The Future of India’s Nutraceutical Industry: Growth Drivers and Emerging Consumer Behaviours

A Legacy of Transformation

Over nearly four decades, India’s nutraceutical sector has evolved from a minor segment to a cornerstone of wellness. This shift reflects changing consumer priorities, clearer regulations, and advances in science. The industry now stands as a global contender, with a future rich in opportunity.

Market Growth: A Remarkable Trajectory

Valued at USD 30.37 billion in 2024, India’s nutraceutical market is projected to reach USD 64.83 billion by 2030, growing at a consistent 13.6% annual rate, according to reports by Grand View Research. From USD 4 billion in 2020, this expansion highlights its critical role in healthcare. According to Statifacts, India's nutraceutical market is anticipated to hit USD 18 billion by 2025. Dietary supplements and functional foods are now woven into India’s health landscape.

Key Drivers of Growth

Several factors propel this growth. Health awareness drives demand for preventive solutions, boosting interest in supplements and herbal products. Government policies—supporting local production, research grants, and tax reforms—create a solid foundation.

Technology reshapes the sector. Artificial intelligence and biotechnology enable tailored nutrition and faster product launches. Online retail thrives, with supplement sales expected to grow 15% annually from 2025 to 2030. India’s blend of Ayurveda with modern science offers a distinct advantage. Companies are also expanding globally, capitalizing on the nation’s reputation for natural remedies.

Evolving Consumer Behaviours

Consumer habits are transforming. Younger generations—Gen Y and Gen Z—prioritise fitness and skin health (80%) and seek solutions for stress or sleep (60%). Millennials prefer convenient, research-backed products, influenced by online trends. Older consumers focus on bone, joint, and cognitive health as the population ages. Urban areas adopt products first, but rural markets grow as awareness spreads.

Personalized nutrition is in demand, moving away from generic options. Consumers trust Ayurvedic and herbal products, rooted in tradition. Online research, product comparisons, and purchases guided by reviews or expert advice are rising. This requires products that align with diverse needs and digital lifestyles.

Industry Trends and Innovations

Emerging trends shape the sector. Preventive healthcare drives products targeting obesity, diabetes, and heart conditions. Nutrient-rich beverages, like energy drinks, gain traction. Technology shortens product development from years to months. Sustainability matters—consumers seek ethically sourced goods. Nearly 30 major mergers in recent years signal strong investor confidence.

Strategic Focus for the Future

Sustaining this growth requires focus. Data-driven nutrition, using AI, addresses individual needs. Science-backed products with transparent labels build trust, particularly among younger buyers. Expanding into fortified foods and wellness solutions serves all ages. Ayurveda creates products that resonate locally yet appeal globally.

Global expansion demands meeting high standards and forming partnerships, positioning India as a research and production hub. Education in smaller cities and rural areas can clarify nutraceutical benefits and dispel myths. Green practices and transparent supply chains will attract today’s consumers.

A Vision for India’s Nutraceutical Revolution

India is poised to lead a nutraceutical revolution. By merging tradition with innovation, the industry can serve every generation. The next decade will rely on fresh ideas, collaboration, and consumer focus. The sector is not just expanding—it’s reshaping global wellness with purpose and care.

By Suresh Garg, Founder and CMD of Zeon Lifesciences