Page 63 - FBL AR 2019-20

Corporate Statutory FinanCial
overview StatementS StatementS

Global nutraceutical industry overview
Nutraceuticals are products that provide health-conscious, driving the consumption products. Functional food accounted for
additional nutrition and health advantages of nutraceuticals globally. They are now the largest share and generated revenue
to the human body. They contain shifting from chemically-derived products of USD 187.51 billion in 2019. In terms of
fortified nutrients, such as CoQ10, taurine, to preventive healthcare items like dietary supplement products, vitamins
omega-3, antioxidants, calcium and zinc, nutraceuticals that contain safer, natural and minerals together accounted for
which improve the overall health of and healthier ingredients. While US, Europe more than 40.71% share in 2019, owing
consumers. These nutrients also help in and Japan account for over 90% of the to increasing consumer interest in the
averting medical conditions like diabetes, total global nutraceutical market, India, relationship between diet and health,
hypertension, allergies and heart diseases. China and other Southeast Asian countries which, in turn, has increased the demand
are rising as new and emerging markets for for these products.
The global nutraceuticals market was
pegged at USD 285.2 billion in 2019. Due nutraceuticals. (Source: IMARC, Grandview research)
to the prevalence of lifestyle diseases The nutraceuticals market is divided
and the growing geriatric population, into functional food and beverages,
consumers across the globe are becoming dietary supplements and personal care

Optimism for the global nutraceuticals market today

Affordability 70% indicated they were likely to use Insurance
The sharp increase in the cost of devices that connect to smartphones for The growing spread of insurance in India
quality health care in the last couple of managing health parameters. The growth is expected to sustain the growth of the
decades has widened the market for of e-commerce is a game-changing wellness sector.
food supplements based on a growing industry for the nutrition and health
recognition that a small cost today can industry, as the compound annual growth
potentially avert expensive medical rate of the healthcare business has reached Supply side
treatment and possibly even treatment- 87.4%. As the sale of e-commerce in India New players entering the market with
related debt. In a country like India, where is expected to reach USD120 billion by innovative products are catalysing sectoral
medical insurance is extensively under- 2020, the nutraceuticals industry will gain growth. A growth in the supply side
penetrated, this can be the difference huge profits. The result is that the Indian (providers of packaged and branded food
between financial well-being and ruin: out- nutritional care segment is growing at supplements) indicates a strengthening
of-pocket health expenditure constituted a CAGR of 12% with a 27% share of the eco-system that could continue to sustain
around 62% of the healthcare expenditure wellness industry. the demand of raw materials.
in India (11% in the US, 10% in the UK,
25% in Brazil and 32% in China). This high Attitudes
cost of medical intervention is inspiring Affluence With increasing research on food science
preventive health action through health- Food supplements were traditionally and nutrition, more doctors now recognise
and wellness-related products. consumed by high-income groups but the role of nutrition in quality care, not
this has begun to change on account
of increased purchasing power. The only for treatment, but also for prevention,
Awareness population of India between 15 to 59 years resulting in enhanced prescriptions.
Globally, there is an increasing awareness increased from 57% in 2001 to 60% in 2011
about food supplements and their and is estimated at around 66% today.
benefits, largely influenced by the social India’s population growth is marked by
media and internet. As a result, consumers growing disposable incomes, translating
are increasingly paying attention to the into a growing capacity to pay for food
importance of nutrition in the prevention supplements.
and treatment of diseases. In addition,
health publications and fitness icons help Lifestyle
to increase understanding and appeal to
products that focus on natural health. There is a greater consumption of food
and beverages with high salt and sugar
on the one hand and low micronutrient
Accessibility contents on the other, creating a widening
According to EY, almost 50% respondents market for food supplements. Sedentary
in a survey indicated that they accessed lifestyle, coupled with poor dietary habits,
the internet for health awareness while increased the need for supplementation.

61