Market Intelligence
Healthcare India

India Nutraceuticals Industry

The nutraceuticals market in India is expected to grow from an estimated $4 billion to $18 billion by the end of 2025.   Dietary supplements segment constitutes over 65 percent of the nutraceutical market and is growing at a rate of 17 percent and is likely to be at 22 percent per year, especially when preventive health has become focus for all in the current pandemic.   

Currently, the Indian market imports US$ 2.7 billion worth of nutraceuticals. This sector also has opened significantly to attract foreign investments. Government of India (GOI) has opened 100 percent FDI in this manufacturing sector under automatic route, and such entities can sell their products through wholesale, retail, or e-commerce platform. The Foreign Direct Investment (FDI) has increased from US$ 131.4 million in 2012 to US$584.7 million in 2019.

Food Safety and Standards Authority of India (FSSAI) is an autonomous regulatory body established under the Ministry of Health & Family Welfare to protect and promote public health. The FSSAI is governed by the Food Safety and Standards Act, 2006, which is charged with food safety supervision and regulation.

Dietary supplements for sports use are categorized as Foods for Special Dietary Uses (FSDU), which means that the manufacturers will need to abide the FSDU regulatory policies. The link below provides information on the registration process (mostly applicable to the local manufacturers). However, the importers must ensure that they import the products as per the FSSAI standards and regulations.

An excerpt from ITA’s Country Commercial Guide - India Market Challenges.

Novel Ingredients for Nutraceuticals 
Importers of nutraceuticals must seek formal product approval for any foods, food products, or ingredients that the Product Approval Division of the FSSAI has not approved or standardized.  These products have been termed by FSSAI as “non-specified food and food ingredients.”  
The various categories of food products covered under this category are:

  • Novel food or foods containing novel ingredients, which do not have a history of human consumption in India;
  • Food ingredients that have a history of human consumption in India, but are not specified under pre-existing regulations under the Food Safety Act, 2006;
  • New additives and processing aids; and
  • Foods manufactured or processed using novel technology.

For more information, contact the U.S. Commercial Service India at: Brenda VanHorn, Commercial Attaché (Brenda.VanHorn@trade.gov)
Ruma Chatterjee, Commercial Specialist (Ruma.Chatterjee@trade.gov)