COVID-19 has enhanced focus towards preventive healthcare. According to a report by Global Market Insights, nutraceutical market size was recorded at around $396.29 billion in 2021. The growing concerns associated with metabolic syndrome, the industry is anticipated to grow at a CAGR of 5.2 percent between 2022 and 2030.
In India, the rapidly changing consumer lifestyle and increasing health consciousness amongst consumers, especially in urban regions, have led to a swift growth of nutraceuticals market in the country, a report by Deloitte revealed.
In an email interaction, Financial Express.com reached out to Ananya Agarwal, Founder & CEO at Nyumi and she talked about the company’s business, growth expectations, and expansion plans among others. Excerpts:
What is the current status of the Nutraceutical segment in India? What are its driving factors?
In India, the nutraceutical industry is currently expanding and growing significantly. Industry projections predict that India’s nutraceutical market would develop at a compound annual growth rate of 17.5%, from 2020 to 2025, reaching a value of USD 18.3 billion. This growth is expected to be even more after the attention that the issues of immunity & overall wellness have got post the pandemic. Plus, chewable candies aka gummies account for about 9% of the Total Addressable Market (TAM) of INR 65,000 crore. In such a competitive market, Nyumi’s brand performance so far is fuelled with their growth at 5X in FY23. Nyumi is transforming how women approach their health.
According to reports, 80% of Indians are micronutrient deficient. The market’s demand is being fuelled by the rising use of nutraceuticals as an adjunct therapy to conventional medical care.
Since, nutraceuticals offer a practical and all-natural alternative to improve health and wellness, the market is experiencing increased demand.
The coronavirus pandemic has led to a shift in focus on preventive healthcare. How can this be an opportunity for nutraceutical companies like Nyumi?
The Covid-19 pandemic’s turn towards preventive healthcare has created a big opportunity for our nutraceutical business. The Covid-19 pandemic has accelerated the global shift towards healthy alternatives and consumers have become more watchful. They now have increased awareness about nutrition and understand the importance of leading a balanced lifestyle. Factors such as increased access to information, changing societal expectations, and a heightened awareness of the benefits of a healthy lifestyle are driving this change.
However, it is not always possible for them to get their quota of vitamins directly from the food that they eat. This is where supplements come in.
Consumers, are now more willing to invest in products that support their overall health and wellness as they now prioritise their well-being. Furthermore, with technological advancements and increased access to information, consumers are becoming more knowledgeable about the benefits of various ingredients and formulations. We’ve leveraged this trend with our innovative product range that is approved by the Clinical Test Registry of India (CTRI).
What is the status of women’s health in India? How the nutraceutical sector is catering to the women’s health segment?
As the founder of Nyumi, I am concerned about the state of women’s health in India, where many women deal with particular health issues relating to reproductive health, menopause, and hormonal imbalances. According to the National Family Health Survey (NFHS) 2019–20, 12% of Indian women have diabetes and 23% of women have anemia. 70% of urban Indian women are nutrient deficient and this was a problem we could not ignore. The nutraceutical industry is dedicated to addressing these issues through products (supplements) designed specifically for women’s health. At Nyumi, we have created a variety of nutraceutical products that are especially made to meet the special needs of women. Nyumi’s ingredients are sourced from seven different countries to find high-quality raw materials that are most effective. Nyumi multivitamins are unique in that we – formulate keeping issues faced by Indian women by blending Indian and western ingredients together to have the best of both sciences.
What is the current product portfolio of Nyumi? Are you planning any new additions to the existing portfolio?
Nyumi is the first company that has created products that combine Indian herbs and western components in the form of vegan, gluten-free, and allergen-free gummies to address the specific problems of vitamin shortages in Indian women.
Immunity, hair, skin, sleep, and urinary tract wellness were the first product portfolio’s primary focus areas. The products have general vitamin and minerals like Vitamin A, C, D, E, B6, Selenium, as well as natural superfood extracts like curcumin and advanced western nutrients like hyaluronic acid. All products have undergone extensive Clinical Trials that are approved by the Clinical Test Registry of India (CTRI). The results on the clinical trial were as follows:
- Happy Hair gummies reduced hair fall by 74%, increased hair gloss by 129% and hair growth by 101%
- Nyumi Radiant Skin gummies increased skin gloss by 272%, hydration by 96% and reduced fine wrinkles by 77%
- Nyumi Beauty Sleep Gummies helped users fall asleep within 15 minutes, reduced stress by 93%, and improved skin glow by 200%
We are soon (in the next three-six months) going to expand our product offerings by adding more relevant gummies that address. Nyumi’s vision is to partner with women and be an everyday wellness partner for them, throughout their life journey.
What are your upcoming plans and business expectations in the current financial year? What are your market expectations?
In such a competitive market, Nyumi’s brand performance so far is fuelled with their growth at 5.5x in the previous financial year. This year, we are planning to achieve 300 per cent year-on-year (YoY) growth. 32% of our sales come from Tier 2 and Tier 3 cities. Regarding market projections, Nyumi is a player in the quickly expanding nutraceutical sector, which is anticipated to grow even more in the upcoming years because of the rising consumer interest in natural health and wellness solutions. Our analysis shows that 30% customers rebuy Nyumi products.
How has the pandemic driven the growth of D2C wellness brands like Nyumi? According to you, what will the market trends look like in the upcoming years?
The COVID-19 pandemic has significantly impacted the development of D2C wellness brands like ours. Consumers are now more concerned with maintaining their general health as a result of the pandemic. Due to the rising demand for natural health and wellness solutions, D2C firms like Nyumi, now have the chance to provide their customers with efficient, scientifically backed products. It is growing at a CAGR of 21%. The market trends for direct-to-consumer wellness companies like Nyumi will remain favourable, driven by elements like rising consumer interest in natural health and wellness products, expanding understanding of the value of preventive healthcare, and the convenience and accessibility provided by direct-to-consumer business models.
What is the scope of the Vitamin, Mineral, and Supplements Segment in India? How Nyumi is catering to the demands of this segment?
The vitamin, mineral, and supplement (VMS) segment in India is growing rapidly, and its scope is expected to continue expanding in the coming years. The market for VMS products in India was valued at approximately USD 2.1 billion in 2020, and it is projected to reach USD 4.3 billion by 2026, growing at a CAGR of around 11.3% during the forecast period. This growth is a result of the significance of preventive healthcare and the rising acceptance of health and wellness. Nyumi is catering to the demands of this segment by offering a range of science-based, natural nutraceutical products that are formulated with high-quality raw materials. Transparency and quality are two non-negotiables for the company. We work with certified suppliers, have a German company responsible for quality control, and run lab tests to ensure there are no compromises in the quality of their products. All products have undergone extensive Clinical Trials that are approved by the Clinical Test Registry of India (CTRI).
How gummies are influencing the Nutraceutical segment in India? What are the possible reasons for this influence?
In India, particularly in the realm of dietary supplements, gummies have become a well-liked nutraceutical product. Companies are creating gummies that contain essential vitamins for things like hair, skin, and nails. People have embraced this new way of getting their vitamins due to the convenience they offer. They are easy to consume, have a pleasant taste, and do not require water or any other liquid. This makes them an attractive option for consumers who are always on-the-go or have difficulty swallowing pills or capsules. Another reason for the growing popularity of gummies in India is the increasing focus on preventive healthcare. Additionally, the rising prevalence of lifestyle-related diseases such as obesity, diabetes, and hypertension has led to increased demand for nutraceutical products that can help manage these conditions. With the trend towards innovation and product differentiation, the gummies segment is expected to continue to grow and influence the nutraceutical market in India in the coming years.