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Nutraceuticals industry growing at 25% annually during pandemic: Srivastava
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Shardul Nautiyal, Mumbai
September 02 , 2020
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The Indian nutraceuticals industry has been growing at 25% annually during the pandemic. The Foreign Direct Investment (FDI) has also increased from US$ 131.4 million (FY12) to US$584.7 million (FY19), according to Amit Srivastava, chief catalyst, Nutrify India.
Besides this, the global market in the nutraceuticals space is estimated to grow at a CAGR of 8% in five years from now till 2025 and reach Rs 37 lakh crore. The market mainly consists of vitamins, minerals, health supplements, paediatrics and proteins. Of these three categories, the vitamin and minerals supplement space constitutes a good 13% of the total nutraceuticals market.
The nutra formulations growth internationally is mostly augmented by the startup and mid-sized nutraceuticals and pharmaceutical companies.
But now, with Covid-19 and the acceptance of nutra care rooted in Indians as preventive care, our country is in focus with many companies lining up to foray into the market, remarked Srivastava.
Nutrify India was launched with the agenda to expand the business opportunities that exist in the nutraceutical space in India. It aims to help nutraceutical companies reach their potential to combat health issues in India. India is a mature market for the opportunity of nutraceuticals to grow in. Thinking of which, why not garner this opportunity to get foreign investors for India who want to avail of the population dividend of India? At this point in time, especially since the pandemic of Covid-19 has set-in the awareness of nutraceuticals as preventive care is the core focus, he added.
The company helps nutraceuticals companies to invest in India, assist them in expansion and help them optimise their revenues through the economies of scale available through a burgeoning population in India. Broadly speaking, the company aims at connecting innovations in the space through common factors like markets, know-how and capital. It helps startups find the right market price for their product, check for product quality before developing a market strategy for penetration and develop better health outcomes through nutraceuticals.
The Indian nutraceuticals market accounts for about 2% of the global nutraceuticals market. This market is growing fast at a CAGR of 15.8% and is likely to be at 22% per year post-Covid-19. It is projected that the India nutraceuticals market will reach Rs 1.54 lakh crore by 2025. Currently, the Indian market imports more than it exports; US$1.5 billion in exports and importing US$ 2.7 billion worth of nutraceuticals.
This indicates a trade deficit. This gap can be plugged with emerging standardised supply chain systems like farming supply chain company called Frizzle Foods that can enable India to be a quality supplier of fingerprinted nutra ingredients and plug in the existing gap between US$1.2 billion exports in ingredients to current market size of US$157 billion, said Srivastava.
“A few Indian players exist in this space, like Sami-Sabinsa group, Omniactive health technologies, Synthite, Vidya Herbs etc. The Indian nutraceuticals formulations market is slowly expanding into Western markets with disruptive nutraceutical delivery technologies like Aavishkar Pharma with its nano nutraceuticals delivered through sub-lingual strips, Pulse Pharma with its nano Vitamin D, Zeon Life Sciences with their nano curcumin shots, etc, he explained.
The company is growing very fast and is expected to contribute at least US$ 150 million to the Indian economy by 2023. This is through the global commercialisation of at least 3 major inventions per year. It is through with a contractual agreement with Euro Alliance which has already opened an office in Lausanne in Switzerland. Innovations being commercialised by Nutrify India are all slated for entry in Europe by October 2020. It is in further talks to start operations in USA by mid-2021
We have worked with a farming supply chain company called Frizzle Foods to evolve them into fingerprinted, block chain technology and enabled exports of high end nutra extracts. With enabling Frizzle Foods, Nutrify India plans to put Indian nutra requirements commerce on international map and accelerate closing the big gap of current exports to global potential and also plug in the trade deficit I spoke about earlier, under the new "Atmanirbhar" drive. This initiative will make a paradigm shift where India will move from being a botanical garden of the world to a high-end hub of nutra ingredients, added Srivastava.
Coupled with this, the company is also aiming to expand Nutrify India under the pet project, the I2C (Idea to Commercialisation) drive. This will present cloud- based enterprise solutions enabling B2B deals that currently operate on the brick and mortar model globally. This will be a game changer for us to establish ourselves on the global nutraceuticals landscape.
Convergence is the road ahead for most businesses. The demand for high bioavailability formulations with clinical efficacy is high. This is making the nutraceutical industry adopt principles of pharma in standardising their clinical trial protocols and applying principles of pharmaceutics in effective formulations and also creating analogues, informed Srivastava.
Nutraceuticals, on the other hand, has started converging with the AI and devices industry to deliver tailored nutrition. With the onset of Gomixfit or Lifefuels or Biozoon 3D printers, nutraceuticals will espouse the principles of pharmaceutical technology to enable itself as effective delivering personalised nutra provisions for better wellbeing outcomes.
Grossly, the Indian nutraceuticals market has shot to 25% growth from an average of 12% growth per annum. It is estimated that the market will remain charged post- Covid and will settle down to 20-22% growth per annum.
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