Specialisation Tarique Black Book.pdf

A Project Report on “Consumer Awareness and Behavior Towards Nutraceutical Products in India”

in the partial fulfillment of the requirement of Masters of Management Studies (MMS) Conducted by Rizvi Institute of Management Studies and Research Under the guidance of Dr. Garima Sharma

Submitted by: Tarique Akber Azmi MMS (Marketing) Roll No: 78 2016-18

ACKNOWLEDGEMENT I owe a great sense of gratitude to the Director, Rizvi Institute of Management Studies & Research for his priceless guidance. His tough love grinded the best out of me and helped me complete this project. I consider it a sheer privilege to carry out this project under the stewardship and wisdom of Dr. Garima Sharma

I also thank all my colleagues for their unwavering support in this endeavor.

I take this opportunity to express my whole hearted gratitude to the Almighty, my parents and my friends for their continuous help and showing a sense a belief which propelled to accomplish this testing task successfully.

_______________ Tarique Akber Azmi Roll No: M – 78 MMS Marketing 2016-18

DECLARATION I declare that the project titled, “Consumer Awareness and Behavior Towards Nutraceutical Product in India” is a record of the research carried out by me during the academic year 2016-18 under the guidance of my guide Dr Garima Sharma, Rizvi Institute of Management Studies and Research.

I also declare that the project is the result of my effort and has not been submitted to any other university for the award of any degree or personal favor. All the details and analysis provided in the report hold true to the best of my knowledge.

__________________ Tarique Aber Azmi Roll No: M – 78 MMS Marketing 2016-18

CERTIFICATE This is to certify that Tarique Akber Azmi a student of Masters of Management Studies (MMS), Roll no. 78, specializing in Marketing has successfully completed the project titled

“Consumer Awareness and Behavior Towards Nutraceutical Product in India”

Under the guidance of Dr Garima Sharma, Rizvi Institute of Management Studies and Research in partial fulfillment of the requirement of Masters of Management Studies by Rizvi Institute of Management Studies and Research, for the academic year 2016 – 2018.

Dr. Garima Sharma

Prof Umar Farooq

Dr. Kalim Khan

Project Guide

Academic Coordinator

Director

Executive Summary Nutraceuticals refer to food or part of a food, including beverages and food products that provide incremental medical or health benefits, including prevention or treatment of a disease. It spans across Functional Foods, Functional Beverages and Dietary supplements. Some instances of Nutraceutical products are Probiotics, Fortified energy drinks, Vitamins and Minerals etc. The category is positioned in between Food & Beverages and Pharmaceuticals Globally, Nutraceuticals market is expected to witness huge growth. At the turn of the millennium, between 1999 and 2002, the industry grew at a CAGR of 7%. Subsequently till 2010, it doubled to 14%. Currently every year $12-15 Bn is being added to the global revenue. The US and Japan have been pioneers in embracing Nutraceuticals. Western Europe also represents a large market, with strong footprints in Germany, Italy and France. Developing markets like India, Brazil and China are relatively smaller, yet have a huge growth opportunity. Indian market currently has a 2-3% share of the global market. The Indian Nutraceuticals market is estimated at around $ 4 Bn in 2017 and is expected to grow at a significant 21% CAGR to $ 10 Bn in 2022. This will likely be fueled by a significant 25% per annum growth in Functional Beverages market accompanied by similar potential growth from the other segments. More than 60% of this market is accounted for by Dietary supplements. Few industries in India today offer such spectacular growth potential. Key players in the Indian market feature both Indian and Multi-national companies. MNCs like GSK, HUL, Amway Nestle, Danone, Kellogg’s, and PepsiCo are trying to augment their market share and reinforce penetration. Strong Indian players like ITC, Dabur, Himalaya, Patanjali and Baidyanath are also launching new products to reach out to newer segments and geographies in India. Many players have stayed in identified niche markets to play on their strengths. Indian consumers are getting more aware of their fundamental needs for nutrition and proactive steps they can take to prevent chronic ailments and attain higher well-being. India has a significantly younger population and the younger generation is vigorously pursuing more active lifestyle to enjoy fitness, to guard against obesity, diabetes, cardio-vascular problems etc. In this context, the role of opinion-shapers like General

Practitioners, Fitness Instructors and Nutritionists cannot be ignored. For accelerated penetration and growth, companies must develop programs for more extensive consumer understanding, decide which segments they would like to enter and compete. It is also important to formulate an effective communication strategy for the target audience to educate them on the benefits of this category. Side-effects and spurious products are two key concerns and a potential barrier for growth from all stakeholders and needs to be quickly addressed. It is here that the Regulatory may want to play a more active role. Relevant framework is the Food Safety & Standards (Health Supplements, Nutraceuticals, Food for Special Dietary Use, Food for Special Medical Purpose and Novel Food) notified by FSSAI in December 2016 in the Official Gazette. FSSAI has also issued guidelines for Labelling requirement and Health Claims. It is for the industry now to expedite implementation of the same. It will help to understand the usage pattern of the nutraceutical products. This projects will help to understand the reasons for buying nutraceutical products and reasons for not preferring the products and to understand the source of awareness about the nutraceutical products among the people. The main reasons for the people who does not prefer nutraceutical products is because the product is not prescribed by the doctors. As the packaging also matters in the sale of the product. Most of the people are aware about the nutraceutical products and the source of awareness is through word of mouth, social media and T.V advertisement. As price and availability plays an important role so people who does not prefer nutraceutical products because according to them nutraceutical products are expensive as compared to other products price is not the only factor that people are not considering nutraceutical products but availability is another factor. Nutraceutical products are used for various purpose such as general wellbeing, weight control, bone health, cancer etc. but mostly it is used to gain energy and improve immune system. As the consumer of nutraceutical products they do not prefer to use cheap substitute if available in the market, because nutraceutical products has gain trust of the consumer. As per the consumer one word that comes to their mind when they hear nutraceutical products is reliable and quality.

Sr.No Table Of Content

Page No

1.

Background of the Study

1

1.1

Introduction

2

2

Global Nutraceuticals Market

5

2.1

Global Market size

6

2.2

Growth and general demand scenario

6

2.3

Drivers of growth

7

2.4

Major global players

8

3

Indian Nutraceuticals Market

9

3.1

Indian market size and growth

10

3.2

Consumer Segment

13

3.3

Drivers of growth

13

3.4

Functional Food-overview

15

3.5

Functional Beverages-Overview

19

3.6

Dietary Supplements-Overview

21

3.7

Key players in Indian Market

22

4

Emerging Trends in Nutrition & Wellness

25

4.1

New Trends Among Consumer Eating Pattern

26

4.2

Probiotics

27

5

Review of related Literature

29

6

Research Methodology

36

7

Data analysis and interpretation

40

8

Findings, recommendation and conclusion

58

Annexures

64

(A) Questionnaire

65

(B) List of Table

68

(C) List of Image

68

(D) List of Figure

68

(E) Bibliography

Consumer Awareness and Behavior Towards Nutraceutical Products in India

Tarique Azmi

Chapter 1 Background of the Study

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1.1 Genisis of Nutraceuticals It is only in the late eighties or early nineties that a formal approach and understanding started evolving. Dr Stephen De Felice, Founder of the Foundation of Innovation in medicine, coined the term ‘Nutraceuticals’ in 1989, which became a newly accepted word in Oxford Dictionary. It was in recognition with the growing need for such products and a space that conventional pharmaceutical products were not treading upon. The relevance and impact of Nutraceuticals became more relevant as the present generation is focusing more on preventive healthcare than ever before.

Nutraceuticals in contrast to Pharmaceuticals Although the word ‘nutraceuticals’ is now well understood and widely accepted, it still does not have any one standard definition. The best definition that we come across is food or part of a food (including drinks) that provides medical or health benefits, including prevention or treatment of a disease’. In contrast to this, Pharmaceuticals focus more on specific illness or treatment.

How Consumers relate to Nutraceuticals Consumers’ modern-day lifestyles have significantly changed in the last three decades. Faster pace of life, stress of work-life balance, has been taking its toll on health and wellness. At the same time, access to media and information has allowed them to better understand latest developments in this space. Generally the current generation is extremely conscious of food and beverages that are more natural, enhances energy in a holistic way and have a balanced diet. Also routines and rituals like work-outs, swimming; running needs a supplement that caters to nutrition needs well.

Product Landscape Broadly product categories are divided into two major ones: 1. Functional Foods& Beverages 2. Dietary Supplements Over the last 3 decades the product landscape has really expanded and today we have a wide product portfolio in Nutraceuticals category. 1

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Functional Foods Functional Foods are foods that provide health benefits beyond the provision of essential nutrients, when consumed at efficacious levels as part of a regular diet. These types of foods provide added physiological benefits, potentially reducing chronic, commonly encountered disease risks or otherwise optimize health. The understanding of such benefits, however, needs to be based on sound scientific evidences, a lack of which may mislead many a consumer. Some instances of Functional Foods are Omega-3 enriched eggs, Oats, Fatty fish, Fortified margarines, Iodized salts, Soy, Tomato & tomato products, Probiotic yoghurt, Nuts (Walnuts, Cashews, Pistachios among others), and Leafy Greens are examples of Functional Foods.

Functional Beverages Functional beverages are non-alcoholic beverages containing ingredients that provide specific health benefits beyond those of general hydration. Traditionally, beverages have been fortified with vitamins, minerals, amino acids and antioxidants. Nowadays, drinks containing natural and organic ingredients including herbs, fruits and vegetables have gained popularity to support health and wellness across all age groups. Examples of Functional Beverage include performance & sports drinks, ready-to-drink teas, enhanced water, energy drinks, and soy beverages, enhance fruit drinks.

Dietary Supplements A dietary supplement is a product intended for ingestion that contains a “dietary ingredient” intended to add further nutritional value to (supplement) the diet, which may otherwise not be consumed in sufficient Indian Nutraceuticals Industry Current Scenario & Future Trends 16 quantities. Examples of dietary supplements are Vitamins, Minerals, Amino Acids, an herb or other botanical source, a concentrate or an extract. All organic food also comes under Nutraceuticals category and the awareness and choice of such food is majorly on the increase. 2

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Chapter 2 Global Nutraceutical Market

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2.1 Market Size Globally As per Assocham 2017, “the global nutraceutical industry, valued at US$ 182.6 bn in 2015, is one of the fastest growing industries today and expected to expand at a CAGR of 7.3% from 2015 to 2021.” Currently, the United States, Europe and Japan account for most (93%) of the total global nutraceutical market. The market, however, seems to have attained maturity in all the three regions. Therefore, the nutraceutical industries across the world are now turning their attention to emerging markets like India and China. Nutraceuticals market is going to experience huge growth in the next 10 years or so. Key developed & health-conscious nations are primarily driving this. However, emerging market consumers are also becoming increasingly aware of the benefits of such products. Alongside, disposable income of general population is also increasing exponentially in many developing nations including India.

2.2 Global Market Growth & General Demand Scenario According to assocham report as is evident, while in the initial years, between 1999 &

2002 industry grew at 7% per annum, the next few years up to 2010 saw double that growth at 14% per annum. Currently around $12-15 Bn is being added every year. By 2020, the world will have 1 billion populations of 60+ ages. 70% of this population live in developed nations & balance 30% in developing nations. Nutraceutical demand will grow at a steady rate in developed nations. Developing nations with their progressive disposable income will see a sudden surge in growth in the next 5-10 years.

2.3 US & Other Markets 

The US has been the largest Nutraceutical market so far and almost fully mature. Between 2010 & 2015 it grew from $ 50 Bn to $ 65 Bn, a compounded growth of 10% annually.



The US market comprises of Functional Food & Beverages (65%) and Dietary Supplements (35%)



The European market has grown from $ 35 Bn in 2010 to $ 40 Bn in 2016. It is expected to grow to $ 51 Bn by 2021. This indicates an annual growth of 5%.

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France, Germany & Switzerland are the biggest markets comprising almost 70% of the European market. (Assocham 2017)

2.4 Drivers of Growth The drivers of growth are diverse for different markets. It also depends on the level of maturity of the market. Below is an account of what the drivers of growth are – for different markets. Factors Driving Growth US

Europe

Increasing Acceptance of cost of Ingredients Healthcare

Japan

Brazil

China

India

Aging population

Organic is healthy perception

High cost of insurance & healthcare

Rising awareness of health issues & alternatives

Over-nourished/ obesity problem

Influence of TCM

Erstwhile Advertising & Healthcare costs recession Marketing

Preference for Maturity natural of market products

Clutter of products in the market

Rising Eye Health issues & Diabetes incidence Obesity, high lipid and sugar levels in blood, hypertension

Better access through newer channels

Awareness & perceived risk of Expansion of diabetes, heart modern retail disease & cancer

Ageing population

Imports

High incidence of Diabetes

Usage of vitamins

Consumer awareness Rising middle class and on healthier health alternatives & consciousness naturals

Shorter product life cycle

Ageing population

Ageing baby boomers

Table: 2.1 Drivers for Growth (Source:www.mrsindia.com)

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2.5 Major Global Players Participation in Nutraceuticals comes from two critical avenues. Firstly, companies who are already have strong equities in Food & Beverages sector. Secondly, pharmaceutical companies that are looking at preventive products for certain range of ailments.

Table: 2.2 Leading Brands of Nutraceutical Products

Img: 2.1 Nutrients from natural source vs Nutraceutical products

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Chapter 3 Indian Nutraceutical Market

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3.1 Indian Market Size & Growth “The Indian nutraceuticals market is expected to grow from $ 4 Bn in 2015 to $ 10 Bn in 2022. This represents a huge growth of 21% growth annually”. (mrsindia) Rising Awareness Despite the fact that nutrition is a relatively new segment within health care, growth has begun to accelerate in recent years primarily due to higher levels of awareness among consumers about the impact of lifestyle and diet on health. As a result, consumers have become more appreciative of the importance of nutrition in both the prevention and treatment of diseases. In addition, health publications and fitness icons have helped increase the understanding and appeal of natural health focused products.

Increase in Disposable Income Until fairly recently, nutraceutical products, including supplements and functional foods, were mainly purchased by those in higher income groups, a pattern that we are seeing a drastic change in because of rising disposable income and greater purchasing power. Higher spending power has also prompted Indians to pay more attention to health, with a focus on nutrition as preventive.

Medical Community Co-prescribing Nutraceuticals Nutraceuticals were long regarded as purely optional by most doctors, which worked as a barrier to the nutraceutical market’s growth. With increased research into food science and nutrition in recent years, there has been a remarkable change in perceptions within the medical community. Most doctors now acknowledge the role of nutrition in quality medical care, with a focus not just on cures, but also on prevention. Aside from dietitians and nutritionists, general physicians and other specialists also frequently prescribe nutraceutical products and supplements, where they are seen to be beneficial. 3

3

Assocham India 2017

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CHART India Nutraceutical Market ($ bn) 10.01 8.31 6.90 5.75 4.00

2017-E

4.79

2018-F

2019-F

2020-F

2021-F

2022-F

Figures: 3.1 Nutraceutical Market in India (Assocham India 2017)

Transformation in food habits, less physical work, more of desk jobs have made Indians more vulnerable to lifestyle ailments. The average urban & semi-urban Indian is becoming more conscious about health & fitness. This is providing a massive growth opportunity for Nutraceuticals in India. The entire category of Nutraceuticals is divided into Functional Foods, Functional Beverages & Dietary Supplements. Functional Food & Beverages account for around 35% of the market in India and will experience higher growth in India in the next few years to come.

Future Trends in The Nutraceutical Segment With new players entering the market and rapid innovation within the nutraceutical industry, this is actually one of the most exciting times to be part of the industry. Many of the emerging trends in India will also help resolve the challenges that we have faced in the past, further promoting growth of the sector.

An Overhauled Regulatory Framework The revelation that up to 70% of the dietary supplements in India’s nutraceutical market or fake or illegal came as a huge shock to consumers and it is also a cause for alarm within the industry (The Associated Chambers of Commerce and Industry of India (ASSOCHAM) and RNCOS, April 2017). This has a significant impact on the market, as it eats into revenue and also shakes consumer confidence in nutraceuticals. Fortunately, the FSSAI’s introduction of Rizvi Institute of Management Studies and Research

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new regulations should get to the root of this problem, which is the lack of consistent regulation and standardization of nutraceutical products. These new regulations will come into effect in 2018, allowing us to manufacture, distribute, sell, and import products within a clear framework. The new framework will prescribe clear standards and well-defined product categories eliminating the current ambiguity. These regulations will also give manufacturers much more clarity in terms of permissible ingredients in nutraceutical products and labeling.

Market Expansion (Tier II & III Cities & E-commerce Growth) In the past urban India, or more precisely the metros, were the only markets for nutraceutical sales, but consumption patterns have shown a dramatic shift, with a steady increase in demand from Tier II and Tier III cities. This does give us cause for optimism, as we believe that this trend will only gather momentum, especially because of the large-scale digitization of India. With greater internet penetration across the country, awareness about lifestyle diseases and nutritional deficiencies has been increasing not just in the metros, but throughout India. Digitization has also improved access to nutraceutical products, with consumers in Tier III cities having the same wide range of choice as do urbanites in metros. Purchasing products from reputed online retailers or directly from manufacturers also increases consumer confidence in product quality, while cost benefits to sellers are also passed on to consumers. E-commerce growth is in fact a game changer for the nutraceutical industry, as the health care segment has already seen remarkable growth at a CAGR of 87.4 (Ken Research, Apr 2017). With Indian e-commerce sales expected to hit USD 120 billion by 2020, the nutraceutical industry stands to make big gains.

Img: 3.1 Nutraceutical is Natural

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3.2 Consumer Segments India represents a huge and vast market for Nutraceuticals as almost every segment has a need for some form of Nutraceuticals. Some segments have a more pronounced need for Nutraceuticals among others 

Growing children needs Functional food and beverage supplement to be able to perform well in academics and extra-curricular well



Younger Age-groups 15-25 & 25-35 are stronger targets either due to active lifestyle or specific needs



Pregnant and lactating mothers need to supplement their nutrition need



Ages 60+ group are specifically vulnerable to Diabetes, Bone related diseases and other ailments

and needs special preventive protection through

Nutraceuticals.

Img: 3.2 Nutraceutical products used across demographics

3.3 Drivers of Growth The popularity and growth of this industry can be attributed to consumers' increased inclination towards health and nutrition. Over the past decade, there has been a radical change in lifestyles of Indians. Adoption of fast foods and packaged foods and sedentary lifestyle, has led to an increase in the incidences of lifestyle diseases such as diabetes, cardiovascular diseases and obesity. Rizvi Institute of Management Studies and Research

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As a result, Indian consumers, predominantly the higher socio-economic and upper middle class, are perceiving nutraceuticals as alternatives to prescription drugs. The usage of dietary supplements is not limited to fulfillment of the daily requirement of particular required nutrients, but consumers are also considering the functional health benefits of these supplements for prevention of diseases. Furthermore, they have been showing a keen interest in products for boosting energy and improving their physical endurance and mental alertness. As a result, dietary supplements hold the largest share in the market.3 The Indian dietary supplement market is composed of over 500 participants. Vitamins and minerals supplement market is the most competitive with over 100 participants. Further, India is opening up its market to foreign players. This could lead to healthy competition in this sector. To keep up with the growing competition, nutraceutical companies are focusing their energies in developing new product and innovative formulations and using proper advertising techniques to help consumers choose the right products.

Changing trends dosage forms Nutraceutical ingredients have typically been positioned as natural and healthy alternatives to allopathic medicines. However one of the primary challenges being faced by these products is the difficulty in formulating these products using the right dosage form. Besides, flavor and fragrance masking, the dosage forms also need to increase the stability of ingredients in the final product. But lately consumers are seeking more variety and benefits from delivery methods beyond those possible through traditional (tablet and capsule) technologies. As a result, the formulator needs to work far harder to cater to increasing consumer demands. As the nutraceutical industries look to carve a niche of their own and create a differentiated product, an important trend is the growth and diversity of new dosage formulations. As a result, traditional tablets and chewables are slowly being replaced by capsules, particularly liquid-filled capsules.

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There are a host of factors which will drive growth of nutraceutical industry in India. Notable among them are:

Consumer problems

awareness on health and

their

urge

to

take

preventive steps 

Fitness intent – which is increasing at a fast pace



Healthcare cost



Low incidence of health insurance in India – large population still uncovered



High incidence of diabetes, hypertension, Cardio-vascular ailments, Osteo-

Img: 3.3 Awareness level

arthritis, Osteoporosis etc.

3.4 Functional food - Overview Changing life style and food habits have raised health concerns. It has created the need for the consumption of healthy product ant that has fueled a growth of functional food market and opened up new opportunities. Although

function

foods

may

have

been

traditionally used across many ancient cultures,

Image:3.4 Products containing plants

Japan is the 1st country to have regulations for functional foods. Ancient Indian traditional medicinal system Ayurveda has been practiced for millennia and is still quite accepted. Indians have been familiar with functional foods such as chavanprash and many botanicals such as brahmi, ashwagandha etc. In India, Food Safety & Standards Act 2006, loosely defines functional foods along with foods for special dietary uses, nutraceuticals and health supplements stating that they may contain plants, botanicals, extracts as well as vitamins and minerals etc. and may either be in food form or in the form of powders, tablets etc. As the definition is not very strict, there are products which are fortified with common nutrients such as more protein, vitamins and minerals are also considered by many as functional foods. Recently there have been regulations notified regarding these foods. Rizvi Institute of Management Studies and Research

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Institute of Medicine, USA defines functional foods as any food or food ingredients that may provide health benefit beyond the traditional nutrient it contains. Indian government has been a little slow in implementing many fortification programs. Years ago they started addition of vitamin A to vanaspati. A few years ago they mandated addition of iodine to salt. Now they have allowed fortification of milk by vitamin A and D. They should create awareness about good dietary practices and importance of various nutrients and the relation of diet and many diseases. Functional food & beverages and Dietary supplements are the two key elements of Indian nutraceuticals market These are further divided into different sub groups like: A. Functional food and beverages a. Functional foods: • Omega fatty acid fortified food • Probiotic fortified food • Branded iodinated salt • Branded wheat flour b. Functional beverages: • Energy drinks • Sports drinks • Fortified drinks B. Dietary supplements a. Vitamins and minerals b. Herbal supplements c. Protein supplements d. Chavanprash

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3.4.1 Functional ingredients Functional Ingredients are natural ingredients that have health-promoting, energy boosting and/or disease preventing benefits. Many functional ingredients are being used in the kitchen on daily basis either directly or indirectly. Even Chefs are using functional ingredients to drive menu trends. More commercial ingredients and food science techniques are being used in restaurant kitchens. For instance, cranberry beads, which can be a garnish on a dessert or a flavor component in a cocktail in a restaurant, wouldn’t be possible without the food science—the gelling reaction of calcium chloride and alginate through a process called spherification, says John Draz, executive research chef of Ed Miniat LLC in South Holland, Illinois. Many of the herbs have been investigated and their health benefits have been shown, but these are not cultivated in organized manner although organized farming of many botanicals used in foods has already started. Thus sourcing of these substances becomes a challenge. The active substance e.g. curcumin in turmeric, may vary in content depending on variety, growing conditions including environment conditions and fertilizers, harvesting practices and storage conditions, and finally preparation of extract. All of these will all affect the content of active substance. Standardization is necessary for effectiveness of the functional food. Markets have already started filling up with products containing substances such as probiotics, prebiotics, DHA & EPA omega 3, oryzanol, antioxidants, lutein, isoflavones, as well as proteins, vitamins and minerals which are claimed to have all kind of health benefits. Best example is, flourished branded cooking oils in the market. Prices of these oils go up as per the additional functional ingredients added to the cooking oil. Many Indian and multinationals have started offering variety of cooking oils in the market. Many global associations are reviewing the most relevant ingredients for the development of functional foods, with more beneficial effects are Nutrients (NUT) (vitamins and minerals) and the Substances and Health Claims (SPS).

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Among the nutrients , fat-soluble vitamins (vitamins A, D and E); water-soluble vitamins ( vitamin C , B1 , B3 , B6 and B12 ) , and macro minerals , such as calcium , magnesium and potassium , and trace elements , among which iron , chromium , zinc, iodine and selenium stand out . All elements that have multiple beneficial properties for human organism, as health claims authorized by EFSA, highlighting its antioxidant powers, to improve the cardiovascular system, stimulating the immune system, bone tissue and neuro – vegetative, primarily apparatus. As regards the group of substances with health claims , the prebiotics , probiotics polyphenols, betaglucans , fibers, oligosaccharides , fatty acids omega 3 and 6 and fitoestoroles / stanols , along with those who also cites stilbene (trans-resveratrol ) anthocyanidins (blueberries) , superfungus and superalgae, among others. In the future, “innovation will increasingly be focused on the innoingredients in part some the ingredients mentioned before, with the following core attributes: High purity, high toxicological safety, high bioavailability, very broad applicability, and multiple health effects”. Additionally, and consisting of a new food (novel food). As examples, superhongos, shiitake (Lentinula edodes), particularly rich in betaglucan to combat metabolic syndrome. Also among algae include the functional properties of alga Noriy especially Klamath blue algae, which is a cianofícea with wide and varied health benefits. Among the macrominerals, the trace element zinc has more healthful properties among all nutrients, in the form of picolinate and trionato among other molecules, it would also registered as an innoingredients. In the big picture of future development of new formulations of functional products , must take into account the important role that can play the ” superfruits ”, such as the pomegranate fruit, blueberries, aronia or goji berries . Not to mention the growing interest in the “supercereals” (chia, amaranth, quinoa…), and “superbotanicals” which include extracts of aloe vera, ginkgo biloba extract and ginseng extract (source of information - published interview of president of Spanish Association of Manufacturers and m4arketers of Food Additive)

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3.4.2 Local ingredients Indians have been facing issues with proper food and nutrition. In general, protein intake is less so need to consumer more of higher quality protein and if these are not available from the foods then normally consumed necessary supplements. People are also getting less of omega 3 from their diet than recommended and therefore consumption of fish, consumption of oils richer in omega 3 such as flax seed, mustard oil, soya oil etc., or could take cod liver oil or omega 3 capsules. Dietary b has not been a problem for Indians in the past but more recently their fibre intake has gone down because of their changes in diet. All these necessitate that there is proper dietary care required and if there are any deficiencies or if any possibility of some of the non-communicable diseases are to be prevented, then functional foods and/or dietary supplements are necessary Indians have been using spices and herbs in cooking for centuries so daily diet contains functional foods containing garlic, turmeric, chilies and many other ingredients which have health benefits. Thus functional food concept is not new and Indians have already accepted many newer forms of functional foods that contains probiotics, omega 3 etc. India carry legacy of traditional herbal and ayurvedic medicines. Reliance on these products may dilute demand for emerging nutraceuticals, particularly as less aware Indian consumers of newer ingredients such as omega-3 fatty acids. On the other hand, herbal and ayurvedic medicines provide a rich local ingredient base for incorporation into nutraceuticals. Chavanprash, or herbal honey, has been a notable success. It is incorporated as a general health supplement into anything from jam to chocolate to cheesecake to capsules. Traditional medicines also represent a culture of natural products and selfcare that dovetails with global trends in nutraceuticals.

3.5 Functional food & beverages - Overview Functional food and beverages are form of food products which offer additional physiological benefits or help to reduce risk of chronic diseases apart from its basic nutritional aspects. This is further divided into different sub groups basis their functional characteristics: Rizvi Institute of Management Studies and Research

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a.

b.

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Functional foods: •

Omega fatty acid fortified food

•

Probiotic fortified food

•

Branded iodinated salt

•

Branded wheat floor

Functional beverages: •

Energy drinks

•

Sports drinks

•

Fortified drinks

Estimated market for Functional food and beverages is pegged at $ 1.5 bn

Figure: 3.2 Market of Nutraceutical products (Assocham India 2017)

Functional foods and beverages market in India has gained substantially by targeting health conscious people in the country. Functional foods include food products such as functional cereals, vegetable oils, nutrition bars, biscuits, breads, yogurt and others. Functional beverages include various drinks like fruits juices, milk, tea, coffees, and ener5gy drinks with added functional ingredient.

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Functional foods contribute to 3/4th of the market and major contributors are fortified products. Functional beverages too have shown demand recently due to increasing demand for fortified juices and energy drinks. PepsiCo expanded its portfolio by launching hydrotonic drink 7UP Revive which contains vitamins, electrolytes that help consumers rehydrate and refresh. Entry of Patanjali in Ayurvedic products market has further fueled the growth in the recent 2-3 years. Market for functional foods and beverages is expected to touch $ 4.11 bn by 2022 at CAGR 22% 3.6 Dietary supplements - Overview A dietary supplement is intended to provide nutrients that may otherwise not be consumed in sufficient quantities. Supplements as generally understood include vitamins, minerals, fiber, fatty acids, or amino acids, among other substances. Stressful lifestyles, hectic schedules and lack of time to cook meals at home among increasing number of working class males and females is resulting demand for external dietary supplements. The Dietary Supplements Market is classified on the basis of product type 

Vitamins and minerals



Herbal supplements



Protein supplements



Chavanprash

Market for Dietary supplements is expected to touch $ 5.90 bn by 2022 at CAGR 169%.

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Figure: 3.3 Dietary supplement market (Assocham India 2017)

Vitamin and minerals are the major contributors followed by Herbal supplements and proteins. Vitamin and minerals supplements: The vitamin and mineral supplements includes micronutrients which help the body to function properly and also help to improve mental health. Stressful lifestyle and unhealthy food habits cause poor health and that drives demand for a multivitamin and mineral supplement to safeguard against deficiencies. Herbal supplements: Dietary supplements containherbs plant or parts of a plant are called herbal supplements. For example, Aloe has been marketed as a remedy for coughs, wounds, ulcers, gastritis, diabetes, cancer, headaches, arthritis, immune-system deficiencies, and many other conditions 3.7 Key players in the Indian market The Indian nutraceutical market is mainly dominated by pharmaceuticals and FMCG companies with very few companies that only specialize in nutraceutical products. Increasing health consciousness and improved incomes and standard of living has boosted the growth of the Nutraceuticals markets in India, making it one of the fastest growin7g segments.

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Functional foods: In the functional food category, food for diabetes, weight management, cholesterol management, cognitive and digestive food have gained popularity. Leading national players in the functional-foods segment, such as Amul,Dabur, ITC, Britannia and Parle, as well as Indian companies marketing ayurveda-based functional foods and dietary supplements (e.g., Dabur, Himalaya, Amway, Hamdard Laboratories, Baidyanath, Pantanjali). Food companies, such as Nestlé, Danone, Unilever, Kellogg, and Yakult, are more active in functional foods and beverages, with a few exceptions such as GlaxoSmithKline’s Horlicks and Viva or Abbott’s longstanding commitment to child, adult- and medical-nutrition brands such as PediaSure, Ensure or Glucerna. Functional beverages, like Yakult, Ocean, Gatorade, are available in the form of energy drinks, vitamin water, fortified milk and buttermilk, and enhanced iced tea, among others. Various companies, including Danone, Dabur, PepsiCo, Coca-Cola, Amul, Britannia and Rasna, are introducing innovative beverages with enhanced nutritional value in order to woo the health conscious Indian consumers. An increase in uptake of enhanced drinks, energy drinks, and fortified juices is expected to drive the growth in this category. Dietary Supplements: Presently, vitamins supplements is the need of the hour; it has a strong brand proposition followed by protein and iron.Growth in this category will likely be driven by dietetic supplements consumption by urban, fitness-conscious young population. Himalaya, Abbot, Dabur, GlaxoSmithKline and Amway are some of the major players operating in dietary supplements market in India. The Major key players ruling the Indian Nutraceuticals market are Ranbaxy laboratory, Abbott India, Nicolas Piramal, Dr Reddy’s lab and Pfizer, Dabur India, Zandu, Baidynath, GSK Consumer healthcare, Heinz, Yakult Danone, Amul, Amway, Zydus wellness, EID Parry and Herbalife. 3.8 Nature of Competition Nutraceuticals market is becoming increasingly competitive with the entry of major ingredients manufacturers and suppliers, food fortification companies, ayurvedic and herbal extract manufacturers and distributors apart from the leading FMCG, Food & Beverages and pharmaceutical companies.

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The nutraceuticals market in India penetrated just above 10% at all India level. The penetration rate is high in Urban India at 22.51%, where as in Rural India it is merely 6.32%.India represents merely 2% of the global nutraceuticals market and is way behind in terms of per capita spent on nutraceuticals with just US$2.5 compared to global average of US$21. Though traditionally pharmaceuticals dominated dietary supplements was having the major weight age in market, the recent shift in consumerism resulted in the functional food and functional beverages together occupy 67%, major chunk of market.Indian Nutraceuticals market is highly concentrated in South India followed by East India with leading top three states Andhra Pradesh, Tamil Nadu and West Bengal. The urban centric Indian nutraceuticals market is gradually gaining ground in rural India with the recent penetration of life style diseases in rural India. Rural India occupy nearly one third of the market. With India’s strong tradition of consuming natural healthy foods, the market of functional foods is likely to boom in the next five years. The highest growth is likely to be in sub categories such as energy drinks, enhanced shelf stable juices, probiotics, and omega fortified foods and beverages.These foods and beverages, personalized to manage certain health conditions are the future of the functional health foods market. Dietary supplements targeted at women and children have a bright future. Preventive dietary supplements for diseases such as cancer, diabetes, obesity and arthritis are also much sought after. The Indian dietary supplement market is composed of over 500 participants. Vitamins and minerals supplement market is the most competitive with over 100 participants. Further, India is opening up its market to foreign players. This could lead to healthy competition in this sector.In recent past many changes have occurred in spending habits of the urban population of the country, they have become more health 8

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Chapter 4 Emerging Trends in Nutrition and Wellness

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4.1 New trends among consumers These are some new and emerging trends in food innovation, consumer eating-pattern changes and lifestyle shifts. Paleolithic diet (paleo): Paleo, or ‘Caveman Diet’ is a diet that is based on avoiding not just modern processed foods, but also foods that humans began eating after the Neolithic Revolution. While wide variability exists in the way the diet is interpreted, we’re noticing more attempts at marketing food products using this term. Baking Alternatives: In addition to embracing an increasingly-popular paleo menu, gluten free choices are still a powerhouse on retail shelves. One reason is celiac disease. But gluten-free doesn’t mean you can’t bake at home! Food innovation continues to build on this trend and marketing opportunities are still developing among consumers for other baking alternatives like spelt, quinoa, teff, and brown rice flours. Fermented Foods: The benefits on digestive health seem to be in high demand among specialty foods consumers from the already popularized Kombucha, to Kefir, to ‘gut shots’ like this, or even cultured coffee. Consumers seem to be very intrigued by the natural varieties of microflora, and continue to demand a much wider variety of beneficial bacteria from foods and supplements alike. Dosha: The rise of turmeric as a trending ingredient recently been observed greatly. This might be the beginning of consumer exploration of Ayurveda and the dosha concept of health. Sterling-Rice Group culinary director Liz Moskow says: “The reason we’re predicting people will start eating more towards their dosha is that we’re sort of riding this wave of yoga and Indian street food and bringing that mainstream, And once people realize turmeric is enhancing their lifestyle and preventing disease and helping with inflammation, people are going to start to look into Ayurveda more and see what foods they should avoid and what foods might be good for their constitution. Meatless Burger’ and ‘Plant Butchery’: Clearly meatless diets aren’t anything new. Yet Vegan and Vegetarian lifestyle choices among conscientious consumers is still evolving to meet the demands of their creativity in the kitchen. It’s generally known that meat-substitute food innovation will imitate a meat patty with a soy-based product, fungi, legumes, chickpeas or combination of them. Rizvi Institute of Management Studies and Research

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Now, companies like Herbivorous Butcher in Minneapolis or Impossible Foods in California taking the science a step farther by using advanced technology to copy the taste and texture of meat and dairy products to create a 100% plant-based alternatives. CoffeeFlour: Envisioning less food-waste in the future has stemmed food innovators to develop a product that is made from coffee cherries, which are usually discarded when harvesting coffee beans. When the cherry ends up as waste during yielding they become a burden to the environment. Making use of these coffee cherries reduces the amount of toxic waste heaps in coffee-producing countries. We’ll be seeing more creative solutions to the ever growing issue with food waste from retailers, food service outlets and food manufacturers. Ugly Produce: With a ‘less waste’ priority in mind; many specialty food consumers are willing to purchase products made from disfigured fruits and vegetables, in order to save them from landfill. Products like “Dash Water” make beverages from the notso-pretty fruits and vegetables, and even some grocery stores like Loblaws have embraced this trend by launching a Naturally Imperfect line. It’s certainly a great way for both manufacturers and consumers to save a bit of money, while feeling good about their transactions. Nanoceuticals: Nanoceuticals are nutrients that have been manufactured into nanoparticles using nanotechnology. Dietary supplement manufacturers offer various claims concerning products made with nanoparticles, including transforming fatsoluble nutrients into water-soluble ones, providing complete and uniform nutrient absorption, and making supplements that pass through membranes directly into human cells. 4.2 Probiotics The epidemiological evidences and modern research in nutrition during the last few decades elaborated the molecular level of interactions between specific food constituents with cells to control and prevent some diseases. It is nowadays acknowledged the critical role of the “forgotten organ”, the enteric microbiota, in generating a variety of functions which sustain health. The beneficial interaction between the micro-biota and humans is the way how bacteria contained within the gut “talk” to the immune system. Into this landscape probiotics and nutraceuticals play a major role. Rizvi Institute of Management Studies and Research

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Our body is infested with an assortment of different kinds of bacteria. It may come as a shock to you to learn that some bacteria are actually very good for our health. Many of these ‘’good bugs’’ live in our stomach. They help to properly digest the food, as well as aid in other essential bodily functions. It’s important to encourage healthy levels of these bacteria colonies in order for the body to function normally. Probiotics are living microorganisms that affect the host in a beneficial manner by modulating mucosal and systemic immunity, as well as improving nutritional and microbial balance in the human body. The main probiotic preparations currently on the market belong to a large group of bacteria designated as lactic acid bacteria (e.g. lactobacilli, streptococci, bifidobacteria), which are important and normal constituents of the human gastrointestinal microflora. However, studies are also investigating potential probiotic roles of other microbes such as yeast (Saccharomyces boulardii), which are not normally found in the gastrointestinal tract. Probiotics are found in both pill form as well as food, and they contain good bacteria that your stomach craves. Lactobacillus probiotics are things like yogurt and other fermented foods which, when eaten, aid in the digestive process. Your doctor will recommend taking probiotics to combat such issues as; irritable bowel syndrome, inflammatory bowel disease or diarrhoea. Scientific studies are providing mechanisms of action to explain the therapeutic effects, and randomized controlled trials are providing the necessary evidence for their incorporation into the therapeutic armamentarium. There is also some research that indicates that probiotics may help aid: skin conditions, urinary and vaginal health, oral disease, as well as allergy management. 9

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Chapter 5 Review of Related Literature

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A literature review is an evaluative report of information found in the literature related to your selected area of study. The review should describe, summarise, evaluate and clarify this literature. It should give a theoretical base for the research and help you (the author) determine the nature of your research. Works which are irrelevant should be discarded and those which are peripheral should be looked at critically. A literature review is more than the search for information, and goes beyond being a descriptive annotated bibliography. All works included in the review must be read, evaluated and analysed. Relationships between the literatures must also be identified and articulated, in relation to your field of research. In writing the literature review, the purpose is to convey to the reader what knowledge and ideas have been established on a topic, and what their strengths and weaknesses are. The literature review must be defined by a guiding concept (e.g. your research objective, the problem or issue you are discussing, or your argumentative thesis). It is not just a descriptive list of the material available, or a set of summaries. Literature Review consist of the future trends of nutraceutical industries as people have now become health conscious and they don’t have time to keep them healthy then nutraceutical products help them. It also helps us to understand how important. It helps to understand the reasons for the growth of nutraceutical industries. How the repositioning is done of the nutraceutical products in the growing market. This literature review helps to understand how the nutrition and pharmaceutical makes the food with benefits. As majority of the population is on social media nutraceutical industries has taken that into consideration and advertise on that basis so as to create awareness about nutraceutical products. Product is not the only reason for the sale of the products packaging also very important to attract customers. Not only these things but the fruits and vegetables which are stored for producing nutraceutical products are stored in such a way that it does not loses its nutritional value. How hybrid evolution optimization for nutraceutical manufacturing process and the nutrients which is hard to consume can easily be consumed through nutraceutical products.

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The authors M.Sean , S Witwer, R. Murray, D. Dentali, Steven (2009)in their report “What Lies Ahead?” Published in “State of Industrues” describe the views of the industry experts on the nutraceuticals marketplace. Topics discussed include views of industry expert Scott Steinford on trends showed by dietary supplement industry towards commodity and social marketing; views of industry expert Rhonda Witwer on the turning point for personalized nutrition; and views of industry expert on the significant activity among large and small entities. The findings of the study made by the authors is that as the trends changed nutraceutical industry adopted it and started concentrating on social media as everyone is there on social media. This article helps to understand that nutraceutical industry is adopting the change.

The authors Burdock GA, Carabin IG, Griffiths JC (2013) in their article “The importance of GRAS to the functional food and nutraceutical industries” try to examine the impact of the Food and Drug Administration (FDA) tries to make the more strict laws for the safety of the products. At a time when 150 million Americans spend over $20.5 billion on functional foods, nutraceuticals and dietary supplements, the Food and Drug Administration (FDA) is doing little to ensure that all the safe and efficacious products that could come to the market are allowed to do so. FDA has only responded slowly and reluctantly to Congressional action and to mandates from the Courts to implement the law. Additionally, FDA had set the bar too high for Health Claims and was forced by the Courts to implement a more reasonable standard, but the response, Qualified Health Claims, has failed to gain the confidence of the public because of the confusing wording of the claims demanded by FDA. Congressional efforts to assure consumer access to dietary supplements have been met with similar resistance from FDA. The Dietary Supplement Health and Education Act (DSHEA) was the product of a compromise with a lower threshold for demonstration of safety (reasonable expectation of no harm) that would be met by consumer self-policing and assumption of some risk. FDA has thwarted this effort by raising the bar for New Dietary Ingredient Notifications (NDIN) to what appears to be the higher threshold for the safety of food ingredients (reasonable certainty of no harm)--FDA apparently sees these two safety thresholds as a distinction without a difference. As a result, increasing numbers of dietary supplement manufacturers, unwilling to gamble the future of their products to a system that provides little hope Rizvi Institute of Management Studies and Research

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for the FDA's response of "no objection", have committed the additional resources necessary to obtain Generally Recognized as Safe (GRAS) status for their supplements. As a result, increasing numbers of dietary supplement manufacturers, unwilling to gamble the future of their products to a system that provides little hope for the FDA's response of "no objection", have committed the additional resources necessary to obtain Generally Recognized As Safe (GRAS) status for their supplements. The pressure on FDA and Congress for change is again building with increased dissatisfaction among consumers as the result of confusing labels. A second force for change will be a need to uncouple the FDA mandated substance-disease relationship and return to the substance-claim relationship to allow for progress in nutrigenomics and metabolomics, which will result in an increasing number of substance-biomarker claims. The authors Sloan, Hutt.E, C.Adams (2011) in their article “Getting Ahead of the Curve” Published in journal “Global Nutraceutical Hot Spots” emphasise on the growing nutraceutical

industry.

The

article reports on

the

growth of

nutraceutical industry worldwide considering the increase in the sales of consumer health products in 2016. Topics discussed include the several factors contributing to the demand of health care products such as consumer preferences, the trends of the global health care industry, and the performance of food and beverages market. As the article helps to understand the growing market of nutraceutical products, it also helps to understand that how people have become more health conscious. This article helps to understand that there is a wide scope of nutraceutical industries worldwide because the products don’t have sort of side effects that’s the reasons nutraceutical products are in demand.

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The authors Sloan, E. Hutt, C. Adams (2015) In the article ”Repositioning Nutraceutical Products

for

Growth

Markets”

focus on

the

growth of nutraceutical products industry. Topics include the Pharmavite's Nature Made dietary supplements which were new to the top 10 list of over-the-counter (OTC) products in 2014, increase in sales of herbs/botanical dietary supplements in 2014 according to the "Nutrition Business Journal" (NBJ), and high cholesterol as the top reason consumers look for functional foods. As this article helps to understand how nutraceutical products is repositioned in the growing market so as to increases sales. This article was really helpful in completion of the project

The authors Hubbard and Bethany in their article “How the 'placebodriven' industry has got us hooked” article helps to understand how the combination of nutrition and pharmaceutical makes the food with benefits. This article discusses the alleged placebo effect of functional foods and nutraceuticals, a combination of 'nutrition' and 'pharmaceutical' indicating food with medical benefit, being pushed by multinational food corporations like PepsiCo Inc. and Kellogg Co. in an attempt to capitalize on healthy eating initiatives. Topics include the alleged lack of clinical research backing the claimed results of nutraceutical use, attempts at curbing this lack of research through the proposed Nutraceutical Research and Education Act (NREA), and potential positive steps in food nutrition research coming from Nestlé Health Science and its acquisition of CM&D Pharma Ltd. This article helps us to understand why the demand of nutraceutical products is growing.

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The authors Olivo and Lisa (2017) in their article “Science, innovation, and new varied sources help keep the omega-3 industry afloat” Published in journal “Sustaining Momentum in the Omega-3 Market” has mention that how the company is surviving in the market. The article focuses on Omega-3 supplements leading within the nutraceutical industry and evolution of omega-3 industry with innovation, science and new sources. Topics include increase in global market for finished omega-3 products as per the Global Organization for eicosapentaenoic acid (EPA) and docosahexaenoic acid (DHA) Omega-3s (GOED), benefits of supplements for diseases such as mental health and eye diseases, and exploration of Vegetable omega3s and marine sources such as krill. This article gives more insights only for the Omega 3 products which was very helpful for the completion of the project.

The author Cauley and Pat (2017) in their report “Animal Pharma” published in the journal “Pharmaceutical Biotechnology industry” focuses on the status of marketing campaign in pharmaceutical and nutraceutical industry. Topics discussed include the trend of using social media in marketing, the difference regarding the approach of pharmaceutical and nutraceutical industry on how they market their products, and the challenges faced by television (TV) marketers about marketing regulations. The insights of Ame Wadler, managing director of Zeno Health, about the topic are also included. As most of the people prefer social media and the marketing campaigns that happen on social media is really effective so nutraceutical industries take these thong into consideration and started advertising their products on social media because conversion rate is high on social meadia. Science it is an OTC products people prefer to inquire about the product on social media so that they can read the review before buying.

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As the author Wright and Rebecca (2016) has mention in their article “Nutraceutical Packaging Trend” which was published in journal “Nutraceutical World” about the move of packaging companies to adopt sustainable packaging to meet the needs of the customers in the U.S. It notes the report of the Natural Marketing Institute which reveals the increasing preferences of consumers on environmentally-friendly products that prompted packaging companies to address the demand. It explores the packaging trends in the nutraceutical industry which are focused on the consumer’s interests for functional foods and dietary supplements. As this article helps us to understand that packaging of nutraceutical product plays an important role. Consumer in U.S prefer such kind of packaging which is environmentally friendly. Now a day’s people have become more concern about the environment. This article helps to understand that it’s not just quality of the product but packaging also plays an important role and not just products

The author Pagno, T. Antonella, F. Annamaria and H. Simone (2018) has mention in their article “The nutraceutical quality of tomato fruit during domestic storage is affected by chitosan coating.” Published in the journal “Food Processing and Preservation” Has mention in the article that the nutraceutical products is of really good quality because Fruits and vegetables are highly perishable foods which usually undergo a gradual loss of nutraceuticals during storage. Chitosan-based edible coatings are extensively studied thanks to antimicrobial activity and great potential to extend the shelf life. However, little information is presently available on the nutraceutical quality of chitosan-coated products. The present study is addressed to evaluate accompanied by a delayed degradation of some phenolic compounds during storage. These results indicate that chitosan coating is effective in maintaining the quality parameters, the coated fruit showed less weight loss (−16%) and more firmer (+40%) than control fruit, chitosan-coated tomato emitted significantly lower ethylene (−41%) than control, and slowing down the nutraceutical loss occurring in postharvest, mainly of the lycopene, main carotenoid, found in tomato fruits. These results indicate that chitosan coating is effective in slowing down the nutraceutical loss occurring in postharvest, thus representing a promising tool to preserve bioprotective phytochemicals during fruit conservation.

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Practical applications During storage and domestic conservation, the nutraceutical quality of fruits and vegetables usually decreases and can undergo deterioration due to physiological disorders and mechanical damages. In the last decade, use of edible coatings has attracted interest as a promising technology to prolong the shelf life of particularly perishable foods. These coatings act as protective barriers decreasing transpiration rate and gas transfer across the product surface, thus promoting the maintenance of nutritional quality. This article shows how well the products is preserved so that the nutritional value does not reduce.

Authors Yu-Cheng Wen, Yuan-Tang, Liu & Tung-Kuan Chou (2017) in their research paper “Hybrid evolutionary optimization for nutraceutical manufacturing processes” In this paper, an intelligent approach, called HERON (hybrid evolutionary optimization for nutraceutical manufacturing), is proposed to optimize a variety of manufacturing processes in the nutraceutical field. The approach integrates the Taguchi method, an artificial neural network (ANN), and a genetic algorithm (GA). The Taguchi method is used to cost-effectively gather the data on the process parameters. Data obtained by the Taguchi method are divided into input and output data for an ANN's input and output parameters, respectively. The ANN trains itself to develop the relationship between its input and output parameters. The trained ANN is then integrated into a GA as the fitness function, such that the GA can evolutionarily obtain the optimal process parameters. The HERON is validated through a manufacturing process on soft-shell turtle soft-capsules. The objective is to minimize the soft-capsule defect rate. Compared to the defect rates obtained by the empirical and Taguchi methods, the HERON reduces the defect rate by 43.75 and 32.5 %, respectively. In addition, compared to the manufacturing costs obtained by the empirical and Taguchi methods, the HERON reduces the manufacturing cost by 11.81 and 25.29 %, respectively. This article helps to understand how the nutraceutical cost is low though the quality is good but the price is low.

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Authors Olivo and Lisa (2014) in their report “Diving Deep for Marine Nutraceuticals” Published in “Dietary Supplements Industries” have mentioned that how nutrients which is really hard to consume can easily be consumed. The article focuses on the flourishing market performance of nutrients that came from marine ecosystem in the U.S. Overview of several well-known dietary ingredients such as omega-3 fatty acids, which can offer minerals, antioxidants, and protein, is provided. However, reminder on the need for nutraceutical companies to demonstrate sustainability of their supply chains to ensure growth in the category is emphasized. This article helps to understand that the nutrient which is required for a human body which is difficult to consume now can easily consume because it is available in the form of capsules and tablets. This article helps in the research to understand the reasons of growth of nutraceutical industries globally.

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Chapter 6 Research Methodology

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Title of the Study Consumer Awareness and Behavior Towards Nutraceutical Product in India Need and Significance of the Study Nutraceutical is the hybrid of nutrition and pharmaceutical. Nutraceuticals, in broad, are food or part of food playing a significant role in modifying and maintaining normal physiological function that maintains healthy human beings. The principal reasons for the growth of the nutraceutical market worldwide are the current population and the health trends. The nutraceuticals industry in India is one of the rapid growing markets in the Asia-Pacific region. According to a recent report, the nutraceuticals industry in India is worth about $ 2.2 billion and is projected to grow at 20% to $ 6.1 billion by 2019-2020. The research is conducted to find out the increasing demand of nutraceutical industries in India. As there is very less research conducted by the companies about nutraceutical products because there are very less report available on internet about nutraceutical product. There is a rapid growth for nutraceutical products in recent years because people are now more concern about their health so to understand what are the reasons for the growth. As the nutraceutical market is growing and has a good future this report will help the nutraceutical industries to understand who their customers is and which medium to use to traget those customers. Report will help the nutraceutical industries to understand which medium to use to aware their customer’s. This study will also help those people who hesitate to use nutraceutical products. Research Objectives 

To understand the awareness of nutraceutical products across demographics



To understand the current usage pattern of nutraceutical products in India



To understand the factors that consumers consider while purchasing nutraceutical products



To understand the reason for not buying nutraceutical products



To analyse the behavioural pattern of how people fulfil their nutritional requirements



To understand the intention of the customer to buy nutraceutical products



To understand the positioning of nutraceutical industry in the minds of people

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Sampling Plan: 

For males- Age between 18-50



For females- Age between 18-50

Sample design: The sample was collected using convenience sampling. Sample Size: A total of 200 respondents are surveyed from the location Mumbai 

Age Group - All



Gender – Male/Female



Occupation – Self-employed, family business owners, salaried.

Methodology for Data collection Primary: Data has been collected with the help of the structured questionnaire using google forms Secondary: Data has been collected from various websites, books, magazines, case study and personal contact. Scope of the Project This research will help to understand the consumption pattern of individuals as to what they consume to fulfill their daily nutritional requirements. This study will also help to understand the increasing scope of Nutraceutical industries in India. The result of this study will be useful for nutraceutical industries to know how people fulfill their nutritional requirement and the source of awareness of the product and to understand how the respondents keep themselves updated about the nutraceutical products. This study will also help to understand which are the factors that customer takes into consideration while buying nutraceutical products.

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Limitations of the Project No matter how efficiently the study is conducted and developed, every study has certain limitations. The limitations are the matters and occurrences which are out of researcher’s control. Similarly, in this study it is possible to identify certain limitations. The following are some of the limitations that can be identified in this research:

Approximately 90 per cent of the information has been gathered exclusively by the way of personal questionnaire which is used in the present study. Therefore, the data collected is prone to error of respondent to some degree or other.



The questionnaire is filled by the respondents and the respondents may not feel confident in providing the accurate and honest answers.



The respondents were in a hurry to fill the questionnaire and thus this adds to a certain amount of unreliability.



The study is confined to Mumbai only.



Lack of time & finance may prevent from carrying out an in-depth study.



Consumer behaviour being dynamic in nature, there is every possibility that over time & space, the findings of today may become invalid tomorrow.

Data Analysis For primary research SPSS and Microsoft Excel has been used. To proceed further with the report, based on the research plan, primary data was collected using a structured questionnaire from 200 respondents and the data was analysed using SPSS and Excel software. Pivot, T-test, techniques where used.

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Chapter 7 Data Analysis and Interpretation

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7.1 Age

Age

11%

3% 18-25

11%

26-35 36-45

75%

45& above

Figure 7.1 Respondents Age

The survey which was conducted had majority of the respondents are between age group 18-25 i.e.75%, respondents are in the age group 26-35 are 11%, the respondent which are in the age group 36-45 are 11% and the respondents which are in the age group of 45 and above are 3%.

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7.2 Respondents Gender

Gender

24% Male Female

76%

Figure 7.2 Respondents Gender

Majority of the respondents are male i.e. 76% are male respondents and 24% are female

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7.3 Annual Income

Annual Income

8% Less than 2,50,000

38%

28%

250,001-5,00,000 5,00,001-10,00,000 More than 10,00,000

26%

Figure 7.3 Respondents Annual Income

According to the survey conducted majority of the responses i.e 38% have their annual income less than 2,50,000. There was 28% of the responses who have their annual income between 5,00,001-10,00,000, whereas there are 26% of the respondents who has their annual income between 2,50,001-5,00,000 and only 8% of the respondents who have their annual income more than 10,00,000.

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7.4 How do people fulfil their nutritional requirement?

22%

21% Organic Food Dietry Supplyment Whole food

20%

Poultary

37%

Figure 7.4 Nutritional requirement fulfilment

Majority of the respondent i.e 37% of the people fulfil their nutritional requirement by consuming Whole food whereas 22% of the respondent fulfil their requirement with the help of Poultry. 21% of the respondent fulfil their nutritional requirement with the help of Organic Food and only 20% of the respondent fulfil their nutritional requirement by consuming Dietry Supplements.

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7.5 Are you aware about nutraceutical products?

7%

Yes No

93%

Figure 7.5 Awareness about Nutraceutical Product

Majority of the respondent i.e 93% of the respondent are aware about Nutraceutical products whereas only 3% of the respondents are not aware about Nutraceutical Products.

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7.6 How do you came to know about nutraceutical products?

Chart Title

12% 7%

28%

Word of Mouth Social Media T.V advertisement Hoardings

28% 25%

Doctors prescribed them

Figure 7.6 Source of awareness about nutraceutical products

T.V advertisement and Word of Mouth plays an important role in awareness of on Nutraceutical because 28% of the respondent got aware about nutraceutical products through T.V advertisement whereas 28% of the people got aware through Word of Mouth. Social Media also plays an important role in creating awareness because 25% of the respondent got aware about nutraceutical products through Social Media, whereas 12% of the respondent got aware because Doctors prescribed them. Hoardings does not play an important role in creating awareness because only 7% of the respondent got aware through hoardings.

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7.7 How do people keep them self-updated about Nutraceutical products?

Chart Title

16% 34%

Social Media Print Media T.V advertisment

34%

Other

16%

Figure 7.7 How do people keep them self updated about Nutraceutical products

34% of the respondent keep them self updated through T.V advertisement, whereas 34% of the respondent keep them self updated through Social Media. 16% of the respondent uses Print Media and 16% uses other sources to keep themselves updated about Nutraceutical products.

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7.8 Have you ever used nutraceutical products?

13%

Yes No

87%

Figure 7.8 Respondents ever used Nutraceutical Products

Majority of the respondent i.e 87% of the respondent have used Nutraceutical products and 13% of the people have not tried the Nutraceutical products.

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7.9 What are the reasons for not preferring Nutraceutical products?

Chart Title

17%

4%

Price Not prescribed by the Doctor

12%

42%

Awareness Availability

25%

Others

Figure 7.9 Reasons for not preferring Nutraceutical products

42% of the respondent does not prefer Nutraceutical products because it is not prescribed by the Doctor. 25% of the respondent does not prefer Nutraceutical products because they are not aware about the Nutraceutical products, whereas 17% respondents have some other reasons of not preferring Nutraceutical product. 12% are not preferring Nutraceutical products because of the availability of the product and 4% are not preferring the products because of the price.

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7.10 For what purpose you use Nutraceutical products?

Energy Immune System

5%

1% 2% 6%1%

General well being

26%

14%

Diabetes Bone Health Eye health

5% 20% 20%

Weight Control Cancer Heart health Others

Figure 7.10 For what purpose respondents use Nutraceutical products

Majority of the respondent’s i.e 26% uses Nutraceutical products to gain energy. 20% of the respondent use Nutraceutical products for immune system whereas 20% of the respondents use Nutraceutical product for General wellbeing. 14% of the respondents use Nutraceutical products for bone health, 6% of the respondents uses the products for weight control. 5% of the respondents use the product for diabetes, 5% use the product for eye health and remaining of the respondents use the products for cancer, Heart health and for other reasons.

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7.11 How often do you use nutraceutical products?

Chart Title

25%

31%

Twice a day Once a day Once a wek

44%

Figure 7.11 How often do respondents use Nutraceutical products

Majority of the respondent’s i.e 44% use Nutraceutical products once a day. 31% of the respondents use Nutraceutical product once a week and only 25% of the respondents use Nutraceutical Products twice a day.

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7.12 Why do consumer use nutraceutical product?

They make me healthier Someone influenced

8%

6%1% They give me energy

37%

12%

They help me perform better at work For curiosity sake

23%

13%

Doctor prescribed them Others

Figure 7.12 Reasons for using Nutraceutical products 37% of the respondents use Nutraceutical product because the product makes them healtier.23% of the respondents use the products because according them Nutraceutical products makes them fell more energetic whereas 13% of the respondents use the product because someone has influenced them to use the products. 12% of the respondents fell that Nutraceutical products help them to perform better at work. 8% of the respondents use the products for curiosity sake and only 6% of the respondents use the products because it was prescribed by the doctor.

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7.13 Would people still prefer Nutraceutical products if cheap alternatives are available

Chart Title

26% Yes No

74%

Figure 7.13 Respondents preference about nutraceutical products if cheap alternatives are available If cheap alternatives are available then to 74% of the respondents will still use Nutraceutical products and not switch to some other products and 26% of the respondents said that they will switch the products if there will be cheap alternatives available.

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7.14 What are the factors that people take into consideration while buying nutraceutical products? Hypothesis: Ho = 4 Ha > 4

One-Sample Statistics N

Mean

Std. Deviation

Std. Error Mean

Price

159

3.46

1.226

.097

Availibility

159

3.74

1.193

.095

Brand

159

3.87

1.068

.085

Quality

158

4.28

.977

.078

Ingredients

158

4.22

.994

.079

Table:7.1 Mean table

One-Sample Test Test Value = 4 95% Confidence Interval of the Difference

Mean t

df

Sig. (2-tailed)

Difference

Lower

Upper

Price

-5.563

158

.000

-.541

-.73

-.35

Availibility

-2.792

158

.006

-.264

-.45

-.08

Brand

-1.559

158

.121

-.132

-.30

.04

Quality

3.584

157

.000

.278

.13

.43

Ingredients

2.800

157

.006

.222

.07

.38

Table: 7.2 T-test

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Parameters For evaluating whether the

Hypothesis (Accept/Reject) Reject

Tarique Azmi

Interpretation Since P value is less than

respondents take “Quality”

0.05 then reject Ho

in to consideration while

This implies that

buying nutraceutical

respondents does not take

products

quality in to consideration while buying nutraceutical products.

For evaluating whether the

Reject

respondents take

Since P value is less than 0.05 then reject Ho

“Ingredients” in to

This implies that

consideration while buying

respondents does not take

nutraceutical products

ingredients in to consideration while buying nutraceutical products. Table 7.3 Iterpretation of T test

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7.15 What comes to the peoples mind when they hear nutraceutical products?

16%

22%

Reliable Availability Brand

25%

19%

Quality Ingredients

18%

Figure 7.14 What comes to your mind when you hear Nutraceutical products

According to 25% of the respond Quality comes to their mind when they hear Nutraceutical products whereas 22% says Reliable is the word that comes to their mind when they hear Nutraceutical products. According to the 19% of the respondents Availability is the word that comes to their mind when they hear Nutraceutical products and 16% of the respondents says that Ingredients is the word that comes into their mind when they hear Nutraceutical products.

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Chapter 8 Findings and Recommendations

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FINDINGS



Majority of the respondents were found to be fulfilling their nutritional requirement by consuming whole food. 37% of the respondents said that they prefer whole food to fulfil their nutritional requirement needs.



Apart from whole food, around 60% of the respondents also fulfil their nutritional requirement by consuming organic food, poultry and dietary supplements.



93% of the respondents are aware about Nutraceutical products, while only 7% of the respondents are not aware about Nutraceutical products.



TV Advertisement, Word of mouth and Social Media are considered to be the main sources of awareness for nutraceutical products.



Doctor’s recommendation is also another important source of awareness for nutraceutical products.



Hoardings does not play a much significant role as it was found out that only 7% of the respondents had come to know about nutraceutical products through hoardings.



Respondents keep themselves updated about nutraceutical products through TV advertisement.



Social media is also another platform for keeping people updated about nutraceutical products.



87% of the respondents have already used Nutraceutical products, while only 13% of the respondents have still not tried Nutraceutical products.



The major reason behind people not preferring Nutraceutical products is that is not prescribed by the doctor.



Price and availability are the other important reasons behind people not preferring Nutraceutical products.



Majority of the people are using Nutraceutical products for health related issues.



Respondents felt that the main purpose for using such products is to gain energy and improve immune system.

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

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Other reasons for using Nutraceutical products include general well-being, weight control and other health related issues like bone health, diabetes etc.



37% of the respondents felt that using Nutraceutical product will make them healthier, while 23% of the respondents felt that it will make them more energetic.



Out of the total respondents, 44% are already using such products once in a day. While, 31% respondents use Nutraceutical product once a week followed by 25% of the respondents’ use who use it twice a day.



Respondents have a perception that Nutraceutical product are of high quality and 74% of the respondents said that they will not switch to other cheaper alternatives.



However 26% of the respondents were found to be willing to switch to other cheaper alternatives, if they were available.



As mentioned above respondents usually associate Nutraceutical products to quality and reliability. And this assumption is backed by the fact that around 50% of the respondents associated it with quality and reliability.

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RECOMMENDATIONS



As TV advertisements and social media are considered to be the main source of awareness for Nutraceutical products, more focus should be put on advertising Nutraceutical products on television channels.



Apart from this, regular advertisements should also be done on social media websites like Facebook, Instagram etc. as more and more youth spend time on such social media websites.



Doctor’s prescription is another important factor that influences people in using Nutraceutical products. Hence Nutraceutical companies can target doctors and tie up with them in order to promote their products.



Hoardings of Nutraceutical products are not really too much of an influence for people to purchase this product. Hence the Nutraceutical companies should rather spend their advertisement budget wisely on platforms like TV and social media because the youth are nowadays influenced a lot by advertisements on social media and Television.



Price is an important factor when it comes to purchasing Nutraceutical products. One of the most important reason for not purchasing such products too often is its price. Hence Nutraceutical companies should come up with small packets of such products that are made available to the public at affordable prices.



Availability is another factor that is deterring people from purchasing such products. These kind of products are usually available in super markets or retail chains and are not easily available in mom n pop stores. So, in order to induce more trials of these products it is necessary to make the products available at all kind of stores so that people can purchase it more often.



Majority of the people have been found to be using Nutraceutical products because of their health benefits. Hence, it is important to highlight the health benefits of these products more, and ads and promotional activities should be designed keeping the health benefits of these products in mind.



As the research showed that many respondents are only using these products once in a week, Nutraceutical companies should try and come up with ways to increase the consumption level of such products.

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

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By 2020, it is estimated that the number of senior citizens in India will increase drastically and hence Nutraceutical companies can switch its attention to these age groups as it is known to be a product that keeps people healthy and energetic.



Word of mouth plays a very important role when it comes to influencing people to purchase these kind of products. Hence, it is important for the Nutraceutical companies to maintain their product quality and also try and improve it further in order to increase its usage among people.

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Conclusion India is witness to a outbreak of changes in lifestyles and rise in lifestyle diseases like diabetes, blood pressure, obesity, cardio-vascular problems among others, which has increased the demand for supplements to nutrition among the upper and middle class. India is undergoing a significant transformation with regards to its consumer attitude & behaviour. Being a younger nation, people are aspirational and are embracing more progressive and faster-paced lifestyle. Simultaneously the need for a sense of wellbeing is stronger than ever. Life expectancy, in general, has increased progressively. The reasons for buying nutraceutical products and reasons for not preferring the products and to understand the source of awareness about the nutraceutical products among the people. The main reasons for the people who does not prefer nutraceutical products is because the product is not prescribed by the doctors. As the packaging also matters in the sale of the product. Most of the people are aware about the nutraceutical products and the source of awareness is through word of mouth, social media and T.V advertisement. As price and availability plays an important role so people who does not prefer nutraceutical products because according to them nutraceutical products are expensive as compared to other products price is not the only factor that people are not considering nutraceutical products but availability is another factor. Nutraceuticals which include functional foods (which pertains to Food companies) and dietary supplements (which pertains to Pharmaceutical industry) is the only segment which amalgamates Pharma industry and Food industry. The popularity and growth of this industry can be attributed to consumers’ increased inclination towards health and nutrition. Indian consumers, mostly the upper middle class perceive Nutraceuticals as alternatives to prescription drugs. Nutraceutical products are used for various purpose such as general wellbeing, weight control, bone health, cancer etc. but mostly it is used to gain energy and improve immune system. As the consumer of nutraceutical products they do not prefer to use cheap substitute if available in the market, because nutraceutical products has gain trust of the consumer. As per the consumer one word that comes to their mind when they hear nutraceutical products is reliable and quality

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Annexures

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A) Questionnaire 1. Age o 18-25 o 26-35 o 36-45 o 45& above

2. Gender o Male o Female

3. Annual Income o Less than 2,50,000 o 2,50,001-5,00,000 o 5,00,001-10,00,000 o More than 10,00,000

4. How do you fulfil your nutritional requirements? o Organic foods o Dietary supplements o Whole food o Poultry

5. Are you aware about nutraceutical products? o Yes o No

6. If yes, how did you came to know about nutraceutical products? o Word of mouth o Social media o T.V advertisement o Hoardings o Doctors prescribed them

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7. How do you keep yourself updated about nutraceutical products? o Social media o Print media o T.V advertisement o Others

8. Have you ever used nutraceutical products? o Yes o No

9. If No, what are the reasons for not preferring nutraceutical products? o Price o Not prescribed by the Doctor o Awareness o Availability o Others______________

10. If yes, for what purpose do you use nutraceutical products? o Energy o Immune system o General well being o Diabetes o Bone health o Eye health o Weight control o Cancer o Heart health o Others _________________

11. How often do you use nutraceutical products? o Twice a day o Once a day o Once a week

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12. Why do you use nutraceutical products? o They make me healthier o Someone influenced o They give me energy o They help me perform better at work o For curiosity sake o Doctors prescribed them o Others______________

13. Would you still use nutraceutical products if cheap alternatives are available? o Yes o No

14. Rate the following factors that you take in to consideration while buying a nutraceutical products? (where 1 is lowest and 5 is highest)

1

2

3

4

5

Price Availability Brand Quality Ingredients

15. What comes to your mind when you hear nutraceutical products? o Reliable o Value to money o Quality o Effective o Natural

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B) List of Tables 2.1

Drivers for Growth

6

2.2

Leading Brands of Nutraceutical Products

7

7.1

Mean Table

55

7.2

T-test

55

7.3

Iterpretation of T-test

56

C) List of Images 2.1

Nutrients from natural source vs Nutraceutical 7 products

3.1

Nutraceutical is Natural

11

3.2

Nutraceutical products used across demographics

12

3.3

Awareness level

14

3.4

Products containing plants ,botanical, Vitamin etc

14

D) List of Figures 3.1

Nutraceutical Market in India

10

3.2

Market of Nutraceutical products

19

3.3

Dietary supplement market

21

7.1

Respondents Age

42

7.2

Respondents Gender

43

7.3

Annual Income of the Respondents

44

7.4

Nutritional requirement fulfilment

45

7.5

Awareness about Nutraceutical Product

46

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7.6

Source of awareness about nutraceutical products

7.7

How do people keep them self-updated about 48 Nutraceutical products

7.8

Respondents ever used Nutraceutical Products

49

7.9

Reasons for not preferring Nutraceutical products

50

7.10

For what purpose respondents use Nutraceutical 51 products

7.11

How often do respondents use Nutraceutical 52 products

7.12

Reasons for using Nutraceutical products

7.13

Respondents preference about nutraceutical products 54 if cheap alternatives are available

7.14

What comes to respondents mind when they hear 57 Nutraceutical products

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Bibliography Books

Brian Mc Neil, D. A. (2013). Microbial production of food ingredients, enzyems and nutraceutical. New Delhi: Woodhead Publishimg Limited. Hasler, C. M. (2005). Regulation of Funtional Foods and Nutraceuticals. USA: Blackwell. Smarta, D. G. (2016). Pharmaceuticals to Nutraceuticals: A Shift in Disease Prevention. USA. Carlton Books

Journals and Magazines Adams, E. S. (2011). Getting ahead of the curve. Global Nutraceutical Hot Spot,Volume 2, Issue 14. Bethany, H. a. (2016). How the placebo driven industry has got us hooked. Journal of Nutraceuticals and Food Science, Volume 5,Issue 9. Burdock G. A, C. I. (2013). The Importance of GRAS to the functional food and nutraceutical industries. Current Trends in Nutraceuticals,Volume 5, Issue 12. Lisa, O. a. (2014). Diving Deep for marine nutraceuticals.Journal of Medical Nutrition and Nutraceuticals, Volume 3, Issue 10. Lisa, O. a. (2017). Science, innovation and new varied source help keep the Omega-3 industry float. Sustaning Omega-3 Market.Volume 5,Issue 8. Moloughney, S. S. (2009). What Lies Ahead? State of Industries. Pango, C. H. (2018). The Nutraceutical quality of Tomato fruit during domestic storage is effected by chitson coating . Journal of Food Processing and Preservation.Volume 6 Issue 17. Pat, C. a. (2017). Animal Pharma.Pharmaceutical and Biotecnology industry. Rebecca, W. a. (2016). Nutraceutical packaging trend.Nutraceutical World,Volume 4,Issue 18. Sloan, E. H. (2015). Reposioning nutraceutical products for growth market. Steinford, S. (2017). Dietary Supplements Industry. Nutraceutical World. Yu-Cheng Wen, T.-T. L.-K. (2017). Hybrid evolutionary optimization for nutraceutical manufacturing process.

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Websites amazon.in. (2018). Retrieved from Market Overview of Nutraceuticals in India: https://www.amazon.in/Market-Overview-Nutraceuticals-India-Supplementsebook/dp/B00EOLOQTC Amrit

ventures.

(2018).

Retrieved

from

Nutraceutical

Industry in

India:

https://amritt.com/industries/india-consumer-packaged-goods-market/nutraceuticalindustry-in-india/ Information vine. (2018). Retrieved from list of nutraceutical companies: https://www.informationvine.com/index?qsrc=999&qo=semQuery&ad=semD&o=60 3905&l=sem&askid=b18baa54-3e35-4875-a063-075333f9df0b-0iv_gsb&q=list%20of%20nutraceutical%20companies&dqi=&am=broad&an=google_ s Nuffoods spectrum. (2018). Retrieved from Nutraceutical industry in India: Current scenario

and

future

trends:

http://www.nuffoodsspectrum.in/inner_view_single_details.php?page=1&content_typ e=&vrtcl_panel_nm=&ele_id=NOR_588b37ba948df4.78777381

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