Report Overview

India Functional Foods Market – Industry Trends & Forecast Report, 2030

India Functional Foods Market size was estimated at USD 12.28 million in 2023. During the forecast period between 2024 and 2030, the India Functional Foods Market size is projected to grow at a CAGR of 14.74% reaching a value of USD 27.96 million by 2030. A prominent driver of the market is the increasing demand for nutritional and fortifying food additives. Despite moderate impact from the COVID-19 pandemic, the market witnessed an upswing in demand for functional foods fortified with essential nutrients, driven by their perceived health benefits, including immune system enhancement. The market is steadily gaining momentum as companies intensify positive marketing efforts, promoting functional foods and expanding their online distribution channels, which bodes well for future market growth. Notably, concerns among the aging population regarding health maintenance, escalating medical costs, and a growing interest in the correlation between well-being and healthier diets contribute to the rising demand for functional foods in the country. As life expectancy rises globally, individuals are increasingly prioritizing a high quality of life, prompting a surge in the demand for functional foods. Government agencies, non-governmental organizations, and companies are actively engaged in awareness campaigns, intensifying consumer understanding of the nutritional advantages associated with functional foods, thereby stimulating market growth. Manufacturers in the food and beverages industry are fortifying their products with nutritional additives to enhance the nutritional value of food items. Also, noteworthy among trending functional foods are dairy products such as milk, yogurt, cheese, and functional frozen desserts like ice cream, reflecting the industry's commitment to meeting evolving consumer demands for health-conscious choices.

Functional Foods – Overview

Functional foods refer to food products that are enriched or fortified with additional nutrients, bioactive compounds, or other health-promoting ingredients, beyond their basic nutritional content. These foods are designed to offer specific health benefits beyond their traditional nutritional value, aiming to support overall well-being, prevent diseases, or address specific health concerns. Functional foods may include ingredients like vitamins, minerals, probiotics, omega-3 fatty acids, antioxidants, and fibers. The goal is to provide consumers with not only sustenance but also enhanced health benefits, promoting a holistic approach to nutrition and wellness. These products are developed based on scientific research and are positioned as part of a balanced and healthy diet to contribute to the improvement or maintenance of health.

India Functional Foods Market

Growth Drivers

Growing Health Awareness among Individuals

The India Functional Foods Market is flourishing, propelled by a surge in health awareness among individuals. Notably, health and wellness food and beverage sales soared to USD 10.3 billion in 2021, positioning India as the 15th largest global market. Projected to continue its upward trajectory through 2026, health and wellness beverages are progressively claiming a larger market share. The dominance of the Fortified/Functional (FF) category, leading in beverages and securing the second-largest spot in packaged food, underscores the growing importance of health-conscious choices. Market concentration among top companies further emphasizes this demand. For businesses eyeing India, comprehension of distinctive features, such as the vegetarian labeling system, becomes pivotal as fortified/functional products gain traction, driven by heightened health awareness among consumers.

Challenges

Scientific Substantiation

The India Functional Foods Market faces growth constraints due to a shift in consumer preferences towards scientifically validated products. As post-pandemic health consciousness rises, consumers increasingly rely on scientifically substantiated facts for product efficacy. This demand for evidence-backed functional foods hinders market growth, necessitating manufacturers to invest in research and development to provide products with proven health benefits. Products like cholesterol-lowering spreads, clinically validated for efficacy, serve as examples of gaining consumer trust through scientific substantiation, demonstrating the market's evolving dynamics and the need for evidence-based nutritional solutions.

Impact of Escalating Geopolitical Tensions on India Functional Foods Market

The escalating demand for natural and organic products is reshaping India's functional foods and health supplements market. With a robust annual growth of 21%, the nutraceutical sector, comprising functional foods, beverages, and dietary supplements, is witnessing a surge. Consumers are embracing health supplements and nutraceuticals, drawn by the awareness of ancient Ayurveda and a changing lifestyle. The market is divided into eight categories by FSSAI, emphasizing fortified foods, probiotics, and prebiotics. As dietary habits evolve and fitness awareness rises, there is a notable shift towards fitness-related products. The industry's strengths lie in adapting to changing lifestyles, nutrient deficiencies, and Ayurvedic awareness, presenting opportunities for fitness-related products and integrating software apps, leveraging e-commerce and promoting healthy food alternatives. However, challenges include the rise of unauthorized products and limited availability in rural areas. Despite hurdles, the nutraceutical and health supplement market in India holds significant promise as the population increasingly prioritizes preventive health measures over hospitalization expenditures.

India Functional Foods Market

Segmental Coverage

India Functional Foods Market – By Ingredient

By ingredient, the India Functional Foods Market is divided into Carotenoids, Dietary Fibers, Fatty Acids, Minerals, Prebiotics & Probiotics, and Vitamins segments. The carotenoids segment holds the highest share in the India Functional Foods Market by ingredient. Carotenoids, including lutein, beta-carotene, lycopene, astaxanthin, zeaxanthin, canthaxanthin, and annatto, are available in various forms in the market. The industry's main driver is the crucial role carotenoids play in treating eye disorders, cancer, and diabetes. Increased research and development for producing high-value natural carotenoids present new market opportunities within the forecast period. Meanwhile, the dietary fibers segment is expected to witness the fastest growth rate during the forecast period. Dietary fiber, abundant in fruits, vegetables, legumes, and whole grains, is crucial for bowel health, cholesterol reduction, and blood sugar control. As the functional food market expands, the dietary fiber segment is poised for growth. Its benefits, including weight management and reduced risks of diabetes and coronary disease, further drive market expansion.

India Functional Foods Market – By Product

Based on product, the India Functional Foods Market is divided into Bakery & Cereals, Dairy Products, Meat, Fish & Eggs, Soy Products, and Fats & Oils segments. The dairy products segment holds the highest share in the India Functional Foods Market by product. The popularity of functional dairy products has surged in recent years, prompting increased availability. To maximize benefits, the dairy industry should expand its product line to incorporate other health-promoting items, especially considering the recognized health advantages of fermented dairy products. Milk and dairy products have long been associated with health benefits due to their biologically active ingredients, influencing various aspects such as gastrointestinal functions, hemodynamics, probiotic microbial growth, and immunoregulation. Diversifying offerings aligns with consumer preferences, enhancing the industry's appeal and meeting the growing demand for health-focused choices.

India Functional Foods Market – By Application

On the basis of application, the India Functional Foods Market is divided into Sports Nutrition, Weight Management, Immunity, Digestive Health, Clinical Nutrition, and Cardio Health segments. The cardio health segment holds the highest share in the India Functional Foods Market by application. The surge is driven by increasing awareness of cardiovascular diseases, congestive heart failure, artery hardening, and congenital heart defects. Consumers are actively seeking functional foods that offer health benefits specifically related to heart health, contributing to the dominance of the cardio health segment.

India Functional Foods Market – By Region

Geographically, the India Functional Foods Market is divided into North India, South India, East India, and West India regions.

Competitive Landscape

Major players operating in India Functional Foods Market include FDC India, Hindustan Unilever Limited (HUL), ITC Limited, Nestlé India, Britannia Industries Limited, Godrej Consumer Products Limited (GCPL), Amway India, Dabur India, Patanjali Ayurved, Danone India, GlaxoSmithKline Consumer Healthcare, Abbott Nutrition, Himalaya Wellness, and Sun Pharmaceutical Industries Ltd. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In June 2023 - ICAR-National Dairy Research Institute (NDRI) conducted a one-day brainstorming session in Karnal, Haryana, focusing on the "Clinical Trials of Functional Food," to enhance scientists' understanding of conducting clinical trials, particularly for functional foods.

Scope of the Report

By Ingredient

• Carotenoids

• Dietary Fibers

• Fatty Acids

• Minerals

• Prebiotics & Probiotics

• Vitamins

By Product

• Bakery & Cereals

• Dairy Products

• Meat, Fish & Eggs

• Soy Products

• Fats & Oils

By Application

• Sports Nutrition

• Weight Management

• Immunity

• Digestive Health

• Clinical Nutrition

• Cardio Health

By Region

• North India

• South India

• East India

• West India

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. India Functional Foods Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Health Awareness Among Individuals
         2. Rising Disposable Income
         3. Rapid Urbanization
         4. Innovations in Product Development
      2. Restraints
         1. High Cost
         2. Scientific substantiation
         3. Preference for Traditional Foods
      3. Opportunities
         1. Expanding Distribution Channels
         2. Customization and Personalization
         3. Rising Demand for Natural and Organic Products
         4. Focus on Functional Beverages
      4. Challenges
         1. Competition from Pharmaceuticals
         2. Supply Chain Issues
         3. Consumer Skepticism
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. India Functional Foods Market: Marketing Strategies
5. India Functional Foods Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Ingredient
         1. Carotenoids
         2. Dietary Fibers
         3. Fatty Acids
         4. Minerals
         5. Prebiotics & Probiotics
         6. Vitamins
         7. Others
      2. By Product
         1. Bakery & Cereals
         2. Dairy Products
         3. Meat, Fish & Eggs
         4. Soy Products
         5. Fats & Oils
         6. Others
      3. By Application
         1. Sports Nutrition
         2. Weight Management
         3. Immunity
         4. Digestive Health
         5. Clinical Nutrition
         6. Cardio Health
         7. Others
      4. By Region
         1. North India
         2. South India
         3. East India
         4. West India
6. North India Functional Foods Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Ingredient
      2. By Product
      3. By Application
7. South India Functional Foods Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Ingredient
      2. By Product
      3. By Application
8. East India Functional Foods Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Ingredient
      2. By Product
      3. By Application
9. West India Functional Foods Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Ingredient
      2. By Product
      3. By Application
10. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. India Functional Foods Company Market Share Analysis, 2023
    3. Competitive Benchmarking, By Operating Parameters
    4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
11. Impact of Escalating Geopolitical Tensions on India Functional Foods Market
12. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
    1. FDC India
    2. Hindustan Unilever Limited (HUL)
    3. ITC Limited
    4. Nestlé India
    5. Britannia Industries Limited
    6. Godrej Consumer Products Limited (GCPL)
    7. Amway India
    8. Dabur India
    9. Patanjali Ayurved
    10. Danone India
    11. GlaxoSmithKline Consumer Healthcare
    12. Abbott Nutrition
    13. Himalaya Wellness
    14. Sun Pharmaceutical Industries Ltd
    15. Other Prominent Players
13. Key Strategic Recommendations
14. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3.  Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.  Breakdown of Primary Research Respondents, By Region
    5.  Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       India Functional Foods Segmentation

Figure 2       India Functional Foods Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2023

Figure 4       India Functional Foods Market Size, By Value (USD Million), 2019–2030

Figure 5       India Functional Foods Market Share, By Ingredients, By Value, 2019–2030

Figure 6       India Functional Foods Market Share, By Product, By Value, 2019–2030

Figure 7       India Functional Foods Market Share, By Application, By Value, 2019–2030

Figure 8       North India Functional Foods Market Size, By Value (USD Million), 2019–2030

Figure 9       North India Functional Foods Market Share, By Ingredients, By Value, 2019–2030

Figure 10     North India Functional Foods Market Share, By Product, By Value, 2019–2030

Figure 11     North India Functional Foods Market Share, By Application, By Value, 2019–2030

Figure 12     South India Functional Foods Market Size, By Value (USD Million), 2019–2030

Figure 13     South India Functional Foods Market Share, By Ingredients, By Value, 2019–2030

Figure 14     South India Functional Foods Market Share, By Product, By Value, 2019–2030

Figure 15     South India Functional Foods Market Share, By Application, By Value, 2019–2030

Figure 16     East India Functional Foods Market Size, By Value (USD Million), 2019–2030

Figure 17     East India Functional Foods Market Share, By Ingredients, By Value, 2019–2030

Figure 18     East India Functional Foods Market Share, By Product, By Value, 2019–2030

Figure 19     East India Functional Foods Market Share, By Application, By Value, 2019–2030

Figure 20     West India Functional Foods Market Size, By Value (USD Million), 2019–2030

Figure 21     West India Functional Foods Market Share, By Ingredients, By Value, 2019–2030

Figure 22     West India Functional Foods Market Share, By Product, By Value, 2019–2030

Figure 23     West India Functional Foods Market Share, By Application, By Value, 2019–2030

List of Tables

Table 1        India Functional Foods Market Size, By Value (USD Million), 2019–2030

Table 2        India Functional Foods Market Share, By Ingredients, By Value, 2019–2030

Table 3        India Functional Foods Market Share, By Product, By Value, 2019–2030

Table 4        India Functional Foods Market Share, By Application, By Value, 2019–2030

Table 5        North India Functional Foods Market Size, By Value (USD Million), 2019–2030

Table 6        North India Functional Foods Market Share, By Ingredients, By Value, 2019–2030

Table 7        North India Functional Foods Market Share, By Product, By Value, 2019–2030

Table 8        North India Functional Foods Market Share, By Application, By Value, 2019–2030

Table 9        South India Functional Foods Market Size, By Value (USD Million), 2019–2030

Table 10      South India Functional Foods Market Share, By Ingredients, By Value, 2019–2030

Table 11      South India Functional Foods Market Share, By Product, By Value, 2019–2030

Table 12      South India Functional Foods Market Share, By Application, By Value, 2019–2030

Table 13      East India Functional Foods Market Size, By Value (USD Million), 2019–2030

Table 14      East India Functional Foods Market Share, By Ingredients, By Value, 2019–2030

Table 15      East India Functional Foods Market Share, By Product, By Value, 2019–2030

Table 16      East India Functional Foods Market Share, By Application, By Value, 2019–2030

Table 17      West India Functional Foods Market Size, By Value (USD Million), 2019–2030

Table 18      West India Functional Foods Market Share, By Ingredients, By Value, 2019–2030

Table 19      West India Functional Foods Market Share, By Product, By Value, 2019–2030

Table 20      West India Functional Foods Market Share, By Application, By Value, 2019–2030

Table 21      FDC India Company Overview

Table 22      FDC India Company Overview

Table 23      Hindustan Unilever Limited (HUL) Company Overview

Table 24      Hindustan Unilever Limited (HUL) Company Overview

Table 25      ITC Limited Company Overview

Table 26      ITC Limited Company Overview

Table 27      Nestlé India Company Overview

Table 28      Nestlé India Company Overview

Table 29      Britannia Industries Limited Company Overview

Table 30      Britannia Industries Limited Company Overview

Table 31      Godrej Consumer Products Limited (GCPL) Company Overview

Table 32      Godrej Consumer Products Limited (GCPL) Company Overview

Table 33      Amway India Company Overview

Table 34      Amway India Company Overview

Table 35      Dabur India Company Overview

Table 36      Dabur India Company Overview

Table 37      Patanjali Ayurved Company Overview

Table 38      Patanjali Ayurved Company Overview

Table 39      Danone India Company Overview

Table 40      Danone India Company Overview

Table 41      GlaxoSmithKline Consumer Healthcare Company Overview

Table 42      GlaxoSmithKline Consumer Healthcare Company Overview

Table 43      Abbott Nutrition Company Overview

Table 44      Abbott Nutrition Company Overview

Table 45      Himalaya Wellness Company Overview

Table 46      Himalaya Wellness Company Overview

Table 47      Sun Pharmaceutical Industries Ltd Company Overview

Table 48      Sun Pharmaceutical Industries Ltd Company Overview

Table 49      Other Prominent Players Company Overview

Table 50      Other Prominent Players Company Overview