48.1 Current Trend of Nutraceutical Market
Global nutraceutical market is estimated to be US $ 117 billion (` 5148 billion). India has only 1 percent share which amounts to ` 44 billion, however the growth rate of Indian nutraceutical market is quite impressive i.e. 18 percent. The functional foods consisting of food, beverages and supplements is estimated to reach 176.7 billion US $ by 2013 with compound annual growth rate (CAGR) of 7.4 percent. Functional beverage market is the fastest growing segment with CAGR of around 10 percent. Globally USA, Japan and European Union (EU) are the major market of nutraceuticals with an estimated share of 36, 22 and 21 percent respectively. In Japan, majority of nutraceutical products are classified as FOSHU (Food for Specific Health Applications) and more than 100 products are listed under the category. In India functional foods constitute 54 percent of nutraceutical market (1.0 billion US$) followed by 32 percent for dietary supplements and 14 percent for functional beverages. Functional foods in Indian market mainly consist of fortified foods and probiotics. Functional beverage category largely includes the fortified juices, energy drinks and glucose powder. Dietary supplements are composed of vitamin and mineral supplements, antioxidants, botanical extracts and certain macronutrients like fatty acids and amino-acids. Companies involved in manufacture and marketing of nutraceutical products mainly belong to the food (55%) and pharmaceutical (35%) industries. Strategic alliances are already in place among pharmaceutical and food companies. In India, nutraceuticals are marketed as Indian System of Medicine (ISM) drugs under the over-the-counter (OTC) category. No clinical validation of their safety or efficacy is required if therapeutically usefulness is mentioned in the literature. Currently, Indian functional foods market is estimated at $70 billion or 4% of processed food market and is growing at the rate of three times of processed foods. In developed markets, higher consumer awareness on health and wellness is being addressed through product innovations and marketing prowess of large players. While the ageing population needs more engineered foods, the younger population is demanding more fortified foods to get extra energy. Health-related issues -obesity and CHD -are forcing food processors to launch campaigns to promote low fat and carbohydrate diets or other such foods.
Probiotic dairy foods constitute the largest segment of dairy based functional foods. The global probiotic market is expected to record a CAGR of 12.6 percent and reach 32.6 billion US$ by 2014. Europe forms the largest market for probiotics with estimated value of 13.5 billion US$. Asia is second largest segments with an estimated market of 9.0 billion US$ and CAGR of 11.2 percent. Probiotic yoghurt, other probiotic dairy foods and probiotic supplements form the probiotic segment. Indian probiotic market is valued at US$ 2 million in 2010 and expected to grow four times by 2015. India accounts for less than 1.0 percent of global probiotic market.
At global level, Japan is the single largest market with per capita consumption worth $140 followed by the US and Europe with an estimated figure of $95 and $60 respectively.
There are a lot of products sold in the name of nutraceuticals in the Indian market. Close to around 100 products are even listed on the Internet along with the global companies and around 20 Indian companies have a record of producing nutraceuticals and marketing them globally. India is relatively a new market for such products. All major pharma players are in the process of entering this market. The level of exports from India is still small, estimated to be perhaps less than ` 750 crore, if one excludes Psyllium. The major markets for India are the US, Europe and Japan. India can become leader in this field as we hold key expertises as well as we are rich with the biodiversity.
48.2 Challenges in Development of Functional Dairy Foods
In India, we have traditional products touted as functional but have little scientific validation. Regulations will thus have to evolve to promote R&D, ensure validation and prevent exploitation of consumers. Companies will also have to be sincere and honest in their claims while marketing and communicating with consumers till appropriate regulations for scientific validation are evolved. Processors will need to provide an optimal merger between taste, convenience and health attributes. Companies will require expert knowledge in flavour masking, fortification know-how and delivery systems.
48.2.1 Technological challenges
Four different technological hurdles have to be overcome before a product containing bioactive substances is ready to consider marketing:
· Isolation of the desired components,
· Pre-establishment of the biological activity,
· Incorporation of the bioactive components into a formulated product,
· Verification of efficacy and safety of final product.
Such a sequence of experimental events is also required for the introduction of new food additives. This applies especially when the bioactive component is a completely new substance and never consumed before in significant amounts. Separation, purification and production at industrial level of such nutraceuticals must be thought in terms of integrated and high added value. Membrane technologies (Micro-filteration, Ultrafilteration and Nanofilteration) provide key opportunities to manufacture milk nutraceuticals in native state. The incorporation of bioactive components into processed foods, its delivery and bioavailability are other important issues that need reprisal.
A close interaction among chemist, nutritionists, medical practitioner, technologists and biochemists is essential to formulate, develop and validate the health claim of various types of functional foods and nutraceuticals. Regulatory authorities have also given due emphasis for the validation of health claims. Recently government has introduced the guidelines for the evaluation of probiotics for health claims.
48.2.2 Scientific validation of functional foods
The scientific evidence for functional foods and their physiologically active components can be categorized into four distinct areas: (a) clinical trials, (b) animal studies, (c) experimental in vitro laboratory studies, and (d) epidemiologic studies. Much of the current evidence for functional foods lacks well-designed clinical trials; however, the foundational evidence provided through the other types of scientific investigation is substantial for several of the functional foods and their health-promoting components. One must ensure the nature of claim for the ingredients present in the newly developed foods. Claims for many ingredients like extracts, amino-acids, minerals, vitamins and fibers etc, are already well known and only care must be taken to ensure the minimum that is required for imparting the health benefits.
48.2.3 Safety Issues
Although increasing the availability of healthful foods including functional foods in the diet is critical to ensuring a healthier population, safety is a critical issue. The optimal levels of the majority of the biologically active components currently under investigation have yet to be determined. The benefits and risks to individuals and populations as a whole must be weighed carefully when considering the widespread use of physiologically-active functional foods. Knowledge of toxicity of functional food components is crucial to decrease the risk: benefit ratio. The safety issues related to probiotic microorganisms that has to be considered includes:
· intrinsic properties of the probiotic strains
· pharmacokinetics of probiotic strains
· interaction between probiotic strains and the host
· Knowledge of toxicity of functional food components is crucial to decrease the risk: benefit ratio.
48.3 Future Prospects of Nutraceuticals and Functional Foods
Consumer interest in the relationship between diet and health has increased the demand for information on functional foods. Rapid advances in science and technology, increasing healthcare costs, changes in food laws affecting label and product claims, an ageing population, and rising interest in attaining wellness through diet are among the factors fuelling interest in functional foods. Credible scientific research indicates many potential health benefits from milk components. It should be stressed, however, that functional foods are not a magic bullet or universal panacea for poor health habits. Growth of nutraceuticals in Indian market is driven by several factors that includes the following:
48.3.1 Affluence
Increasing population with changing life-style owing to increase in proportion of working populations, more women workforce, sedentary life-style, higher disposal income and changing dietary habits indicate demand for health and functional foods. There is a rapid increase in the population of young people who have altogether different nutritional and food demands. Likewise number of aged persons is also on rise that necessasitate introduction of certain specialized foods for them.
48.3.2 Affordability
More than 50 percent household expenditure is only on food items, hence with additional disposal income due to the increase in per capita income would enable consumers to spend on functional foods. Moreover out of pocket expenditure which constitutes 64 percent of health care expenditure and rapid rise in health care cost also forces consumers to look for health and functional foods.
48.3.3 Awareness
Popularization of novel health foods trough print, electronic and other media sources resulted in creation of awareness among common people regarding the diet related health issues and prospective health components present in them. Physicians have started prescribing such products apart from regular medicines. Moreover, availability of diagnostic facilities at affordable cost enable people to monitor the critical health parameters such as Blood pressure, (BP), lipid profile, fasting glucose etc. to ensure the goodness of health and adopt corrective measure if desired.
48.3.4 Accessibility
More and more functional foods, beverages and dietary supplements are emerging at market place. Looking at the potential every year hundreds or multitudes of health and functional foods are being introduced in Indian market. Growth in retail sector has further fuelled the availability of such products to the consumers. Certain companies like Reliance, Apollo Pharmacy, Med Plus etc. have opened their stores for the marketing of functional foods.
Depending on the need these products may be broadly grouped into three sections.
48.3.4.1 Foundation needs
For maintaining normal growth and wellness, these products promote general well being and healthy life-style. The products include macro & micronutrients fortified raw materials like juices, flours, probiotic foods and herbal products such as chyawanprash. At present the market is ` 33.3 billion which is expected to grow ` 38.0 to 71.4 billion.
48.3.4.2 Condition specific needs
These require nutraceuticals under certain specific conditions mostly when these are deficient. The segment includes, diseased, pregnant, lactating, aged persons, infants, etc. The large population suffering with macro or micronutrient deficiency disorders, obese, suffering with cardiac ailments and osteoporotic, may need special dietary components. The products include supplements, antioxidants and botanicals. The market for such products is expected to grow to ` 50-99.5 billion from the current value of ` 10 billion.
48.3.4.3 Enhancement needs
These food items are designed to meet the enhanced nutritional requirement of specific groups including athletes. The products include high energy powders, protein powders or drinks, electrolytes, amino-acids and other ergogenic aids. The market is in infancy and expected to reach Rs. 1.5 billion.