From wellness to wealth: How Gen Y, Gen Z, and AI are driving mission $100 billion for India’s nutraceutical future

As we sat down with industry leaders *, researchers**, and policymakers***, one thing became strikingly clear: India’s nutraceutical market is on the cusp of a transformative journey. Currently valued at USD 4-5 billion, this sector is expected to reach USD 18 billion by 2025 (Source: Invest India). Yet, the vision for a USD 100 billion market by 2047 (Nutra Task Force under PSA to government of India ) is more than just a lofty goal—it’s a possibility rooted in opportunity, ambition, and innovation.

The question, however, is whether India can harness its potential effectively to rise to this challenge.

The current landscape

India’s nutraceutical industry has been growing at a blistering pace. Bolstered by rising health awareness and increasing disposable incomes, this sector is emerging as a global contender. The dietary supplements market, was valued at USD 3.9 billion in 2020, is set to grow at a compound annual growth rate (CAGR) of 21.79 per cent, potentially touching USD 22.2 billion by 2026.

According to projections by the Ministry of Food Processing Industries (MoFPI) and Invest India, the nutraceutical market could scale to USD 117 billion by 2035 in ideal circumstances. But even if growth slows to an average rate of 12 per cent, the market is well on its way to crossing the USD 100 billion mark by 2047. That said, achieving this milestone by 2035 would require an aggressive and focused strategy.

The roadblocks

During our discussions with stakeholders, several challenges emerged as recurring themes:

1. Regulatory complexities : India’s regulatory framework for nutraceuticals is steadily evolving, presenting an opportunity for greater alignment between the two key regulators. Addressing this will further strengthen the industry’s foundation and support its growth potential.
2. Quality assurance: Consistency in quality remains a major hurdle. Without stringent checks, the risk of subpar products entering the market can erode consumer trust.
3. Research and Development: India’s nutraceutical industry has yet to fully tap into its rich biodiversity. Limited investment in R&D is a bottleneck for creating high-value, science-backed products.
4. Infrastructure challenges: Fragmented supply chains and inadequate storage facilities, especially for perishable ingredients, add inefficiencies to the system.

Unlocking growth

To get to USD 100 billion by 2047 (Source: Nutra task force : Under the PSA to government of India) , India must address these challenges head-on. Here’s how:

1. Streamlined regulations: Harmonising policies with global standards, can enhance India’s competitiveness on the world stage.
2. Public-Private Partnerships (PPPs): Collaboration between government bodies, academia, and private players can accelerate R&D, create infrastructure, and foster innovation.
3. Leverage indigenous knowledge: With its unparalleled biodiversity and heritage in Ayurveda, India has the tools to lead in plant-based nutraceuticals—if utilised effectively.
4. Infrastructure overhaul: Investments in supply chains and cold storage can significantly reduce wastage and improve operational efficiency.
5. Active AI implementation across the supply chain: Embracing AI-driven solutions across the supply chain can optimise every stage of the process, from procurement to distribution. NutrifyGenie AI has already established success stories with Indian Contract Development and Manufacturing Organizations (CDMOs) and ingredient suppliers, leveraging international opportunities while addressing the vast potential of the Indian market.
6. The role of Gen Y and Gen Z: A major impetus for growth is being driven by Gen Y and Gen Z, who are far more informed and demand evidence-based claims. These younger generations look for doctor endorsements and reliable product validation. While social media serves as a good awareness tool, it is increasingly being viewed as a “healthwashing” platform, with limited trust but substantial informational value. Their preferences are shaping market trends, with the highest growth seen in conventional formats like capsules, gummies, and powders.

A recent survey of 600 Gen Y and Gen Z consumers by Nutrify Today revealed that fitness and skin wellness dominate as high-priority choices, with 80 per cent selecting these categories. Interestingly, 60 per cent also expressed an interest in wellness solutions for anxiety and sleep—areas traditionally associated with older demographics. Additionally, 68 per cent reported awareness and use of supplements for cardiovascular health, a trend likely influenced by frequent news of young individuals experiencing heart attacks. These findings underscore the defining role these generations will play in the next 20 years of the Indian nutraceutical story.

1. Investments and industry evolution: Over the last three years, India has witnessed nearly 30 major mergers, acquisitions, and investments in the nutraceutical space, marking a high-intensity growth phase. The country is at a crossroads similar to where the U.S. stood in the early 2000s, when the American nutraceutical market, valued at USD 15 billion, entered a period of exponential growth. India’s journey has already begun, but there’s much to learn from the U.S. experience—particularly the importance of evidence-driven, responsibly developed products and supply chains that extend to sustainable farming practices.
2. Positioning as a global leader: With the advent of advanced AI tools like NutrifyGenie AI, the nutraceutical industry is achieving unprecedented efficiency. These tools have streamlined the entire process, from ideation to commercialisation, enabling companies to develop evidence-backed, high-science products. What once took two years to bring to market can now be accomplished in significantly less time, with the added advantage of unique positioning. This technological leap gives Indian companies a significant edge in capturing both domestic and international markets.

India has a unique opportunity to emerge as a global guidepost for responsible nutraceuticals. This approach could not only help achieve the USD 100 billion target but also set new standards for regulatory and self-governance practices. Leveraging its adjacency to the pharmaceutical sector, where India already has a strong global footprint, the nutraceutical industry can naturally adopt best practices and elevate its credibility worldwide.

Charting the path forward

To achieve this audacious goal, India needs a multi-dimensional approach:

• Policy advocacy: Incentivising R&D, introducing export-friendly policies, and offering tax breaks for startups in the nutraceutical space.
• Global collaborations: Partnering with international firms to exchange technologies and penetrate global markets.
• Technological integration: Using AI and machine learning for advanced market analysis, product development, and personalised consumer engagement.
• Sustainability focus: Adopting green manufacturing practices to align with global sustainability norms and attract eco-conscious consumers.

Conclusion

Sitting at the intersection of global demand and untapped potential, India’s nutraceutical market is on the brink of extraordinary growth. The USD 100 billion milestone by 2047 is achievable, but it will require collective action from every stakeholder—government, industry, and consumers alike.

India has the resources, the talent, and the ambition. Now, it’s about executing a well-thought-out strategy to transform potential into reality. As we reflect on the insights shared during my conversations, one thing is evident: the journey to a USD 100 billion market isn’t just about numbers—it’s about reshaping the health and wellness narrative for billions of people, both in India and beyond.

*, **, *** Disclaimer:
The views and opinions expressed in this communication are solely those of the individuals and do not necessarily represent or reflect the official policies, positions, or perspectives of their employers, affiliated organisations, or any related entities.