Impact Of Covid-19 On The Indian Nutraceutical Sector
Nutraceuticals has its constitutional pillars very deeply entrenched in ayurveda. Ironically, India the land of ayurveda has had a low consumption and compliance of nutraceuticals (as low as 14%). Surprisingly, nutraceuticals met low acceptance as an industry despite a large section of the population in India firmly adopts traditional cure. The nutraceuticals industry also found itself constantly on the edge over regulatory matters in the Indian market.
The Indian nutraceutical market is two percent of the global market pegged at $388 Bn. The current pandemic has nudged the ecosystem in India to polarize thoughts towards importance of preventive health. The long-awaited dawn for nutraceuticals is on the horizon. The impact of COVID-19 on the nutraceuticals industry in India has been discernable.
India has 108 large contract manufacturers in nutraceuticals but none are able to tap into international projects. The Indian economy is expected to touch $10 Tn as a market by 2030, which is a quadrupling growth. Most of the Indian nutraceutical companies operate on the "cookie cutter" model. India's export in nutraceuticals is below $ 1.6 Bn (both, ingredients and formulations together). That's insignificant even-handedness in the global nutraceuticals market of $387 Bn. India imports active ingredients and formulated nutraceuticals of $2.8 Bn.
To expand India as nutraceutical hub and to explore the opportunities for expansion which will deliver world class high science nutraceutical products to serve the needs domestically and to contribute respectably in the international nutraceutical space.
India has 150 million people who are actively engaging in nutraceutical consumption and in the stage of experimentation and trying to see if its suits their physiology and body type. This section of population has taken growth from 12% average to a high of 25%. 10 Mn people in India are from the super health conscious community with compliance rate of 75%. Growth contribution from this community has been 18%. Otherwise, it's mostly stable before and after the pandemic. Rest of population has shown a marginal growth from 6% to 10%.
The "new normal" of growth trend is forecasted to be 30%-50% higher than the old normal before pandemic. People are expected to accept nutraceuticals as a way of life leading to a betterment of health leading to this growth spurt.
The pandemic is also the foundation stone of the start of the end of substandard nutrition, invalid claims, and smart marketing phrases that potentially mislead the consumers. ICMR and FSSAI have now been on non-negotiable terms with the claims and are demanding clinical validation of the products. ICMR has rolled out a large clinical study on Ayush ingredient for immunity. It's being tested on over 10,000 police personnel. As stricter stance by the government to control and examine the ingredients that are consumed by its citizens is a righteous step wards a qualitatively healthier India
Nutrify India recently conducted an interview with over 50 leading medical doctors of India to understand their take on nutraceuticals after the pandemic. The interview led to conclusion that there has been a 20% increase in prescription trends of nutraceuticals inclined to immunity and gut health. With the new normal in the ecosystem of nutraceuticals in India, the proposed target of $18 Bn by 2025 now stands corrected to $20.6 Bn. The good news is that this change is here to last with a long term positive potential for its market and consumers.
The Digital Stance
India was always an attractive market for online nutra space. Pandemic changed the dynamics completely. Adoption of digital purchase of nutra has gone multi-folds. Digital nutra brands are here to stay and shape the nutra industry. From $4 Bn markets, $1 Bn was online which is expected to double up by March 2021. This is phenomenal growth. Etailers will have to arrange responsible nutrition philosophies and severe compliance to FSSAI to ensure the right products make way into the stores with strong monitoring of reviews posted for products.
The pandemic has highlighted the rightful use of nutraceutical as a preventive cure. Justice has been delivered. And, going forward, hopefully, the Indian nutraceuticals industry will get its rightful place in global healthcare and medical space.