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Driven by High Penetration Potential, The Indian Nutraceuticals Market Expected to Reach US $4 Billion by 2018 Finds Frost & Sullivan - Over the last decade, there has been an increased incidence of lifestyle diseases the world over as a result of inadequate nutrition due to the lifestyle choices
Driven by High Penetration Potential, The Indian Nutraceuticals Market Expected to Reach US $4 Billion by 2018 Finds Frost & Sullivan

 

PRZOOM - /newswire/ - Mumbai, India, 2014/04/07 - Over the last decade, there has been an increased incidence of lifestyle diseases the world over as a result of inadequate nutrition due to the lifestyle choices.

   
 
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As per the World Health Organization (WHO), mortality rate due to nutrition related factors is nearly 40 percent in developing countries, underscoring the need for nutraceutical products, to balance the nutritional intake of an individual. The Indian nutraceutical industry has seen a slew of product launches over the last five to seven years, with many more manufacturers, both domestic and international, looking to foray into the market. In this study by Frost & Sullivan titled "Indian Nutraceuticals: Insights into Changing Market Dynamics", nutraceuticals have been broadly classified into functional foods and beverages and dietary supplements. Nutraceuticals are products that provide health benefits to the consumer, primarily aimed at achieving basic nutritional needs through dietary means.

According to Frost & Sullivan analysis, the penetration of nutraceuticals in India was around 15 percent in 2013. Globally the nutraceuticals market earned around US $168 billion in revenues in 2013 in which India had a demand share of around 2 percent, earning around $2 billion. Growing at a compound annual growth rate (CAGR) of 17.1 percent, the Indian market is expected to reach $4 billion by 2018. China, Southeast Asia, and India are the fast-growing markets, with each experiencing growth in double digits. In the last 1-2 years functional beverages have emerged as a fastest growing category for the Indian market, with companies expanding their portfolio in the segment. The category is expected to grow at a CAGR of 21.7 percent by 2018.

"The Indian nutraceuticals industry has evolved from an ingredient export-focused industry to one that is looking to cater to the domestic market. With specific focus on the market, the industry has evolved from foods that started out as ‘with natural ingredients’ to, currently, foods that are positioned as ‘preventive care’", said Vishnu Shankar, Associate Director & Head, Chemicals, Materials & Food Practice, Frost & Sullivan.

When compared to developed counterparts such as the USA, Europe, and Japan, the percentage of total population consuming nutraceuticals in India is considerably low. It constitutes of primarily the higher socio-economic classes and a very small percentage of the lower classes. The middle to high income groups are the dominant consumers of functional foods and beverages along with dietary supplements, while the lower income groups consume mainly prescription-based dietary supplements. Health awareness and an increase in the penetration of organized retail stores are expected to play a major role in driving the nutraceutical consumption in India.

"The Indian market is currently evolving at a rapid pace, one that needs to be matched by increasing consumer awareness, regulations, supply chain infrastructure, and product affordability to allow the industry to develop holistically", notes Shankar. Currently, the market is dominated by pharmaceutical and FMCG giants. While dietary supplements such as vitamin and mineral supplements have been captured by pharmaceutical companies, functional foods and beverages are now being brought to the market by FMCG companies. However, certain segments like dietetic supplements are now being catered to by pure-play nutraceutical companies, apart from their pharmaceutical and FMCG counterparts.

Frost & Sullivan recently participated as Knowledge Partners in FICCI’s 5th International Nutraceutical Conference called "Business Dynamics of Nutraceuticals in India Conference", where we presented a white paper on the same topic.

If you are interested to know more on this topic, please send an email to Ravinder Kaur/Priya George, Corporate Communications, at ravinder.kaur[.]frost.com /priyag[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.

About Frost & Sullivan
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Media contact: Nimisha Iyer, Corporate Communications South Asia, Middle East, and North Africa
M: +91 98 20050519 / P: +91 22 66072007 - E: E: niyer[.]frost.com.

 
 
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Driven by High Penetration Potential, The Indian Nutraceuticals Market Expected to Reach US $4 Billion by 2018 Finds Frost & Sullivan

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Contact: Ravinder Kaur / Priya George - Frost.com 
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