India’s nutraceutical industry is expected to grow to $55-57 billion by 2030 from around $29-30 billion in 2024, expanding at a compound annual growth rate (CAGR) of 10-11%, according to a report by CareEdge Ratings.
The market is projected to reach $37-38 billion by 2026, with growth supported by increasing health consciousness, higher disposable incomes, rising lifestyle-related diseases and growing demand for natural, science-backed nutrition.
Nutritional deficiencies create growth opportunity
CareEdge Ratings said India’s persistent nutritional deficiencies present a significant opportunity for nutraceutical products to complement conventional healthcare.
According to the National Family Health Survey (NFHS-5), around 67% of children below five years and 57% of women aged 15-49 years are affected by anaemia. In addition, nearly 61% of the population is deficient in vitamin D, 53% in vitamin B12, and 19% in vitamin A, highlighting the country’s “hidden hunger” challenge.
The report said these nutritional gaps, coupled with limited access to balanced diets and socio-economic constraints, position nutraceuticals as an important tool for improving public health outcomes.
Preventive healthcare driving demand
CareEdge Ratings Senior Director Ranjan Sharma said the sector is evolving beyond wellness products into a core pillar of preventive healthcare.
“India’s nutraceutical sector is transitioning from a wellness category to a core component of preventive healthcare. As consumers increasingly prioritise immunity, nutrition and long-term wellbeing, we expect sustained double-digit growth supported by digital distribution, policy support and rising adoption across age groups. The widening reach of e-commerce and direct-to-consumer models is also lowering entry barriers for newer brands, intensifying competition and innovation across the value chain.”
Functional foods dominate market
Functional foods and beverages (FFB) account for nearly 70% of India’s nutraceutical consumption, while dietary supplements make up the remaining share.
The report noted that demand is increasingly shifting towards natural and plant-based products, along with functional beverages, as consumers seek healthier and culturally aligned nutrition options.
CareEdge Ratings said the COVID-19 pandemic marked a structural shift for the industry, transforming nutraceuticals from niche wellness products into mainstream health essentials. The change has also triggered increased acquisition activity, with major FMCG companies buying mid-sized nutraceutical brands to strengthen their health and wellness portfolios.
Lifestyle diseases, ageing population fuel growth
The report highlighted that the growing incidence of obesity, cardiovascular diseases and Type 2 diabetes is increasing demand for nutraceuticals focused on prevention and long-term health management.
An ageing population is also expanding demand for products that support bone health, cognitive function and healthy ageing, broadening the industry’s consumer base beyond fitness enthusiasts.
Meanwhile, digital platforms and direct-to-consumer business models are improving product accessibility and enabling newer brands to compete through personalised offerings and innovative formats such as gummies, powders and ready-to-drink beverages.
Government support strengthens sector
CareEdge Ratings said government initiatives are supporting the industry’s expansion through investments in food processing and manufacturing.
These include the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY), the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) and the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme.
The report noted that the PMKSY, with an outlay of ₹6,520 crore, has approved 459 projects between 2021 and 2026. The ₹10,900-crore PLISFPI scheme is supporting 49 projects, while the ₹10,000-crore PMFME scheme has approved more than 1.33 lakh projects to strengthen micro food processing enterprises.
In addition, 100% foreign direct investment (FDI) in food processing, regulatory oversight by the Food Safety and Standards Authority of India (FSSAI), and support from the Ministry of AYUSH are helping boost investment, innovation and exports.
Consolidation expected to continue
CareEdge Ratings Associate Director Pritesh Rathi said increasing acquisitions by large FMCG companies underscore confidence in the sector’s long-term prospects.
“The increasing acquisition of mid-sized nutraceutical brands by larger FMCG players reflects growing confidence in the sector’s long-term potential. With functional foods and beverages accounting for nearly 70% of consumption, and exports gaining momentum, India’s nutraceutical industry is steadily evolving toward greater scale, sophistication, and long-term sustainability.”