Global Botanical Extracts Market was valued at USD 4.57 billion in 2019 and is projected to reach USD 8.51 billion by 2027, growing at a CAGR of 8.7% from 2020 to 2027.
Indian herbal extract market is expected to reach over INR16,000 crore by FY 2022.
Regulatory dynamics in Indian botanical sector:
Botanicals have been used in a number of formulations in India, including traditional medicines, Nutraceuticals, dietary supplements, etc. The regulatory framework for pharmaceuticals is well established and organized. However, the regulatory system for traditional medicines and other plant-based products is still evolving and not much organized.
In India, Food and Drugs Administration, Food Safety and Standards (Health Supplements, Nutraceuticals, Food for special dietary use, food for special medical purpose, functional food, and novel food) regulations, 2016, Drugs and Cosmetic Act 1940, Ministry of Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homoeopathy (AYUSH) and several allied bodies are responsible for the regulatory provisions for herbal health products and foods.
As the regulatory framework is not very rigid, many constraints are faced by Indian herbal market right from formulations to sales and marketing of these products.
Japan and China mainly use the term health food, but with different regulatory processes. The general concept of health food is that the food contains nutrient as well as health benefits. Thus, some permitted health-related claims can be made. In Japan, health and nutrition claims handled separately, processing via different regulatory route while, in China, the claims are restricted to the pre-defined twenty-seven health claims.
Following excel sheet gives an overview of regulatory dynamics of botanicals in India as well as two Asia-pacific markets- China and Japan.
Risk of food fraud in India and present traceability mechanisms:
According to the authentication solution providers’ association (ASPA) state of counterfeiting in India 2020 report, overall counterfeit incidents in India rose by 24% y-o-y between 2018 and 2019 especially for food and beverage items.
FMCG sector is most vulnerable as counterfeit incidents in the sector increased by 63% between 2018 to 2019. This counterfeiting includes adulteration, smuggling, trademark infringement, packaging and labelling fraud and manufacturing of products that purposefully closely imitates the appearance of an original product to mislead a consumer.
Most counterfeited food and beverage items in India are – cumin seeds – made from stone powder and broom bits), mustard cooking oil and ghee. Illegally produced liquor.
Moreover, in herbal sector, unauthenticated plant materials and issues arising due to substandard variety of plant material in health foods and medicines is one of the biggest matter of concerns in India.
However, as the new advancements in research and technologies are taking place, traceability mechanisms for herbal material are evolving which might result in promising footprints in Indian botanical sector.
Following excel sheet gives an overview of food fraud scenario in India and present traceability mechanisms employed.
Trend and promising ingredients in Indian botanicals:
One of the most promising trends in Indian botanicals are herbal immunity boosters. Owing to the increasing prevalence of lifestyle-diseases and the pandemic scenario, Cure-to-care shift can be seen in India. Increasing awareness about health concerns driving the growth of herbal health products in India.
Following excel sheet gives an overview of some trends which can be seen in Indian botanical market along with some promising immune health boosting herbal ingredients which can gain high demand in coming years.