High prices of nutraceutical products, the absence of regulatory rules being framed by the Food Safety and Standards Authority of India and limited safety checks are hurting the growth of the country’s $1.0 billion nutraceutical market, says a study by industry chamber FICCI and global consulting firm Ernst & Young.
The study pointed that although one kg salt costs Rs 11, the price was 73 per cent higher for its low sodium variant. On the same lines, one kg flour costs Rs 18 but its nutrient fortified mix is priced 139 per cent higher. Similarly, a chilled beverage is priced at Rs 20 but an energy drink is available at a price 350 per cent higher.
Though the industry has been growing at a compounded annual growth rate of 18 per cent for the last three years, the latent market potential in India is two to four times the current market size with almost 148 million potential customers, the study said. The Indian nutraceuticals market is a mere 0.9 per cent of the total global market size of $117 billion.
Globally, this market is expected to reach $177 billion in 2013 growing at a CAGR of 7 per cent driven by the fast growing dietary supplements category.
The study suggested that in order to tap a huge latent potential market, the Government should lay down rules to govern quality of nutraceutical products, ensure implementation of these rules, ensure availability of resources and encourage R&D in the field of nutrition.