– Dr. R. B. Smarta
The nutraceutical market of India is currently estimated to be around USD 2.4bn and it is
projected to grow at a CAGR of 17%. We are now nearing the end of the year 2015 and we
have observed that the growth in nutraceutical industry world over is dependent on a
smooth functioning regulatory system, increasing consumer demands and awareness, these
are the factors that facilitate the growth of nutraceutical business. Though, at a nascent
stage, the Indian nutraceuticals is strongly positioned for growth. Some of the reasons for
India still being at a nascent stage are low consumer education and confidence, the lack of
product regulation. But now things are falling into place with setting up of concrete
regulation and guidelines and increasing awareness, confidence among the consumers.
In the future, India is poised to become one of the nutraceutical hubs with stronger
potential among the emerging markets. India is an ideal location for manufacturing
nutraceuticals products due to the immense wealth of biodiversity as well as availability of
medicinal and herbal plants, good quality produce of fruits and vegetables, this will also aid
in positioning India as a nutraceutical hub with great potential. India also has other
advantages like qualified human resources, upcoming world-class R&D facilities and varied
raw material aspects, these give our country a leading edge.
Co-existence of Phama and Nutra
The nutraceutical products are mainly associated with prevention of diseases, maintenance
of health and general wellbeing, whereas the pharmaceutical products are clearly
positioned for treatment of diseases. With the rise in new categories such as medical foods,
nutraceuticals can also be positioned for treatment of diseases but only alongside drugs.
Thus it is clear that for the overall wellbeing of an individual both nutraceuticals and
pharmaceuticals are equally essential.
The above representation depicts the need for co-existence of nutraceuticals and
pharmaceuticals for the wellbeing of humans.
Formation of clusters
In business, clusters usually refer to the hubs of innovation, where many businesses and
creative minds form a business culture that fosters development of new products.
But here we are referring to clusters vis-à-vis groups or segments.
As I have been mentioning in my earlier articles as well, the nutraceutical, nutrition & health
industry is not only transitioning but also diversifying or getting segmented into various
small clusters. Nutrition is a vast area which also involves a number of different aspects
affecting it or playing a role in it.
Now with the upsurge of various new products in the market and with more and more
companies entering and investing in the industry there has been a lot of product clutter in
the industry, which has given rise to various segments or clusters.
The consumer needs & industry have propelled these segmentations and now have a
segment for almost every target consumer group.
The ever-changing consumer trends and lifestyle along with the industry’s strategy to
concentrate on these consumer trends and deliver products based on consumers’ needs
have aided the formation of numerous small and big clusters and segments. The constant
evolution in consumers’ trends can be in some ways attributed to their response to
geographic, demographic, and scientific advancement.
– Dr. R. B. Smarta