Nutraceutical industry is witnessing significant growth in terms of market share and consumer awareness after the onset of the pandemic. Nutraceuticals not only suffice the recommended dietary intake, but also aid in combating various lifestyle diseases like cardiovascular diseases, kidney disease, diabetes etc. It has started gaining a competitive advantage over the pharmaceutical and food industry by encompassing various acceptable dosage forms and abundance of raw materials with different therapeutic advantages.
Adequate resources
Various Indian systems of medicine like Siddha, Unani, and homoeopathy have evolved and prospered in India over the period. Ayurveda, one of the oldest and explored traditional systems of medicine, has established the groundwork for modern nutraceuticals. All of these systems rely on plant-based raw ingredients that are found natively and abundantly in India. These indigenous plants serve as a source of raw material for the nutraceutical industry.
Indian geography has 15 distinct agro-climatic zones, ranging from Himalayas to marine and desert to rainforest ecosystems providing conducive growth conditions to a wide variety of native plants. As per National Medicinal Plant Board (NMPB), India is home to over 7000 species of medicinal flowering plants, each providing various health benefits.
An established legacy
Even before the term nutraceutical was coined, India had already been exporting various Ayurvedic herbs and spices. According to the Indian government, the exports of herbal items were $539.57 million in the 2020–21 fiscal year. Psyllium is the largest exported product, among other well accepted herbal products like Ashwagandha, triphala, cumin, wild turmeric, and senna. Indian Ayurvedic supplements have started to cater to the increased market demand and awareness of natural health and personal care.
Wide scope within the sector
The Indian nutraceutical industry has the capability to produce and supply a wide variety of raw materials and develop over-the-counter finished products inclusive of a wide range of supplements. And it is still believed that there is huge latent scope for contributing to more growth.
As per current market analysis, India can achieve a milestone of becoming a major source of raw materials and manufactured formulations. Due to a large range of agro-climatic conditions, India has a competitive edge over the existing nutraceutical countries. With insightful management practices and knowledge, industry can improve the medicinal crop yields. Moreover, with effective planning and required effort, Indian nutraceutical products can achieve internationally accepted quality standards and certifications. Both these factors can contribute in catapulting India into the major pharma and nutraceutical leagues.
Due to consumer awareness and changing mindset towards good health, there has been a high growth rate of the nutraceutical segment. According to a study conducted by the International Trade Administration, India’s nutraceuticals segment can grow to USD 18 billion by the end of 2025 with 65 per cent of the market share made up solely by dietary supplements. Hence, India is using multiple beneficial factors to drive its growth and ultimately emerge as the global leader in the nutraceuticals industry. The perceptible transition from curative to preventive healthcare in the Indian & overseas market has already pushed the demand massively and it is only going to grow. But that should not be a challenge because India is more than equipped to handle this spurt in demand with a consolidated supply channel of its own.
Sanjeev Jain is managing director, Akums Drugs & Pharmaceuticals Ltd.
The opinions expressed in this article are those of the author’s and do not purport to reflect the opinions or views of THE WEEK.
