Nutrition in India and Its Market Analysis

NUTRITION IN INDIA AND ITS MARKET ANALYSIS
BY PARAM RAJESH JAIN
An adequate well-balanced diet is crucial for survival, health and

development. Well-nourished children are more likely to be healthy,
productive and ready to learn.
The global nutritional analysis market size is estimated to be valued at USD 5.4
billion in 2021 and projected to reach USD 7.9 billion by 2026, recording a CAGR of
8.3% during the forecast period. The market is strongly driven by shifting consumer
preferences, rising health awareness, growing millennial population, and increase in
supplementary income among consumers. The convergence of major industry trends
is giving rise to new opportunities for key players in the industry. Changing lifestyles
and high prevalence of chronic diseases are the key factors driving the demand for
nutritional analysis. The growing positive outlook towards sports nutrition would also
positively impact the nutritional analysis market.
Nutraceuticals are products that improve health conditions and have medicinal
benefits that aid in the prevention and treatment of diseases. The Nutraceuticals and
dietary supplements market in India is still at a nascent stage. It is one of the
emerging high growth sector in India. The Nutraceuticals market in India was valued
at INR 260 Bn in 2017 and is expected to reach a value of INR 997 Bn by 2035,
expanding at a CAGR of 17% over the forecast period of 2019-2035.
India Nutrition Supplement Market Segments

Fortified/ functional packaged food
 Nutrition fortified foods like

 fortified flour
 fortified oil
 fortified malted powder
 breakfast cereals
 probiotic foods like yogurt, etc.
Dietary supplements
 Vitamin supplements
 Minerals supplements
 Macronutrients
 Antioxidants
 Tonics
 Herbal extracts like Chyawanprash
 Non-herbal extracts like cod liver oil, etc.
Market Size and Share
 Fortified/ functional packaged food in India : With 11% current value growth in this
segment from 2015, the market size of this segment is approximately INR 132.6b in
2016 „ Probiotic drinking yogurt sees strongest current value growth of 28% in 2016.
 Dietary supplements in India10 : Vitamins and dietary supplements registered a
growth of 13% in 2016 „ Fish oils/ omega fatty acids recorded fastest growth of 16%
in 2016.
 Functional beverages in India: Functional drinks market grew by 15.6% in 2014. By
2019, functional drinks market is expected to have a value of US$ 432.6 million (an
increase of 69% since 2014) „ Energy drinks is the largest segment accounting for
63% of the total market value „ Red Bull is the leading player with a 83% value share
in energy drinks
Malnutrition status in India and micro-nutrient deficiency: One of the major

causes for malnutrition in India is economic inequality. Due to the low social status
of some population groups, their diet often lacks in both quality and
quantity. Around 17% of the population was undernourished in 2009 which has
reduced to 15% in 2016. This scenario results in enormous opportunities for the
health supplement and nutraceutical companies who are playing a critical role in
gradually, improving the nutritional status of India.
 Affordability: Increasing costs of hospitalization are driving consumers towards

health supplements and nutraceuticals. Previously Indians did not believe in
spending money in nutraceuticals, but now they are looking forward to its need and
also they are capable of buying it. Out of pocket health expenditure constitutes
around 62% of the healthcare expenditure in India as compared to 11% in the US,
10% in the UK, 25% in Brazil and 32% in China15. Further, average cost of in-patient
treatment both in rural and urban India has increased at a double digit pace of
growth in the last one decade.
 Affluence of working population with changing lifestyles and dietary patterns

and increase in disposable income: Obviously increased disposable income is one
of the factors driving the growth of the market. In India, working population is
contributing to its growing market as are taking these supplements instantly to meet
the need of the body in lesser aount of time. Increase in working population: The
population of India between ages 15 to 59 years has increased from 57% in 2001 to
60% in 2011 and is expected to be approximately 63% by 2021.This has resulted in
increase in working population of India resulting in large base of informed
consumers in India who have disposable income to spend on a healthier life.
 Awareness: Increasing concern about nutrition, awareness and access to

information have led to an increase in use of health supplements and nutraceuticals.
. The demand for these products is getting a significant boost due to increasing
awareness about the products and their benefits which if consumed with the regular
diet may be an important step to preventive healthcare.
Opportunities
The Indian consumer base is only set to increase and there are tremendous opportunities
for the existing as well as new entrants to exploit the Indian market. The Indian government
is taking and implementing several path breaking reforms to make India a better place for
doing business. The strong and favorable demand, supply drivers along with India’s
regulatory framework builds a very strong case for doing business in India. In all probability,
there could not be a better timing to enter this market in India than now.
Challenges
Around 60% of the dietary supplements sold in across India are fake, unregistered and
unapproved. Hence, India has the poor regulatory framework which has been a major
challenge to the growth of the dietary supplement market.
Market Trends
Manufacturers of these dietary supplements are giving a lot of information about the
product by making them aware. Market players are currently undertaking a number of
measures to win customer trust and improve overall quality standards in the industry. Since
consumers are preferring capsules as they are easy to swallow, it’s in trend to the market.
Liquid encapsulation is one of the emerging technologies and it provides superior
safeguarding of the ingredients through moisture protection.
The primary factor driving the Indian dietary supplements

market is the increasing health consciousness among the
consumers. Factors such as changes in eating habits, absence
of physical activity and rising sedentary life styles have
increased the occurrences of various lifestyle diseases such as
diabetes, blood pressure, obesity, cardiovascular problems, etc.
Moreover, improving awareness levels have also made
consumers more aware on their nutritional requirements. With
consumers unable to fulfil their nutritional requirements through
their regular diets, they are now recognizing the importance of
nutritional supplements to fulfill their nutritional gaps. Other
factors driving this market include, rising disposable incomes,
upgradation of the healthcare infrastructure, improving
distribution networks, etc.
Sudden outbreak of the COVID-19 pandemic had led to the increasing consumption of dietary
supplements for improving the immune system to combat coronavirus infection, thereby
augmenting the market growth in India.
The key companies in the India dietary supplements market are Amway
India Enterprises Private Limited, Herbalife International India Private
Limited, Dabur India Limited, Abbott India Limited, Kraft Heinz India
Private Limited, Himalaya Drug Company, Sun Pharmaceutical Industries
Limited, GlaxoSmithKline Consumer Healthcare Limited, Danone Nutricia
International Private Limited, Patanjali Ayurved Limited, etc.
THANK YOU

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NUTRITION IN INDIA AND ITS MARKET ANALYSIS

BY PARAM RAJESH JAIN

An adequate well-balanced diet is crucial for survival, health and

India Nutrition Supplement Market Segments

 Nutrition fortified foods like

Malnutrition status in India and micro-nutrient deficiency: One of the major

 Affordability: Increasing costs of hospitalization are driving consumers towards

 Affluence of working population with changing lifestyles and dietary patterns

 Awareness: Increasing concern about nutrition, awareness and access to

The primary factor driving the Indian dietary supplements

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