KIT: The Indian market for nutraceuticals

Strategic tools for the practising manager

The Indian market for nutritional supplements is currently growing at 21 per cent a year. The primary reason is the increasingly sedentary lifestyle and intake of fast food coupled with a preference for preventive therapies and increase in pharmacy retail.

In spite of the fast growth, the market for nutraceuticals (a combination of nutrition and pharmaceutical) in India is less than 1 per cent of the global market.

Direct selling is the most common form of sale of nutraceuticals with Amway having the highest market share in the category — over 15 per cent. Dabur, Ranbaxy and Pfizer are the other major players.

 

Functional food, as a segment, has the maximum share compared to the other segments, namely functional beverages and mineral supplements.

The sector is expected to diversify into fortified foods, ayurvedic nutraceuticals and cosmeceuticals in future.