Increased demand for preventative healthcare has led to exponential boom in nutraceutical business: Dr. Vivek Srivastav, Senior VP, Zeon Lifesciences | The Financial Express

Increased demand for preventative healthcare has led to exponential boom in nutraceutical business: Dr. Vivek Srivastav, Senior VP, Zeon Lifesciences

As India gears up for its upcoming 2023 budget, the nutraceutical industry is hoping for a boost in the form of increased government support, Dr. Vivek Srivastav told Financial

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Dr. Vivek Srivastav, Senior VP, Zeonlifesciences (

After COVID-19, preventive healthcare has become a priority, and consequently, the nutraceuticals sector is growing. According to a report by Nutrify Today, 2020 was a game changer, as the industry’s growth rate made a quantum leap from the predictable trends of 10% to over 26% during the COVID-19 pandemic, eventually stabilising since late 2021 at 16-18%, surpassing global industry trends.

The pandemic has accelerated the momentum manifold in getting consumers to adopt a healthier lifestyle.

According to a 2022 EY report, the dietary supplements market In India grew at a double digit compound annual growth rate of 15% to reach Rs. 331 billion in FY21. As of 2018, Indian nutraceuticals market constituted nearly 2% of the global nutraceuticals market. It is expected to grow rapidly and account for 3% of global share by 2022.

According to experts, beauty trends among the youth are also driving growth in the wellness space, part of which are nutraceuticals containing elements like biotin, collagen and curcumin.

Financial reached out to Dr. Vivek Srivastav, Senior Vice President, Zeon Lifesciences and he talked about the scope and potential of the nutraceutical sector in India, budget expectations of the sector, trends among others. Excerpts:

What is the current status of the Nutraceutical segment in India? What have been the recent advancements in this sector?

Nutraceutical industry is closely associated with preventive healthcare that has contributed immensely to the growth of this sector in India. Multi-vitamin capsules, chewable tablets, and gummies are a few examples of the flexible shopping habits of consumers of healthcare products that are paving the way for the expansion of the nutraceuticals market across the lengths and breadths of India. The figures show that 15% of Indians are undernourished, and nutraceuticals can be an essential aspect to eradicate malnutrition and bridge the gap between government initiatives and the undernourished population.

Recent advancements lead by biotechnology trends like microfluids and synthetic biology are driving the explosive expansion of nutraceutical sector. Since 2020, the Indian nutraceutical market has grown enormously. An analysis by the International Trade Administration projects that by the end of 2025, the nutraceuticals market in India will be worth USD 18 billion, with dietary supplements accounting for 65% of the market.

According to the report carried out by Market Data Forecast, the Global Nutraceuticals Market is expected to reach a value of 722.49 billion USD by the end of 2027. What are your expectations from the Indian market?

If I talk about how India will match these values, there is a lot of potential that I can see in terms of health products because nutraceutical products are in demand by consumers; they are becoming more and more aware of their health and concerned about their lifestyles, so overall the wellness sector, and especially the nutraceutical sector, is going to grow. My expectations from the Indian market are that there might be a lag of 10 to 15% to match these values. But It is going to be exponential in the upcoming 5 years. The market is expanding at a CAGR of 13 to 14%. 

The dietary supplements market in India is valued at USD 3924.44 million in 2020 and reports say that it will reach USD 10,198.57 million by 2026 which is a 22% growth rate year on year. How do you see this trend?

Dietary supplements come under the category of nutraceuticals because there is no established category for them now. So, as I mentioned in response to your previous question about the value, food supplements and other categories are not included. Nutraceutical is the fastest-growing sector; this is something that is going to cover a major and larger part of the growing business in terms of nutrition, so I completely foresee that the dietary supplement/nutraceutical market is going to achieve the value that is mentioned.

After the pandemic, there has been a shift towards preventive healthcare. According to you, has this focus on preventive healthcare played any influential role in the growth of this segment?

The increased demand for preventative healthcare in the post-pandemic globe has led to an exponential boom in the nutraceutical business. People now priorities their well-being and understand the importance of good health. To prevent health ailments, people have started to adopt conscientious lifestyle habits and eat foods that improve immunity. Where India was earlier accounted to only 2% of global market for nutraceuticals, by 2023, the nation forays to have at least 3.5% of the worldwide market share. The key driver of the segment’s growth is anticipated to be the increasing relevance of preventative healthcare brought on by the pandemic.

What are your business plans and expectations from the India market?

The trend in the B2B market indicates that most companies that are not in the nutraceutical industry are introducing nutraceutical products; even the pharmaceutical industry is doing so. We have a large reach as one of the largest manufacturers (Zeon), and we believe that if they intend to merge the product into a nutraceutical, I have high expectations from them.

Probably the categories are the type of product that we develop and manufacture, as well as the facility that we will match to that requirement. If I talk specifically about the protein segment, especially in sports nutrition, many products can come in sports nutrition, and going there they have to manage the weight, sports injuries, and possibly the athlete’s performance as well. These are the major categories in which I expect other nutrition companies to emerge, as well as companies that are not currently in nutrition but may develop clinical nutrition products or medical nutrition products such as cancer nutrition, diabetic management, or kidney disorders, so sports nutrition, clinical nutrition, or medical nutrition are present. In the general wellness category, I’m not considering it major-driven, but it’s going to be one, now the cosmeceutical industry is also the one where the nutricosmatic is getting attraction from the market. As a result, we anticipate that whatever product we develop will be marketable. That’s positive from my side.

Are you planning to diversify your existing portfolio? Can we expect some new product launches in the upcoming financial year?

Yes, of course, we are working on a new product launch. We are focusing on cardiac wellness at the moment, but in the future, we will need to work on liver disease. We will also be working on Nutri cosmetics. Innovation in zeon will be continued and, I’m taking care of that particular department, as a team we are working on them. Without innovation or not coming up with new products, we cannot attract the market. Potential can be one thing that can come from value but utilizing and exploiting that potential is only possible when we have innovative productions. We can launch it in the future.

How did India’s nutraceutical/healthcare supplements industry perform in 2022? What will be its scope in 2023?

India is positioned to lead the world in nutraceutical industry as Indian population has started to believe in immunity-boosting supplements, which has significantly changed consumer and market behavior. The Indian nutraceutical market was worth 260 billion Indian rupees in the year 2017. This was estimated to go up to 650 billion rupees by 2022, indicating a high growth potential in the sector. It is expected to reach USD 11 billion by 2023, increasing at a CAGR of 21%.

Ahead of the upcoming budget, according to you what is the industry’s expectation?

As India gears up for its upcoming 2023 budget, the nutraceutical industry is hoping for a boost in the form of increased government support. Nutraceuticals are gaining much attention in India, as they are seen as a viable solution to address the growing health issues in the country. Industry can expect more on the processing, as government of India is already supporting processing and food processing Industry. This sector is going to be the segment which is being strongly supported by the government in future ahead. Probably the PLI (production link incentive). The industry is hopeful that the government will recognize the importance of nutraceuticals and make the necessary changes in the upcoming budget to help the industry grow and flourish.

How nutraceutical companies are focusing on senescence? What is the trend in India?

Nutraceuticals are gaining popularity in India as an effective solution to combat the effects of aging, or senescence. Nutraceuticals are defined as dietary supplements, foods, and beverages that are fortified with additional health benefits. They are gaining traction in India due to their ability to improve overall health, quality of life, and reduce the effects of aging. Nutraceutical companies in India are focusing on senescence and are looking for ways to incorporate nutraceuticals into their product offerings.

These companies have identified specific ingredients, including vitamins, minerals, antioxidants, and other active compounds, which can help to fight the effects of aging. These ingredients are used in the form of dietary supplements, functional foods, and targeted beverages. One of the major trends in the nutraceutical industry in India is the focus on natural ingredients as opposed to synthetic alternatives. This focus is due to the fact that natural ingredients are better able to provide the desired health benefits with fewer side effects. Natural ingredients are also more likely to be more sustainable and have a lower environment.

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First published on: 21-01-2023 at 10:00 IST