Professional Documents
Culture Documents
Indian
Nutraceuticals
Industry
Current Scenario &
Future Trends
Indian
Nutraceuticals
Industry
Current Scenario &
Future Trends
2017
It gives me immense pleasure to note that ASSOCHAM is organizing 3rd National Symposium on
Nutraceuticals.
Nutraceuticals which include functional foods (which pertains to Food companies) and dietary
supplements (which pertains to Pharmaceutical industry) is the only segment which amalgamates
Pharma industry and Food industry. The popularity and growth of this industry can be attributed to
consumers’ increased inclination towards health and nutrition. Indian consumers, predominantly the
upper middle class, perceive Nutraceuticals as alternatives to prescription drugs.
The usage of Nutraceuticals is not limited to fulfillment of the daily requirement of particular required
nutrients, but consumers are also considering the functional health benefits of these supplements for
prevention of diseases. Furthermore, products for boosting energy and improving physical endurance &
mental alertness are also in high demand.
I am sure that this Symposium shall help in promoting the use of Nutraceuticals for wellness and I
heartily wish the Symposium a great success in achieving its stated objectives.
(Sandeep Jajodia)
President-ASSOCHAM
ACKNOWLEDGEMENT
India is witness to a spate of changes in lifestyles and rise in lifestyle diseases like Diabetes, blood
pressure, obesity, cardio-vascular problems among others, which has increased the demand for
supplements to nutrition among the upper and middle class. In such a scenario, nutraceutical intake is
growing in popularity as consumers are looking for products to boost energy and enhance physical
perseverance, mental sharpness and to become more dynamic and conscious. Dietary supplements in
the form of tablets, capsules, powders, liquids, soft caps and soft gels are available and market for these
products is continuously increasing.
I am sure that this Symposium will deliberate on all issues relating to Nutraceuticals. I also extend my
heartiest thanks to all the stakeholders including SERB, CSIR, ICMR, Abbott, Divis Laboratories,
Phytotech Extracts, Zeon Lifesciences, and others, for lending their support to this Symposium. I would
also like to thank our Knowledge Partner of this Confluence “MRSS India” for its wonderful efforts in
putting up this comprehensive report on Nutraceuticals.
I also acknowledge the efforts put in by Sandeep Kochhar and his team members Anuj Mathur, Anshul
Gupta and Payal Swami, for the organizing this Confluence.
I not only wish this Confluence a great success but also assume that ASSOCHAM shall continue to
organize such programs for larger public benefits with a great degree of excellence.
D S Rawat
Secretary General –ASSOCHAM
MESSAGE
It gives me great pleasure to note that ASSOCHAM is organizing 3rd National Symposium on Nutraceuticals.
It is a privilege for MRSS India to engage in this symposium as a knowledge Partner.
We are in exciting times. India is undergoing a significant transformation with regard to its consumer
attitude & behavior. Being a younger nation, our people are aspirational and are embracing more
progressive and faster-paced lifestyle. Simultaneously the need for a sense of well-being is stronger than
ever. Life expectancy, in general, has increased progressively.
The younger, burgeoning upper and middle class, today has more purchasing power and looks forward
to preventive measures to keep chronic ailments at bay. Incidence of lifestyle ailments like Cardio-
vascular problems, Diabetes, Obesity and various forms of Allergies are on the rise.
Nutraceuticals, a relatively new and emerging category, is poised to provide holistic solutions to this
end. Through its portfolio of Functional Foods & Beverages, Dietary Supplements, it has positioned itself
very well to offer higher levels of energy, performance in daily life. The category is expected to witness
accelerated growth in the next few years to come.
As a Knowledge Partner, MRSS India is committed to provide support in driving a higher level of
consumer and market understanding to all stakeholders. This will pave the way for a healthier level of
flow of investment into the sector, both from Indian and overseas strategic intent into this sector.
I am confident that this Symposium will dwell upon all critical factors impacting the industry today. I
wish the Symposium a resounding success in taking Nutraceuticals sector forward.
(Raj Sharma)
Chairman MRSS India
TABLE OF CONTENTS
1. INTRODUCTION......................................................................................................................... 13
1.1 Genesis..................................................................................................................................... 13
1.2 Nutraceuticals in contrast to Pharmaceuticals......................................................................... 13
1.3 How do consumers relate to it................................................................................................. 14
1.4 Product Landscape................................................................................................................... 14
1.5 Nutraceuticals in context of wellness....................................................................................... 16
4. KEY STAKEHOLDERS................................................................................................................... 37
4.1 Fitness Instructors/ Dieticians/ General Practitioners.............................................................. 37
4.1.1 Awareness..................................................................................................................... 38
4.1.2 Prescription behavior.................................................................................................... 38
4.1.3 Barriers to adoption...................................................................................................... 38
4.2 New trends in Value Chain/ distribution.................................................................................. 38
5. TRENDS..................................................................................................................................... 40
5.1 New trends among consumers................................................................................................. 40
5.2 Probiotics.................................................................................................................................. 42
6. REGULATORY............................................................................................................................. 44
6.1 Regulatory Elements – Laws/ Guidelines.................................................................................. 44
6.2 Registration & Licensing........................................................................................................... 47
6.3 Related Environmental Policies................................................................................................ 48
7. BEST PRACTICES......................................................................................................................... 50
9 RECOMMENDATIONS................................................................................................................. 55
EXECUTIVE SUMMARY
1. Nutraceuticals refer to food or part of a food, including beverages and food products that provide
incremental medical or health benefits, including prevention or treatment of a disease. It spans
across Functional Foods, Functional Beverages and Dietary supplements. Some instances of
Nutraceutical products are Probiotics, Fortified energy drinks, Vitamins and Minerals etc. The
category is positioned in between Food & Beverages and Pharmaceuticals
2. Globally, Nutraceuticals market is expected to witness huge growth. At the turn of the millennium,
between 1999 and 2002, the industry grew at a CAGR of 7%. Subsequently till 2010, it doubled to
14%. Currently every year $12-15 Bn is being added to the global revenue. The US and Japan have
been pioneers in embracing Nutraceuticals. Western Europe also represents a large market, with
strong footprints in Germany, Italy and France. Developing markets like India, Brazil and China are
relatively smaller, yet have a huge growth opportunity. Indian market currently has a 2-3% share of
the global market.
3. The Indian Nutraceuticals market is estimated at around $ 4 Bn in 2017 and is expected to grow at a
significant 21% CAGR to $ 10 Bn in 2022. This will likely be fueled by a significant 25% per annum
growth in Functional Beverages market accompanied by similar potential growth from the other
segments. More than 60% of this market is accounted for by Dietary supplements. Few industries in
India today offer such spectacular growth potential.
4. Key players in the Indian market feature both Indian and Multi-national companies. MNCs like GSK,
HUL, Amway Nestle, Danone, Kellogg’s, and PepsiCo are trying to augment their market share and
reinforce penetration. Strong Indian players like ITC, Dabur, Himalaya, Patanjali and Baidyanath are
also launching new products to reach out to newer segments and geographies in India. Many
players have stayed in identified niche markets to play on their strengths.
5. Indian consumers are getting more aware of their fundamental needs for nutrition and proactive
steps they can take to prevent chronic ailments and attain higher well-being. India has a
significantly younger population and the younger generation is vigorously pursuing more active
lifestyle to enjoy fitness, to guard against obesity, diabetes, cardio-vascular problems etc. In this
context, the role of opinion-shapers like General Practitioners, Fitness Instructors and Nutritionists
cannot be ignored. For accelerated penetration and growth, companies must develop programs for
more extensive consumer understanding, decide which segments they would like to enter and
compete. It is also important to formulate an effective communication strategy for the target
audience to educate them on the benefits of this category. Side-effects and spurious products are
two key concerns and a potential barrier for growth from all stakeholders and needs to be quickly
addressed. It is here that the Regulatory may want to play a more active role.
7. Pricing also can be deliberated as an effective driver for market-making. Mass market products with
added Health benefits can be promoted in Class 2 or 3 towns with SKUs of different package sizes to
facilitate trial and adoption.
8. The category makes a strong case for investment as we have a growing market available and a
potential for higher value-added product line as perceived by the consumers.
1.1 GENESIS
Nutraceuticals, in various forms and formats have always
existed in the world. Both, general population and patients
would have benefitted from such products all along. It is
only in the late eighties or early nineties that a formal
approach and understanding started evolving.
The relevance and impact of Nutraceuticals became more relevant as the present generation is focusing
more on preventive healthcare than ever before.
Nutraceuticals Pharmaceuticals
Works on root causes and take longer time for recovery Relatively more instant in effect
Do not have side effects For severe illnesses have side effects
2. Dietary Supplements
Over the last 3 decades the product landscape has really expanded and today we have a wide product
portfolio in Nutraceuticals category.
Some instances of Functional Foods are Omega-3 enriched eggs, Oats, Fatty fish, Fortified margarines,
Iodized salts, Soy, Tomato & tomato products, Probiotic yoghurt, Nuts (Walnuts, Cashews, Pistachios
among others), and Leafy Greens are examples of Functional Foods.
Functional Beverages
Functional beverages are non-alcoholic
beverages containing ingredients that provide
specific health benefits beyond those of
general hydration. Traditionally, beverages
have been fortified with vitamins, minerals,
amino acids and antioxidants. Nowadays,
drinks containing natural and organic
ingredients including herbs, fruits and
vegetables have gained popularity to support
health and wellness across all age groups.
Examples of Functional Beverage
include performance & sports drinks, ready-to-drink teas, enhanced water, energy drinks, and soy
beverages, enhance fruit drinks.
Dietary Supplements
A dietary supplement is a product intended for ingestion that contains a “dietary ingredient” intended to add
further nutritional value to (supplement) the diet, which may otherwise not be consumed in sufficient
There are many ingredients in the space of Nutraceuticals, which contributes to wellness.Vitamins &
Minerals directly contribute to this space. Of Minerals, macrominerals are required in large quantities.
These are minerals like Sodium, Potassium, Calcium, Magnesium, and Phosphorous. Microminerals are
required in smaller quantities. These are Zinc, Iodine, Copper, Selenium, Manganese, and Chromium.
2002 2014
47Bn 172Bn
By 2020, the world will have 1 billion populations of 60+ ages. 70% of this population live in developed
nations & balance 30% in developing nations.Nutraceutical demand will grow at a steady rate in
developed nations. Developing nations with their progressive disposable income will see a sudden surge
in growth in the next 5-10 years.
• The US market comprises of Functional Food & Beverages (65%) and Dietary Supplements (35%)
• The European market has grown from $ 35 Bn in 2010 to $ 40 Bn in 2016. It is expected to grow to $
51 Bn by 2021. This indicates an annual growth of 5%.
• France, Germany & Switzerland are the biggest markets comprising almost 70% of the European
market.
USA-based:
Europe-based:
China-based:
India-based:
CHART
10.01
8.31
6.90
5.75
4.79
4.00
Transformation in food habits, less physical work, more of desk jobs have made Indians more vulnerable
to lifestyle ailments. The average urban & semi-urban Indian is becoming more conscious about health
& fitness. This is providing a massive growth opportunity for Nutraceuticals in India.
The entire category of Nutraceuticals is divided into Functional Foods, Functional Beverages & Dietary
Supplements. Functional Food & Beverages account for around 35% of the market in India and will
experience higher growth in India in the next few years to come.
As the definition is not very strict, there are products which are fortified with common nutrients such as
more protein, vitamins and minerals are also considered by many as functional foods.
Recently there have been regulations notified regarding these foods. Institute of Medicine, USA defines
functional foods as any food or food ingredients that may provide health benefit beyond the traditional
nutrient it contains.
Indian government has been a little slow in implementing many fortification programs. Years ago they
started addition of vitamin A to vanaspati. A few years ago they mandated addition of iodine to salt.
Now they have allowed fortification of milk by vitamin A and D. They should create awareness about
good dietary practices and importance of various nutrients and the relation of diet and many diseases.
Functional food & beverages and Dietary supplements are the two key elements of Indian nutraceuticals
market
B. Dietary supplements
a. Vitamins and minerals
b. Herbal supplements
c. Protein supplements
d. Chavanprash
Many functional ingredients are being used in the kitchen on daily basis either directly or indirectly.
Even Chefs are using functional ingredients to drive menu trends.
More commercial ingredients and food science techniques are being used in restaurant kitchens. For
instance, cranberry beads, which can be a garnish on a dessert or a flavor component in a cocktail in a
restaurant, wouldn’t be possible without the food science—the gelling reaction of calcium chloride and
alginate through a process called spherification, says John Draz, executive research chef of Ed Miniat LLC
in South Holland, Illinois.
Many of the herbs have been investigated and their health benefits have been shown, but these are not
cultivated in organized manner although organized farming of many botanicals used in foods has
already started.
Markets have already started filling up with products containing substances such as probiotics,
prebiotics, DHA & EPA omega 3, oryzanol, antioxidants, lutein, isoflavones, as well as proteins, vitamins
and minerals which are claimed to have all kind of health benefits.
Best example is, flourished branded cooking oils in the market. Prices of these oils go up as per the
additional functional ingredients added to the cooking oil. Many Indian and multinationals have started
offering variety of cooking oils in the market.
Many global associations are reviewing the most relevant ingredients for the development of functional
foods, with more beneficial effects are Nutrients (NUT) (vitamins and minerals) and the Substances and
Health Claims (SPS)
Among the nutrients , fat-soluble vitamins (vitamins A, D and E); water-soluble vitamins ( vitamin C , B1 , B3 ,
B6 and B12 ) , and macro minerals , such as calcium , magnesium and potassium , and trace elements
, among which iron , chromium , zinc, iodine and selenium stand out . All elements that have multiple
beneficial properties for human organism, as health claims authorized by EFSA, highlighting its
antioxidant powers, to improve the cardiovascular system, stimulating the immune system, bone tissue
and neuro – vegetative, primarily apparatus.
As regards the group of substances with health claims , the prebiotics , probiotics polyphenols, beta-
glucans , fibers, oligosaccharides , fatty acids omega 3 and 6 and fitoestoroles / stanols , along with
those who also cites stilbene (trans-resveratrol ) anthocyanidins (blueberries) , superfungus and
superalgae, among others.
In the future, “innovation will increasingly be focused on the innoingredients in part some the
ingredients mentioned before, with the following core attributes:
High purity, high toxicological safety, high bioavailability, very broad applicability, and multiple health
effects”. Additionally, and consisting of a new food (novel food). As examples, superhongos, shiitake
(Lentinula edodes), particularly rich in beta-glucan to combat metabolic syndrome. Also among algae
include the functional properties of alga Noriy especially Klamath blue algae, which is a cianofícea with
wide and varied health benefits.
Among the macrominerals, the trace element zinc has more healthful properties among all nutrients, in the
form of picolinate and trionato among other molecules, it would also registered as an innoingredients.
India carry legacy of traditional herbal and ayurvedic medicines. Reliance on these products may dilute
demand for emerging nutraceuticals, particularly as less aware Indian consumers of newer ingredients
such as omega-3 fatty acids. On the other hand, herbal and ayurvedic medicines provide a rich local
ingredient base for incorporation into nutraceuticals.
Chavanprash, or herbal honey, has been a notable success. It is incorporated as a general health
supplement into anything from jam to chocolate to cheesecake to capsules. Traditional medicines also
represent a culture of natural products and self-care that dovetails with global trends in nutraceuticals.
a. Functional foods:
• Omega fatty acid fortified food
• Probiotic fortified food
• Branded iodinated salt
• Branded wheat floor
b. Functional beverages:
• Energy drinks
• Sports drinks
• Fortified drinks
Functional
Beverages, 32
%
Functional
Foods
68%
Functional foods and beverages market in India has gained substantially by targeting health conscious
people in the country. Functional foods include food products such as functional cereals, vegetable oils,
nutrition bars, biscuits, breads, yogurt and others. Functional beverages include various drinks like fruits
juices, milk, tea, coffees, and energy drinks with added functional ingredient.
Market for functional foods and beverages is expected to touch $ 4.11 bn by 2022 at CAGR 22%
3.00 2.73
2.50 2.23
2.00 1.83
1.50
1.50
1.00
0.50
0.00
2017-E 2018-F 2019-F 2020-F 2021-F 2022-F
2.00 1.81
1.50
1.50 1.24
1.02
1.00
0.50
0.00
2017-E 2018-F 2019-F 2020-F 2021-F 2022-F
Weight Management
15%
Nutritional
55%
Muscle Building
27%
1.00 0.92
0.80 0.74
0.59
0.60 0.47
0.40
0.20
0.00
2017-E 2018-F 2019-F 2020-F 2021-F 2022-F
Stressful lifestyles, hectic schedules and lack of time to cook meals at home among increasing number of
working class males and females is resulting demand for external dietary supplements.
Market for Dietary supplements is expected to touch $ 5.90 bn by 2022 at CAGR 19%.
5.90
6.00
4.96
5.00
4.17
4.00 3.51
2.96
3.00 2.50
2.00
1.00
0.00
2017-E 2018-F 2019-F 2020-F 2021-F 202 2-F
Proteins
25%
Vitamin and minerals are the major contributors followed by Herbal supplements and proteins.
Herbal supplements:
Dietary supplements containherbs plant
or parts of a plant are called herbal
supplements.
Functional foods: In the functional food category, food for diabetes, weight management, cholesterol
management, cognitive and digestive food have gained popularity. Leading national players in the
functional-foods segment, such as Amul,Dabur, ITC, Britannia and Parle, as well as Indian companies
marketing ayurveda-based functional foods and dietary supplements (e.g., Dabur, Himalaya, Amway,
Hamdard Laboratories, Baidyanath,Pantanjali).
Food companies, such as Nestlé, Danone, Unilever, Kellogg, and Yakult, are more active in functional foods
and beverages, with a few exceptions such as GlaxoSmithKline’s Horlicks and Viva or Abbott’s longstanding
commitment to child-, adult- and medical-nutrition brands such as PediaSure, Ensure or Glucerna.
Functional beverages, like Yakult, Ocean, Gatorade, are available in the form of energy drinks, vitamin
water, fortified milk and buttermilk, and enhanced iced tea, among others. Various companies, including
Danone, Dabur, PepsiCo, Coca-Cola, Amul, Britannia and Rasna, are introducing innovative beverages with
enhanced nutritional value in order to woo the health conscious Indian consumers. An increase in uptake of
enhanced drinks, energy drinks, and fortified juices is expected to drive the growth in this category.
Dietary Supplements: Presently, vitamins supplements is the need of the hour; it has a strong brand
proposition followed by protein and iron.Growth in this category will likely be driven by dietetic supplements
The Major key players ruling the Indian Nutraceuticals market are Ranbaxy laboratory, Abbott India,
Nicolas Piramal, Dr Reddy’s lab and Pfizer, Dabur India, Zandu, Baidynath, GSK Consumer healthcare,
Heinz, Yakult Danone, Amul, Amway, Zydus wellness, EID Parry and Herbalife.
MNC
• GlaxoSmithKline is a science based Fast Moving Healthcare Company.
• Operate in over 150 Markets in three world-leading businesses that
research, develop and manufacture innovative products in pharmaceutical,
vaccines and consumer healthcare.
• In consumer healthcare division its products include Horlicks, Horlicks
biscuits, maltova, Boost and viva.
• Current market capitalization stands at Rs 20,752.24 crore.
• Net worth: 17171.14Cr.
• Nutrilite, the flagship health product from the Amway stable is a vitamins,
minerals and dietary supplements. Besides Nutrilite, Amway has 16
healthcare products in the Indian market under the nutrition and wellness
category.
• Amway’s sales in India in the calendar year 2016 touched Rs 1,700 crore.
• Amway India intends to set up 50 retail stores in the country by the end of
2018 to underpin its global business model of direct and online sales,
underscoring the importance of Asia’s third-biggest economy in the growth
blueprint of the $9.5-billion US parent company.
• It manufactures fortified B-complex capsules.
• Its nutrition products like PediaSure for toddlers, Similac for infants, Ensure
for adults, Mama’s Best for pregnant women and lactating mothers and
Glucerna for diabetics.
• The company had posted a net profit of Rs 67.79 crore in the year 2016
• Abbott has worth Rs 450 crore nutrition product manufacturing plant in
Gujarat which has a capacity of 40 million pounds per annum.
Indian Players
• India’s largest Ayurvedic medicine & related products manufacturer.
• Its product range includes Nutrition products such as Chavanprash,
Glucose‐D, Real and Active Juices.
• Market cap of ₹ 50643.71 Cr.
• Products/Revenue Segments include Personal Care which contribute 53.07
%, Health Care which contribute 27.34%, Beverages which contribute 17.09
% of Total Sales.
• Himalaya Drug Company, the Bangalore-based Rs 1,200 crore manufacturer
of ayurvedic drugs and cosmetics, has forayed into nutraceuticals market
with the launch of a prescription-based health supplement for kids.
• Himalaya entered the nutraceutical market in July 2012 with its maiden
product HiOwna-Jr for kids, followed by HiOwna for adults and the elderly,
the same year.
• Stating that the ₹743-crore ethical nutraceutical market (promoted via
doctors) is growing at 10 per cent, accounting for almost 8 per cent of the
total Indian pharmaceutical market
• Of the 1.2 million doctors in India, Himalaya has built relationships with
over 4,00,000 doctors who recommend HiOwna products to their patients.
The nutraceuticals market in India penetrated just above 10% at all India level. The penetration rate is
high in Urban India at 22.51%, where as in Rural India it is merely 6.32%.India represents merely 2% of
the global nutraceuticals market and is way behind in terms of per capita spent on nutraceuticals with
just US$2.5 compared to global average of US$21.
Though traditionally pharmaceuticals dominated dietary supplements was having the major weight age
in market, the recent shift in consumerism resulted in the functional food and functional beverages
together occupy 67%, major chunk of market.Indian Nutraceuticals market is highly concentrated in
South India followed by East India with leading top three states Andhra Pradesh, Tamil Nadu and West
Bengal. The urban centric Indian nutraceuticals market is gradually gaining ground in rural India with the
recent penetration of life style diseases in rural India. Rural India occupy nearly one third of the market.
With India’s strong tradition of consuming natural healthy foods, the market of functional foods is likely
to boom in the next five years. The highest growth is likely to be in sub categories such as energy drinks,
enhanced shelf stable juices, probiotics, and omega fortified foods and beverages.These foods and
beverages, personalized to manage certain health conditions are the future of the functional health
foods market.
Dietary supplements targeted at women and children have a bright future. Preventive dietary supplements
for diseases such as cancer, diabetes, obesity and arthritis are also much sought after. The Indian dietary
supplement market is composed of over 500 participants. Vitamins and minerals supplement market is
SWOT Analysis
The following is a SWOT Analysis of Nutraceutical Industry in India
STRENGTHS WEAKNESS
• Huge opportunity for growth, driven by • Nature of market fragmented – both from
changing & busy lifestyle demand & supply perspective – this is so as
• Relatively younger Indian population with every player is identified some kind of niche
significant nutritional deficiency for himself
• There is a lineage/ history in India of Ayurveda • Current lack of will to reinvent already existing
and similar health enhancing products in a rituals/ practices prevalent, which could
natural way develop into a big trend
• Significant access to capital • Lack of information to prove efficacy/ benefits
• Good Manufacturing Practices and experience
base in Food & Beverage, Pharmaceutical
companies – across MNC and Indian
manufacturers
OPPORTUNITIES THREATS
• Consumer & stakeholders/ opinion holders’ • Spurious products & brands
education through communication • Most Nutraceutical brands/ products are sold
• Digital execution most impactful as a premium product thereby limiting its trial
• To position Local remedies in fully branded in mostly in urban areas
context. Patanjali is a pioneer in this aspect • Lack of real stakeholder support
• Sports related Nutraceuticals will have a
major impact on consumer health as fitness
enthusiasts start engaging with different
sports
• activities more vigorously and even
professionally
In Tier 2 & 3 cities, it is a combination of the above problem and limited marketing reach. Although
there is awareness, it may be at a very basic and general level. There is some level of inadequacy of
actionable information.
In Tier 1 cities, imported brands are generally trusted more. Brands like Muscletech, Muscleblaze, Whey
On, SSN, Protinex, Ultimate have been salient and mentioned. Bodygear which is a local brand, has
some salience. It is perceived that in local
brands, mixing of inferior quality
ingredients may happen to the
detriment of the impact.
Nutritionists/ Dieticians usually provide low calorie/ high nutrient beverages and/ or shakes that are rich
in vitamins/ minerals and other supplements. Herbalife, a multi-national brand, has a strong equity in
India as it has a manufacturing base here.
One of the concerns from General Practitioners/ Nutritionists/ Fitness Instructors is side-effects that
Nutraceuticals may cause. The other reservation is that these products are not ‘natural’. Marketers need
to take such points of views in consideration and launch sustained communication programs of outreach
that will allay such fears both in the minds of opinion leaders as well as consumers.
Several types of channel options are emerging. Some of the established Modern Trade channels are
merchandizing Nutraceuticals, thereby enhancing its visibility and availability.
Sometimes it is sold as an OTC, so chemists’ shops would be a familiar channel for purchase.
We also observe exclusive outlets for Functional Foods, Beverages, Vitamins and nutrients. Chains like
Neulife are inspiring, perhaps setting benchmarks for other entrepreneurs to venture in such
distribution initiatives. Exclusive outlets provide more credibility to consumers as also it builds up a
relationship with the buyers.
Gymnasiums themselves also stock and promote Functional Foods, Beverages, Vitamins & Mineral
supplements. Several Nutritionists also act as distribution points for such products.
Paleolithic diet (paleo): Paleo, or ‘Caveman Diet’ is a diet that is based on avoiding not just modern
processed foods, but also foods that humans began eating after the Neolithic Revolution. While wide
variability exists in the way the diet is interpreted, we’re noticing more attempts at marketing food
products using this term.
Baking Alternatives: In addition to embracing an increasingly-popular paleo menu, gluten free choices are
still a powerhouse on retail shelves. One reason is celiac disease. But gluten-free doesn’t mean you can’t
bake at home! Food innovation continues to build on this trend and marketing opportunities are still
developing among consumers for other baking alternatives like spelt, quinoa, teff, and brown rice flours.
Fermented Foods: The benefits on digestive health seem to be in high demand among specialty foods
consumers from the already popularized Kombucha, to Kefir, to ‘gut shots’ like this, or even cultured
coffee. Consumers seem to be very intrigued by the natural varieties of microflora, and continue to
demand a much wider variety of beneficial bacteria from foods and supplements alike.
Dosha: The rise of turmeric as a trending ingredient recently been observed greatly. This might be the
beginning of consumer exploration of Ayurveda and the dosha concept of health. Sterling-Rice Group
culinary director Liz Moskow says: “The reason we’re predicting people will start eating more towards their
dosha is that we’re sort of riding this wave of yoga and Indian street food and bringing that mainstream,
‘Meatless Burger’ and ‘Plant Butchery’: Clearly meatless diets aren’t anything new. Yet Vegan and
Vegetarian lifestyle choices among conscientious consumers is still evolving to meet the demands of
their creativity in the kitchen. It’s generally known that meat-substitute food innovation will imitate a
meat patty with a soy-based product, fungi, legumes,
chickpeas or combination of them. Now,
companies like Herbivorous Butcher in
Minneapolis or Impossible Foods in
California taking the science a step
farther by using advanced technology to
copy the taste and texture of meat and
dairy products to create a 100% plant-
based alternatives.
CoffeeFlour: Envisioning less food-waste in the future has stemmed food innovators to develop a
product that is made from coffee cherries, which are usually discarded when harvesting coffee beans.
When the cherry ends up as waste during yielding they become a burden to the environment. Making
use of these coffee cherries reduces the amount of
toxic waste heaps in coffee-producing
countries. We’ll be seeing more creative
solutions to the ever growing issue with
food waste from retailers, food service
outlets and food manufacturers.
Ugly Produce: With a ‘less waste’ priority in mind; many specialty food consumers are willing to
purchase products made from disfigured fruits and vegetables, in order to save them from landfill.
Products like “Dash Water” make beverages from the not-so-pretty fruits and vegetables, and even
some grocery stores like Loblaws have embraced this trend by launching a Naturally Imperfect line. It’s
certainly a great way for both manufacturers and consumers to save a bit of money, while feeling good
about their transactions.
5.2 Probiotics
The epidemiological evidences and modern research in nutrition during the last few decades elaborated
the molecular level of interactions between specific food constituents with cells to control and prevent
some diseases. It is nowadays acknowledged the critical role of the “forgotten organ”, the enteric micro-
biota, in generating a variety of functions which sustain health. The beneficial interaction between the
micro-biota and humans is the way how bacteria contained within the gut “talk” to the immune system.
Into this landscape probiotics and nutraceuticals play a major role.
Probiotics are living microorganisms that affect the host in a beneficial manner by modulating mucosal and
systemic immunity, as well as improving nutritional and microbial balance in the human body. The main
probiotic preparations currently on the market belong to a large group of bacteria designated as lactic acid
bacteria (e.g. lactobacilli, streptococci, bifidobacteria), which are important and normal constituents of the
human gastrointestinal microflora. However, studies are also investigating potential probiotic roles of other
microbes such as yeast (Saccharomyces boulardii), which are not normally found in the gastrointestinal tract.
Probiotics are found in both pill form as well as food, and they contain good bacteria
Scientific studies are providing mechanisms of action to explain the therapeutic effects, and randomized
controlled trials are providing the necessary evidence for their incorporation into the therapeutic
armamentarium. There is also some research that indicates that probiotics may help aid: skin
conditions, urinary and vaginal health, oral disease, as well as allergy management.
The FSSAI has notified the Food Safety and Standards (Health Supplements, Nutraceuticals, Food for
Special Dietary Use, and Food for Special Medical Purpose, Functional Food and Novel Food) Regulations
on 23 December 2016 in the Official Gazette 2016.
The regulations would cover following broad categories of foods and carry detailed requirements about
their composition, claims, labels etc.
• Health Supplements
• Nutraceuticals
• Novel Foods
The formulation should be based on sound medicinal or nutritional principles supported by proven
scientific data, wherever required. It should not be just combination of vitamins and minerals to be
formulated into tablets, capsules or syrup; it is not food unless vitamins and minerals are added to an
article of food based on a food format. Presence of Hormones, steroids or psychotropic ingredients is
not permitted in the formulation.
It is also important that nutrients quantity recommended for daily consumption (RDA) by the Indian
Council of Medical Research should not be exceeded any condition. If such standards are not specified,
then the standards in the Codex Alimentarius Commission will apply.
Use of approved colors and additives as permitted in Schedule VF of these regulations, natural, nature
identical or synthetic flavors as permitted in the Food Safety and Standards (Food Product Standards
and Food Additives) Regulations, 2011.
Adequate documentation and basis of human studies all claims to be validated. It is necessary to
validate all health claims and on basis of human studies. The FSSAI has also prohibited the use of implied
claims for curing diseases or efficacy claims like cure for cancer or prevention of diseases either by name
or through pictures, vignettes or symbols, namely, electrocardiogram tracing, and lipid profile.
The FSSAI has also prohibited the use of implied claims for curing diseases or efficacy claims like cure for
cancer or prevention of diseases either by name or through pictures, vignettes or symbols, namely,
electrocardiogram tracing, and lipid profile.
The Schedules
The guidelines have been divided into Schedules. The Schedules contain the detailed provisions for the
use of vitamins, minerals, amino acids, botanical ingredients, nutraceuticals ingredients, food additives,
probiotics and prebiotics.
One of the schedules has a list of 400 ingredients of plant or botanical origin which can be used as
ingredients in the foods that have been covered in these regulations. Any of the ingredients specified in
Schedule I, Schedule II, Schedule III, Schedule IV, Schedule VI, Schedule VII, and Schedule VIII can be
used in these foods in accordance with the provisions of these regulations, and for the said purpose,
may use additives as applicable to categories specified in Schedule VA to Schedule VF.
The FBO could be asked to furnish details regarding the history of use of the novel or modified
ingredients added and their safety evaluation.
• Existing licenses/registration should be converted into FSSAI license/ registration before August 5,
2012 (now extended by a few months).
• An application for the grant of a license shall be made in form B of schedule 2 to the concerned
licensing authority; the license shall be issued within 60 days from the date of issue of an
application ID number.
• After the issue of application ID number the licensing authority may direct the food safety officer to
inspect the premises in the manner prescribed by the FSSAI in accordance with these regulations.
• The licensing authority shall issue a license in format C under schedule 2 of these regulations.
• Registration or license granted under these regulations shall be valid and subsisting, unless
otherwise specified, for a period of 1-5 years
• The product to be imported is with or without an India-specific label and will the claims be
developed in India
The number of documents will have to be furnished by the food importer to the government authority
along with registration application dossiers. The inter- link through its regulatory product offerings
provides regulatory support for the following licensing procedures, which need to be taken care of
before launching these products in India
• Import licensing
• Manufacturing licensing
• Marketing licensing
• Other state and national level clearances/licenses required from the regulatory side
The FSSAI has specified that Food Business Operators will need to fulfill with these regulations from 1
January 2018.
Change in the policy is great encouragement for new businesses to be set up. Small and medium
enterprises (SMEs) can be the biggest beneficiaries of this decision and expected to spearhead the
economic growth of the sector. The already restructured goods and service tax (GST) can be another
reform by this government, creating a level playing field for players in the Industry.
In this context, a step forward would be to adopt a clear segmentation-targeting approach. Catering to
needs of differentiated segments through product development would mean higher relevance and
appeal of product benefits, communication and brand positioning. A case in point is how Horlicks
launched several variants for Women, Lactating Mothers and so on to command a much higher (3X)
premium of such variants shoring up their profitability.
Catalogue Development
Detailed product and ingredient information in
professionally developed catalogues ensures
unambiguous communication between sales force
and clients. This develops confidence among all
concerned toward the initial objective of product/
brand trials, repurchase and eventually loyalty of
the brand.
Documentation
Documentation of all processes, batch operations, incoming material
quality, and safety standards goes a long way into ensuring discipline into the entire operational process.
Audit Standards
Common Procedure implementation goes a long way into data management system, validation of
process documents
Adopting standards for compliance on Safety, Quality, testing of raw materials goes a long way on
confidence of the market on brand building and product acceptance.
As expressed by Mr. Moxesh Zota, Managing Director, Zota HealthCare, an Ahmedabad based company
engaged primarily in the manufacturing and marketing of Dietary Supplements and Energy Boosters –
“The Nutraceuticals market is expected to witness huge growth. It will certainly grow at a rate higher
than Pharma sector for the next 5 years. Expanded market reach programs will even further facilitate
this growth.”
Within the context of overall accelerated growth, certain segments may have even higher potential.
Some of them are listed below
1. Diabetes, which is highly incident in the East and South of India, due to generally higher intake of
sweets – can be controlled in the early stages through Dietary fibres, herbal stimulants like Green
Tea and other proteins will provide the benefit of control of Glucose and Lipid levels among pre-
Diabetic and Diabetic patients.
2. Functional Beverages as a segment – offers a huge potential in the next 10 years. This is so as Indian
consumers exhibit strong beverage consumption habit and are consciously trying to change from
Multi-level marketing – is another effective route as it leverages word-of-mouth and personal trust building.
Exclusive outlets for Nutraceuticals/ specific brand franchise invoke a lot of consumer confidence.
Imported brands today cue more safety to consumers
Pricing
In urban areas, consumer perception on such products is that they are value-adding. Hence, premium
pricing can be commanded. GSK has been able to command up to 3 times realization for their fortified
variants of Horlicks – Pregnant and Lactating Mother’s Horlicks or Women’s Horlicks.
MRSS India proposes such an exercise to deepen various aspects of market understanding e.g.
developing a consumer segmentation model, attitude, usage and behavior of such segments, type of
products consumed, prices prevailing and sensitivities thereof, recommendations on Communication
Strategy to enhance awareness and recommendations on Distribution strategy.
Similarly, many myths about Nutraceuticals need to be broken with sustained consumer engagement and
education. Media habits would help us understand which channel to deploy and with what measure.
Combat Counterfeit
Counterfeit Nutraceutical products that use actives other than recommended, cause enormous setback
to consumer confidence on the category. A system of identification, validation and regulation needs to
evolve where such cases are dealt firmly and enforce immediate withdrawal from the market.
Safety
Access to testing facilities for safety of materials and products needs to be made available. Adequate
talent needs to be developed to conduct necessary test with required competence.
Thorough testing needs to be conducted to understand potential side effects and relevant declarations
must be provided to guide consumers and stakeholders alike.
Industrial Zones
Leveraging existing manufacturing locations, establishment of a Nutraceutical cluster may help with
efficiencies in Supply Chain.
Vision
Empower Indian enterprise by inculcating knowledge that will be the catalyst of growth in the
barrierless technology driven global market and help them upscale, align and emerge as formidable
player in respective business segments.
Mission
As a representative organ of Corporate India, ASSOCHAM articulates the genuine, legitimate needs and
interests of its members. Its mission is to impact the policy and legislative environment so as to foster
balanced economic, industrial and social development. We believe education, IT, BT, Health, Corporate
Social responsibility and environment to be the critical success factors.
D. S. Rawat
Secretary General
d.s.rawat@assocham.com
• MRSS India offers a wide range of Qualitative and Quantitative Research Services both nationally
and internationally
• Expertise in communities, mobile and online panels for quicker and richer contact with consumers
• Competence in digital research that leverages technology to deliver richest results fastest to clients
• In-house operations team across 18 locations in India with 60+ executives on companies payroll and
pool of investigators who have experience in conducting interviews among target audience
• Majestic MRSS (the parent company of MRSS India) has Client servicing offices in 18 major
countries in APAC and MENA region with dedicated Research Professionals and Project Managers;
rapidly expanding in Europe, US & LATAM
• Given its global footprints, Majestic MRSS enables MRSS India with the additional wherewithal of
local market intelligence as also ability to scale up operations in those markets offering multi-
country research capabilities depending on client requirements without any additional set up time-
cost implications
Raj Sharma
Chairman MRSS India
raj.sharma@majesticmrss.com
MRSSIndia
Corporate Office:
No. 601 & 701, Trellis, Plot No. 202/203, LBS Marg, Near Asha Petrol Pump,
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Web site: www.mrssindia.com
MRSSIndia
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