India’s Booming Nutraceutical Export Market: A Golden Opportunity for MSMEs

India's nutraceutical export industry is booming with global demand, MSME-friendly policies, and support. Explore top markets, growth data, and govt incentives.

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Faiz Askari
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India’s nutraceutical industry is witnessing an impressive rise, fueled by growing global demand for health and wellness products, Ayurveda’s resurgence, and a proactive push from the government. With the global nutraceutical market expected to reach USD 400 billion by 2025, India is gearing up to become a leading supplier, especially with its traditional strength in herbal and plant-based formulations.


The Market Landscape: India’s Nutraceutical Growth Story

India’s domestic nutraceutical market is currently valued at USD 11 billion in 2024 and is projected to touch USD 18 billion by 2025, growing at a CAGR of 15–18%. This rapid growth is driven by increasing health awareness, demand for preventive healthcare, and a rising middle-class population with disposable income.

On the global front, India's share in the nutraceutical exports remains under 2%, indicating a massive untapped potential. Between October 2023 and September 2024, India exported over 1,800 shipments of nutraceutical products to 69 countries, marking a 37% year-on-year growth.


Top Export Destinations for Indian Nutraceuticals

The major markets importing Indian nutraceutical products are:

  • United Kingdom – 19% of total shipments

  • Singapore – 18%

  • Sri Lanka – 18%

Together, these three nations account for over 55% of Indian nutraceutical exports. Other key markets include the United States, UAE, Germany, and Malaysia.


Which Businesses Can Tap into Nutraceutical Exports?

A wide range of businesses can enter this promising sector, including:

  • Dietary supplement manufacturers (e.g., vitamins, minerals, herbal capsules)

  • Functional food producers (e.g., protein bars, fortified juices, probiotic drinks)

  • Ayurvedic and herbal extract manufacturers

  • Botanical ingredient suppliers (e.g., ashwagandha, turmeric, moringa)

Micro and small enterprises, especially those engaged in Ayurveda, natural health, and organic nutrition, have a unique opportunity to position themselves globally by capitalizing on India's heritage and cost advantage.


MSME Opportunities in Nutraceutical Exports

Indian MSMEs are particularly well-positioned to benefit from this sector due to several factors:

  • Low capital threshold: Many nutraceutical products can be produced in small-scale facilities.

  • Government subsidies and training: Through the PMFME (Pradhan Mantri Formalisation of Micro Food Processing Enterprises) Scheme, MSMEs receive credit-linked subsidies and capacity building support.

  • Growing global niche markets: Vegan, gluten-free, Ayurveda-based, and personalized nutrition segments are on the rise.

  • Export Facilitation Centres (EFCs): These centres assist MSMEs with documentation, quality certification, and international marketing strategies.

Additionally, MSMEs benefit from RoDTEP (Remission of Duties and Taxes on Export Products) and access to collateral-free loans under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).


Government Support and Policy Framework

The Indian government is actively promoting the nutraceutical export industry through:

  • SHEFEXIL (Shellac & Forest Products Export Promotion Council) – Nutraceuticals fall under its domain for export promotion.

  • Product registration funding: The Ministry of Commerce is considering reimbursing MSMEs for costs related to registering their products in foreign markets.

  • Food Processing Ministry support: The ministry is pushing for infrastructure and training to boost competitiveness in value-added health food segments.

  • Export incentives: Benefits under MEIS (Merchandise Export from India Scheme) and RoDTEP help in making Indian exports more competitive.

State-level initiatives in regions like Uttar Pradesh, Maharashtra, and Gujarat are also helping small manufacturers explore international markets by offering e-commerce support, testing labs, and mentorship.


Key Success Factors for Indian Nutraceutical Exporters

To succeed globally, Indian businesses must focus on:

  • Compliance with international standards (US FDA, FSSAI, Codex Alimentarius)

  • Proper labeling, certification, and traceability

  • Building strong B2B partnerships in top import markets

  • Leveraging India’s Ayurvedic and herbal strength in branding and marketing

  • Participating in global expos and digital marketplaces


Conclusion: A Sunrise Sector for MSMEs

With strong growth projections, policy support, and increasing global demand, India’s nutraceutical export market presents an excellent opportunity for MSMEs. The time is ripe for entrepreneurs to innovate, scale, and take Indian health products global—cementing India’s position as a global hub for clean, effective, and trusted nutraceuticals.

As the world shifts toward holistic health and preventive wellness, Indian businesses—especially MSMEs—can lead the charge with traditional wisdom and modern manufacturing. The Ayurveda-powered nutraceutical boom is just beginning.


For more such opportunities and export insights, visit SMEStreet.in

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