The report said the sector is projected to reach $37-38 billion by 2026, registering a compound annual growth rate (CAGR) of around 10.5%, driven by rising health consciousness, increasing prevalence of lifestyle diseases and nutritional deficiencies.
CareEdge noted that India’s healthcare ecosystem is undergoing a structural shift from illness management to prevention, wellness and long-term health management, placing nutraceuticals—which combine the benefits of nutrition and pharmaceuticals—at the centre of this transition.
The report highlighted that the industry’s growth is being supported by the rapid expansion of e-commerce and digital health platforms, favourable government initiatives and India’s strong bio-agricultural base, which provides a competitive advantage in sourcing raw materials.
However, it cautioned that the sector continues to grapple with evolving regulations, misleading product claims, gaps in consumer awareness and limited scientific validation for certain products.
According to CareEdge, policy support from the Food Safety and Standards Authority of India (FSSAI) and the Ministry of Food Processing Industries (MoFPI) is helping strengthen regulatory compliance, standardisation and quality control, while encouraging innovation in functional foods and dietary supplements. These measures are expected to further bolster investor confidence and accelerate the industry’s long-term growth.