Inside India’s Booming Nutraceutical Market: Fueling the Next Wave of Health & Wellness
India’s nutraceutical market is rapidly evolving, driven by new, targeted products addressing specific health needs such as immunity, gut health, and lifestyle diseases. Urban millennials and Gen Z are fueling demand for natural, plant-based, and Ayurveda-inspired supplements.This shift toward personalized, preventive wellness has accelerated product innovation and expanded consumer choices, marking a clear departure from broad, generic offerings and positioning nutraceuticals as a dynamic and fast-growing segment in India’s health ecosystem.
Nutraceuticals are a Rapidly-Growing Market
Globally, the nutraceutical market is growing steadily at a CAGR of ~ 8.6%, driven predominantly by strong product demand in the Asia Pacific region.
Growth Trajectory of Global Nutraceutical Market in $Bn (Source : Kearney , Secondary Research)
India’s nutraceutical market is valued at ~ $18 billion in 2025 and projected to grow at a CAGR of around 30%. The growth is primarily driven by three key sub-segments: vitamins, minerals & supplements ($3.7 billion), functional beverages ($6.7 billion), and functional foods ($7.6 billion), with vitamins and functional beverages being the major focus areas.
Growth Trajectory of Indian Nutraceutical Market in $Bn (Source : Kearney , Secondary Research)
Evolving Consumer Preferences are Driving Growth
Indian Gen Z is becoming more health-conscious, fueling demand for nutraceuticals focused on immunity, mental wellness, and natural ingredients. The major factors driving the demand are :
Indians are more health-conscious than ever before — With the rise in disposable incomes & health consciousness, daily supplements have become staplesRising accessibility: diverse offerings are only a click away — Digital marketplaces, D2Cs, and e-commerce have made purchasing nutraceutical supplements and products very convenientNutraceuticals make for a cost-friendly alternative — With medical inflation at 14 % in 2024 & limited health insurance penetration, makes it a cost-friendly alternativeIncreasing Prevalence of Lifestyle Diseases — Rise in conditions like diabetes, obesity, cardiovascular diseases, & hypertension has driven demand for nutraceutical products
Rising Consumer Demand has Led to the Emergence of Key Themes that are Reshaping the Industry
Differentiated & Innovative Offerings —Offering specific health-supplements such as gut-health related solutions, hydration supplements, etcFMCG, Pharmaceutical, and cosmetic giants have been launching products to enter niche marketsBrands leveraging Differentiated & Innovative Offerings
2. E-commerce marketplaces pioneering private-label supplements —
Marketplaces has increased accessibility to diverse products at competitive pricesOnline marketplace players foraying into private label nutraceutical productsIllustrative Private Label Supplements by E-commerce Players
3. Hyper Personalized Solutions —
Leveraging Interactive AI for suggesting the best fit for consumers using medical history, etcOffering tailored supplement regimens and toolboxes based on personal health goalsIllustrative Personalized Supplements Launched by Emerging Companies
Emerging Nutraceutical Players are Riding on Technology & Innovation To Capture Market Share
AI-driven platforms like NutrifyGenie speed up personalized supplement development, refining product effectiveness and reducing time to market.Advanced formulation techniques, such as nanotechnology and encapsulation, enhance bioavailability and consumer benefits; companies like Herbalife apply these innovations.Digital insights enable startups like Cure.fit to rapidly innovate immunity and gut health supplements, meeting evolving consumer demands effectively.
Industry Growth and Expanding Product Range have Driven Regulatory Barriers, Challenging Small Nutraceutical Players
With the continuous introduction of new products and supplements, the Indian government has implemented regulatory barriers for new entrants to protect consumers from misleading health claims and ensure supplement safety :
New FSSAI regulations align with global standards, requiring comprehensive safety data and clinical validationSchedule M compliance rates among nutraceutical manufacturers currently at only 62%, creating competitive advantage for compliant playersCDSCO (Central Drugs Standard Control Organization) implementing stricter enforcement of Schedule M compliance for manufacturing facilities
Despite Challenges, Overall Growth Momentum Led to Entry of Big Pharma and Consumer Giants
Deal Activity in the Nutraceutical Markets in the last 4 years
Considering the consumer traction in the market, major pharma and consumer players have entered the market. The recent nutraceutical deal activity spans fundraises and acquisitions across India, the US, Brazil, and Europe, with major focus on supplements and wellness, reflecting robust investor interest and significant round sizes.
Strong Funding Momentum for Emerging Indian Startups in this space
Growth Funding (>$1Mn) in Indian Nutraceutical Space in the last 12 months
Over the past 15 months, the Indian nutraceutical sector secured $85M across Seed to Series C rounds. Early-stage startups like Ace Blend and Guttify raised over $1M each, reflecting strong VC and PE confidence in the space
Signs of An Emerging Sector
The strong consumer preference for emerging product segments, coupled with the entry of multinational companies, clearly signals that the Indian nutraceutical market is entering its next phase of accelerated growth
Key drivers propelling this growth include rapid e-commerce expansion, escalating urbanization, and a young demographic increasingly investing in preventive health and personalized nutrition. Supported by these factors, the Indian nutraceutical market is projected to reach around $72 billion by 2030, reflecting robust demand and market potential
LoEstro Advisors is an investment banking firm specializing in sell-side fundraising and M&A advisory, along with a strong consulting arm. Recognized as the #1 financial advisor in education in India, we are the advisor of choice to India’s blue-chip education businesses.
Over the last four years, we have grown to be one of India’s largest (in terms of M&A transactions) homegrown boutique investment banks, with $1.2bn+ worth of combined deals closed across education, healthcare, consumer, and technology sectors.
