Health supplement business: A modern age trend
The health supplement business in India has experienced significant growth in recent years, driven by an increasing focus on health and wellness and a growing demand for natural and organic products. In this article, we will explore the health supplement business in India, including its market size, key trends, and future growth prospects.
Market Size
The health supplement market in India is estimated to be worth around $4 billion, according to a report by EY. The market is expected to grow at a CAGR of 12% over the next five years, driven by an increasing demand for dietary supplements, vitamins, and minerals. The report also notes that the market is highly fragmented, with a large number of small and medium-sized companies operating in the space.
Key Trends
One of the key trends driving growth in the health supplement business in India is a growing focus on health and wellness. This trend has been fueled by rising incomes and increasing awareness of the benefits of a healthy lifestyle. As a result, consumers are increasingly looking for natural and organic products that can help them maintain good health and prevent illness.
Another trend driving growth in the health supplement market is the rise of e-commerce. With the growth of online shopping, more and more consumers are buying health supplements online, which has led to the emergence of several e-commerce players in the space.
Future Growth Prospects
The health supplement market in India is expected to continue to grow at a healthy rate over the next five years. According to a report by TechSci Research, the market is expected to reach a value of $10 billion by 2025, growing at a CAGR of 15% from 2020 to 2025. The report notes that the growth of the market will be driven by increasing health consciousness, rising disposable incomes, and the availability of a wide range of health supplements.
One of the factors that could drive growth in the health supplement business in India is the increasing popularity of Ayurveda, a traditional Indian system of medicine. Ayurveda is based on the idea of balance between mind, body, and spirit, and involves the use of natural herbs and supplements to promote health and prevent illness. As Ayurveda gains popularity both in India and abroad, it is likely to drive demand for Ayurvedic health supplements.
The food supplement business in India is regulated by the Food Safety and Standards Authority of India (FSSAI). The FSSAI is responsible for ensuring the safety and quality of food products in India, including food supplements. Here are some of the key legalities that businesses need to keep in mind when operating in this industry:
FSSAI Registration: All food supplement businesses in India need to obtain FSSAI registration or license. This is a mandatory requirement for all food businesses in India, including those involved in the manufacture, storage, distribution, or sale of food supplements. The registration or license is issued by the FSSAI and is based on the size and nature of the business.
Product Approval: The FSSAI requires that all food supplements be approved before they can be marketed in India. This approval is based on a range of factors, including the safety and efficacy of the product, the quality of the ingredients, and the manufacturing process. Businesses need to ensure that their products comply with the FSSAI regulations before launching them in the market.
Labeling Requirements: The FSSAI has specific requirements for the labeling of food supplements in India. These requirements include information on the ingredients, nutritional information, allergens, and usage instructions. Businesses need to ensure that their products comply with these requirements to avoid penalties or legal action.
Advertising and Marketing: The FSSAI also regulates the advertising and marketing of food supplements in India. Businesses need to ensure that their advertising and marketing materials are not misleading or false and do not make any unproven health claims. Any claims made must be backed up by scientific evidence.
Import and Export: If businesses are importing or exporting food supplements in India, they need to comply with the relevant customs and excise laws. This includes obtaining the necessary licenses and permits, complying with customs regulations, and paying the applicable duties and taxes.
In summary, the food supplement business in India is regulated by the FSSAI, which is responsible for ensuring the safety and quality of food products in India. Businesses need to comply with the FSSAI regulations, including obtaining FSSAI registration, obtaining product approval, complying with labeling requirements, and complying with advertising and marketing regulations. Additionally, if businesses are importing or exporting food supplements, they need to comply with the relevant customs and excise laws.
Conclusion
In conclusion, the health supplement business in India is a growing industry, driven by a focus on health and wellness and a growing demand for natural and organic products. The market is highly fragmented, with a large number of small and medium-sized companies operating in the space. With a growing middle class, increasing health consciousness, and the popularity of traditional Indian systems of medicine, the health supplement market in India is expected to continue to grow at a healthy rate over the next few years.
By
Siddharth Dalmia
The StartUp Sherpa
+91-9971799250
