of adoption. They
need to be addressed through appropriate and effective communication.
One of the concerns from General Practitioners/ Nutritionists/ Fitness Instructors is side-effects that
Nutraceuticals may cause. The other reservation is that these products are not ‘natural’. Marketers need
to take such points of views in consideration and launch sustained communication programs of outreach
that will allay such fears both in the minds of opinion leaders as well as consumers.
4.2 New Trends in Value Chain/ Distribution

For a new & emergent category like Nutraceuticals, distribution chain is a critical driver of success.
Distribution channel also has a major role of building and sustaining consumer and stakeholder confidence,

brand building and accelerating reach of such products in Tier 3 cities.
Several types of channel options are emerging. Some of the established Modern Trade channels are
merchandizing Nutraceuticals, thereby enhancing its visibility and availability.
Sometimes it is sold as an OTC, so chemists’ shops would be a familiar channel for purchase.
We also observe exclusive outlets for Functional Foods, Beverages, Vitamins and nutrients. Chains like
Neulife are inspiring, perhaps setting benchmarks for other entrepreneurs to venture in such distribution
initiatives. Exclusive outlets provide more credibility to consumers as also it builds up a relationship with
the buyers.
Gymnasiums themselves also stock and promote Functional Foods, Beverages, Vitamins & Mineral
supplements. Several Nutritionists also act as distribution points for such products.

39
5. TRENDS IN THE INDUSTRY
5.1 New trends among consumers

These are some new and emerging trends in food innovation, consumer eating-pattern changes and
lifestyle shifts.
Paleolithic diet (paleo): Paleo, or ‘Caveman Diet’ is a diet that is based on avoiding not just modern
processed foods, but also foods that humans began eating after the Neolithic Revolution. While wide
variability exists in the way the diet is interpreted, we’re noticing more attempts at marketing food
products using this term.
Baking Alternatives: In addition to embracing an increasingly-popular paleo menu, gluten free choices
are still a powerhouse on retail shelves. One reason is celiac disease. But gluten-free doesn’t mean you
can’t bake at home! Food innovation continues to build on this trend and marketing opportunities are still
developing among consumers for other baking alternatives like spelt, quinoa, teff, and brown rice flours.
Fermented Foods: The benefits on digestive health seem to be in high demand among specialty foods
consumers from the already popularized Kombucha, to Kefir, to ‘gut shots’ like this, or even cultured coffee.
Consumers seem to be very intrigued by the natural varieties of microflora, and continue to demand a
much wider variety of beneficial bacteria from foods and supplements alike.
Dosha: The rise of turmeric as a trending ingredient recently been observed greatly. This might be the
beginning of consumer exploration of Ayurveda and the dosha concept of health. Sterling-Rice Group
culinary director Liz Moskow says: “The reason we’re predicting people will start eating more towards their
dosha is that we’re sort of riding this wave of yoga and Indian street food and bringing that mainstream,

and once people realize turmeric is enhancing their lifestyle and preventing disease and helping with
inflammation, people are going to start to look into Ayurveda more and see what foods they should avoid
and what foods might be good for their constitution.”
‘Meatless Burger’ and ‘Plant Butchery’: Clearly meatless diets aren’t anything new. Yet Vegan and
Vegetarian lifestyle choices among conscientious consumers is still evolving to meet the demands of their
creativity in the kitchen. It’s generally known that meat-substitute food innovation will imitate a meat patty
with a soy-based product, fungi, legumes,
chickpeas or combination of them. Now,
companies like Herbivorous Butcher
in Minneapolis or Impossible Foods in
California taking the science a step farther
by using advanced technology to copy
the taste and texture of meat and dairy
products to create a 100% plant-based
alternatives.
CoffeeFlour: Envisioning less food-waste in the future has stemmed food innovators to develop a product
that is made from coffee cherries, which are usually discarded when harvesting coffee beans. When the
cherry ends up as waste during yielding they become a burden to the environment. Making use of these
coffee cherries reduces the amount of
toxic waste heaps in coffee-producing
countries. We’ll be seeing more creative
solutions to the ever growing issue with
food waste from retailers, food service
outlets and food manufacturers.
Ugly Produce: With a ‘less waste’ priority in mind; many specialty food consumers are willing to purchase
products made from disfigured fruits and vegetables, in order to save them from landfill. Products like
“Dash Water” make beverages from the not-so-pretty fruits and vegetables, and even some grocery
stores like Loblaws have embraced this trend by launching a Naturally Imperfect line. It’s certainly a
great way for both manufacturers and consumers to save a bit of money, while feeling good about their
transactions.

41
Nanoceuticals: Nanoceuticals are nutrients that have been manufactured into nanoparticles using
nanotechnology. Dietary supplement manufacturers offer various claims concerning products made with
nanoparticles, including transforming fat-soluble nutrients into water-soluble ones, providing complete
and uniform nutrient absorption, and making supplements that pass through membranes directly into
human cells.
5.2 Probiotics
The epidemiological evidences and modern research in nutrition during the last few decades elaborated
the molecular level of interactions between specific food constituents with cells to control and prevent
some diseases. It is nowadays acknowledged the critical role of the “forgotten organ”, the enteric micro-
biota, in generating a variety of functions which sustain health. The beneficial interaction between the
micro-biota and humans is the way how bacteria contained within the gut “talk” to the immune system.
Into this landscape probiotics and nutraceuticals play a major role.
Our body is infested with an assortment of different

kinds of bacteria. It may come as a shock to you to
learn that some bacteria are actually very good for
our health. Many of these ‘’good bugs’’ live in our
stomach. They help to properly digest the food,
as well as aid in other essential bodily functions.
It’s important to encourage healthy levels of these
bacteria colonies in order for the body to function normally.
Probiotics are living microorganisms that affect the host in a beneficial manner by modulating mucosal and
systemic immunity, as well as improving nutritional and microbial balance in the human body. The main
probiotic preparations currently on the market belong to a large group of bacteria designated as lactic
acid bacteria (e.g. lactobacilli, streptococci, bifidobacteria), which are important and normal constituents
of the human gastrointestinal microflora. However, studies are also investigating potential probiotic
roles of other microbes such as yeast (Saccharomyces boulardii), which are not normally found in the
gastrointestinal tract. Probiotics are found in both pill form as well as food, and they contain good bacteria

that your stomach craves. Lactobacillus probiotics are things like yogurt and other fermented foods which,
when eaten, aid in the digestive process. Your doctor will recommend taking probiotics to combat such
issues as; irritable bowel syndrome, inflammatory bowel disease or diarrhea.
Scientific studies are providing mechanisms of action to explain the therapeutic effects, and randomized
controlled trials are providing the necessary evidence for their incorporation into the therapeutic
armamentarium. There is also some research that indicates that probiotics may help aid: skin conditions,
urinary and vaginal health, oral disease, as well as allergy management.
Biological effects of Probiotic bacteria:

43
6. REGULATORY
The FSSAI has notified the Food Safety and Standards (Health Supplements, Nutraceuticals, Food for
Special Dietary Use, and Food for Special Medical Purpose, Functional Food and Novel Food) Regulations
on 23 December 2016 in the Official Gazette 2016.
The regulations would cover following broad categories of foods and carry detailed requirements about
their composition, claims, labels etc.
These foods are:
• Health Supplements
• Nutraceuticals
• Foods for Special Dietary Use and Medical purpose
• Specialty Food containing plants or botanicals
• Foods containing Probiotics and Prebiotics
• Novel Foods
6.1 Regulatory Elements – Laws / Guidelines

Manufacturing and selling of Nutraceuticals can be done in the form of tablets, capsules and syrups. It
must fulfill quality requirements and standards mentioned in the IP, BP and USP
The formulation should be based on sound medicinal or nutritional principles supported by proven scientific
data, wherever required. It should not be just combination of vitamins and minerals to be formulated into
tablets, capsules or syrup; it is not food unless vitamins and minerals are added to an article of food based
on a food format. Presence of Hormones, steroids or psychotropic ingredients is not permitted in the
formulation.
It is also important that nutrients quantity recommended for daily consumption (RDA) by the Indian
Council of Medical Research should not be exceeded any condition. If such standards are not specified,
then the standards in the Codex Alimentarius Commission will apply.
Use of approved colors and additives as permitted in Schedule VF of these regulations, natural, nature
identical or synthetic flavors as permitted in the Food Safety and Standards (Food Product Standards and
Food Additives) Regulations, 2011.

Labeling requirements
Product label should be in accordance with the Food Safety and Standards (Packaging and Labelling)
Regulations, 2011 and other specific labelling requirements mentioned in each type of food in the
regulation.
The labels must also have mentioned:

• Specify the purpose of the foods
• Target consumer group
• Physiological or disease conditions which they address
• Recommended duration of use
• Specific labelling requirements as mentioned against each type of article of food.
The label, accompanying leaflet or other

labelling and advertisement of each type
of article of food in these regulations must
provide sufficient information on the nature
and purpose of the article of food and
detailed instructions and precautions for
its use and in a format that is appropriate
for the intended consumer.
Food which has not been particularly

modified in any way but is suitable for use
in a particular dietary regimen because of its natural composition, should not be designated as ‘health
supplement’ or ‘special dietary’ or ‘special dietetic’ or by any other equivalent term, and such food may
bear a statement on the label that ‘this food is by its nature X’ where ‘X’ refers to the essential distinguishing
characteristic as demonstrated by the generally accepted scientific data. The statement must not however,
mislead the consumer.
Nutritional or Health Claims

Food and Beverage Operators may make health or nutritional claim and nutritional claims of ingredients
as specified in Schedule I Schedule II, Schedule III, Schedule IV, and Schedule VI.
These claims should be based on

• Health related benefits
• Ingredients like Nutrient or nutritional

45
Every health claim on the food requires following:
• Ingredients or nutrient or nutritional function
• Enhanced function
• Disease risk reduction
• Health maintenance claims
• Immunity or increased resistance
• Anti-ageing
Adequate documentation and basis of human studies all claims to be validated. It is necessary to validate
all health claims and on basis of human studies. The FSSAI has also prohibited the use of implied claims for
curing diseases or efficacy claims like cure for cancer or prevention of diseases either by name or through
pictures, vignettes or symbols, namely, electrocardiogram tracing, and lipid profile.
The FSSAI has also prohibited the use of implied claims for curing diseases or efficacy claims like cure
for cancer or prevention of diseases either by name or through pictures, vignettes or symbols, namely,
electrocardiogram tracing, and lipid profile.
The Schedules
The guidelines have been divided into Schedules. The Schedules contain the detailed provisions for the
use of vitamins, minerals, amino acids, botanical ingredients, nutraceuticals ingredients, food additives,
probiotics and prebiotics.
One of the schedules has a list of 400 ingredients of plant or botanical origin which can be used as
ingredients in the foods that have been covered in these regulations. Any of the ingredients specified in
Schedule I, Schedule II, Schedule III, Schedule IV, Schedule VI, Schedule VII, and Schedule VIII can be used
in these foods in accordance with the provisions of these regulations, and for the said purpose, may use
additives as applicable to categories specified in Schedule VA to Schedule VF.

Restriction on suspension or sale
The FSSAI has also made provision for suspension or restriction of sale of such articles of food as have been
placed in the market that
• Are not clearly distinguishable from articles of food for normal consumption
• Are not suitable for their claimed nutritional purpose
• May endanger human health
The FBO could be asked to furnish details regarding the history of use of the novel or modified ingredients
added and their safety evaluation.
6.2 Registration and Licensing

Food business operators present across country will have to obtain registration and license in agreement
with the procedure in placed by FSSAI (licensing and registration of food business) regulation 2011
• A manufacturer cannot commence

business unless he is registered or has a
valid license.
• Petty food manufacturers (annual TVO

<12 Lacs) have to register with the
commissioner
• Manufacturers whose turnover is greater

than 12 lacs to obtain a food license from
FSSAI office.
• Existing licenses/registration should be converted into FSSAI license/ registration before August 5,
2012 (now extended by a few months).
• An application for the grant of a license shall be made in form B of schedule 2 to the concerned
licensing authority; the license shall be issued within 60 days from the date of issue of an application
ID number.
• After the issue of application ID number the licensing authority may direct the food safety officer to
inspect the premises in the manner prescribed by the FSSAI in accordance with these regulations.
• The licensing authority shall issue a license in format C under schedule 2 of these regulations.
• Registration or license granted under these regulations shall be valid and subsisting, unless otherwise
specified, for a period of 1-5 years

47
Although the new FSSA promises to simplify licensing and registration processes for nutraceuticals, the
actual process varies depending on the number of parameters. To get the product registered in India,
the number of licenses (almost 4-5) will be required depending on the actual product status such as
whether:
• The company wants to sell bulk drug or finished formulation
• The company is importing finished product or bulk ingredient
• The product to be imported is with or without an India-specific label and will the claims be developed
in India
• The company has packaging license
• It requires a manufacturing license
• It requires a marketing license
The number of documents will have to be furnished by the food importer to the government authority
along with registration application dossiers. The inter- link through its regulatory product offerings provides
regulatory support for the following licensing procedures, which need to be taken care of before launching
these products in India
• Import licensing
• Manufacturing licensing
• Marketing licensing
• Other state and national level clearances/licenses required from the regulatory side
6.3 Related environmental policies

A period of one year has been given by the Food Safety and Standards Authority of India (FSSAI) to the
industry for effective compliance with the regulation on food and health supplements, nutraceuticals,
food for special dietary uses, foods for special medical purposes, functional foods and novel food.
The FSSAI has specified that Food Business Operators will need to fulfill with these regulations from 1
January 2018.
Change in the policy is great encouragement for new businesses to be set up. Small and medium enterprises
(SMEs) can be the biggest beneficiaries of this decision and expected to spearhead the economic growth of
the sector. The already restructured goods and service tax (GST) can be another reform by this government,
creating a level playing field for players in the Industry.

Regulations will be operationalized by the industry and FSSAI. This will benefit a big section of the sector
and help foster the operations of FBOs. This is expected to further improve the regulatory environment.
The regulations will provide clarity to the food supplement industry by establishing standards for new food
categories and create a level playing field for the industry.

49
7. BEST PRACTICES
Consumer/ Stakeholder Understanding

It is important to conduct studies to understand consumer and other stakeholders’ needs for nutrition,
their mindset, usage, attitude & behavior, from time to time. Companies which takes conscious efforts to
be closer to consumers and other opinion leaders and develop product and communication is response
to such needs are likely to grow faster and build a stronger equity in a shorter period among all relevant
consumers.
In this context, a step forward would be to adopt a clear segmentation-targeting approach. Catering to
needs of differentiated segments through product development would mean higher relevance and appeal
of product benefits, communication and brand positioning. A case in point is how Horlicks launched
several variants for Women, Lactating Mothers and so on to command a much higher (3X) premium of
such variants shoring up their profitability.
Catalogue Development
Detailed product and ingredient information in
professionally developed catalogues ensures
unambiguous communication between sales force
and clients. This develops confidence among all
concerned toward the initial objective of product/
brand trials, repurchase and eventually loyalty of the
brand.

GMP Certified/ Compliant Manufacturing Process
An official GMP logo conveys a certain standardized process adherence,
standardsof product quality. An NSF seal certifies clearly the ingredients
and their quality for usage in the finished product.
Documentation
Documentation of all processes, batch operations, incoming material
quality, and safety standards goes a long way into ensuring discipline into the entire operational process.
Audit Standards
Common Procedure implementation goes a long way into data management system, validation of process
documents
Adopting standards for compliance on Safety, Quality, testing of raw materials goes a long way on
confidence of the market on brand building and product acceptance.

51
8. ASSOCHAM MRSS ROADMAP FOR
NUTRACEUTICAL PLAYERS
8.1 SEGMENT ATTRACTIVENESS

The last decade witnessed a healthy growth rate for both Food & Beverage and Pharmaceutical sectors.
While various segments within Food & Beverage sector grew at anything between 12-25% CAGR, the
Pharmaceuticals grew at around 15%. Nutraceuticals is a big opportunity for India with its huge population
and need for nutrition and well-being. Its growth is expected more to ride on the growth of Food &
Beverage – as young consumers in India are driving this growth and they are becoming increasingly health
conscious.
As expressed by Mr. Moxesh Zota, Managing Director, Zota HealthCare, an Ahmedabad based company
engaged primarily in the manufacturing and marketing of Dietary Supplements and Energy Boosters –
“The Nutraceuticals market is expected to witness huge growth. It will certainly grow at a rate higher
than Pharma sector for the next 5 years. Expanded market reach programs will even further facilitate
this growth.”
Within the context of overall accelerated growth, certain segments may have even higher potential. Some
of them are listed below
1. Diabetes, which is highly incident in the East and South of India, due to generally higher intake of
sweets – can be controlled in the early stages through Dietary fibres, herbal stimulants like Green Tea
and other proteins will provide the benefit of control of Glucose and Lipid levels among pre-Diabetic
and Diabetic patients.
2. Functional Beverages as a segment – offers a huge potential in the next 10 years. This is so as Indian
consumers exhibit strong beverage consumption habit and are consciously trying to change from

carbonated drinks to juices, healthy tea, milk and water. All of these options can be fortified with
ingredients that have preventive and replenishing values. Some examples could be Ginseng Tea,
Vitaminized water, Juices fortified with Curcumin (polyphenol – anti-carcinogenic)
8.2 OPTIONS FOR MARKETING PLAN

The Industry today has established a healthy level of consumer demand. The need of the hour is to reach
out to the consumers with a robust marketing strategy.
Distribution is Key in this context.

A mix of different options will drive growth. The effective presence of Modern Trade in India today is
a huge advantage for Nutraceuticals especially for Functional Food & Beverage. Smart designs of Shelf
Planograms will lend impactful visibility of such products, especially if they are placed in the same section/
aisles of food and beverage.

53
Deploying the channels of Branded Gymnasium chains, Nutritionists/ Dieticians and General Practitioners/
Diabetologists through direct sales route. Intensive educational programs, workshops, conferences and
effective cataloguing of products would help this process.
Multi-level marketing – is another effective route as it leverages word-of-mouth and personal trust building.
Exclusive outlets for Nutraceuticals/ specific brand franchise invoke a lot of consumer confidence. Imported
brands today cue more safety to consumers
Sales Force/ Direct Selling

Other than Multi-level marketing, sales force experienced in both B2B and B2C may be needed. B2B
interaction is more with the key influencers and stakeholders of Fitness Instructors, Nutritionists and
Doctors and B2C for managing large-scale distribution
Pricing
In urban areas, consumer perception on such products is that they are value-adding. Hence, premium
pricing can be commanded. GSK has been able to command up to 3 times realization for their fortified
variants of Horlicks – Pregnant and Lactating Mother’s Horlicks or Women’s Horlicks.

9. RECOMMENDATIONS
ASSOCHAM – MRSS India collaboration is intended to facilitate holistic

growth of Nutraceuticals segment. The partnership looks forward to
invite investments from Indian and Multi-national organizations with
or without prior Food & Beverage or Pharmaceutical experience with a
strategic intent of entry.
Key benefits, to the investors are, clearly

• Ready market growing at an accelerated pace (High double-digit)
• Significantly higher bottom line potential, given the segment’s value-added character, reinforced by
consumers’ and stakeholders’ perception as such
At a macro level, this may benefit Indian Economy through

• Reduced incidence of chronic ailments
• Higher life expectancy and productivity
• Reduced healthcare costs/ health insurance liabilities
Deeper Consumer Understanding

ASSOCHAM-MRSS through this report, has shared the current market landscape. To further deepen such
understanding, to help investors enter the market with a resounding impact, as well as existing Nutraceutical
players, MRSS India proposes a complete package of market understanding on Nutraceuticals. This can
either be a syndicated study on the industry subscribed by leading industry players and other industry
associations OR custom-built for each player seeking such entry depending upon a specific segment/ sub-
segment of interest. Recommended scope of coverage is Pan-India.
MRSS India proposes such an exercise to deepen various aspects of market understanding e.g. developing
a consumer segmentation model, attitude, usage and behavior of such segments, type of products
consumed, prices prevailing and sensitivities thereof, recommendations on Communication Strategy to
enhance awareness and recommendations on Distribution strategy.
Accelerated implementation of FSSAI Draft Guidelines for Nutraceuticals

This will establish a lot of clarity on compliances in the area of Labeling, claims, sales, distribution,
packaging and imports. Investors and marketers will be able to invest/ pursue growth without hesitations
and reservations

55
Access to Capital
Funding in the forms of Soft Loans, Incentives and Subsidies will intensify investment into processes that
will help churn out better quality products at more affordable prices. This will in turn help achieve higher
economy of scale and widen consumer base and attract more investment thus creating a virtuous cycle.
Communication and Distribution Strategy

This is a critical success driver. Nutraceutical players need to have a distribution strategy that is aligned
to their target segment, geographical territory and brand image. For instance, a Supplement like Vitamin
D3 fortified Calcium needs to be promoted with confidence from Orthopedic physicians, surgeons and
nutritionists. This needs to be supported with clear cataloguing and education.
Similarly, many myths about Nutraceuticals need to be broken with sustained consumer engagement and
education. Media habits would help us understand which channel to deploy and with what measure.
Combat Counterfeit
Counterfeit Nutraceutical products that use actives other than recommended, cause enormous setback to
consumer confidence on the category. A system of identification, validation and regulation needs to evolve
where such cases are dealt firmly and enforce immediate withdrawal from the market.
Safety
Access to testing facilities for safety of materials and products needs to be made available. Adequate
talent needs to be developed to conduct necessary test with required competence.
Thorough testing needs to be conducted to understand potential side effects and relevant declarations
must be provided to guide consumers and stakeholders alike.
Industrial Zones
Leveraging existing manufacturing locations, establishment of a Nutraceutical cluster may help with
efficiencies in Supply Chain.

ASSOCHAM
THE KNOWLEDGE ARCHITECT OF CORPORATE INDIA
Evolution of Value Creator

ASSOCHAM initiated its endeavour of value creation for Indian industry in 1920. Having in its fold more
than 400 Chambers and Trade Associations, and serving more than 4,50,000 members from all over India.
It has witnessed upswings as well as upheavals of Indian Economy, and contributed significantly by playing
a catalytic role in shaping up the Trade, Commerce and Industrial environment of the country.
Today, ASSOCHAM has emerged as the fountainhead of Knowledge for Indian industry, which is all set
to redefine the dynamics of growth and development in the technology driven cyber age of ‘Knowledge
Based Economy’.
ASSOCHAM is seen as a forceful, proactive, forward looking institution equipping itself to meet the
aspirations of corporate India in the new world of business. ASSOCHAM is working towards creating a
conducive environment of India business to compete globally.
ASSOCHAM derives its strength from its Promoter Chambers and other Industry/Regional Chambers/
Associations spread all over the country.
Vision
Empower Indian enterprise by inculcating knowledge that will be the catalyst of growth in the barrierless
technology driven global market and help them upscale, align and emerge as formidable player in
respective business segments.
Mission
As a representative organ of Corporate India, ASSOCHAM articulates the genuine, legitimate needs and
interests of its members. Its mission is to impact the policy and legislative environment so as to foster
balanced economic, industrial and social development. We believe education, IT, BT, Health, Corporate
Social responsibility and environment to be the critical success factors.
Members – Our Strength

ASSOCHAM represents the interests of more than 4,50,000 direct and indirect members across the
country. Through its heterogeneous membership, ASSOCHAM combines the entrepreneurial spirit and
business acumen of owners with management skills and expertise of professionals to set itself apart as a
Chamber with a difference.

57
Currently, ASSOCHAM has more than 100 National Councils covering the entire gamut of economic
activities in India. It has been especially acknowledged as a significant voice of Indian industry in the field
of Corporate Social Responsibility, Environment & Safety, HR & Labour Affairs, Corporate Governance,
Information Technology, Biotechnology, Telecom, Banking & Finance, Company Law, Corporate Finance,
Economic and International Affairs, Mergers & Acquisitions, Tourism, Civil Aviation, Infrastructure, Energy
& Power, Education, Legal Reforms, Real Estate and Rural Development, Competency Building & Skill
Development to mention a few.
Insight into ‘New Business Models’

ASSOCHAM has been a significant contributory factor in the emergence of new-age Indian Corporates,
characterized by a new mindset and global ambition for dominating the international business. The
Chamber has addressed itself to the key areas like India as Investment Destination, Achieving International
Competitiveness, Promoting International Trade, Corporate Strategies for Enhancing Stakeholders Value,
Government Policies in sustaining India’s Development, Infrastructure Development for enhancing India’s
Competitiveness, Building Indian MNCs, Role of Financial Sector the Catalyst for India’s Transformation.
ASSOCHAM derives its strengths from the following Promoter Chambers: Bombay Chamber of Commerce
& Industry, Mumbai; Cochin Chambers of Commerce & Industry, Cochin: Indian Merchant’s Chamber,
Mumbai; The Madras Chamber of Commerce and Industry, Chennai; PHD Chamber of Commerce and
Industry, New Delhi.
Together, we can make a significant difference to the burden that our nation carries and bring in a bright,
new tomorrow for our nation.
D. S. Rawat
Secretary General
[email protected]

ASSOCHAM Corporate Office:
5, Sardar Patel Marg, Chanakyapuri, New Delhi-110 021
Tel: 011-46550555 (Hunting Line) • Fax: 011-23017008, 23017009
Email: [email protected] • Website: www.assocham.org

Assocham’s Regional & Overseas Offices
ASSOCHAM REGIONAL OFFICES
Southern Regional Office ASSOCHAM Western Regional Office

Ashirwad Towers, 1st Floor, 75/11, 608, 6th Floor, SAKAR III
2nd Main Road, Vyaliukaval, Opposite Old High Court
Bengaluru – 560 003 Income Tax Cross Road,
Phone : 080-23360021 (Director) Ashram Road, Ahmedabad-380014,
Reception : 080-23360022 Gujarat, India.
Mobile : 9108563359 Phone : 079-2754 1728-29/
2754 1876
EASTERN Regional Office Mobile : 9810825894
18, Ballygunge Circular Road, E-mail : [email protected]
Kolkata -700019
Phone : 91-33-4005 3845/41
Fax : 91-33-4000 1149
Mobile : 9674312234
E-mail : [email protected] ASSOCHAM Regional Office Ranchi
[email protected] 503/D, Mandir Marg-C
Ashok Nagar, Ranchi-834 002
ASSOCHAM Regional Tamil Nadu Office Phone : 0651-6555601 /65555801/
International Law Centre, 2242443
61-63, Dr. Radhakrishnan Salai Mobile : 9470135367
Mylapore, Chennai 600 004 E-mail : [email protected]
Phone : 044-28120000
Mobile : 9486204970
E-mail : [email protected]
ASSOCHAM Regional Office, Chandigarh
ASSOCHAM North Eastern Regional Office SCO: 55, 56, 57, II Floor,
Global Express Group, House No.7 Sector-8, Madhya Marg,
Bye No. 2, Chandan Nagar Chandigarh-160008
Survey, Beltola, Guwahati 700 028 Phone : 0172 4800855
Phone : 09957999367 Mobile : 9915776327
E-mail : [email protected] E-mail : [email protected]
ASSOCHAM OVERSEAS 28 OFFICES

59
ABOUT MRSS
• Only company in MR space in India listed on BSE SME Exchange – greater vision, greater commitment!
With this will come higher standard of service, delivery and transparency
• MRSS India offers a wide range of Qualitative and Quantitative Research Services both nationally and
internationally
• Expertise in communities, mobile and online panels for quicker and richer contact with consumers
• Competence in digital research that leverages technology to deliver richest results fastest to clients
• In-house operations team across 18 locations in India with 60+ executives on companies payroll and
pool of investigators who have experience in conducting interviews among target audience
• Majestic MRSS (the parent company of MRSS India) has Client servicing offices in 18 major countries
in APAC and MENA region with dedicated Research Professionals and Project Managers; rapidly
expanding in Europe, US & LATAM
• Given its global footprints, Majestic MRSS enables MRSS India with the additional wherewithal of
local market intelligence as also ability to scale up operations in those markets offering multi-country
research capabilities depending on client requirements without any additional set up time-cost
implications
Raj Sharma
Chairman MRSS India
[email protected]
MRSSIndia
Corporate Office:
No. 601 & 701, Trellis, Plot No. 202/203, LBS Marg, Near Asha Petrol Pump,
Kurla West, Mumbai – 400070
Tel./Fax No.: 022-26502751 / 52 Email: [email protected]
Web site: www.mrssindia.com
MRSSIndia
C-19, II & III Floor, D.D.A. Okhla Sheds, Behind Crowne Plaza,
Okhla Ph I, New Delhi – 110020
Ph: 26814481/82

61
MRSSIndia The Associated Chambers of
Corporate Office: Commerce and Industry of India
No. 601 & 701, Trellis, ASSOCHAM Corporate Office:
Plot No. 202/203, LBS Marg, 5, Sardar Patel Marg, Chanakyapuri,
Near Asha Petrol Pump, New Delhi-110 021
Kurla West, Mumbai - 400070 Tel: 011-46550555 (Hunting Line)
Tel./Fax No.: 022-26502751/52 Fax: 011-23017008, 23017009
Email: [email protected] Email: [email protected]
Web site: www.mrssindia.com Website: www.assocham.org

Indian Nutraceutical Industry

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What are nutraceuticals and their benefits?

What are nutraceuticals and their benefits?

What factors are driving the growth of nutraceuticals industry in India?

What factors are driving the growth of nutraceuticals industry in India?

Knowledge Partner

The Associated Chambers of Commerce and Industry of India

The Associated Chambers of Commerce and Industry of India

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

2. GLOBAL NUTRACEUTICALS MARKET........................................................................................... 17

3. INDIAN NUTRACEUTICALS MARKET............................................................................................ 21

8. ASSOCHAM-MRSS INDIA ROADMAP FOR NUTRACEUTICAL INDUSTRY........................................ 52

Indian Nutraceuticals Industry

Indian Nutraceuticals Industry

Dr Stephen De Felice, Founder of the Foundation of Innovation

1.2 Nutraceuticals in contrast to Pharmaceuticals

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

1.3 How Consumers relate to Nutraceuticals

1.4 Product Landscape

1. Functional Foods& Beverages

Indian Nutraceuticals Industry

Indian Nutraceuticals Industry

All organic food also comes

1.5 Nutraceuticals in context of wellness

Indian Nutraceuticals Industry

2.1 Market2.SizeGLOBAL NUTR

1999 2010 2019

Indian Nutraceuticals Industry

Region Country Potential

2.3 US & Other Markets

2.4 Drivers of Growth

Indian Nutraceuticals Industry

2.5 Major Global Players

Indian Nutraceuticals Industry

Indian Nutraceuticals Industry

India Nutraceutical Market ($ bn)

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

The The entire

Indian Nutraceuticals Industry

3.3 Drivers of Growth

Indian Nutraceuticals Industry

3.4 Functional food - Overview

Although function foods may have been traditionally used

Ancient Indian traditional medicinal system Ayurveda has

In India, Food Safety & Standards Act 2006, loosely defines

Indian Nutraceuticals Industry

A. Functional food and beverages

3.4.1 Functional ingredients

Indian Nutraceuticals Industry

Indian Nutraceuticals Industry

3.4.2 Local ingredients

Dietary b has not been a problem for Indians in the

Indians have been using spices and herbs in cooking

Indian Nutraceuticals Industry

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

Indian Nutraceuticals Industry

Indian Nutraceuticals Industry