Nutraceuticals, get it right from the start

Global spending on well-being products and services promoting health, nutrition, fitness and appearance totalled an estimated $2 tn in 2024. If the world is splurging to feel good, India can't be far behind. Here, the supplements sector is expected to expand to nearly $57 bn by 2030, reflecting a CAGR of 10.50%, spurred by rising consumer awareness, ecommerce proliferation, increasing concerns around lifestyle diseases, and lack of balanced nutrition. 'Nutraceuticals' are the bridge between pharmaceuticals and personal care. Big FMCG boys like Unilever, Nestle, P&G and Marico are scrambling to scoop up science-backed brands and bulk up their share of supplements, even as traditional drugmakers plan to hog the turf with PE investors taking mega bets. Expect scaling up and consolidation to intensify.

But unlike chemistry-based prescription drugs that fall under the scrutiny of CDSCO and state drug control authorities, 'not for medicinal use' nutraceuticals fall under the FSSAI's purview. The latter's less regulatory strictness has catalysed a long list of brands, including those focused on emerging sub-categories like 'mushroom-based supplements'. Developed markets in the US and Europe, with streamlined supply chains and sales channels, offer natural checks and balances across stakeholders. India needs to stay sharp with a specialised regulator, greater emphasis on product registration, permissible ingredients, claims and quality standards. Ayurvedic ingredients, formulations and IP could add another layer of complexity, especially regarding heavy-metal contamination, making robust raw material-testing and finished-product efficacy critical for credible players.

Adulteration of nutraceutical products through inclusion of undeclared pharma ingredients has become a global headache. Such products can contain pharmacologically-active substances without appropriate disclosure, creating significant consumer-safety as well as regulatory and reputational risks. India needs to nip this in the bud that's already bursting at the seams.