The Indian nutraceuticals industry is expected to grow at 20 per cent to USD 6.1 billion by 2019-2020 due to rising awareness about health and fitness and the changing lifestyle offering a luring streak for potential investors to enter this industry.
According to a report by business consulting services firm, RNCOS, the nutraceuticals industry in India is about USD 2.2 billion and is mainly focused in the southern region, followed by the eastern region with three major states of Andhra Pradesh,Tamil Nadu and West Bengal.
The Indian nutraceuticals industry is expected to grow at 20 per cent to USD 6.1 billion by 2019-2020 due to rising awareness about health and fitness and the changing lifestyle.
How to start a Nutraceuticals business
Starting a nutraceuticals business India is not a rocket science hoax and can surely promise a high return on investment if followed by the right guidelines and approach.
Evoluting into a Manufacturer
Setting up a manufacturing unit of a nutraceuticals business in India is not just limited to meet the basic demands, but has moved on towards a better product innovation, branding and customer satisfaction through the rising consumer awareness.
The Manufacturer’s Checklist
Join Hands with a Manufacturer
Whereas, people who want to play on a small margin or are limited by their capital can also enter this industry via franchising through connecting with contract manufacturers or major pharmaceutical players.
Joining hands with a contract manufacturer can surely save a lot of time and money if the investor has an exact formula for the product that he/she wants to distribute in the commercial market. However, the process can be compressed if joined hands with an experienced player who has embarked its roots into the market. Collaboration helps the franchisor to expand the reach of its brand into new markets and saves a lot of resources for the franchisee such as:
Why en Route to Franchise
India has a massive population and is growing at a exponential pace, entering the nutraceuticals sector through franchising can be a sure shot profitable alliance for both as there is a big vacuum for the demand of the products and despite various distributors, the industry has a lot to offer to new aspirant investors.
Dr. Muhammed Majeed, Chairman, Sami-Sabinsa Group of Companies: “Franchising has been instrumental in boosting the reach as there is no common market since every location has its direct selling representative(franchisees) making the products available to the unreachable markets.”
The Need for a Digital Space
Despite being a cost effective model, moreover every business in today’s era needs a digital platform to advertise and market its brand, new additions in the product range or may it be a marketing event. As there is no hardcore brick and mortar USP followed in this model, a strong digital presence is desperately needed.
Pushkin Agarwal, Director, Cortina Labs: Digital India is a boon for every industry as it helps companies gain a wider audience right from day one of their operations, but when it comes to selling medicinal products online there is still an ambiguity as there are no set of rules for pharmaceuticals.
The Target Markets
The increasing zest to stay healthy has created a big room for the need of nutraceauticals, however the current market scenario states that there is a need for quality products in the tier 2 and tier 3 cities.
It is expected that India will be a strong market for nutraceutical products as the players in the industry will be a combination of large multi nationals, Indian companies using proprietary formulations and small players who constitute the unorganized market. Multinational companies have set up production facilities in India and this will eventually help small players to share a piece of this industry through the franchising channel.