ACKNOWLEDGEMENT

It gives me immense pleasure that ASSOCHAM is organizing the 2nd iteration

of its flagship Symposium namely 2nd National Symposium-cum-Awards on
“Nutraceuticals, Herbals, & Functional Foods” with the underlying theme of
Promoting Holistic Wellness.

D. S. Rawat The word Nutraceuticals links two words – nutrient i.e. nourishing food elements
Secretary General and pharmaceuticals (a medicinal drug) and plays a vital role in terms of providing
ASSOCHAM various health benefits in the prevention and curing of diseases. Nutraceuticals
products are gaining popularity and becoming a part of the usual meals of the
consumers. Dietary supplements accounts for a higher chunk of the market.
However, the trend is shifting towards functional foods and beverages. Different
food companies across the globe have developed their Nutraceuticals divisions
with a view towards expanding their product lines. Various Pharma companies
have also entered into the Nutraceuticals business by acquiring dietary supplement
manufacturers.

Talking about the herbal sector & its integration with Nutraceuticals, India is still a
nascent market in incorporating traditional herbal ingredients into Nutraceuticals
segment. However, existence of the need for alternative medicine & increasing
consumer awareness about conventional Nutraceuticals ingredients is promising.
Lack of data is another issue, along with the fact that the market is more based on
perception as opposed to research.

I am sure that this Symposium will deliberate on all issues relating to the growth
of Nutraceuticals in India. I also extend my heartiest thanks to all the stakeholders
including DSIR, MoFPI, NIFTEM, Ministry of AYUSH, DBT, ICMR, Phytotech
Extracts, OmniActive, Bayir Group, Bionova, Cubic Computing, TechSci Research
and others, for lending their support to this Symposium. I would also like to thank
our Knowledge Partner of this Symposium “RNCOS” for its wonderful efforts in
putting up this comprehensive report on all the subjects pertaining to the Indian
Nutraceuticals Industry.

I also acknowledge the efforts put in by Sandeep Kochhar and his team members
Karanveer Singh, Anshul Gupta and Shagun Ahlawat, for the organizing this
Symposium.

I not only wish this Symposium 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
Table of
Contents
1. Nutraceuticals, Herbals and Functional Foods: An Introduction
1.1 Product Segmentation
1.2 Nutraceuticals viz-a-viz Pharmaceuticals
1.3 Nutraceuticals: Health Benefits
1.4 Nutraceuticals in Major Health Issues/Diseases
2. India Nutraceuticals Market Outlook to 2022
2.1 India in context to Global Nutraceuticals Market
2.2 Indian Nutraceuticals Market Size and Future Outlook
2.3 Indian Dietary Supplements Market Outlook to 2022
2.3.1 Indian Dietary Supplements Market by Type
2.3.1.1 Vitamin & Mineral Supplements
2.3.1.2 Herbal Supplements
2.3.1.3 Protein and Amino Acid Supplements
2.3.1.4 Other Dietary Supplements
2.4 Indian Functional Foods & Beverages Market Outlook to 2022
2.4.1 Indian Functional Foods & Beverages Market by Type
2.4.1.1 Functional Foods
2.4.1.2 Functional Beverages
2.5 Indian Nutraceuticals Market by Application
2.5.1 Nutritional Deficiency
2.5.2 Muscle Building
2.5.3 Weight Management
2.5.4 Others
2.6 Industry Drivers
3. Nutraceuticals Industry Prescription Model Analysis
3.1 Insights from Fitness Instructors/General Practitioners/Dieticians
3.1.1 Awareness and its Medium
3.1.2 Percentage of Influencers Prescribing/Recommending Nutraceuticals to Clients
3.1.3 Reasons for Non-Prescription
3.1.4 Counterfeit Products - How big a Challenge?
3.1.5 Type of Nutraceuticals Prescribed
3.1.6 Purpose of Prescription
3.1.7 Age-Group to Whom Prescribed the Most
3.1.8 Which is better - Imported or Domestic & Why?
3.1.9 OTC Products - Good or Bad?
4. Regulatory Framework
4.1 Draft Regulations
4.2 Registration and Licensing of Nutraceuticals Businesses
4.2.1 Registration of Nutraceuticals Business
4.2.2 License for Nutraceuticals Business
4.3 Nutraceuticals Product Application Flowchart
5. Industry Best Practices
6. Pain Areas & Expectations of Manufacturers
7. Nutraceuticals Industry: The Road Ahead
 Nutraceuticals, Herbals and Functional
1 Foods: An Introduction

Nutraceuticals are the products that offer health as

well as medicinal benefits, including prevention and
treatment of diseases. The word nutraceuticals links
two words – nutrient (i.e., nourishing food elements)
and pharmaceutical (a medicinal drug). The term was
coined by Stephen DeFelice, founder and chairman of
the Foundation for Innovation in Medicine (FIM), an
American association based in New Jersey in 1989.

Nutraceuticals consist of ingredients that are found as

elements of food or in other forms, which have been
identified to be advantageous to the human body in
curing one or more diseases or enhancing physiological
performance. Nutraceuticals ingredients are the
constituents of animals, plants or microorganisms
and also comprise synthetic variants of natural
nutraceuticals sold in the form of powders, pills or
capsules or other medicinal forms. Basic nutrients
can also be considered as nutraceuticals if they offer
benefits beyond their major role in normal growth.
Some major nutraceuticals ingredients include amino
acids, peptide and proteins, minerals, carotenoids,
polyphenols, probiotics, specialty carbohydrates and vitamins, minerals, metabolites, herbs, proteins and
fibers, specialty fatty acids, vitamins, sterols and stanols. amino acids.

A functional food is a processed food that comprises

1.1 Product Segmentation known biologically active components that provide
significant health benefits, and is also a crucial source in
Nutraceuticals are majorly categorized into Functional
the prevention, management and treatment of various
Food & Beverages and Dietary Supplements. A
chronic diseases. These products provide substantial
dietary supplement symbolizes a product that
amount of fats, vitamins, carbohydrates, etc. to the
comprises nutrients derived from food products, and
body.
is concentrated in liquid, powder, capsule or pill form.
Dietary ingredients available in the products include:

Indian Nutraceuticals Market Outlook: Vision 2022 1

Functional or fortified beverages comprise of non-
alcoholic drinks with ingredients such as herbs,
minerals, vitamins, amino acids or added raw
vegetables or fruit ingredients, which provide specific
health benefits, such as improving immune system,
enhancing joint mobility, rising sense of well-being and
boosting energy. Major functional beverage products
include: functional milk, probiotic and prebiotic yogurt
drinks, functional waters, sports and energy drinks, and
functional juices.
increasing influence of Western culture have been
the major reasons for inclining cases of obesity and
diabetes. In the past few years, nutraceuticals have
attracted substantial interest due to their potential
nutritional, safety and therapeutic effects, and hence,
project promising opportunities for companies to
enter the Indian nutraceuticals market.
Few of the advantages of nutraceuticals are highlighted
below:

yy Retards the Progression of Disease - Nutraceuticals

1.2 Nutraceuticals viz-a-viz may be utilized to enhance health, prevent
Pharmaceuticals chronic diseases, and delaying the ageing process
Table 1‑1: Nutraceuticals viz-a-viz Pharmaceuticals (increasing the life expectancy). They work on the
principle of retarding the progression of disease by
Nutraceuticals Pharmaceuticals
acting upon the root cause of the diseases.
•• Nutraceuticals are
highly concerned with •• Pharmaceutical are majorly yy Prevention of Disease - Nutraceuticals are healthy
prevention and ensuring focused on illness and
wellness. treatment. sources for the prevention of certain diseases such
as diabetes, renal and gastrointestinal disorders, as
•• Nutraceuticals neither •• Pharmaceuticals are
require medical designed for medical well as different infections.
supervision nor the use under a physician’s
approval of the Food supervision, and are yy Combating Lifestyle-Related Health Issues -
and Drug Administration subjected to the approval Nutraceuticals are receiving appreciation as being
(FDA). of the Food and Drug
advantageous in treating obesity, coronary heart
Administration (FDA).
•• Nutraceuticals are sold diseases, cancer, diabetes, and other chronic and
without any prescription •• Pharmaceuticals require
at health food stores, prescription from a certified degenerative diseases.
drug store, grocery stores, doctor for purchase (except
internet, etc. OTC). yy Reduces Treatments Costs - Nutraceuticals offer
low-cost and early control of risk factors for a number
•• Nutraceuticals function •• Pharmaceuticals work on
on the root cause of the symptoms in a particular of diseases, e.g., heart disease. By improving the
problem and takes longer part or whole body, immune system of a diseased person, nutraceuticals
time in showing results. providing instant results
The products do not have along with or without side-
reduce treatment costs.
any side-effects in the effects.
yy Delays Aging and increases life expectancy -
human body.
Source:  RNCOS
Better control of infectious diseases and access to a
more nutritious diet has increased life expectancy in
the twentieth century. According to many reports,
1.3 Nutraceuticals: Health Benefits
oxidative stress and certain nutritional deficiencies
According to a recent study by Mapping Global may contribute to the aging process, so intake of
Malnutrition Trends, the obesity rate in India has nutraceuticals in form of anti-oxidants can delay the
increased by 20%, and a significant amount of health aging process.
concerns associated with cardiovascular disease have yy Safe for use - As these are obtained from natural
come to light. One of the most serious growing health sources, these have little or no side effects and are
concerns in India is diabetes. The urban lifestyle and safe for use.

2 Indian Nutraceuticals Market Outlook: Vision 2022

1.4 Nutraceuticals in Major Health Issues/Diseases

Table 1‑2: Nutraceuticals in Major Health Issues/Diseases

Types Of Diseases Nutraceuticals Used
•• Anti-oxidants, dietary fibers, omega-3, poly unsaturated fatty acids, vitamins, and minerals for
prevention and treatment of CVD

Cardiovascular •• Polyphenol found in grapes prevents and controls arterial diseases

Diseases •• Flavonoids (in onions, vegetables, grapes, red wine, apples, and cherries) block the ACE and strengthen
the tiny capillaries that carry oxygen and essential nutrients to all cells
•• Soya foods (min. of 25gm per day) reduce chronic heart diseases
•• Lipoic acid, an anti-oxidant for treatment of diabetic neuropathy
Diabetes •• Dietary fibers from psyllium have been used for glucose control in diabetic patient and to reduce lipid
level in hyperlipidemia
•• Herbal stimulants, such as caffeine, and green tea help in body weight loss
•• Buckwheat seed proteins
Obesity
•• A blend of glucomannan, chitosan, fenugreek, G sylvestre, and vitamin C in the dietary supplement
significantly reduces body weight
•• Flavonoids, soy foods and lycopene
•• Saponins (found in peas, soybeans, some herbs, spinach, tomatoes, potatoes, alfalfa and clover) contain
Cancer anti-tumor and anti-mutagenic activities
•• Beet roots, cucumber fruits, spinach leaves, and turmeric rhizomes, reported to possess anti-tumor
activity
•• Curcumin (diferuloylmethane), which is a polyphenol of turmeric, possesses anti-carcinogenic, anti-
oxidative and anti-inflammatory properties
Anti-Inflammatory
•• Gamma linolenic acid (found in green leafy vegetables, nuts, vegetable oils such as evening primrose
Activities
oil, blackcurrant seed oil, and hemp seed oil, and from spirulina, and cyanobacteria) is used for treating
problems with inflammation and auto-immune diseases
•• Quercet (found in onions, red wine and green tea) reduces the inflammation that results from hay fever,
Allergy
bursitis, gout, arthritis, and asthma
Source:  International Journal of Recent Advances in Pharmaceutical Research

Indian Nutraceuticals Market Outlook: Vision 2022 3

 India Nutraceuticals Market Outlook to
2 2022
2.1 India in context to Global
Nutraceuticals Market
Nutraceuticals is a broad term that is used to describe
any product derived from food sources. These products
have extra health benefits in addition to the basic
nutritional value found in foods. Globally, nutraceuticals
are garnering prominence and becoming a part of an
average consumer’s daily diet. The major reasons for
the increasing use of nutraceuticals are the growing
incidences of lifestyle-related diseases, rising life
expectancy, and inadequate nutrition due to current
lifestyle choices of people.
Owing to high demand, the global nutraceuticals
industry is becoming highly competitive. Various
food companies across the globe have developed
their nutraceuticals divisions. This is being done in
Figure 2‑1
Share of India in Global Nutraceuticals Market (%),
2015
India
2%
98%
Global
Source:  RNCOS
4 Indian Nutraceuticals Market Outlook: Vision 2022
order to expand the existing product lines of these
companies. Furthermore, pharma companies have
also entered the nutraceuticals business by acquiring
dietary supplement manufacturers. Some of the
food and pharmaceutical companies present in the
nutraceuticals industry are Heinz, Kellogg’s, Nestle,
Hormel, Unilever, J&J and GSK.
Amongst all the geographies, the US has the largest
market for nutraceuticals, followed by Asia-Pacific and
Europe. In the Asia-Pacific region, Japan is the major
consumer of nutraceuticals as the people there are
more aware about their nutritional requirements. The
Indian nutraceuticals market is at a nascent stage.
However, it is growing at a rapid pace. In 2015, India
accounted for a share of around 2% of the global
market. By 2022, this share is anticipated to increase to
a value of approximately 3% owing to country’s large
Figure 2‑2
Share of India in Global Nutraceuticals Market (%),
2022
India
3%
97%
Global
Source:  RNCOS
population base, increasing urban belt and awareness.
This makes India one of the key markets for entry for
nutraceuticals product and ingredient manufacturers.
2.2 Indian Nutraceuticals Market Size and
Future Outlook
Transformation in food habits, less physical work, and
increasing desk jobs have propelled the incidence of
lifestyle diseases. The increasing incidences of these
diseases are compelling Indian consumers to become
more conscious towards health and fitness. This is
providing a huge platform for nutraceuticals market
to grow. Looking at the current trends, the Indian
nutraceuticals market is forecasted to grow from a
value of US$ 2.8 Billion in 2015 to a value of US$ 8.5
Billion by 2022.
Figure 2‑3
India - Nutraceuticals Market (Billion US$), 2015-2022
8.5
7.2
CAGR 17% 6.1
5.2
4.4
3.8
3.2
2.8
2015e 2016f 2017f 2018f 2019f 2020f 2021f 2022f
Source:  RNCOS
The overall market is classified into Dietary
Supplements and Functional Food & Beverages, with
the former estimated to occupy the larger chunk of
around 65% in 2015. Functional food & beverages are
expected to grow with a higher growth rate. This is due
to the increasing visibility of such products in modern
retail formats and promotional activities through TV
advertisements.
Indian Nutraceuticals Market Outlook: Vision 2022
Figure 2‑4
India - Nutraceuticals Market Segmentation (%), 2015
Functional Foods
and Beverages
36%
64% Dietary
Supplements
Source:  RNCOS
As per our research, imports account for a large share
of the Indian nutraceuticals market. Imports are
expected to decline further as domestic companies
are expanding their presence in this segment. All the
major pharmaceutical conglomerates looking at the
nutraceuticals segment as the major growth drivers
for the future. Apart from this, food and beverage
companies are focusing on fostering their existing
products and launch food and beverages with label
claims for functional advantages. The segments of
interest includes immunity boosters, cognitive health,
anti-oxidants, weight management, sports nutrition,
and probiotics.
2.3 Indian Dietary Supplements Market
Outlook to 2022
Dietary supplements are intended to provide nutrients
that may otherwise not be consumed in sufficient
amounts in regular diet. These dietary supplements
include vitamins, minerals, proteins, and others. Dietary
supplements come in the form of powders, capsules,
and tablets amongst others.
Some supplements can play an important role in health.
For example, calcium and vitamin D are important for
keeping bones strong. Pregnant women can take the
5
 Figure 2‑5 dietary supplements market, which is forecasted to
India - Dietary Supplements Market (Billion US$), reach a value of US$ 5.2 Billion by 2022.
2015-2022
2.3.1 Indian Dietary Supplements Market by
5.2 Type
4.4
CAGR 16% 3.8 On the basis of type, the dietary supplements market
3.3 of India is segmented into vitamins and minerals,
2.8
2.4 proteins, herbal supplements, and others. Vitamins
2.1
1.8 and minerals are the most popular type of dietary
supplements widely used by all age groups. Herbal
supplements are also very popular among people for
2015e 2016f 2017f 2018f 2019f 2020f 2021f 2022f
the purpose of maintaining fitness.

Source:  RNCOS

Figure 2‑6
India - Dietary Supplements Market Segmentation by
vitamins and folic acid to prevent certain birth defects Type (%), 2015
in their offsprings.
Others
In 2015, the Indian dietary supplements market was 6%
valued at US$ 1.8 Billion. However, with growing
Proteins Vitamins
awareness, number of people opting for dietary 22%
40% & Minerals
supplements on their own has also increased.
Higher purchasing power has prompted Indians to
be more health conscious and adopt a healthy diet 32%
routine completed with consumption of nutritional
supplements. This is propelling the growth of the Herbal
Supplements

Source:  RNCOS
Table 2‑1:  Leading National and International
Companies in Dietary Supplements
S. Product
Companies Products
No. category
2.3.1.1 Vitamin & Mineral Supplements
Domestic Companies
1. Himalaya Protein Hiowna Kidz Vitamin and mineral supplements are types of dietary
2. Dabur Herbal Chyawanprash supplements. The market for these supplements in
Parry Vitamins & India was valued at approximately US$ 0.7 Billion in
3.
Nutraceuticals Minerals
2015. The vitamin and mineral supplements contain
International Companies
micronutrients which help the body to function
Vitamins &
4. GlaxoSmithKline Minerals, Actigrow smoothly and improve mental health. For example,
Proteins vitamin A supports vision and bone growth, whereas
Vitamins & Arachitol, vitamin E strengthens the immune system and helps
5. Abbott
Minerals Betonin AST, etc.
repair DNA. Deficiency of these vitamins and minerals
Source:  Company Websites
can have a negative impact on the body’s ability to heal

6 Indian Nutraceuticals Market Outlook: Vision 2022

itself. These supplements when taken in appropriate
quantity can help in the treatment of anxiety, stress,
depression, bipolar disorder, autism, and trauma.
The demand for the vitamin and mineral supplements
may increase in the future due to the unhealthy eating
habits and stress in daily lifestyle. People may benefit
from the extra nutrients found in these supplements.
A multivitamin and mineral supplement will help in
safeguarding against periodic nutrient shortfalls in
the diet. Due to these reasons the vitamin and mineral
market in India is anticipated to grow in the coming
years and reach a value of US$ 2.1 Billion by 2022.
Figure 2‑7
India - Vitamin & Mineral Supplements Market (Billion
US$), 2015-2022
2.1
1.8
CAGR 16.8% 1.6
1.3
1.1
1.0
0.8
0.7
2015e 2016f 2017f 2018f 2019f 2020f 2021f 2022f
Source:  RNCOS
2.3.1.2 Herbal Supplements
Herbal supplements are type of dietary supplements
that contain herbs plant or parts of a plant. These
plants or plant parts are used for their scent, flavour or
potential therapeutic properties. The flowers, leaves,
bark, fruit, seeds, stems, and roots of a plant are used
either singly or in mixtures. Many herbs have a long
history of use and claimed health benefits. However,
some herbs can cause serious health issues if they are
not taken without prior consultation. Therefore, it is
best to take herbal supplements under the guidance of
a medical professional.
Indian Nutraceuticals Market Outlook: Vision 2022
Among all the types of herbal supplements,
Chyawanprash is the most commonly used in India.
It delays the ageing of cells, improves the nutritional
levels of the body tissues, protects the skin from free
radical damage, and improves digestive power and the
oxygen supply to the deep tissues. Looking at all these
health benefits, people prefer to opt for these herbal
products instead of the artificially made supplements.
In 2015, the market for herbal supplements was at an
approximate value of US$ 0.6 Billion in India. Owing
to their natural ingredients and popularity among
people, this market is forecasted to reach a value of
US$ 1.7 Billion by 2022.
Figure 2‑8
India - Herbal Supplements Market (Billion US$),
2015-2022
1.7
1.5
CAGR 16.9%
1.2
1.1
0.9
0.8
0.7
0.6
2015e 2016f 2017f 2018f 2019f 2020f 2021f 2022f
Source:  RNCOS
2.3.1.3 Protein and Amino Acid Supplements
Proteins and amino acids are an important class of
supplements that have gained a lot of popularity in
the recent years. Amino acids are the building blocks of
proteins. They are required for the synthesis of structural
proteins, enzymes, hormones and neurotransmitters.
Moreover, protein powders are another type of
supplement that come in various forms. The three
most common forms of protein powders are whey, soy,
and casein protein.
Proteins and amino acid supplements help by
providing endurance during workouts, boost muscle
7
 Figure 2‑9
India - Protein and Amino Acid Supplements Market
(Billion US$), 2015-2022
1.09
0.94
CAGR 15.5% 0.81
0.70
0.60
0.52
0.45
0.40
2015e 2016f 2017f 2018f 2019f 2020f 2021f 2022f
Source:  RNCOS
recovery, and enhance overall health and wellness.
These important applications of proteins and amino
acids may help in the growth of their market in India.
Furthermore, the growth of this market will also be
driven by the increased awareness among people
about their health and fitness. In 2015, the market for
these supplements was valued at US$ 0.4 Billion. This
market is forecasted to increase and reach a value of
US$ 1.09 Billion by 2022.
2.3.1.4 Other Dietary Supplements
The other types of dietary supplements include fatty
acids and anti-oxidants. Some fatty acids are not
synthesized by the human body. However, they are
required for maintaining good health. In the body,
these EFAs are required for building healthy cells and
maintaining brain and nerve function. Research studies
suggest that they help in lowering the risk of heart
diseases. Some studies also suggest these fats may also
protect against type 2 diabetes, Alzheimer’s disease,
and age-related brain decline. These fatty acids are
called essential fatty acids (EFA). Only two fatty acids
are known to be essential for humans. These two EFAs
are known as omega-3 fatty acids and omega-6 fatty
acids.
8 Indian Nutraceuticals Market Outlook: Vision 2022
Figure 2‑10
India - Other Dietary Supplements Market (Billion
US$), 2015-2022
0.23
0.21
CAGR 11.6% 0.19
0.17
0.15
0.13
0.12
0.11
2015e 2016f 2017f 2018f 2019f 2020f 2021f 2022f
Source:  RNCOS
Furthermore, antioxidants are another type of
supplements. Antioxidants are man-made or natural
substances that may prevent or delay some types of
cell damage. Antioxidants are found in many foods,
including fruits and vegetables. They are also available
as dietary supplements. Some common examples of
antioxidants include beta-carotene, lutein, lycopene
and selenium among others. The market for the other
type of dietary supplements in India was valued at
approximately US$ 0.1 Billion in 2015. This market is
forecasted to reach a value of US$ 0.23 Billion by 2022
owing to the increased awareness among people and
rising disposable income.
2.4 Indian Functional Foods & Beverages
Market Outlook to 2022
Functional foods and beverages have additional
functions imparted into them by adding new
ingredients or more quantity of existing ingredients.
These products are majorly similar in appearance to
conventional foods and beverages that are consumed
as part of the customary diet, and are demonstrated
to have physiological benefits and/or reduce the
jeopardy of chronic disease beyond basic nutritional
functions. These products assist in preventing a disease
 Figure 2‑11 Functional foods have captured the major chunk in
India - Functional Foods & Beverages Market (Billion the fortified products. Functional beverages have
US$), 2015-2022 also gained traction in the recent years, due to the
transformation in the preferences of Indian consumers
3.2 from soda-based and/or carbonated drinks to healthy
2.7 drinks such as fortified juices and energy drinks.
CAGR 18% Additionally, protein drinks have also showcased an
2.3
1.9 increasing demand from a segment of people searching
1.6 for weight management solutions while maintaining a
1.4
1.2 sound lifestyle. Functional teas and coffees are slowly
1.0
capturing the demand in the country.

Table 2‑2:  Leading National and International

2015e 2016f 2017f 2018f 2019f 2020f 2021f 2022f Companies in Functional Foods & Beverages
Source:  RNCOS S.
Companies Product category Products
No.
Domestic Companies
or compromised health state and/or improve physical Nutritionally
Functional improved Fruit
or mental performance. 1. Dabur
Beverage Juices (Real Fruit
Power)
Functional foods and beverages market in India has 2. Britannia Functional Food Multigrain Bread
strengthened itself, fostered by its rising penetration
3. ITC Functional Food Multigrain Flour
amongst health conscious people in the country.
4. Amul Functional Food Probiotic Dahi
Functional foods include food products such as
International Companies
functional biscuits, breads, cereals, vegetable oil,
Functional
nutrition bars, yogurt and others. Functional beverages 4. Yakult Beverage Yakult Drink
include functional fruits juices, milk, tea, coffees, and (Probiotic)
energy drinks. Rising knowledge about wellness Kellogg’s K (Fat
and health along with inclining expenditure on food 5. Kellogg’s Functional Food reduction), Oats,
etc.
has increased the number of consumers accepting
Functional
functional foods & beverages. This is propelling the 6. Coca-Cola Diet-Coke
Beverage
growth of the functional foods and beverages market Functional A+ Milk, Nestea,
7. Nestle
to reach a value of US$ 3.2 Billion by 2022. Beverage etc.
Source:  Company Websites

2.4.1 Indian Functional Foods & Beverages

Market by Type

The Indian Functional Foods and Beverages market

can be segmented into Functional Foods Market
and Functional Beverages Market. Among the two,
functional foods occupy the major share of 70%.
However, convenience, availability of innovative

Indian Nutraceuticals Market Outlook: Vision 2022 9

 Figure 2‑12 is done with an intention towards improved well-
India - Functional Foods & Beverages Market being, prolonged existence and prevention of chronic
Segmentation by Type (%), 2015 diseases. The functional foods contain physiologically-
active components either from plant or animal sources.
Functional
Beverages
The functional foods available in the market include
30% the likes of oats, soy, flaxseed, nutrition bars, probiotic
yogurt, fortified baked goods, and fortified edible oils.
70% The market for functional foods was valued at US$ 0.7
Billion in 2015. This market is forecasted to grow to
Functional
Foods an approximate value of US$ 2 Billion by 2022 owing
to the increasing health consciousness of people and
Source:  RNCOS their awareness about availability of such products.

2.4.1.2 Functional Beverages

products and health benefits associated with functional
beverages are the leading factors influencing the
growth of this market.
2.4.1.1 Functional Foods
Functional foods are food products that consist of
vital nutrients that go beyond simply nurturing usual
growth and development of an individual. These food
products are fortified with nutritional and disease-
preventing qualities. The consumption of such food
Functional beverages is an emerging segment of
the Indian nutraceuticals industry that was valued at
US$ 0.3 Billion in 2015. These beverages rejuvenate
and boost performance of an individual. 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

Figure 2‑13 Figure 2‑14

India - Functional Foods Market (Billion US$), 2015- India - Functional Beverages Market (Billion US$),
2022 2015-2022

2.1 1.09

1.8 0.91
CAGR 17.1% CAGR 20.3%
1.5 0.75
1.3 0.63
1.1 0.52
1.0
0.8 0.43
0.7 0.36
0.30

2015e 2016f 2017f 2018f 2019f 2020f 2021f 2022f 2015e 2016f 2017f 2018f 2019f 2020f 2021f 2022f

Source:  RNCOS Source:  RNCOS

10 Indian Nutraceuticals Market Outlook: Vision 2022

innovative beverages with enhanced nutritional value
in order to woo the health conscious Indian consumers.
The market for this type of beverages is forecasted
to reach an approximate value of US$ 1.1 Billion by
2022. This exponential growth will be majorly due to
the erratic eating habits of people and their efforts to
make-up for the lost nutrients with the help of these
easy-to-consume fortified beverages.
2.5 Indian Nutraceuticals Market by
Application
The nutraceuticals products have varied applications.
These can be used for overcoming nutritional
deficiency, muscle building, and weight management
among others. Nutraceuticals products are commonly
used for meeting the nutritional requirements of the
body. Apart from this, it is also used for body building
in gymnasiums.
Figure 2‑15
India - Nutraceuticals Market Segmentation by
Application (%), 2015
Others
Weight
4%
Management
15%
Nutritional
51%
Deficiency
30%
Muscle
Building
Source:  RNCOS
2.5.1 Nutritional Deficiency
The human body requires many micronutrients that are
essential for both development and preventing disease.
Nutritional deficiencies occur when a person’s nutrient
intake consistently falls below the recommended
requirement. Children are more at risk for serious
Indian Nutraceuticals Market Outlook: Vision 2022
complications due to nutritional deficiencies than
adults. The various types of deficiencies that occur in
humans include iron deficiency, vitamin D deficiency,
vitamin A deficiency and others. The symptoms of a
nutritional deficiency depend on the type of nutrient
the body lacks. However, some general symptoms of
nutritional deficiency which occur in humans are pale
skin, fatigue, weakness, hair loss and constipation.
Nutritional deficiencies can lead to a variety of health
problems. The most prevalent health problems caused
due to nutritional deficiency are anemia, beriberi,
osteoporosis, pellagra, and rickets. According to
UNICEF, 20% of children below five years of age in
India suffer from wasting due to acute undernutrition.
India accounts for more than 3 out of every 10
stunted children in the world. To overcome nutritional
deficiency, several dietary supplements are available
in the market these days. These supplements are
prescribed by nutritionists, general practitioners and
gym instructors apart from a balanced daily diet. The
number of people suffering from nutritional deficiency
will increase in the coming years in India. This may
propel the growth of the dietary supplements market
for nutritional deficiency to reach a value of more than
US$ 4 Billion by 2022.
Figure 2‑16
India - Nutraceuticals Market for Nutritional
Deficiency (Billion US$), 2015-2022
4.4
3.7
CAGR 17.7%
3.1
2.6
2.2
1.9
1.6
1.4
2015e 2016f 2017f 2018f 2019f 2020f 2021f 2022f
Source:  RNCOS
11
2.5.2 Muscle Building
Now-a-days people are becoming more conscious
about their fitness. For this, they are joining gyms and
performing various forms of exercise. By doing exercise
they tend to build and tone their muscles. Human body
has two forms of muscles fibers: type-I fibers and type-
II fibers. Type-I fibers help in performing endurance
exercise and type-II fibers are responsible for strength
and size when weight training. A type of cell, called
satellite cells, are present on top of muscles and help
them to grow, repair and maintain. These cells often lie
dormant until a person does heavy lifting. The heavy
lifting causes tiny micro-tears in the muscle fibers. This
triggers satellite cells to multiply and move toward the
areas of damage.
The satellite cells use proteins from food to thicken and
strengthen muscles. Apart from food, scientists have
developed various dietary supplements which help
in fulfilling the nutritional requirement. The market
of dietary supplements for muscle building in India
is forecasted to reach a value of approximately US$ 3
Billion by 2022. This growth in market will be fuelled
by the increasing number of people opting for muscle
building in order to remain fit.
Figure 2‑17
India - Nutraceuticals Market for Muscle Building
(Billion US$), 2015 - 2022
2.6
2.2
CAGR 17.6%
1.8
1.6
1.3
1.1
1.0
0.8
2015e 2016f 2017f 2018f 2019f 2020f 2021f 2022f
Source:  RNCOS
1. Times of India
12 Indian Nutraceuticals Market Outlook: Vision 2022
2.5.3 Weight Management
According to Obesity Foundation India, more than 3%
of the Indian population is obese. Obesity can give
rise to a number of health problems, like cholesterol,
diabetes, heart disease, blood pressure, osteoarthritis,
respiratory problems, and blood sugar. Furthermore,
people also suffer from a number of problems like
anemia, weakened immune system, and fragile bones,
because of being underweight. With 102 Million men
and 101 Million women underweight, India leads
the world in being home to over 40% of the global
underweight population1.
Achieving a healthy weight can help people in
controlling problems associated with being overweight
or underweight. Weight management is a long-term
approach to a healthy lifestyle. It includes a balance of
healthy eating and physical exercise to equate energy
expenditure and energy intake. Apart from developing
healthy eating habits, use of dietary supplements
also helps in the process of weight management. The
market of dietary supplements in India which are used
for the purpose of weight management was valued
at US$ 0.4 Billion in 2015. There is an increased urge
in people to maintain a healthy weight in order to
Figure 2‑18
India - Nutraceuticals Market for Weight Management
(Billion US$), 2015-2022
1.3
1.1
CAGR 17.4%
0.9
0.8
0.7
0.6
0.5
0.4
2015e 2016f 2017f 2018f 2019f 2020f 2021f 2022f
Source:  RNCOS
keep diseases away. This may help the Indian dietary
supplements market for weight management to grow
to a value of approximately US$ 1 Billion by 2022.

2.5.4 Others

Dietary supplements are also used for anti-ageing

effects, enhancing the growth of the body and
boosting immunity. The market of dietary supplements
for all these applications was valued at US$ 0.14 Billion
in 2015. Supplements that have anti-ageing effects are
one of the fastest growing specialities. This is because
people are realizing that ageing is inevitable. However,
the way of ageing is an individual’s choice. This can only
microorganisms. Adopting a healthy lifestyle can help
be done by making appropriate dietary, supplement
in boosting immunity. Along with healthy diet and
and lifestyle changes.
regular exercise, uptake of dietary supplements after
consultation with a doctor can help in boosting the
Apart from the above application, supplements also
immune system of a person. The market of dietary
aid in the growth of an individual. Scientists have
supplements for all these applications may increase to
harvested growth supplements that help in building
reach a value of around US$ 0.25 Billion by 2022 due
essential body tissues. These supplements are used
to increasing awareness and rise in demand among
as body building supplements and performance
people.
boosters. Furthermore, dietary supplements are also
used for boosting immunity of an individual. Immune
system defends the body against disease causing 2.6 Industry Drivers

yy Huge Customer Base: India is one of the highest

Figure 2‑19
populated countries with a large number of cardiac,
India - Nutraceuticals Market for Other Applications cancer and obesity cases. The changing food habits,
(Billion US$), 2015-2022 improper work life balance, lesser sleeping hours,
and increasing working population, are a few of
the reasons escalating the incidences of health
0.25
0.23 issues in the country. Cancer is the leading cause of
CAGR 8.4%
0.20
0.21 deaths in the country and according to GLOBOCAN
0.17
0.18 the number is only expected to rise to 1.24 Million
0.15 by 2020. According to the WHO, cardiovascular
0.14
diseases, which affect the heart and the blood
vessels, resulting in heart attacks or strokes in
extreme cases, accounted for 26% of the deaths in
India or 2.5 Million in 2012. In addition to this, elderly
population (people age above 60 years), which was
2015e 2016f 2017f 2018f 2019f 2020f 2021f 2022f just over 100 Million in 2014, is anticipated to reach
Source:  RNCOS
143 Million by 2021. These can be targeted with
nutraceuticals.

Indian Nutraceuticals Market Outlook: Vision 2022 13

yy Increasing Co-prescription with Regular Drugs:
The benefits associated with the dietary supplements
have called for a change in the traditional medicinal
prescription across various healthcare centers. The
yy Rapid Retail Growth and E-Commerce: Indian
doctors are progressively including one or more
supplements in the prescription to cure the disease
as well as provide required nourishment to the
patients. In a drug utilization study in secondary care
hospitals in Maharashtra, India, it was found that in
16% of the prescriptions, a multivitamin product
was prescribed. More so, 2% of the prescriptions
contained more than one vitamin supplements2.
yy Focus on Preventive Healthcare: At present, all the
major Indian pharmaceutical giants have ventured
into Nutraceuticals with the belief that the future is
for preventive therapy instead of curative therapy.
Awareness and emphasis on preventive therapy
has helped to strengthen the consumption of
nutraceuticals in the country. Consumers especially
from tier 1 cities are becoming progressively health
conscious viz-a-viz realizing the importance of
dietary supplements in dealing with the ill-effects of
the rapidly changing pace of life.
retail sector accounts for 10% of the Gross Domestic
Product (GDP) and contributes to 8% of the total
employment3. India’s retail market is expected
to double to US$ 1.3 Trillion by 2020 from US$
600 Billion in 2015 driven by income growth,
urbanization and attitudinal shifts4. The retail
spending in major cities of India stood at US$ 57.5
Billion. Apart from this, India is likely to become the
world’s largest budding e-commerce industry with
the significant investments and substantial number
of internet users. Indian e-commerce market will
showcase a market size of around US$ 100 Billion
by 2020 from US$ 22 Billion marked in 20155. Rise
in e-commerce growth will bolster the availability
of Nutraceuticals online by different manufacturers
due to ease and comfort.

2. Potharaju HR, Kabra SG. Prescription audit of outpatient attendees of secondary level government hospitals in Maharashtra.
3. IBEF
4. IBEF
5. IBEF

14 Indian Nutraceuticals Market Outlook: Vision 2022

 Nutraceuticals Industry Prescription Model
3 Analysis

RNCOS research team carried out surveys with gym 3.1 Insights from Fitness Instructors/
instructors, nutritionists/dieticians, and general General Practitioners/Dieticians
practitioners to understand the perception of key
influencer towards nutraceuticals. A total of 550 key 3.1.1 Awareness and its Medium
influencers were surveyed for this study.
According to the survey, majority of key influencers
(95%) were aware about the nutraceuticals. The
Figure 3-1
Key Influencers Surveyed (%), 2016 awareness varied with tiers of cities. Amongst gym
instructors, Tier-1 gym instructors were more aware
General about nutraceuticals as compared to Tier-2 and Tier-
Practitioners 3 gym instructor with a share of 98%, 90% and 85%
18%
Gym
respectively. The gym instructors were contacted from
Instructors gyms chains as well as individual gyms. Amongst them,
41%
chain gym instructors were more aware than individual
gym instructors.
41%

Nutritionists Figure 3-2

/Dieticians Awareness amongst Influencers (%), 2016
Source:  RNCOS Primary Survey 2016
Unaware
5%
The share of gym instructors in total influencers
surveyed was 41%, nutritionists/dieticians constituted
41% share, and general practitioners’share was 18%. The
gym instructors surveyed were both from gym chains
as well as individual gyms and constituted an equal 95%

share. Amongst the gym instructors, approximately

50% were from Tier-1, more than 25% were from Tier-2,
Aware
and 20% were from Tier-3 cities of India.
Source:  RNCOS Primary Survey 2016

Indian Nutraceuticals Market Outlook: Vision 2022 15

Similarly, the dieticians/nutritionists who were aware Figure 3-4
about nutraceuticals constituted a share of 100% Recommendations to Clients (%), 2016
in Tier-1 and Tier-2 cities. On the other hand, 96%
of the dieticians/nutritionists were aware about
nutraceuticals in Tier-3 cities. The general practitioners Don’t
from Tier-1 cities possessed 100% awareness as Recommend

compared to their counterparts from Tier-2 and Tier-3 39%

cities who possessed 90% awareness. 61% Recommend

Figure 3-3
Medium of Awareness (%), 2016
Source:  RNCOS Primary Survey 2016

Advertisements
1%
to their clients. According to the research, awareness
amongst gym instructors was highest for Tier-1 cities.
Own
43% Market
As a result, recommendations for nutraceuticals were
Research 56% Representatives also majorly from Tier-1 cities with a share of 71% as
compared to Tier-2 and Tier-3 cities.

Similarly, recommendations for nutraceuticals by

nutritionists/dieticians were highest from Tier-1 cities
Source:  RNCOS Primary Survey 2016
with 58% followed by Tier-2 cities with 40% share.
The general practitioners from Tier-3 cities didn’t
recommend nutraceuticals at all while from Tier-1, 67%,
Market representative visits, advertisements,
and from Tier-2, 25% of practitioners recommended
and self research were the common mediums of
these nutraceuticals.
awareness of the key influencers. From the study, it
was inferred that majority of the influencers gained
information about nutraceuticals products through 3.1.3 Reasons for Non-Prescription
market representatives. The market representatives
The major reason for non recommendation of
as a medium for awareness constituted 84% for
nutraceuticals is the side effect associated with
gym instructors, 29% for nutritionists, and 50% for
them. 68% of the key influencers do not recommend
general practitioners. 71% nutritionists, 50% general
practitioners and 13% gym instructors gain knowledge
about nutraceuticals through their own research &
study.

3.1.2 Percentage of Influencers Prescribing/

Recommending Nutraceuticals to
Clients

The study revealed that 61% of the aware key influencers

prescribed or recommended nutraceuticals products

16 Indian Nutraceuticals Market Outlook: Vision 2022

 Figure 3-5
Reasons for Non-Prescription (%), 2016
Ineffective
4%
Prefer
Natural Diet
28%
68%
Side
Effects
Source:  RNCOS Primary Survey 2016
nutraceuticals due to their side effects. Moreover, 28%
of the key influencers preferred natural diet against
prescribing nutraceuticals. Others believed that
nutraceuticals are ineffective.
Approximately 73% of gym instructors (out of total
gym instructor, who do not recommend nutraceuticals)
from Tier-1 do not recommend nutraceuticals due
to their side effects. Similarly, nutritionists also
considered side effects being a major issue associated
with nutraceuticals. According to them, overdosing of
nutraceuticals may cause long-term side effects.
3.1.4 Counterfeit Products - How big a
Challenge?
According to the nutritionists, counterfeit products
contained impure ingredients in improper quantities.
Moreover, these products also contained harmful
preservatives and steroids, which could hamper the
health of consumer. Among all the key influencers,
60% were aware about counterfeit products.
Awareness about such products was approximately
90% from Tier-1 and 83% and 80% for Tier-2 and Tier-
3 respectively amongst gym instructors. Nutritionists/
dieticians irrespective of tiers were found to be
relatively less aware about such products availability
Indian Nutraceuticals Market Outlook: Vision 2022
with 50%, 33% and 40% share respectively in Tier-1,
Tier-2 and Tier-3.
Some of the companies are selling nutraceuticals
without the approval of FSSAI, such products are also
considered to be counterfeit. For instance, according
to an article in the Economic Times in 2015, FSSAI had
recalled four protein supplements. These supplements
were known by the names of Mulmin Pro, Mulmin
Syrup, Mulmin Plus Capsule and Mulmin Drops. The
decision for recall was taken as these products were
not approved by the authorities.
In a similar incident in 2014, Police seized tonnes
of fake body buildings supplements in Delhi. These
supplements were being prepared and packaged
without any license from the FSSAI. The packaged
supplements were being sold under the names of
reputed international brands. In view of these incidents,
the Delhi government has launched a campaign
against muscle builders that are found to be laced with
steroids.
Figure 3-6
Awareness about Counterfeit Products (%), 2016
Can't
Say
21%
Not 19% 60%
Aware
Aware
Source:  RNCOS Primary Survey 2016
3.1.5 Type of Nutraceuticals Prescribed
Nutraceuticals are broadly categorized into vitamins &
minerals (tablets, capsules, etc.); protein supplements
like protein powders; energy drinks such as Urzaa,
RedBull etc.; and growth supplements.
17
 Figure 3-7 Figure 3-8
Types of Nutraceuticals Prescribed (%), 2016 Purpose of Prescribing (%), 2016

Energy Others Others

Drinks
3% Weight 5%
Growth 8% Management
Supplements 15%
11% Vitamins
& Minerals
40% Nutritional
50% Deficiency
30%
38% Muscle
Building
Proteins

Source:  RNCOS Primary Survey 2016 Source:  RNCOS Primary Survey 2016

As observed, vitamins and proteins supplements of 30% in nutraceuticals recommendation while

were the two major nutraceuticals products being
recommended followed by growth supplements, and
energy drinks. Majority of gym instructors from Tier-
1 and Tier-2, i.e., 38% from Tier-1 and 35% from Tier-2
recommended vitamin and protein supplements for
body building and nutritional deficiency fulfilment.
Similarly, nutritionists and general practitioners
from Tier-1 constituting 54% of the share and Tier-2
a share of 50% were in favour of vitamin and protein
supplements. Some of the influencers responded that
they recommend these supplements according to the
requirement and body type.
weight management had a share of 15% amongst the
recommendations.
3.1.7 Age-Group to Whom Prescribed the
Most
Age group is an important factor to be considered
for prescribing the nutraceuticals or other medicinal
products as the tolerance capacity is different for
different persons.
The study found that the age groups which were
majorly considered for recommending nutraceuticals

3.1.6 Purpose of Prescription

The survey revealed that the purposes for prescribing

the nutraceuticals were fulfilling nutritional deficiencies,
muscle building, and weight management. The other
purposes for recommendation of nutraceuticals
included increased immunity and enhanced growth,
amongst others.

According to the key influencers from all the tiers

nutritional deficiency, which includes vitamin D
deficiency, was the major issue with a share of 50%,
for which nutraceuticals were being prescribed or
recommended. Muscle building constituted a share

18 Indian Nutraceuticals Market Outlook: Vision 2022

 Figure 3-9
Age Group Preference (%), 2016
Others
(Body Type) 15-25
years
29%
33%
13%
25%
35 years
& above
25-35
years
Source:  RNCOS Primary Survey 2016
were of 15-25 years and 25-35 years. Around 83% of
the gym instructors, 45% of nutritionists and 50% of
general practitioners recommended the nutraceuticals
to people of above 20 years of age. Approximately
67% of nutritionists/dieticians from Tier-3 prescribed
nutraceuticals according to the medical condition
or requirement. The general practitioners from Tier-
2 recommended nutraceuticals to their clients and
thereby, constituting the half of the population
surveyed from Tier-2.
3.1.8 Which is better - Imported or Domestic
& Why?
During the survey, it was observed that majority of
influencers’ preferred suggesting specific brand to their
clients. Majority of the gym instructors from Tier-1 and
Tier-2 suggested both domestic as well as imported
brands. Similarly, nutritionists from Tier-1, -2 and -3 also
preferred both the brands.
Amongst the general practitioners in Tier-1 and Tier-
2, there were 100% suggestions for brands, including
both domestic and imported. The reason for brand
recommendation was the presence of duplicate
products in the market, which could be harmful
for health. Some of the influencers supported only
international brands in terms of maintenance of quality
Indian Nutraceuticals Market Outlook: Vision 2022
Figure 3-10
Brand Recommendation (%), 2016
Do Not Recommend Brand
5%
95%
Recommend Brand
Source:  RNCOS Primary Survey 2016
standards while very few supported local products,
which contained same composition as in brands.
Majority of the influencers were in favour of both the
domestic and international brands as these were known
to have minimal side effects according to nutritionists.
For instance, approximately 61% of the gym instructors,
84% of nutritionists and 95% of general practitioners
recommended both international and domestic brands.
Of, these 100% recommendations for both the brands
were from Tier-1 gym instructors, while 67% and 70%
for Tier-2 and Tier-3 gym instructors. Similarly, 100%
nutritionists from Tier-1, 86% from Tier-2 and 67% from
Figure 3-11
Type of Brand Prescribed (%), 2016
Domestic
13%
International
13%
74%
Both
Source:  RNCOS Primary Survey 2016
19
Tier-3 recommended both domestic and international Figure 3-12
brands. The results for general practitioners from Tier-1 OTC Products Recommendation (%), 2016
and Tier-2 had shown 100% recommendations for both
the brands. Recommend
2%
3.1.9 OTC Products - Good or Bad?

OTC products include nutraceuticals that people

buy directly without consulting a gym instructor,
nutritionist, or general practitioner. The key influencers
98%
were against the uptake of nutraceuticals without
consultation as their inappropriate dose may adversely
affect the health of an individual. Don’t Recommend

Source:  RNCOS Primary Survey 2016

Majority of the key influencers said that consultation
is required before consuming nutraceuticals. Only 7%
of nutritionists from Tier-1 considered that there is no
requirement of consultation for such products as these
were safe for use.

20 Indian Nutraceuticals Market Outlook: Vision 2022

 4 Regulatory Framework
Nutraceuticals, herbals and functional foods in India
are covered under the definition of food as per Section
22 of Food Safety & Standards Act, 2006. These food
products have been categorized 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 FSSAI, 2006 amended
in 2011 for registration, licensing, approval, labelling
& packaging, import, marketing & distribution,
laboratory testing like conventional food products (for
more information, http://www.fssai.gov.in/).
However, to regulate this segment, the authority
had constituted a 17-member taskforce in May 2013,
which has submitted its recommendations based on a
detailed study conducted on the market in consultation
with all the stakeholders to FSSAI in April 2015. The
recommendations comprise of guidelines for the
approval of dietary supplements and nutraceuticals
that are manufactured and marketed throughout the
country.
This move will help in checking a lot of activities that
go unaccounted in the country as of now. It has been
observed by experts that a lot of Ayush products
are currently sold under this segment directly to
the consumers. Some cite that certain products
especially those that claim to aid health benefits to the
consumers, having ingredients which usually need to
undergo a stringent approval process under the drugs
and cosmetics act gets easily available in the market as
a dietary or nutraceuticals.
Indian Nutraceuticals Market Outlook: Vision 2022
4.1 Draft Regulations
According to the Food Safety and Standards (Food or
Health Supplements, Nutraceuticals, Foods for Special
Dietary Uses, Foods for Special Medical purpose,
Functional Foods, and Novel Food) Regulations,
nutraceuticals can be defined as a naturally occurring
chemical compound having a physiological benefit
or provide protection against chronic disease.
Nutraceuticals may be prepared and marketed in the
food-format of granules, powder, tablet, capsule, liquid
or gel and may be packed in sachet, ampoule, bottle,
etc. These products have to be taken as measured unit
quantities.
The draft regulations have been compiled by the
FSSAI in 2015. These regulations intend to simplify
the manufacturing, packaging and commercialization
of nutraceuticals in the Indian market. The Draft
Regulations are presently under consultations with the
Legislative Department for legal vetting. Key points of
draft regulations are as under:
1) Essential Composition
yy The nutraceuticals may be extracted, purified and
concentrated from food or non-food sources.
yy The quantity of the nutrients to be added should
not exceed the Recommended Daily Allowance as
specified in India by the Indian Council of Medical
Research or maximum dosage.
yy In cases where standards are not specified, the
food authority may consider adoption of standards
laid down by international food standards body,
21
 namely Codex Alimentarius or the World Health
Organisation.
yy The Food Authority may enlist specific nutraceuticals
which get approved from time to time after
undertaking proper scientific evaluation.
yy Nutraceuticals, which do not have a history of safe
usage in India, may be manufactured after prior
approval from the Food Authority.
yy The purity criteria for the nutraceuticals used
shall be as determined and notified by the Food
Authority. In cases where such standards are not
prescribed, the purity criteria generally accepted
by pharmacopoeias like Indian Pharmacopoeia
(IP) or British Pharmacopoeia (BP) or United States
Pharmacopoeia (USP) may be referred or adopted
by the Food Authority.
2) Labelling
yy The labelling of nutraceuticals should comply
with the requirements as laid down under Food
Safety and Standards (Packaging and Labelling)
Regulations, 2011.
yy The labelling, presentation and advertising should
not indicate the property of preventing, treating or
curing a human disease to nutraceuticals.
yy Every package of food containing nutraceuticals
should carry the following information on the label:
»» The word “Nutraceuticals”
»» The common name of the nutraceuticals
»» The amount of active nutraceuticals in the
product that has a nutritional or physiological
effect.
»» The percentage of the relevant Recommended
Daily Allowances as prescribed in India by the
Indian Council of Medical Research
»» The term “Recommended Usage”
»» Information concerning excessive intake of the
product
22 Indian Nutraceuticals Market Outlook: Vision 2022
»» The term “Not for Medicinal Use”
»» A warning regarding any danger due to excess
consumption
3) Use of Additives in Nutraceuticals Formulations
The additives given in the Schedule VIII (a) and VIII (e)
of these regulations will be permitted for use in Food
Supplements.
4) Contaminants, Toxins and Residues
The product should conform to the Food Safety
and Standards (Contaminants, Toxins and Residues)
Regulation, 2011.
5) Claims
yy Nutritional Claim should consist of the ‘Nutrient
Content’ claim.
yy Health Claims means any representation that
states, suggests, or implies that a relationship exists
between the constituent of that nutraceuticals and
health.
4.2 Registration and Licensing of
Nutraceuticals Businesses
In order to establish a nutraceuticals business in India,
the business operator (both domestic and foreign) has
to get the business registered and obtain license for
it from the concerned authorities. The nutraceuticals
business operators in the country will be registered
or licensed in accordance with the procedures laid
down in the Food Safety and Standards (Licensing and
Registration) Regulations 2011.
4.2.1 Registration of Nutraceuticals Business
Nutraceuticals business operators have to follow
the below-mentioned steps in order to register their
nutraceuticals business in India.
yy They have to register themselves with the The nutraceuticals business operators have to keep
registration authority by submitting an application in mind the following points for obtaining license or
form along with the application fee. renewing an existing one.

yy For the registration of nutraceuticals business a

photograph and a document for identity proof like
ration card, voter ID card, PAN card, driving license,
passport, aadhar card, senior citizen card, and
department issued ID are required. Apart from these
documents, NOC by municipality/panchayat and
health NOC are also necessary.
yy They have to follow the basic hygiene and safety
requirements. Moreover, they also have to provide
a self attested declaration of adherence to these
requirements with the application.
yy The registration authority may accept or reject the
application along with the reasons within seven
days of receipt of an application.
yy The registration may be granted by the registration
authority after being satisfied with the safety,
hygiene and sanitary conditions of the premises.
yy The registration authority may issue a registration
certificate and a photo identity card which will be
displayed at a prominent place within the premises
at all times.
yy The nutraceuticals business operators have to apply
for a license in order to commence their business in
India.
yy If the nutraceuticals business operator fails to comply
with all or any of the conditions of the existing
registration or license or the safety requirements,
then the licensing authority may give directions to
them to comply with.
yy The license for the nutraceuticals business may be
granted by the Central Licensing Authority if the
Food Authority modify the list given in the Schedule
I.
yy The license for commencing or carry on
nutraceuticals business may be granted by the
concerned State/UT’s Licensing Authority.
yy The nutraceuticals business operator has to make
sure that all the safety, sanitary and hygienic
requirements at all times.
yy The license/certificate can be applied for a maximum
period of 5 years.

yy The registration authority or any officer or yy The fee structure for the license/certificate is as
agency may carry out inspection of the registered following:
establishment at least once in a year.
Table 4‑1:  Fee Structure for License/Certificate
Type of Central State
4.2.2 License for Nutraceuticals Business Application (1 year) (1 year)
Rs.5000 or Rs.3000 (above
The nutraceuticals business operators also have to New
Rs.7500 1MT per day production or
Application
obtain a license in order to commence or carry on below 1MT of production)
business in India. The process of application starts Renewal Depends on the number of
Rs.7500
with the identification of eligibility of the premise. Application years
License/
Depending on the installed capacity/turnover/ Fees of 1 year per license
Certificate Rs.7500
location, the requirement for central or state license is modification
Modification
decided. If the business operator is operating in more Duplicate 10% of the
10% of the applicable license
than one state, then one additional central license for License/ applicable
fee
Certificate license fee
head/registration office is required. However, multiple
Source:  FSSAI-Licensing & Registration
businesses in one premise are eligible for one license.

Indian Nutraceuticals Market Outlook: Vision 2022 23

4.3 Nutraceuticals Product Application Flowchart

Figure 4-1
Nutraceuticals Product Application Flowchart

FBO Registra-
tion in FPAS*

Eligibility Product Details Ingredient Additive

New Ap-
Check of the of the Applica- Details of the Details of the
plication
Application tion Application Application

Summary PDF Supporting

Application Submission of Online Pay-
of the Applica- Documents of
Reference ID the Application ment
tion the Application

* Food product approval system

Source:  FPAS User Manual for Food Business Operator(FBO)

24 Indian Nutraceuticals Market Outlook: Vision 2022

 5 Industry Best Practices
Consumers across all age groups are seeking ways to
maintain and improve their health. They are looking
for innovative products that deliver health benefits
apart from being nutritious. Nutraceuticals, being
products with all these benefits, are increasingly
gaining popularity. This, coupled with increasing
disposable income, is driving the growth of the Indian
nutraceuticals industry. For nutraceuticals companies
to gain the top spot in this market, they have to follow
some of the practices like merchandising, inventory
management, and sourcing. These practices can be a
company’s key to success. Some of the best practices
adopted by nutraceuticals industry are:
1. Full-Line and Targeted Catalogues: Full-line and
targeted catalogues that also contain detailed product
and ingredient information can be used along with
making products available through traditional outlets
such as one-to-one product sales and distributors.
This will encourage consumers to return to meet their
immediate and future needs for specific health and
wellness nutraceuticals products.
2. Inventory Control and Management: Inventory
control and management are critical aspects of
a healthy nutraceuticals business operation. The
inventory management portal must provide updated
information on what is in stock and what orders
need to be placed in order to avoid stock outs and
disappointed customers.
3. Incorporation of Bar-coding: Incorporating bar-
coding as a key component in tracking helps in accurate
and efficient receipt, counting, transfer, selling and
Indian Nutraceuticals Market Outlook: Vision 2022
shipping of products and helps to reduce inventory
carrying costs.
4. cGMPs or GMPs as Best Practices: cGMPs or GMPs
are the FDA-established good manufacturing practices
that have come to shape the dietary supplement or
nutraceuticals industry. Even though the FDA is not
responsible for enforcing these best practices, but
for companies and brand owners looking to bring
products to the market, working within current GMP
guidelines is of utmost importance. Some of the cGMPs
tips for new brand owners looking to start production
are:
yy Working with a cGMPs certified or compliant
manufacturing space is a must: Finding a cGMPs
compliant facility to manufacture a product should
be one of the top priorities.
yy Learning the rules for using GMP logos: Like
many of the seals and certificates associated
with the nutraceuticals industry, the official GMP
logo can only be used for certain applications.
Two popular options for incorporating logos are
creating a generic or in-house GMP logo that will
let customers know that the product they are
purchasing has been manufactured according to
current good manufacturing standards, and seeking
an additional NSF certification that tests and verifies
a supplement’s contents, which then allows for an
NSF seal to be included in that packaging.
yy Keeping Good Records: From batch sheets to
receipts, brand owners should keep should index
25
 any and all documentation that they receive from
their manufacturing facilities.
5. Developing Audit Standards: Audit standards are
being developed associated with the botanical raw
material GMPs. Additionally, as a sign of transparency,
creating a nutraceuticals product database will help
to give regulators essential information and better
visibility into the industry.
Obviously consumer trust in supplement brands is
vital for the industry’s long-term success, the intent
of the guidelines formulated is to continue improving
processing and protocols to ensure safety, quality,
purity and potency. Adopting standards so that
companies abide by the same procedures going
forward for identity and testing of raw materials, for
example, will benefit the industry and consumers.
Quality assurance is achieved through process creation,
enforcement, review, re-engineering and capability
building. Continuous compliance initiatives are taken
aimed at enhancing the overall quality and compliance
26 Indian Nutraceuticals Market Outlook: Vision 2022
levels at all facilities. Some of the actions taken during
the year include:
yy Sampling plan harmonization across all sites for raw
materials and excipients;
yy Harmonization of procedures such as handling of
chromatography (HPLC, gas chromatography, and
ion chromatography) analysis, across all sites;
yy Implementing common procedures for
management of validation/qualification documents
in data management system;
yy Adoption of quality management system’s ‘7
Pillar Model’. This model provides for uniform
understanding of QMS elements across the
organization, defines responsibilities of various
stakeholders to overall quality, and drives continuous
improvement program through key performance
indicators (KPIs);
yy Initiation of policies and common procedures on
data governance across all facilities.
 6 Pain Areas & Expectations of Manufacturers
yy Import of Raw Materials
Some of the raw materials used for the manufacture
of nutraceuticals are imported from other countries.
During the process of import, the raw materials are
withheld at the port by the port authorities due to
the lack of clarity between the FSSAI and the port
authorities regarding the permitted raw materials in
the country and guidelines related to them. The lack
of regulatory definitions makes the import of raw
materials time consuming and therefore, delays the
manufacture of nutraceuticals.
yy Variations in Quality of Raw Materials
India is one of the few nations that contributes a
significant share to the nutraceuticals industry of Asia-
Pacific region. This is because of the availability of raw
materials. The quality of raw materials varies drastically
because there are no regulatory definitions. This results
in the manufacture of low-quality nutraceuticals. Whole
food sources also show similar discrepancy as their
constituents show variable levels. Therefore, there is a
need for well-spelt-out regulations for raw materials so
that good quality nutraceuticals can be manufactured.
Regulations for raw materials will also help companies
to clear the quality tests for their products.
yy Disparity Among Domestic Players
In India, nutraceuticals products are manufactured by
pharmaceutical companies. These companies are also
involved in the manufacture of allopathic medicines in
the same facility. The big players in the industry control
and set trends that are followed by the SMEs. The
lack of well-defined regulations makes it difficultfor
Indian Nutraceuticals Market Outlook: Vision 2022
SMEs to manufacture good quality nutraceuticals.
Moreover, this makes it difficult for them to compete
and strengthen their position in the market which is
growing at a rapid pace.
yy Costly Process of Production
Another challenge being faced by the nutraceuticals
industry is the high cost of production of nutraceuticals.
The manufacture of nutraceuticals products requires
the use of sophisticated machinery for formulation,
processing and packaging. The cost of manufacturing
along with the burdens of documentation and
quality control are especially heavy for small- and
medium-size companies. Such companies are not
able to spread these costs to large volume production.
Moreover, the use of such costly machinery increases
the overall cost of production. Not all the companies
can afford such high costs. They require financial
backing from the government. The facility of subsidies
and loans at minimized rates are not extended to
all the manufacturers. Therefore, the nutraceuticals
manufacturers have to think twice before entering the
nutraceuticals market.
yy Lack of Awareness about Nutraceuticals and
their Benefits
The Indian community is facing threat from lifestyle-
related disorders due to the rapid pace of urbanization
and lack of awareness about proper food consumption,
essential nutrients and supplements, which are
known to rejuvenate the human body. Lifestyle-
related disorders require long-term interventions.
Such disorders can be prevented by the consumption
27
of nutraceuticals and food supplements. These
benefits of nutraceuticals have made them a hot
topic among nutrition researchers, food scientists
and food manufacturers. However, consumers still
lack awareness about nutraceuticals and their health
benefits. This limitation greatly slows down the pace of
growth of nutraceuticals market in India.
yy Lack of Standard Guidelines
The manufacture, storage, distribution, sale and import
of nutraceuticals in India are regulated under the Food
Safety and Standards Act (FSSA), 2006. The FSSAI
has consolidated a collection of earlier laws relating
to food and nutraceuticals safety and standards.
However, no concrete regulations are in force as per the
international standards. This creates confusion among
the manufacturers as they have to follow different
guidelines depending on the country to which the
28 Indian Nutraceuticals Market Outlook: Vision 2022
product has to be exported. This also delays the process
of nutraceuticals manufacturing. Nutraceuticals
companies themselves feel that regulations related
to quality and safety as per international standards
will benefit the industry and will keep a check on
unregulated practices.
yy Lack of Data or Information
The link between health claims and nutraceuticals
consumption should be based on sound scientific
evidence. However, there is not enough data
about recommended intakes and effectiveness of
nutraceuticals. Nutraceuticals are not substitutes
for actual food but only a dietary supplement.
Lack of documented information about previous
nutraceuticals also results in continued manufacture of
poor-quality nutraceuticals.
 7 Nutraceuticals Industry: The Road Ahead
yy Rapid Implementation of Draft Guidelines
FSSAI has formulated regulatory guidelines which are
specific for the nutraceuticals industry. These guidelines
are related to manufacturing, storage, packaging &
labeling, distribution, sales, claims and imports of
nutraceuticals. These guidelines once implemented
will bring clarity to the nutraceuticals manufacturers
and they can invest into the industry with no fear.
Therefore, it is of utmost importance that the draft
guidelines are implemented as soon as possible.
yy Provisions for Subsidies, Incentives, and Soft
Loans
Indian nutraceuticals industry has a great potential to
grow due to the presence of raw materials and talented
manufacturers. However, the limited amount of funds
acts as a major drawback for the new companies.
To overcome this problem the Indian government
should provide special incentives and subsidies to
emerging companies which may aid in the growth
of the industry. 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.
yy Increasing Training
India has a large pool of talented people in the
nutraceuticals sector. They have sufficient theoretical
knowledge in the field. All that they require is practical
Indian Nutraceuticals Market Outlook: Vision 2022
training to convert their theoretical knowledge into
actual work in a proper manner. If the government
increases its focus on practical knowledge starting at
school and college levels, it will help in nurturing the
talent of the people. People will better understand
the concept of nutraceuticals manufacturing and
importance of maintaining quality in this field. That
in turn will provide opportunity for streamlining
manufacturing process and improvement of quality
standards in the Indian nutraceuticals industry.
yy Documentation of Manufacturing Process
Maintenance of written records, of all the raw materials
used, manufacturing process followed and the results
so obtained, is an important practice that should be
followed by all nutraceuticals manufacturers. These
records help in identifying the source of error that
might lead to serious quality issues. It should be made
a compulsion to maintain records so that the mistakes
that are made once are rectified and are not repeated
in the future.
yy Check Counterfeit Products
Numerous cases of counterfeit nutraceuticals products
have been observed in the recent years. Counterfeit
nutraceuticals products are ineffective as they
contain active ingredients other than the required
ones. Moreover, imitations of branded nutraceuticals
products have also been found in the market. Such
nutraceuticals reach the market without obtaining
approval by FSSAI. Counterfeit nutraceuticals can
have serious side-effects on the health of an individual
on consumption. Therefore, counterfeit and un-
registered/un-approved products should be called-off
29
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.
yy Nutraceuticals Safety Testing and Training
Centers
All products, before reaching the market should go
through rigorous testing. An exponential growth has
been noticed the number of food testing labs in the
country. However, the number of relevant experts and
scientists to run these labs are limited. Government and
private players should not only improve the number of
testing centers but also focus on opening few training
institutes that can empower technical professionals to
become nutraceuticals safety experts.
30 Indian Nutraceuticals Market Outlook: Vision 2022
yy Increasing Consumer Awareness
People of India are slowly and gradually becoming
aware about the concept of nutraceuticals. There has
been a considerable shift in consumers’ perspective
toward nutraceuticals and functional foods. However,
this awareness level is still very low in India as compared
to the other nations of the world. People should be
informed that nutraceuticals are not only consumed
for meeting the recommended dietary allowance but
they also help in boosting performance and disease
prevention. This can be done by organizing workshops,
displaying advertisements and educating children
at school level. These efforts will help improving the
overall health of people of this country and also help in
developing the domestic nutraceuticals market.
Notes
 ASSOCHAM
THE KNOWLEDGE ARCHITECT OF CORPORATE INDIA

Evolution of Value Creator

ASSOCHAM initiated its endeavour of value creation for Indian industry in 1920. Having in its fold more
than 400 Chambers and Trade Associations, and serving more than 4,50,000 members from all over India.
It has witnessed upswings as well as upheavals of Indian Economy, and contributed significantly by playing
a catalytic role in shaping up the Trade, Commerce and Industrial environment of the country.
Today, ASSOCHAM has emerged as the fountainhead of Knowledge for Indian industry, which is all set to
redefine the dynamics of growth and development in the technology driven cyber age of ‘Knowledge Based
Economy’.
ASSOCHAM is seen as a forceful, proactive, forward looking institution equipping itself to meet the
aspirations of corporate India in the new world of business. ASSOCHAM is working towards creating a
conducive environment of India business to compete globally.
ASSOCHAM derives its strength from its Promoter Chambers and other Industry/Regional Chambers/
Associations spread all over the country.

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.

Members – Our Strength

ASSOCHAM represents the interests of more than 4,50,000 direct and indirect members across the
country. Through its heterogeneous membership, ASSOCHAM combines the entrepreneurial spirit and
business acumen of owners with management skills and expertise of professionals to set itself apart as a
Chamber with a difference.
Currently, ASSOCHAM has more than 100 National Councils covering the entire gamut of economic
activities in India. It has been especially acknowledged as a significant voice of Indian industry in the field
of Corporate Social Responsibility, Environment & Safety, HR & Labour Affairs, Corporate Governance,
Information Technology, Biotechnology, Telecom, Banking & Finance, Company Law, Corporate Finance,
Economic and International Affairs, Mergers & Acquisitions, Tourism, Civil Aviation, Infrastructure, Energy
& Power, Education, Legal Reforms, Real Estate and Rural Development, Competency Building & Skill
Development to mention a few.
 Insight into ‘New Business Models’

ASSOCHAM has been a significant contributory factor in the emergence of new-age Indian Corporates,
characterized by a new mindset and global ambition for dominating the international business. The
Chamber has addressed itself to the key areas like India as Investment Destination, Achieving International
Competitiveness, Promoting International Trade, Corporate Strategies for Enhancing Stakeholders Value,
Government Policies in sustaining India’s Development, Infrastructure Development for enhancing India’s
Competitiveness, Building Indian MNCs, Role of Financial Sector the Catalyst for India’s Transformation.
ASSOCHAM derives its strengths from the following Promoter Chambers:  Bombay Chamber of Commerce
& Industry, Mumbai; Cochin Chambers of Commerce & Industry, Cochin: Indian Merchant’s Chamber,
Mumbai; The Madras Chamber of Commerce and Industry, Chennai; PHD Chamber of Commerce and
Industry, New Delhi.
Together, we can make a significant difference to the burden that our nation carries and bring in a bright,
new tomorrow for our nation.

The Associated Chambers of Commerce and Industry of India

ASSOCHAM Corporate Office:
5, Sardar Patel Marg, Chanakyapuri, New Delhi-110 021
Tel:  011-46550555 (Hunting Line) • Fax:  011-23017008, 23017009
Email:  assocham@nic.in • Website:  www.assocham.org
The Associated Chambers of Commerce and Industry of India

ASSOCHAM CORPORATE OFFICE

5, Sardar Patel Marg, Chanakyapuri, New Delhi - 110 021

Phone: +91-11-46550555 (Hunting Line) • Fax: +91-11-23017008, 23017009
E-mail: assocham@nic.in • Website: www.assocham.org

ASSOCHAM REGIONAL OFFICES

ASSOCHAM Southern Regional Office
D-13, D-14, D Block, Brigade MM,
1st Floor, 7th Block, Jayanagar,
K R Road, Bangalore-560070
Phone: 080-40943251-53
Fax: 080-41256629
Email: events@assocham.com
events.south@assocham.com,
director.south@assocham.com
ASSOCHAM Western Regional Office
608, 6th Floor, SAKAR III
Opposite Old High Court, Income Tax
Ahmedabad-380 014 (Gujarat)
Phone: +91-79-2754 1728/ 29, 2754 1867
Fax: +91-79-30006352
E-mail: assocham.ahd1@assocham.com
assocham.ahd2@assocham.com

ASSOCHAM Eastern Regional Office ASSOCHAM Regional Office Ranchi

BB-113, Rajdanga Main Road
Kolkata-700107
Phone: 91-33-4005 3845/41
Fax: 91-33-4000 1149
E-mail: debmalya.banerjee@assocham.com
503/D, Mandir Marg-C,
Ashok Nagar,
Ranchi-834 002
Phone: 09835040255, 06512242443 (Telefax)
E-mail: Head.RORanchi@assocham.com

ASSOCHAM OVERSEAS OFFICES

5, Sardar Patel Marg, Chanakyapuri, New Delhi-110 021
 : 011-46550555 (Hunting Line)
 : 011-23017008, 23017009
: assocham@nic.in
: www.assocham.org

G - 199, Sector 63, Noida - 201301, INDIA

 : +91 - 120 - 4224700
 : +91 - 120 - 4224707
: marketing@rncos.com
: www.rncos.com