|
|
|
You can get e-magazine links on WhatsApp. Click here
|
|
|
|
|
|
“Trump tariffs have disrupted, made global trade more volatile”
|
|
Monday, 09 June, 2025, 08 : 00 AM [IST]
|
|
|
 >Personalised nutrition may pick up big time in India as health objectives are much more precise. Individuals are asking for remedies for gut balance, hormonal equilibrium, cognitive function, and healthy ageing—and not for overall vitality, informs Sanjaya Mariwala, executive chairman & managing director, OmniActive Health Technologies, and president, IMC Chamber of Commerce and Industry, and Association of Herbal and Nutraceutical Manufacturers of India, in an exclusive interview with Shardul Nautiyal giving a lowdown about trends, consumer behaviour, consumer health profiles and overall performance of nutraceutical industry domestically and globally. Excerpts:
What are the key trends in the nutraceuticals industry domestically and globally? How is the Indian nutraceuticals market performing?
The market for nutraceuticals is growing globally with rising demand for functional foods for performance enhancement and well-being. The industry is expected to reach US$657.89 billion by 2030 and grow at a 5.09% CAGR for the 2025-2030 period, as estimated by Mordor Intelligence. Europe currently holds the largest market share, but the Asia-Pacific region should dominate as the fastest-evolving market.
With consumers gaining access to diagnostic platforms and wearables, they start to realise their unique health profiles. That creates a need for supplements that are not only demographically but also biologically personalised. This is where AI-based recommendations, D2C platforms for healthcare, and customised packs are opening up new business models, particularly in the digital-savvy Indian market.
New forms of delivery in terms of personalised nutrition in the form and shape of gummies, chews, strips, and effervescing tablets are slowly taking over the traditional consumption. This reflects the international trend and puts specific emphasis on evidence-based, plant-based, and natural products in the post-Covid world. There is a nascent rise in the demand for condition-specific formulations in the sectors of gut health, diabetes, and women's well-being.
In India, the nutraceutical market is growing sharply. As per Grand View Research, it is valued at US$30.37 billion in 2024 and will grow at a rate of 13.6% CAGR between 2025-2030. The population may also grow to 1.522 billion as of the year 2036 (Ministry of Statistics and Programme Implementation) with per capita income expected to rise by 70% to US$4,000 by 2030. With increasing levels of income, eased access, and a boost in purchasing power, India's nutraceutical market has a huge potential for development and innovation.
How are consumer preferences shifting in terms of product format (e.g., capsules, powders, gummies)? What are some of the most promising technologies being adopted in nutraceutical product development?
Convenience and experience have become synonymous. Older forms of capsules are still in use, but more recent forms like gummies, effervescent tablets, oral sprays, and sachets are gaining traction. These forms tend to lower the barrier for entry especially in younger adults and the elderly. At the technological level, we're experiencing elevated use of nano-encapsulation to boost absorption, AI to enable personalised formulation creation, and cold-press processes to maintain the integrity of the nutrients. All of this is transforming not only how products are consumed but also how people view them—as part of a regular routine for wellbeing.
What do branded ingredients offer that's unique for which they are chosen instead of generic ingredients?
Branded ingredients provide a blend of standardisation, safety, and scientific respectability. They're not raw materials—they're patented or proprietary blends made with precise specifications. They are subjected to intense clinical trials that prove their claims, and toxicity and safety tests that guarantee that they support Activities of Daily Living (ADLs). They're generally made in US FDA-approved, GMP-certified plants, and are designated as GRAS—Generally Recognised As Safe—by the FDA.
What really makes them so appealing is the perception of the public.
A study by OmniActive discovered that more than 50% of consumers believed that branded ingredients were important for product quality, and 44% even wanted to pay up to 75% more for products containing them. That should say enough about the value they add. They're not only more effective and safer, but also boost consumer confidence and enable companies to establish differentiation in a crowded market.
What sustainable practices are companies implementing in sourcing and packaging? How can nutraceutical brands ensure transparency and ethical sourcing?
Today, there is a shift towards biodegradable packaging and investment in waste-reduction strategies, but the effort has to go deeper. Ethical sourcing—most notably of botanicals and traditional herbs—is a major challenge. There is a move towards hyper-local sourcing models to enable traceability and lower environmental impact. Blockchain is in the works for supply chain transparency. There's even a push towards regenerative agriculture in strategic sourcing locations. What's key is that sustainability cannot stay a tick-box; it must get ingrained in operations—farm to factory to finished good.
What are the key challenges in building a sustainable nutraceutical supply chain? What regulatory challenges exist when entering international markets?
One of the biggest hurdles is variability—natural ingredients have seasonal and regional variability. That makes standardisation challenging when you have to scale up or export. Then there are logistics: delicate ingredients tend to have cold chain or speedy distribution needs. On the regulation front, we have a fragmented world out there. Each region has a different definition and regulation for nutraceuticals. A formulation approved by Indian regulators may have to undergo exhaustive clinical proving and documentation to fit into European or American norms. It’s manageable, but it does need careful planning and investment in the regulation function.
What are the key risks and opportunities in the global and Indian nutraceutical market?
The potential is self-evident: India has the potential to emerge as a global powerhouse by pairing its diverse botanical heritage with sound science and scalable manufacturing. But the risk arises out of the very speed of that growth. Lacking quality controls, regulatory uncertainty, and the unchecked spread of inauthentic products erodes the confidence of consumers. Ingredient inflation is a risk as well, particularly since global supply chains are under stress. But if the industry holds on to the promise of quality, invests in science, and talks to consumers truthfully, the way forward becomes highly promising. It's a chance that involves the intersection of health, technology, and entrepreneurship and we must seize it.
How have recent global developments—like Trump tariffs and geopolitical tensions—impacted India’s nutraceutical sector, and how can the industry respond?
Recent geopolitical tensions and trade barriers, such as Trump tariffs, have disrupted supply chains and made global trade more volatile. For a sector like nutraceuticals, which is increasingly driven by exports, these shifts have raised concerns around cost stability and long-term access to key markets. Despite this challenging environment, India’s nutraceutical exports have shown strong momentum—growing 38% between October 2023 and September 2024, and accounting for 72% of global shipments, according to Volza. This growth reflects rising global demand and the opportunity unlocked through 100% FDI in manufacturing.
However, sustained success depends on reducing over-reliance on a few markets and strengthening domestic capabilities. India’s biodiversity and traditional health systems give it a natural edge, especially as global companies look beyond China. But to truly seize this moment, India must address persistent issues—gaps in infrastructure, regulatory inefficiencies, and fragmented logistics. The government needs to act with urgency to make India a reliable and competitive global hub.
What are the strategies to minimise the challenges?
To strengthen resilience, the industry needs to act decisively. The major strategies are:
- Diversification of raw material sourcing to minimise the impact of geopolitical shocks
- Investing in new infrastructure and digital supply chains for efficiency and agility
- Advocating for trade reforms and rational taxation in order to improve ease of doing business
- Facilitating innovation and R&D in the area of high-value, evidence-based formulations
- Maximising incentives in the form of Production Linked Incentive (PLI) schemes and drug plant programmes to enhance backward integration
This isn't only about disruption adaptation but about embracing Atmanirbhar Bharat. India's ability to create self-reliant, competitive supply chains in the international market—while increasing private sector risk-taking as well as investment—will chart its destiny in the nutraceutical market. By acting rapidly and strategically, India can convert existing uncertainty into long-term resilience.
|
|
|
|
|
|
|
|
|
|