Inside the Rise and Risks of India's Booming Nutraceutical Market

India's nutraceutical sector is expanding rapidly, driven by a more health-conscious consumer mindset in the post-pandemic era. Depending on how the category is defined, estimates place the market anywhere between a narrow USD 6-8 billion for supplements and capsules to over USD 40 billion when functional foods and fortified products are included, with most projections pointing to double-digit growth through the next decade.

Over the last 15 years, Tracxn counts more than 270 nutraceutical-tech startups in India. More than 180 million dollars has flowed into the space in under three years, with overall sector funding now estimated above USD 500 million, making it one of India's fastest-evolving sunrise sectors.

Yet, as the market scales, it also enters a more complex phase, with rising consumer expectations around efficacy, transparency, and outcomes colliding with tighter regulatory scrutiny.

Sick Care to Self-Care

According to industry players, the real inflection is psychological. "From where I sit, the biggest shift is that Indians have finally moved from 'I will fix it when something goes wrong' to 'I want to stay well every day'," says Keerthi Ashish, founder of women's hormone health brand Samāh. COVID-19, she says, may have triggered the shift, but the habit has stayed. "People are reading labels, asking questions, choosing clean products and taking ownership of their health."

Amit Srivastava, founder of another Nutraceutical brand, Nutrify Today, calls it a permanent move from sick care to self-care. "Nutraceutical growth, which used to be largely single-digit to low double-digit, jumped sharply during the pandemic and has since stabilised at a structurally higher level," he says.

That shift is also visible in who is buying. "We see the average entry age for supplementation dropping from 40 plus to 24," says Deeksha Rajani, founder and CEO of wellness brand Be. Consumers, she adds, are now spending nearly three times more on sleep, hormonal balance, gut health and cognitive function compared to basic multivitamins. "They want specificity, clarity and proof of efficacy. They no longer stop at the label," she adds.

Srivastava sees the consumer centre of gravity moving decisively into the 25–45 age band. "Gen-Z and Millennial see wellness as an ongoing subscription, not a one-time fix. They compare labels, read reviews, talk to coaches, and then decide. They want ease of use, openness, and real results," he says.

At Samāh, the shift is especially sharp in women's health. "Women come to us not because someone told them to take a supplement, but because they want gentle, food-based support for PMS, PCOS, or postpartum recovery," says Ashish.

Evolution of Nutraceuticals

Initially, India's nutraceutical sector was dominated by pills and traditional multivitamins. Today, everyday formats and outcome-driven stacks are taking centre stage. "Gummies and chewables have become the go-to for younger users because they're easy and fun. Functional foods and beverages are growing fast because people want nutrition built into their routine. And the biggest emerging space is women's health and hormone health," says Ashish.

Srivastava adds that growth clusters where science is strong, formats are easy to follow, and benefits are measurable, which is why gut health, women's endocrine health, protein and performance, and beauty-from-within dominate current pipelines. "Gut health has become the new operating system for wellness, while India also remains protein-deficient, especially in vegetarian households," he says.

Rajani notes that while gummies helped expand the market, serious users are now shifting to capsules, sachets, and powders that deliver clinical dosages. Be.'s own data shows customers who stack probiotics with skin or sleep products have nearly 40 per cent higher retention than single-product users.

Sales channels are evolving in parallel. Discovery is now largely digital, while availability is becoming omnichannel. Pharmacies and clinics continue to anchor trust, especially in chronic categories, where doctor-recommended products see higher repeat rates. Rajani adds that as acquisition costs rise on digital platforms, brands that focus on retention rather than discounting, with quick commerce emerging as a strong repeat channel, are more likely to scale sustainably.

Capital & Convergence

As consumers and channels evolve, capital has followed. Alongside the startup funding surge mapped by Tracxn, strategic buyers have stepped in. Hindustan Unilever's acquisition of OZiva and Marico's investment in Plix sit alongside established players such as Dabur, Himalaya, Sun Pharma, Cipla Health, Abbott, and Amway.

For investors, the interest is clear. "Millennials are fast ageing; the oldest millennials will soon hit 50," says Vinay Singh, co-founder and partner at Fireside Ventures, in a conversation with Entrepreneur India. "They are digitally connected, spend consciously, and increasingly look at preventive solutions for gut health, menopause, bone and joint health, liver health, and more. The time for nutraceuticals has come in India."

A Tougher Rulebook

This boom is now colliding with a stricter rulebook. Under the Nutraceutical Regulations, 2016, brands must use approved ingredients, stay within RDAs, and follow tight labelling norms. Over the last two years, FSSAI has cracked down on mislabelled products, unapproved ingredients, and drug-like claims, flagged misleading protein supplements, warned against vague "100 per cent" claims, and even seen a government panel suggest shifting some high-risk supplements under the drug regulator. Influencers and celebrities are also under tighter scrutiny, with mandatory disclosures and liability for misleading endorsements.

Founders see this as a necessary discipline. "Nutraceuticals sit in a space that is neither entirely food nor entirely pharma," says Ashish. Rajani adds that tighter RDA limits "push out brands that rely on dusting doses," turning compliance into a competitive moat.

For Nutrify, regulation is now a design input. "You cannot copy global labels into India. You must build within Indian regulations from day one," says Srivastava.

After a pandemic-led spike from about 10 per cent to over 25 per cent growth, the sector has stabilised under sharper regulatory and scientific expectations. Generic "immunity" and "energy" boosters are giving way to clinically backed, personalised nutrition built around diagnostics, biomarkers, wearables, and AI, as the industry moves into what founders call an era of "responsible nutrition."