Global nutraceuticals market is expected to cross $262.9 billion by 2020 from the current level of $182.6 billion growing at compound annual growth rate (CAGR) of about 8 per cent according to the joint study brought out by The Associated Chambers of Commerce and Industry of India (Assocham) and RNCOS.
Due to rising awareness about health and fitness and changing lifestyle, India’s nutraceuticals market is likely to cross $6.1 billion by 2020 from the current level of $2.8 billion growing at compound annual growth rate (CAGR) of about 17 per cent, according to a study on ‘Indian Nutraceuticals, Herbals, and Functional Foods Industry: Emerging on Global Map,’ jointly conducted by Assocham and RNCOS.
The U.S. has the largest market for nutraceuticals, followed by Asia-Pacific and European Union. Functional food is the fastest growing segment in the U.S. nutraceuticals market. Germany, France, the U.K. and Italy are the major markets in the European Union for nutraceuticals.
Japan (14 per cent) is the major consumer of nutraceuticals in Asia-Pacific, followed by China (10 per cent).
The Indian nutraceuticals market is at a nascent stage but fast emerging. India accounts for around 1.5 per cent of the global market, which is anticipated to increase owing to country’s large population base, increasing urban belt and awareness, noted the study.
Releasing the joint study on Monday, D.S. Rawat, Secretary General, Assocham said, nutraceuticals, herbals and functional foods in India were covered under the definition of food as per Sec. 22 of Food Safety & Standards Act, 2006. These food products had been categorised as non-standardized/special food products.
At present, India does not have any kind of regulatory guidelines for the approval or monitoring of the products under this segment. These products are regulated under the guidelines of FSSA, 2006 amended in 2011 for registration, licensing, approval, labelling and packaging, import, marketing & distribution, laboratory testing such as conventional food products.
FSSAI should come up with properly framed guidelines related to manufacturing, storage, packaging and labelling, distribution, sales, claims and imports. This will bring clarity to the industry stakeholders and they can invest into the industry with no fear of counterfeiting, said Mr. Rawat.
In the absence of regulations, the products take much longer to reach the market. For industry growth, it is utmost necessary to give faster approvals for eligible nutraceuticals, noted Mr. Rawat.
In urban India, penetration is around 22 per cent, whereas in rural it is as low as 6 per cent. Lack of awareness is the major reason. For faster growth of the domestic market, both private players and government should create awareness about the health benefits of nutraceuticals among masses through campaigns, social media and television.
Counterfeit and un-registered/un-approved products should be called-off from the market as these products bring bad name to the industry. Small committees should be built at block levels to check the counterfeit products in the market and immediately discard them.
All products, before reaching the market should go through rigorous testing and it should not be compromised at any cost. An exponential growth has been noticed the number of food testing labs.
The government should also provide special incentives and subsidies to emerging companies for the industry growth. The funding will help companies to use improved process technology and come up with quality nutraceuticals.
Financial support will also help Indian talent to innovate cost effective nutraceuticals. The products available in the market are majorly targeted to upper-middle class leaving a vast potential. To catch the masses, nutraceuticals for all should be the target concept.
