RAJKOT: The domestic nutraceutical market could have grown five-fold by 2020 since the beginning of the current decade with possible domination by functional food and beverages segments, according to a research conducted by Ikon Marketing Consultants.
Nutraceuticals is a food containing health-giving additives.
"Indian nutraceutical market is growing at a healthy double digit CAGR of 18.46 per cent and may be worth Rs 19,500 crore in current fiscal year itself," said the research report.
Indian nutraceutical market is currently divided into three segments--dietary supplements, functional foods and functional beverages.
Ikon CMD Azaz Motiwala said that the functional beverages segment was growing much faster at a CAGR of around 21 per cent followed by functional food at 20 per cent and dietary supplement growing at 15 per cent.
"Traditionally, pharma-dominated dietary supplement has been having major weightage in market. However, recent shift in consumerism resulted in functional food and functional beverages together occupying 67 per cent majority chunk," he said.
The research pointed out that domestic nutraceutical market is highly concentrated in south India, followed by East India with leading top three states being Andhra Pradesh, Tamil Naduand West Bengal.
Mostly urban-centric nutraceutical market is gradually gaining ground in rural India with the penetration of lifestyle diseases in rural part. "Rural India occupies nearly one third of the overall market," Ikon said, adding that the penetration rate is high in urban India at 22.51 per cent whereas in rural India it is only 6.32 per cent.
"India represents merely 2 per cent of the global nutraceutical market and is way behind in terms of per capita spend of nutraceuticals with just USD 2.5 compared to global average of USD 21," Motiwala said.
As per Ikon's projection, the nutraceutical market may double in the next five years and could have risen five-fold by 2020 since 2010.