According to research by NRCOS, the industry, which currently stands at US$2.2bn, will grow to US$6.1bn in the next five years.
“The nutraceuticals industry in India is one of the rapid growing markets in the Asia-Pacific region. Factors like rising awareness about health and fitness, ageing population, changing lifestyle are fostering this growth,” the report said.
The market is expected to grow at around 20% per year, with market penetration particularly strong in urban india compared to rural areas.
Urban penetration is more as demand for protein supplements is increasing among the urban youth due to a rising trend towards fitness, the report said.
More international and local companies are growing the market, where FMCG and pharmaceuticals have traditionally dominated the market.
The market is divided into functional food and beverages, which account for 68% of sales, whereas dietary supplements make up for the remaining 32%.
However, the report was critical of Indian regulations towards nutraceuticals, questioning the stringency of the Food Safety and Standards Act of India (FSSAI) 2006 to guarantee consumer safety.
“FSSAI should play a significant role in defining standards to streamline the nutraceuticals market in India, which must include quality raw materials, safe manufacturing of products, health claims, labelling and distribution, and storage,” it said.