The Indian nutraceutical industry is witnessing unprecedented growth, fuelled by rising health consciousness, increasing disposable incomes, and a decisive shift toward preventive healthcare. Nutraceuticals—including dietary supplements and functional foods—have become essential in strengthening immunity and preventing diseases. The COVID-19 pandemic further accelerated this trend, driving surging demand for these products.
India’s nutraceutical market is projected to soar to USD 100 billion by 2030. This exponential growth positions the country as a global leader in the sector. The Food Safety and Standards Authority of India (FSSAI) plays a critical role in this expansion by enforcing stringent regulations on approvals, promotions, and labelling, ensuring consumer safety and product quality.
However, despite its rapid rise, the industry grapples with challenges. Regulatory complexities and limited consumer awareness about micronutrient supplementation hinder its full potential. Streamlining policies and implementing educational initiatives are imperative to sustaining growth and safeguarding public health.
At this pivotal moment, the Indian nutraceutical industry has the potential to shape global health trends. Achieving this requires a collaborative approach, where regulators, manufacturers, and consumers work together to drive innovation and accessibility.
In an exclusive conversation with The Interview World at ASSOCHAM’s 10th Nutraceutical Summit, Apurva Chikani, Country Lead – India, Gnosis by Lesaffre, dissects the key drivers of the Indian nutraceutical industry. He explores emerging opportunities, addresses critical challenges, and shares how Gnosis by Lesaffre is propelling innovation in the sector. He also highlights evolving consumer trends and evaluates the overall performance of India’s nutraceutical market. Here are the most compelling insights from his discussion.
Q: What key factors are driving the growth of the Indian nutraceutical industry, and how do you foresee its evolution in the coming years?
A: COVID served as a powerful catalyst, accelerating the industry’s overall growth at an unprecedented pace. In its wake, consumer awareness surged, fuelled by a sharp rise in disposable income among India’s population. This heightened awareness, combined with greater purchasing power, has emerged as a key driver propelling the nutraceutical and dietary ingredient industry forward.
Q: With the Indian nutraceutical market currently accounting for only 1% of the global share, what opportunities do you see for expansion?
A: I agree. Right now, India plays a minor role in the global nutraceutical industry, especially compared to developed nations. However, over the next 5 to 10 years, Indian manufacturers have the potential to make a significant leap by delivering the right solutions to the global market. Many international markets have reached saturation, with little to no innovation taking place. India can seize this opportunity by investing strategically in innovation, developing unique formulations, and building robust support systems. While immediate dominance may be unlikely, India can establish itself as a major player in the nutraceutical industry within the medium term.
Q: What are the major challenges facing the Indian nutraceutical industry, and how can they be addressed to unlock its full potential?
A: India’s nutraceutical industry faces three critical challenges, particularly for domestic manufacturers. The foremost hurdle is regulation. India’s regulatory landscape is not only complex but also highly ambiguous. Frequent changes create uncertainty, disrupting manufacturers’ and marketers’ strategic planning while confusing consumers.
The second major challenge is affordability. Nutraceutical products remain out of reach for a significant portion of Indian consumers, especially when compared to pharmaceuticals. Several factors contribute to this pricing gap. Research and development demand substantial investment, forcing companies to recover costs through higher product prices. Additionally, taxation is disproportionately high. While pharmaceutical products attract a GST of 0–5%, nutraceuticals are taxed at 18%.
A third cost burden stems from the heavy reliance on imported ingredients. India lacks domestic production of many essential nutraceutical components, leading to increased costs due to customs duties and international transportation. To address this, the government must actively promote domestic production of nutraceutical ingredients. By reducing dependence on imports, manufacturers can lower costs, making these products more affordable. Furthermore, a policy review is essential—both to streamline taxation and to incentivize local production—ensuring that nutraceuticals become more accessible to Indian consumers.
Q: How is Gnosis by Lesaffre contributing to the growth and innovation of the nutraceutical industry, particularly in India and South Asia?
A: My company specializes in ingredient manufacturing, ensuring local availability to support Indian consumers. While our primary manufacturing units operate outside India, we collaborate with local partners to offer affordable solutions tailored to the Indian market.
A key focus for Gnosis by Lesaffre is advancing scientific research on nutraceutical ingredients. The industry often relies on weak claims or insufficient scientific data, and when data exists, it typically comes from Western countries. We recognize that dietary needs vary across regions. Take probiotics, for instance—microbiota composition differs between populations, meaning solutions designed for Europeans may not be effective for Indians.
To bridge this gap, we are making significant investments in building a robust local clinical research ecosystem. We are conducting multiple clinical trials in collaboration with leading universities and contract research organizations (CROs) across India. Our goal is to analyse Indian dietary habits and develop scientifically backed, personalized ingredient solutions that meet the unique needs of Indian consumers.
Q: How is the Indian market responding to the nutraceutical industry, and what trends indicate consumer acceptance and adoption?
A: Indian consumers have responded positively to nutraceuticals, particularly in urban areas, where the concept of preventive healthcare is well accepted. While rural adoption remains limited, the industry must bridge this gap. Companies like mine, along with other industry partners, must invest in awareness campaigns and scientific validation. By educating consumers and providing credible, research-backed solutions, we can drive wider acceptance and encourage consistent use of nutraceutical products across all demographics.
Q: How does India’s accessibility to nutraceuticals compare with other South Asian countries, and are there any nations in the region performing at a similar or better level?
A: India still lags behind many Asian countries in integrating nutraceuticals into daily life. In Japan and Korea, supplements are a routine part of health management. China, the world’s largest consumer of nutraceuticals, has even surpassed the U.S. In Southeast Asia—particularly Singapore and Thailand—acceptance of dietary supplements is far higher than in India.
Several factors contribute to this gap. A key challenge has been limited awareness, driven by lower literacy rates and a lack of accessible scientific information. Until recently, nutraceutical science had not reached the masses. However, in the past few years, consumer acceptance has grown significantly.
Looking ahead, I am highly optimistic. Over the next three to ten years, India’s nutraceutical adoption will rise sharply, aligning more closely with global trends.
