Covid 19 pandemic has created the biggest seismic shift taking health and immunity to centre stage. Indian consumers have opened their wallets to fitness activities, consuming natural foods and health supplements.
There is an increasing interest from the companies and investors to enter the consumer food and Nutraceutical industry. As it promises huge growth and strong growth potential. Consumer education is the key and a digitized ecosystem need to be developed to create the right customer engagement ecosystem.
The Nutraceutical industry encompasses three main segments which include: functional food, dietary food, and herbal/natural food. Recent developments in the field of Nutraceutical and food science have specific aims at improving the benefits of functional foods. Food polymers in delivering dietary bio-actives and the Safety and Efficacy of emerging nutraceuticals in the global market are categorized as sub-tracks.
A nutraceuticals is defined as a food or part of it that provides the body with medical or health benefits, including the prevention and treatment of a disease. It is seen as a more natural way to accomplish therapeutic results with minimal side effects, and this view has propelled the discovery and production of Nutraceutical to become a multibillion-dollar enterprise. The nanoparticle-based delivery system is one of the promising encapsulation technologies for the Nutraceutical industry. It is comprised of liquid- and solid-delivery systems. Protection of food bioactive, storage stability, high loading capacity, bioactive sustainability, and controlled-release mechanism are sought-after qualities offered by encapsulation technology. Solid Nano delivery system consists of three types of encapsulation, lipid, and polymeric nanoparticles, whereas liquid Nano delivery system consists of Nano vesicle and Nano-emulsion.
The idea of sustainable nutrition is becoming embedded into all innovations by food producers and the decision-making of consumers. It is critical to the future of the planet and an essential part of strategies for companies in the food and beverage industry. This mega-trend refers to nutrition that is produced and delivered in a way that is mindful of people, the planet, and society.
The consumer’s attitude toward healthcare is changing and more people are taking responsibility for their health rather than passively accepting medical decisions. This desire to exercise individual decisions means many consumers are looking outside the traditional dependencies on pharmaceuticals, to herbal remedies and supplements. This self-medication trend will continue to boost the nutraceuticals food category. The opportunities will range from hangover remedies and energy boosters to products that ward off future ailments.
A customer embracing digital platforms on health subjects is a new reality, opening a range of opportunities for companies in the sector. Consumers have started to realize the benefits of spending today for a healthier tomorrow. In India with relatively suboptimal access to health infrastructure, this could pave the way for a new balanced model of managing health.
The Pandemic has accelerated the proactive healthcare curve, paving the way for fortified food, supplements, natural and Ayurvedic products
Diverse needs and a multitude of available solutions make it difficult for companies to decide on the innovation funnel. There are large and established needs like heart health, blood pressure, menstrual care, and allergies, but consumers have preferred adopting the medicinal route for many of them.
Our analysis suggests clear criteria for establishing the innovation bets for a company:
- – How widespread is the need? (Addressable consumer base)
- – How serious is the illness/ wellness need?
- – What is the efficacy of the preventive solution?
Product technology, solution efficacy, and medical advice of pharmaceuticals coupled with marketing, demand creation, and push-based distribution of FMCG companies.
- Companies are working hard to establish differentiated planks on the concept of inner and outer wellness. Additionally, the growing interest in natural and Ayurvedic products has encouraged companies already active in the area to assert their credentials more strongly, while also attracting the attention of players from pharmaceuticals.
- Consumer companies are keen to build their medical credentials and capabilities, with the aspiration to eventually achieve higher margins available from these products across their portfolio. They have an inherent advantage in branding, consumer market expertise, and access to mass distribution channels. However, they are still learners in the fields of scientific innovation, regulatory affairs, and medical marketing expertise. In the next five years, we expect consumer product companies to invest in demand creation and increasing consumer education using virtual equivalents of multi-level marketing (MLM), medical representative models, social media-based influencing, and direct-to-consumer (D2C) approaches.
- Nutrition and wellness categories have been attracting both strategic and financial investors and this interest has only increased with the pandemic.
- Strategic players are driven by their need to short circuit the product development lifecycle and acquire capabilities and/or channels (D2C) that some of these businesses have built. Financial investors on the other hand are attracted by the growing target market, strong unit economics, and high growth that these businesses are experiencing.
Key imperatives to unlock growth
- – Micro-segmentation based on age, gender, needs, and price to develop a more consumer-centric value proposition.
- – Create new digital opportunities across the entire value chain including personalized self-care services (tie-ups with nutritionists) and growing e-commerce platforms.
- – Humanize digitally enabled solutions.
- – Adopt a 360-degree approach to product development and brand building through the lens of an integrated physical, emotional, and mental ecosystem.
Trends that will drive the Nutraceutical Industry in the future:
- – Rise in chronic and non-communicable diseases.
- – Rising healthcare cost
- – Growing demand for convenience
Nutraceuticals in nutshell:
Nutraceutical is a hybrid of nutrition and pharmaceutical. Poor nutrition is a major risk factor for chronic diseases. Nutraceutical products play a significant role in modifying and maintaining normal physiological function that maintains a healthy human. Therefore many consumers want to take an active role in preventing illness Globally, Nutraceuticals are becoming more important as they become part of consumers’ daily diets. Through the primary research, it was established that the Nutraceutical Market was valued at approximately USD 449.5 Billion in 2021 and is projected to reach roughly USD 745.5 Billion by 2028. The Nutraceutical industry has proven to have room for growth, especially as the population ages and healthcare rises. Four strides to make it more sustainable are: Health/Nutrition, economic, environmental, and socio-cultural.