PRELUDE

Globally, nutraceuticals are gaining prominence and becoming a part of the average consumer's daily diet. The key reasons for this have been the increased incidence of lifestyle diseases the world over, increase in life expectancy and inadequate nutrition due to the current lifestyle choices people make today. In fact, in developing nations, mortality due to nutrition related factors is nearly 40 percent, underscoring the need for nutraceutical products, to balance the nutritional intake of the individual.

• "Global Nutraceutical Industry: Investing in Healthy Living" is a joint initiative between Frost & Sullivan and FICCI, to understand the current global scenario of the nutraceutical industry, laying specific focus on the European, US and Indian markets. These geographies have been selected due to the following factors:
• Europe: The European region encompasses some of the biggest names in the global nutraceutical industry, both in terms of product manufacturers and ingredient manufacturers. Further the European focus has been on innovation and new product development, and is thereby considered vital to the global nutraceutical industry.
• US: The US nutraceutical market is by far the most advanced in terms of product offerings and market penetration. A study of this market allows us an insight into how the nutraceutical industry has matured over the last decade. Moreover, the US has one of the highest scores in terms of consumer acceptability, making it crucial to study for manufacturers in developing markets.
• India: While the Indian industry is currently nascent, it has great potential and is expected to grow at a growth rate of 16 percent year on year for the next five years. This makes it one of the key markets for entry for nutraceutical product and ingredient manufacturers.

The objective of this study was to:

• Understand the market size, growth rates and drivers & restraints in each of the key regions globally
• Study the key ingredients per region along with the consumer need or want for nutraceuticals
• Understand the various forms of customisation that takes place in the nutraceutical space to suit the customer and also to capture how it differs as per region.
• Capture the various trends and developments in each of these geographies, and
• Broadly identify opportunities for growth across the value chain.

Further, we hope, this study arms you, the nutraceutical product and ingredient manufacturers, with key data and insights, to help you tackle the challenges of a nascent Indian industry and help build it into one of the key markets, globally, in the nutraceutical space.

We invite you to delve into and invest in the Indian Nutraceutical Industry, which is currently at a crossroads, poised to grow at a phenomenal rate over the next five years.

EXECUTIVE SUMMARY

Introduction

With the increase in life expectancy and subsequent increase in lifestyle diseases, nutraceuticals have emerged as a necessity for consumers, especially in developed markets like the US. Nutraceuticals are often defined as any food or part thereof which provides health benefits including prevention or treatment of disease. This definition has now broadened to include functional ingredients such as vitamins, minerals, amino acids, fatty acids and probiotics etc.

In 2010, the global nutraceutical market experienced a surge in growth, especially post the recession. The high cost of healthcare and the after effects of recession, especially in the developed world, drove consumers towards dietary supplements and functional food and beverages, in a bid to remain healthy and avoid treatment costs.

Scope

This market insight covers the global market for nutraceuticals, with specific focus on US, Europe and India and the top ingredients in those countries. This service provides an array for information including market size, expected growth rates, market drivers and restraints as well as other trends and developments in the market.

To begin with, the nutraceutical market is segmented into the following

• Functional Food and Beverages
• Dietary supplements

The study discusses the definition and applications of various nutraceutical segments. Thereafter, the study describes the in-depth activities and market dynamics of each regional market.

Research Methodology

The research methodology used by Frost & Sullivan is a combination of secondary desk research and primary interviews with participants in the market's value chain. The Primary research involved conducting extensive qualitative and quantitative interviews and discussions with Government officials, industry representatives, academicians, researchers and so on. It is likely to be worthwhile to note that detailed analyses have been carried out and conclusions reached on an overall basis. The research service is guided by rigorous analysis and judgment of experienced analysts.

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