Feasibility & Market Research Study to Start a Nutraceutical Business in India

The Indian nutraceutical market is undergoing robust growth valued at USD 8.1 billion in 2022. As per Statista, the market is growing at a CAGR of 22.4% and is poised to reach USD 18 billion by 2026. The market is driven by rising health consciousness and a focus on preventive healthcare. Other factors boosting the market spike include rising disposable income, the aging population of India, and post-pandemic health awareness.

The market is divided into segments like dietary supplements, herbal supplements, and functional foods.

• The dietary supplements contribute a major portion to the nutraceutical market. The vertical had a market size of USD 3.9 billion in 2020 and growing at a CAGR of ~22% the market is projected to reach USD 10.1 billion by 2026 (source: MoFPI). These supplements include vitamins like plant protein, vitamin C, Vitamin D & omega 3; minerals like calcium & magnesium; and fibres like probiotics & amino acids. Indian consumers are aggressively looking for such immunity-boosting supplements which led growth of vitamin tablets, chewable tablets, and gummies.

• The Indian herbal segment reached USD 2 billion in 2024 growing at a CAGR of 5.4%. According to the Ministry of Food Processing India (MoFPI), the herbal supplement market is set to contribute 30% to the nutraceutical market in future. The market growth is attributed to the increasing shift towards natural and organic products. Major players in the segment include Himalaya, Patanjali, Dabur, and Baidyanath Group. The export value of herbal and ayurvedic supplements from India was valued at USD 651 million in 2024. Feasibility study advisory for nutraceutical businesses in India is becoming crucial as the market caters to a wide range of supplements including Ashwagandha, Triphala, Giloy, Chyawanprash, Arishtas & Asavas, Herbal extracts, Herbal oils, Herbal juices, and many more. The Indian herbal market is actively integrating technology into its operations using e-commerce and digital marketing.

• The functional food segment is witnessing rapid expansion driven by the demand for healthy snacking, immunity-boosting, and nutritious food additives. Growing at a CAGR of 10% the market is expected to reach USD 2.5 billion by 2030. Traditional functional foods include nuts, cereals, legumes, dairy products, meat, etc. Snacking bars were the fastest-growing segment. There is a surge in demand for clean-label and free-form goods. Products with no artificial additives and less sugar have been gaining popularity among Indian consumers. Manufacturers are actively adapting to these trends by adapting transparency into their production operations.

Market Growth Drivers:
• India’s elderly population has been a major growth driver for vitamin and herbal supplements. The aging population of India faces problems like heart disease, diabetes, and obesity which creates a lucrative opportunity for nutraceutical providers.

• Increased health consciousness coupled with rising internet penetration created awareness regarding preventive healthcare. This led to higher demand for naturally sourced dietary supplements and functional foods.

• Business plan for healthcare startups is gaining traction as technological advancements in various fields like Artificial Intelligence (AI) and Data Science have been revolutionizing the industry. AI enables features such as analysis of genetics, health records, eating habits, and dietary requirements, further helping in personal customized solutions for consumers. These practices have been making nutraceuticals more appealing to a wider range of audience.

• India’s herbal supplement landscape is driven by the country’s rich and diverse Ayurveda heritage. India’s unique geography supports the cultivation of over 1700 medicinal plant species, giving it an edge in the global market. As a result, India exports more than 40% of its herbal products each year.

• Government of India (GOI) has been actively launching initiatives to improve the nutritional standards of the country. For instance, the government allowed 100% FDI in nutraceutical and food supplement manufacturing which attracted significant foreign capital. The FDI inflow increased from USD 131 million (2012) to USD 584 million (2019) which indicates the growth potential of India’s nutraceutical market.

Competitive Landscape:
India’s nutraceutical market experiences a mix of established players and emerging brands. Dabur India leads the segment with a portfolio of over 250 herbal & Ayurvedic products and a global presence across 120 countries. The brand generated a revenue of USD 1.13 billion in 2024. Pharmaceutical brands like Abbott India also leverage the nutraceutical space with products like Ensure, Glucerna, and Pediasure providing consumers with nutrients.

Himalaya, with a strong focus on herbal and wellness supplements, generated a revenue of USD 430 million in 2024. The brand presents well-diversified products with a global reach in more than 100 countries. Amway, a leading direct-selling brand, also caters to nutritional supplements, further contributing to the competitive landscape. Traditional Ayurvedic brand, Baidyanath, gained popularity with their diverse offerings of herbal medicines, herbal skin care products, and health supplements. The brand manufactures more than 700 products at affordable prices. Neuherbs, Plix, Fast&Up, and Well Being Nutrition are some other emerging brands marking their presence in the segment.                                   

           

                             
Health supplement and nutraceutical sector market research services reveal that the market is further divided into organized and unorganized sectors. The organized sector includes all the major brands providing standardized products with a strong focus on quality. Whereas the unorganized sector offers competitive pricing and caters to regional preferences. The organized players dominate urban areas, on the other hand, local manufacturers and traditional practitioners have a strong hold in rural areas.

Also, the rise in online shopping and e-commerce platforms has provided consumers with easier accessibility, increasing the competition. Dominant brands are adapting the trend with a strong online presence and effective digital marketing strategies to expand their consumer base. As health supplement and nutraceutical sector market research services suggest, this competitive environment continues to evolve with innovations, consumer demand, and market dynamics driving future growth.

Future of the Nutraceutical Market:
The future of India’s nutraceutical market is poised with substantial growth driven by rising disposable income and increased spending on preventive healthcare. India’s contribution to the global market landscape has also witnessed a hike rising from 2% market share in 2020 to 4% in 2024.

Many major companies are planning to enter the lucrative Indian market, as it presents a compelling growth opportunity. Nutraceutical companies are also promoting their supplements with a strong emphasis on preventive healthcare which further boosts the market demand.

Additionally, brands are focusing on innovative ideas like quality control, transparency, and competitive pricing. Currently dominating the supplement market with a 67% share, nutraceuticals are outpacing pharmaceutical-dominated options. Market research & feasibility study services for healthcare industry are becoming increasingly essential as R&D investments and the introduction of new ingredients will be crucial for the continued & balanced growth of the industry.

Overall, increased consumer awareness, competitive landscape, and introduction of technologies like AI and data science indicate a bright future for the Indian nutraceutical market.

Feasibility Study Services for Nutraceutical Businesses in India
The Indian Nutraceutical sector will continue to grow vigorously in the foreseeable future with increased participation from business owners and investors alike. Alongside healthcare start-ups & niche businesses; mainstream pharma, personal care, and wellness brands will also aggressively venture into the space.

This will also fuel demand for custom-made market research & feasibility study services for healthcare industry, consumer market surveys & tailor-made market insights focused on the segment. This is where research advisory such as The India Watch comes into play, with curated feasibility and market research services. The scope of study will include but not be limited to the following. For any further information feel free to drop us a mail at info@theindiawatch.com 

•  Market size of the industry, past trends & future projections
• Market share analysis: organized vs unorganized, franchise vs company owned, beverage sales vs food sales, etc.
• Key competition, capacity, USP, growth plans, etc.
• Major investments, merger & acquisitions, fund raise, etc.
• Major customer segments, needs & wants, market gaps, etc.
• Customer decision making journey mapping
• Potential assessment & market scanning
• Pricing benchmarking & strategy 
• Go-to market strategy
• Sales and marketing strategy 
• Policy & regulatory insights, subsidies, incentives, etc. 
• Location analysis (if needed)
• Addressable market size estimation 
• Financial projection and plan, ROI, ratio analysis, sensitivity analysis, etc. 
• SWOT analysis
• Key success factors, growth enablers, risks & challenges
• Future growth roadmap based on the overall research

 

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