IndiaRetailBiz

Although, current consumption of Neutraceuticals (dietary supplements) in India is a mere 0.9 per cent (Rs 4,400 crore or about $1 billion) of global consumption, market for the same, according to a joint FICCI and Ernst & Young study, is expected to increase two-fold to over Rs 9,500 crore (nearly $2 billion) in the next four years.

The study has great significance as most of the incremental business in this category is handled by organised retail players in the ‘food’ and ‘wellness’ segments

With growing spread of obesity across the globe, chronic, lifestyle, diseases like diabetes, cardiovascular ailments, and osteoporosis are on the rise. Most consumers, more conscious of health and fitness than ever before, are as such looking at management or prevention of these lifestyle conditions through increased use of neutraceuticals than taking prescription medicines.

Neutraceuticals can be classified in three categories: functional foods (foods fortified with ingredients like amino acids, vitamins, probiotics, plant sterols, phytosterols, and herbal products, among others), functional beverages (energy and sports drinks), and mineral supplements. Apart from filling neutritional deficiencies, these foods also promote good health and help prevent diseases.

While, pharmaceutical products are subject to stringent regulatory framework, neutraceuticals generally escape rigourous scrutiny of authorities.

Although, current consumption of neutraceuticals is absymally low in India compared to global standards, according to the study, there is a huge potential for the same in the country.

“…the total market size in India is still very small compared to the global market but there is a huge potential for these products,” said Muralidharan Nair, partner (Health Sciences Advisory Services) of Ernst & Young.

If the issues like safety standards and lack of awareness are sorted out, the market for neutraceuticals in India can go up to even Rs 17,000 crore in the next four years, says the study.