Nutraceuticals– on the move…

Suhas Wadwalkar

Nutraceutical segment in India is on the up rise. Success could be definite but not easy. A foray into this segment needs thorough understanding of the healthcare industry segmentation, the nuances between the wellness and illness orientation, the converging economic and demographic trends, changing laws and rules impacting the industry, scientific work happening at the world stage, the paradigm shift in the attitude of healthcare professionals towards nutraceuticals, threats and concerns pertaining to drug segment and the unfolding advantages of being in the nutra segment.

An in-depth analysis of these factors will be the basis to strategise the way forward to enter into this burgeoning market. I have written an article which gives a brief insight touching the broader aspects of this industry segment in the present context.

Evidence-based nutra-ceuticals are now being referred as ‘Third Generation Nutraceuticals’ which is different from the current and conventional market of Rs 8500 crore comprising mostly of vitamin, minerals, hematinic and calcium and protein preparations. The focus is on scientifically studied, clinically supported and standardised new ingredients derived from food, plants and from animal resources. The attempt in this article is to see how we can expand the market space and not just share the existing market.

Nutraceutical market scenario

The Rs 80,000 crore Indian healthcare prescription market has been traditionally dominated by pharmacological products. The reason being that the industry mainly relied on the prescription support of healthcare professionals who need to be convinced about the science behind each product which was amply found in the pharmaceutical products. Nutraceuticals lagged behind due to lack of adequate scientific data and standardisation.

However, in the recent past several developments in the industry have catapulted the nutraceutical segment as the ‘sunrise segment’ drawing attention from prominent players in the industry.

• The global nutraceutical market is around Rs 7 lakh crore (mostly in consumer health care)
• The Indian nutraceutical prescription market is estimated to be Rs 8500 crore but growing rapidly with new products and new players entering the market segment in life style related, chronic diseases and women’s’ health.
• Market volumes are currently dominated with vitamins, minerals, hematinic, calcium andcombinations, protein supplements and anti-oxidants. Rapid growth in the segment is perceived with the advent of new age nutraceuticals.

Nutraceuticals vs. Pharmaceuticals

Although both nutraceuticals as well as pharmaceuticals are integral parts of the Indian healthcare industry and both are prescribed by the doctors, there is an inherent difference between these two segments which need to be captured by a marketing manager for positioning

• In general, drugs are chemicals which are invented and tested and nutraceuticals are the natural entities that are discovered and developed.
• Drugs need to establish their safety whereas in nutraceuticals the safety is well established by its wide and long term use in different geographical population groups and what needs to be established is its comparative efficacy through standardisation of dosage.
• Drugs are mainly focused on treatment and illness whereas nutraceuticals are primarily into prevention and support ensuring wellness. However, now with the advent of newly developed ingredients like nutraceutcal antibacterial-Hibiscus safdarifa or nutraceutical anti-diabetic like Chromium dinico systeinate, a change is noticed in the perception of this product segment and the treatment factor is also featuring in this segment.
• Supported by robust scientific study, clinical trial data and standardisation, now the nutraceuticals can also make health claims like drugs after the regulatory approval following the evaluation of these claims by the said authority.

Regulatory support for nutraceuticals

The Food Safety and Standards Act, 2006 consolidates eight laws governing the food sector and establishes the Food Safety and Standards Authority of India (FSSAI) to regulate the sector and other allied categories. This has facilitated the smooth growth of this sunrise industry by addressing the issues under one roof with clarity and transparency.

The growth drivers

Today the opportunities are plenty. There are empty spaces in the market, industry is getting flooded with newer and more advanced nutraceutical entities from world over, the ethical market is openly welcoming new entrants, competition is not yet intense and multiple growth drivers are in place. Hence, in all probability, there could not be a better timing to aggressively enter this market segment in India than now.

• Nutraceuticals enjoy support of 70 per cent specialists. One out of four prescriptions carry a nutraceutical product – ORG IMS
• Booming research and development activities, robust scientific back-up and clinical trial and validation of new nutraceutical entities paving way for a major growth in the segment especially in developing countries.
• While the new drug pipe line is drying the nutraceutical ingredients are pouring from world over
• Changing demographics and increasing life span creating more demand for supportive products in age related disorders
• Sedentary lifestyle pushing up demand for life style related preventive & supportive healthcare products
• Increasing disposable incomes and growth in aspirations to lead of better quality of life also positively impacting the demand for nutraceutical entities proven to add value to a healthy life style
• Governmental control over the pharmaceutical drugs but new regulatory regime under FSSAI streamlining the entry of nutraceuticals helping the segment to ensure a sustainable growth

Leading global suppliers of nutraceutical ingredients

The global activity in standardising nutraceutical ingredients is being passionately promoted by some of the most reputed healthcare companies of international standards. Their massive and well developed infrastructure for scientific research and development is rolling out innovative ingredients addressing the crucial healthcare needs of patients’ world over.

Most of the very large nutraceutical ingredient companies operate globally, such as BASF, ADM, Cargill, Lonza, Tate and Lyle, DSM, Danesco, Lane Labs, PL Thomas, DuPont, Evonik, Danone, Dow Chemicals, Cognis, Bactolac, Gnosis, Naturex, Pharmachem Labs, Fruitarom, Helios Corp, Innovactive, Interhealth, Albion, and many more offering a wide range of standardized & branded nutraceuticals. Some of these companies also have their agents in India.

Some fertile categories and promising ingredients

Following list of categories and the multiple ingredients addressing vital needs of each category reveals not just the goodness of nutraceutical products but the richness with which they are getting projected across the world. The consistent value addition by the originators adds to the existing confidence in the products pertaining to their efficacy and safety.

• Bone health: While Calcium supplementation dominates the treatment course other emerging ingredients like Collagen Type I from plant and animal sources, short chain fructooligosaccharides (scFOS), Natural vitamin K2, known as menaquinone-7 (MK-7), synthetic derivative of the isoflavone genistein, Galactooligosaccharides (GOS) & also Inulin have been proven to slow down resorption and enhance calcium absorption and retention in the bones.
• Joint health: Nutraceutical ingredients have made a promising entry into this ever growing segment. Glucosamine helps produce glycosaminoglycans (GAGs), which are present in joint cartilage, Chondroitin sulfate is also a GAG found in the cartilage, Hyaluronic Acid HA is uniquely a non-sulfated GAG, Type II collagen in various forms, Omega-3s, particularly eicosapentaenoic acid (EPA) and also botanicals like curcumin has drawn much attention for its anti-inflammatory actions in cartilage.
• Cognitive health: Many nutrients have been linked to positive cognitive benefits—an encouragement considering the vast number of disorders affecting memory, learning, mood and behaviour.
  Phosphatidylserine (PS) is the most consistently effective brain nutrient and very well tolerated even by children. Other brain nutrients like Glycerophosphocholine (GPC), citicoline a precursor to phosphatidylcholine (PC), myo-ionositol, Acetyl-L-carnitine (ALC) and S-adenosyl-L-methionine SAM-e are significantly used here. On the botanical side one finds Ginkgo biloba extract (GBE) and Bacopa extract, while patented mineral elements like Magnesium L-threonate have made a mark in this category.

• Heart health: Research is helping to boost the use of heart-healthy nutraceuticals. CoQ10, Tocotrienols, polymethoxylated flavones (PMFs), policosanol, Beta-glucans and chitin-glucans, marine sources like Krill oil and plant sources like walnuts and flaxseeds, are some of the popular nutraceuticals used in this category. Vit K2-7 known for its bone health benefits finds a prominent place in heart health due to its anti-atherosclerosis properties.
• Diabetes control: Type II diabetes is a manageable disease with lifestyle changes and supplementation. Research proves again and again the benefits of botanicals, vitamins, minerals and many others in the fight against diabetes.
  The richness of nutraceuticals can be clearly felt in this category. There are well established nutra products which can be classified as insulin modulators, carb blockers and calorie burners. This category is flooded with proprietary blends such as Insinase, Diabetinol, InSea, Etc.

• Ocular health: Lutein and Zeaxanthin, the main macular pigments, limit macular degeneration and are linked to reduced incidence of cataract. Anti-inflammatory omega-3s DHA and EPA positively impact glaucoma and dry eye, improving tear production and maintaining corneal epithelial integrity. Flavonoid-rich herbal products—black currants, bilberry, pine bark extract and curcumin, for example—address inflammatory and oxidative factors in eye health.
• Digestive health: With digestive systems struggling to keep up with modern diets and lifestyles, probiotics—the beneficial bacteria that work to preserve certain areas of the gastrointestinal (GI) tract—are gaining traction in the nutrition and health markets. As with all rising stars in this niche, regulatory, technology and marketing challenges will require continued attention.
• Women’s health: Rediscovering the importance of certain dietary components in maintaining women’s health has led to the rapid growth of women’s health ingredients. The established safety of natural ingredients in important phases of pregnancy and lactation gives a special impetus to this category.

The way forward

There is a great scope now to develop the new generation evidence based nutraceutical products with unique features and differentiating benefits. This is possible due to the sudden surge in the generation of a massive research data taking place on a global platform. Now is the time to optimise the available resources, encash the booming opportunities, leverage the new regulatory regime to the company’s advantage and grab the initiative and get the first mover advantage in the currently low competitive environment in this market segment.