India’s Nutraceutical Industry Expected to Grow at 10-11% CAGR Till FY30, Valued at USD 55–57 Billion by 2030

India’s nutraceutical industry is expected to grow at a compound annual growth rate of 10 to 11 percent through FY30, according to a CareEdge Ratings report. The market, valued at around USD 29 to 30 billion in 2024, is projected to reach USD 37 to 38 billion by 2026 and expand further to nearly USD 55 to 57 billion by 2030.

The growth is being supported by rising demand for preventive healthcare, increasing health awareness and a broader shift toward wellness-focused consumption. The report notes that more consumers are turning to supplements, functional foods and nutrition products as a proactive way to manage lifestyle-related health concerns such as obesity, cardiovascular disease and Type 2 diabetes.

Functional foods and beverages account for roughly 70 percent of the overall market, with dietary supplements making up the remainder. Growth within the functional segment is being driven by plant-based and natural product offerings as well as rising demand for fortified beverages, herbal drinks and convenience-oriented health products.

The COVID-19 pandemic is identified in the report as a structural turning point for the sector. Before the outbreak, nutraceuticals were largely niche products confined to fitness users and urban early adopters. The pandemic shifted consumer perception significantly, with nutraceuticals moving from optional wellness choices to products considered part of daily health management. This change accelerated demand across vitamins, minerals and herbal supplements and has since extended into functional foods and fortified beverages.

India’s persistent nutritional challenges are also contributing to sector growth. Data from the National Family Health Survey cited in the report shows that widespread micronutrient deficiencies affect large portions of the population, including shortfalls in Vitamin D, Vitamin B12, iron and folic acid. These deficiencies are creating sustained demand for nutraceutical products that can bridge nutritional gaps across different age groups.

Government policy is playing an enabling role. The Ministry of Food Processing Industries is running several schemes to support infrastructure and manufacturing in the sector, including the Pradhan Mantri Kisan SAMPADA Yojana and the Production Linked Incentive Scheme for the Food Processing Industry. Regulatory oversight from the Food Safety and Standards Authority of India is also helping to standardise product quality and build consumer confidence. The sector additionally benefits from 100 percent FDI permission in food processing, which is encouraging both domestic investment and international participation.

Digital channels and e-commerce have expanded the reach of nutraceutical products considerably, making them accessible to consumers beyond major cities. Direct-to-consumer platforms have allowed newer brands to enter the market and compete by offering personalised and innovative product formats. The shift toward online retail has been particularly effective in capturing younger consumers, who are driving demand for formats such as gummies, protein powders and ready-to-drink supplements.

The report also notes increasing acquisition activity, with large FMCG companies buying mid-sized nutraceutical brands to strengthen their health and wellness portfolios. This consolidation is seen as a signal of institutional confidence in the sector’s long-term growth.

Challenges remain, however. The industry continues to face regulatory inconsistencies that can affect product quality and lead to unsubstantiated health claims. Limited manufacturing infrastructure, particularly for smaller companies and startups, creates bottlenecks in scaling from research to commercial production. A shortage of robust clinical evidence for many products also makes it harder for consumers and healthcare professionals to evaluate their effectiveness. High prices relative to conventional supplements continue to limit accessibility for lower-income consumers.

CareEdge said the industry’s overall outlook remains positive as preventive health becomes a larger part of everyday consumer behaviour. The report points to steady momentum for companies operating in the segment, with the opportunity expected to remain strong through the end of the decade.