The Drug Marketing and Manufacturing Association (DMMA) estimates that the nutraceutical industry is expected to experience annual growth of 16% (CAGR) over the next five years. With annual growth of about 20% over the past six years, the market for nutraceuticals in India is expected to double to Rs 26,764 crore by 2020.
Previously, there were no specific rules for this segment of the industry, which was governed by food safety guidelines. However, new policies and a new regulatory framework for nutraceuticals are expected to enter into force on 1 January 2018.
"As far as MSMEs are concerned, there are still issues regarding quality, consistency and compliance. Through our new industry body, we seek to encourage small players to create sufficient infrastructure to meet labelling, global manufacturing practices and quality control norms so that they are able to compete with bigger players," said Vikram Chandwani, general secretary, DMMA.
"As demand for nutritional supplements increases with the rise of lifestyle-related diseases such as diabetes, blood pressure, obesity and cardiovascular problems, there is tremendous growth potential for nutraceuticals dominated by multinationals and pharmaceutical giants, "said Amit Thakkar, president, DMMA.
Already a hub of pharmaceutical industry, Gujarat accounts for 20% of the nutraceutical market in India. The association, formed nine months ago in Gujarat, comprises around 100 nutraceutical manufacturers and marketers, who mainly represent micro, small and medium enterprises (MSMEs).
