Last Updated on January 24, 2024 by The Health Master
Nutraceutical Industry
The global healthcare industry is undergoing a paradigm shift towards preventive healthcare, driven by rising health consciousness and an increase in metabolic disorders.
This trend has led to a surge in the consumption of nutritious food and supplements to support a healthy lifestyle.
According to a report by Future Market Insights, the global nutraceutical market is expected to grow from $402.5 billion in 2022 to $1,354.2 billion in 2032, at a CAGR of 12.9% for the forecast period of 2022-2032.
However, despite India’s rich heritage in ayurveda and herbs, the country accounts for less than 5% of the global nutraceutical market, with economies like the US and China dominating the industry.
Challenges Hindering Nutraceutical Industry Growth
Several concerns, including regulatory frameworks, high tax burdens, and complex policies for commercializing nutraceutical products, have hindered the growth of the nutraceutical industry, despite increasing awareness.
Additionally, efficacy and safety issues arising from a lack of regulation and monitoring by government agencies have led to skepticism about nutraceutical products.
Furthermore, the majority of consumers prefer products that have not been genetically modified, making formulation or synthetic sourcing a significant challenge for the nutraceutical industry.
Measures for Driving Growth in the Nutraceutical Industry
Despite the challenges, nutraceutical players are leveraging modern technologies to drive growth in the sector such as:
- Artificial intelligence (AI),
- Robotic process automation (RPA),
- Edge computing,
- Internet of Things (IoT),
- Gene editing,
- Microfluidics, and
- 3-D printing.
For example, AI is being used for quick ingredient selection, recommending personalized nutrient formulations, and estimating demand.
RPA is boosting productivity, lowering costs, improving performance, and accelerating product marketing for nutraceutical manufacturers.
The Indian government is also working towards creating a conducive environment for the nutraceutical industry.
In 2021, a task force was set up to transform India into a $100 billion nutraceutical market by 2030.
The government is also planning to establish R&D parks dedicated to nutraceutical to facilitate robust research and development and an innovation ecosystem in the nutraceutical space.
Bringing competitive taxation policies for nutraceutical, such as giving them the same status as pharma and rationalizing GST in the range of 5-10% on nutraceutical products, is another measure to foster growth in the industry.
The government can also support R&D in nutraceutical through the PPP model and include nutraceutical under the National Medicinal Plants Board scheme to encourage backward vertical integration.
Amending the Biodiversity Act will further promote backward integration in nutraceutical companies.
Opportunities for Nutraceutical Entrepreneurs
The nutraceutical industry in India is poised for rapid growth in the coming years, with tremendous opportunities for nutraceutical entrepreneurs.
The Indian nutraceutical industry will continue to witness phenomenal growth and evolve as a global hub, with preventive healthcare being a top priority.
The formulation of a Product Linked Incentive (PLI) scheme with an integrated approach for the nutraceutical sector will significantly boost agriculture and the value chain of nutraceutical products.
Conclusion
Overcoming the challenges faced by the nutraceutical industry will require a concerted effort by nutraceutical players, the government, and other stakeholders.
Embracing modern technologies, creating a conducive environment, and incentivizing nutraceutical entrepreneurs will drive the growth of the nutraceutical industry and transform India into a global hub for nutraceutical products.
Sanjaya Mariwala, Executive Chairman and MD, OmniActive Health Technologies and President, Association of Herbal and Nutraceutical Manufacturers of India outlines the opportunities in the nutra sector and the factors driving growth in the sector.
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