Nutrify spots “quantum leap” for Indian nutraceutical market as it propels start-ups
19 Oct 2020 --- The current growth of nutraceuticals in India is mostly being fueled by health-conscious and supplement-curious consumers, according to business matchmaking company Nutrify India.
Aiding business growth acceleration in this space, Nutrify is providing industry knowledge and financial opportunities to “deserving start-ups and mid-sized nutraceutical companies” looking to enter India’s nutraceutical industry.
“The pandemic has given the Indian nutraceutical market a quantum leap from a mere 12 percent growth per annum to 25 percent. It is estimated that the Indian nutraceutical market will stabilize at 22 percent growth per annum post-pandemic,” Amit Srivastava, Nutrify’s founder and chief catalyst, tells NutritionInsight.
“This changes the numbers completely. India was scheduled to reach about US$$17 billion by 2025, but now it is estimated to reach over US$20 billion by that same time,” Srivastava continues, citing data from the Federation of Indian Chambers of Commerce & Industry.
Nutrify India fuels start-ups with fundings
Since its February launch, Nutrify has supported three India-based companies in launching their products in the US market and two companies in establishing their businesses in India.
Nutrify’s assistance comes in the form of go-to-market strategies, guidance on commercialization, and market access facilitated by government collaboration and venture grant programs.
“We screen various innovations in India and abroad and review their potential market applications,” notes Srivastava.
“Once the innovation meets our criteria of responsible nutrition, we engage with the innovator in the journey, including product development, venture funds, brand marketing strategies and execution support,” he explains.
The company is also helping several international companies enter India with regulatory clearances for their product launches.
Tapping into India
Considering OECD data points out that India’s population is 1.35 billion strong, with a life expectancy at birth of 68.2 years, India may be a potentially overlooked market.
Beneo, for example, is currently eyeing the Indian market as 50 percent of surveyed consumers cite digestive health as a key purchasing driver. “India is a major market for Beneo’s ingredients. With close to 40 million diabetics and 400 million overweight people in India, there is a growing demand for healthier foods,” Thomas Schmidt, marketing director at Beneo, previously told NutritionInsight.
In May, NutritionInsight spoke with India-based OmniActive and Arjuna Naturals about how their respective businesses were affected by the government-imposed lockdown restrictions.
Scoring up to US$10m in funding
Companies of any size seeking to enter the nutraceuticals industry must satisfy two of Nutrify’s criteria:
- Provide a proven concept at the prototype level and clarity on how to carry out its pilot program.
- Commercialized innovation on a small scale.
Both categories go through a Nutrify India Responsible Nutrition screening criteria. Once they are approved, the company subjects them to “market mapping,” looking at the real potential and actual product fulfillment possibilities.
“Once these two levels are cleared, Nutrify India signs on and works with innovators in the commercialization journey,” adds Srivastava.
“If funds are needed, we set up a road map ranging from innovation grants to soft liens to venture funds. Investments or grants can range from as low as US$13,500 to US$10 million,” he details.
Tie ups on the cards
In upcoming business partnerships, Nutrify is currently exploring expansion in North America and plans to endeavor in bilateral business alliances between Indian and Australian innovators.
“We also are in an advanced stage of announcing a tie-in with research institutions for scaling up research work in India and to key European markets,” Srivastava adds.
Specifically, Srivastava sees functional foods as a fast-growing trend. “Behaviorally, in their pursuit of improving their compliance, consumers will seek formulations that fit into their daily habits, increasing demand for functional foods. It is evident that the Western trends of functional foods have caught up with the start-ups, fueling the growth.”
By Anni Schleicher, with additional reporting from Kristiana Lalou
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