Health-conscious Indian consumers are increasingly turning towards branded ingredients as an effective solution in today’s fast-paced world.
What do branded ingredients provide that is special, making them preferred over generic ingredients?
Branded ingredients are proprietary or patented formulations developed and marketed under a specific brand name by manufacturers. They are manufactured to standardised specifications and supported by clinical studies that validate their wellness or healing claims. They undergo thorough toxicity and safety tests that support Activities of Daily Livings (ADLs), making them safe to consume in recommended dosages. Additionally, these ingredients are produced in US FDA-approved, GMP-certified facilities and are labelled Generally Recognised As Safe (GRAS) by the FDA.
Research conducted by OmniActive highlights the shift in consumer preference for branded ingredients. More than half of the participants trusted the crucial role of branded ingredients in the quality of health products. And 44 per cent were willing to pay a premium of up to 75 per cent more for products made with quality materials.
Rising consumer trust in branded ingredients is a key driver behind India’s dietary supplement market growth. As per IMARC, the market was valued at Rs 157.4 billion in 2023 and is projected to increase to Rs 491.4 billion by 2032. Several factors influence this growth, including a projected 70 per cent increase in per capita income to $4,000 by 2030, according to Standard Chartered Bank. Further, a growing population is expected to reach 1.522 billion by 2036 (Ministry of Statistics and Programme Implementation).
Usage of adulteration and lack of awareness – major obstruction
A significant challenge facing consumers is the lack of awareness of whether the ingredients in their supplements are branded or not. Deviating from quality standards, some manufacturers use adulterated or unverified ingredients, which are harmful to the body. The same issue came to light in the recent inspections of manufacturing facilities across India by the Food Safety and Standards Authority of India (FSSAI).
To address this, it’s vital to educate consumers on branded ingredients. One strategy is that supplement manufacturers should display the logos of branded ingredient suppliers along with QR codes on their product packaging. This enables consumers to easily access information and clinical results of the ingredients used from the supplier’s website.
Further, a collaborative approach between the industry and regulatory bodies is crucial. Regulators should make the infrastructure more robust in terms of laboratories and technicians to provide timely results to the clinical trial companies. Experts, such as medical professionals in the nutraceutical sector, can be involved in awareness campaigns which empower consumers to make informed decisions. This collective effort will win the consumers’ trust and ensure the industry’s long-term viability.
Marketing to a new generation: Branding and transparency
As the new generation of young consumers is driven towards natural, organic, vegan, cruelty-free, and GI-tagged products, branding and marketing of products are also undergoing radical change. Given these shifts, the market for organised packaged ingredients, which is estimated to be worth Rs 20,000 crore per year, is also transitioning from erstwhile loose goods to neatly packaged, disinfected products backed with scientific data.
In line with the industry’s favourable regulatory push, the FSSAI has issued new guidelines for organic products and nutraceuticals, boosting consumers’ confidence.
These developments require manufacturers to commit to quality, meticulous sourcing, innovative packaging and effective communication, among other things.
As India progresses and gets urbanised, a notable increase in disposable income is anticipated. This shift, coupled with a growing awareness of health and a rise in ailments, primes the market for exponential growth in the demand for dietary supplements supported by branded ingredients.