As the world shifts from cure to care,India’s herbal nutraceutical industry is gathering pace.The task ahead is to evolve from age old formulas to science-backed innovation,and drive the next big story in wellness
India’s herbal wisdom is being rediscovered by the world. From Chyawanprash for vitality to turmeric for healing, some of our time-tested herbs are getting a modern makeover. These traditional remedies have evolved into a vibrant herbal nutra industry, and are fuelling a global wellness wave, from kitchen shelves in Kochi to turmeric lattes in New York.
The shift for cure to care
The global wellness revolution is moving from ‘cure’ to ‘care.’ Consumers are prioritising health over healing. This shift is driving the rapid rise of herbal nutraceuticals. As people become more aware of preventive health and clean-label living, herbal nutraceuticals are emerging as one of the most promising growth sectors. India, with its rich herbal traditions, scientific talent and expanding R&D capabilities, has a strategic advantage to lead this growth wave.
What’s changed? Advances in formulation science, standardisation, and clinical validation are helping Indian manufacturers take age-old formulations to global markets with newfound credibility. Herbs once known only as home cures are now supported by research and traceable quality systems. Ashwagandha, turmeric, amla, moringa, and giloy are finding widespread adoption and being reformulated into capsules, gummies, and functional beverages for a global audience.
Stepping into the spotlight
The numbers tell the story. According to Allied Market Research, the global herbal nutraceuticals market was valued at $28,329.7 million in 2019, and is projected to reach $48,446.5 million by 2027, registering a CAGR of 7.55 per cent from 2021 to 2027.
In India, the trend is equally strong. The herbal products sector, valued at $1.87 billion in 2024, is expected to cross $2.5 billion by 2030, expanding at 5.4 per cent CAGR, as per TechSci Research estimates. As the world looks for natural, proven ways to stay healthy, India’s herbal nutra story is stepping into the spotlight.
Rooted in ancient wisdom, powered by science
India’s relationship with herbs isn’t new. What’s new is how we’re applying it. For thousands of years, be it tulsi, brahmi, mulethi or neem, nature has been our first pharmacy. Today, that legacy is meeting modern science. And, India has advantages that stand out clearly:
- A deep herbal heritage: India’s traditional systems like Ayurveda, Siddha and Unani, offer a knowledge base of more than 6,000 documented medicinal plants. Thus, India’s herbal knowledge runs deep. This, in turn, gives Indian ingredients instant global familiarity and trust.
- Manufacturing and scale: India’s pharma infrastructure, certified by GMP, ISO, and WHO, provides a tested framework for highquality, large-scale nutra production. This gives India an edge in quality and scale.
- Cost and innovation advantage: Affordable R&D talent, strong academic research, and established supply chains position India as a hub for nutraceuticals. Companies can develop and validate new formulations faster and cheaper than their Western peers.
- Policy support and promotion: The Ministry of Ayush, FSSAI, and Ministry of Food Processing Industries are working to streamline regulations and promote exports. Schemes under Pharma Vision 2030 and Make in India aim to position India as a global wellness leader.
- Global consumer trust: Ingredients like curcumin and ashwagandha have become global favourites, backed by clinical research and safe-use records. They are now part of mainstream wellness routines in markets from Tokyo to Toronto.
The Indian market
Post-COVID, health has gone mainstream. Across age groups, consumers are investing in prevention of diseases. They want natural, clean-label, transparent products that fit into their daily lives, whether as gummies, teas or functional snacks. “The nutraceutical segment, particularly plant-based extracts, dietary supplements, functional foods, and adaptogens, has shown a sharp upward trajectory post-COVID,” informs Dr Debjani Roy, Executive Director, SHEFEXIL, in an earlier interview with Express Pharma.
This new audience is driving the industry to evolve faster. India’s herbal nutra ecosystem is both, competitive and collaborative. Legacy players like Dabur, Hamdard Laboratories and Himalaya coexist and compete with disruptors like Patanjali, Organic India and newer entrants like Zeus Hygia, offering consumers a wide palette of herbal medicines and ingredients. Their combined efforts reinforce India’s position as a global herbal nutraceutical hub, driving growth across domestic and export markets.
Exports on the rise
India’s nutra exports have shown an upward trajectory post-COVID, fuelled by global demand for plant-based wellness solutions. “Exports from SHEFEXIL’s member companies have crossed Rs 9,000 crore annually across categories. Segments such as FSMP/FSDU, fermented probiotics, and Ayurveda-inspired innovations are expected to accelerate further in the next three to five years,” divulges Dr Roy.
Indian companies are now key players in global supply chains, not just as exporters, but as contract manufacturers, formulation partners, and innovation collaborators for international wellness brands. Many of SHEFEXIL’s member companies are leading players in the global wellness supply chain, supplying herbal extracts, functional ingredients, fermentation inputs, and finished nutraceuticals to global brands.
Science is the new currency
For decades, India has been exporting herbal ingredients and extracts. But that model is changing. Today’s growth isn’t just about exporting plants, it’s about exporting science. “The next decade of growth will come from credibility and innovation,” opines Shankaranarayanan Jeyakodi, Co-founder, Zeus Hygia Lifesciences, a Hyderabad-based nutra ingredients company. “Ten years ago, there were fewer than 10 serious players in this space. Today, there are over 40, and the competition is only getting stronger.”
Jeyakodi’s company is expanding its production facilities to meet rising global demand. “We purify herbal actives, conduct toxicological studies, and provide data to branded-ingredient markets in the US, Europe, and Asia. The opportunity is huge, but credibility is the key,” he asserts.
He elaborates on the rapid market transformation, “In the next five to ten years, it is going to be a huge market. Herbal supplements will be huge. More than 50 per cent consume supplements in the developed world. Companies like Zeus Hygia help to improve the quality of the product with clear data and evidence. Ten years before, there were less than 10 companies, now more 30–40 companies exist.”
Today, Zeus Hygia exports to Europe, South East Asia, the US, South Korea, Brazil, Australia and New Zealand. Highlighting the evolving regulatory scenario, he says, “In future, nutra will get regulated like pharma, so manufacturing should be in line with pharma standards.”
He notes the competitive pressures and untapped potential and states that US tariffs, pricing pressures, and competition from China and the US, keep Indian players alert. India has a huge heritage of herbs. Only 5–10 per cent has been explored. So, the potential is huge. We need to invest in R&D to understand and leverage their potential.
In an earlier article, published in Express Pharma, Abdul Majeed, Chairman and Trustee of Hamdard Laboratories, a well known Unani medicine brand, informs, “The next generation of consumers is not only health-conscious but also value-driven and exceptionally well-informed, seeking authentic knowledge about products and their ingredients—they expect transparency, authenticity, and ecological responsibility. By integrating GMP practices, digitised supply chains, and environmentally responsible cultivation, Unani medicine can demonstrate its relevance in a modern, wellness-driven world. The vision is clear: preserve its heritage while innovating boldly to create a global future for Unani.”
Together, these insights underline how science and evidence need to be India’s strongest exports. Fortunately, these shifts are underway. For instance, at Shoolini University in Himachal Pradesh, Dr Radha, Assistant Professor, is leading pioneering research on Himalayan medicinal plants.
Sharing more details about her work, she adds, “I work with tribal communities of the northwestern Himalaya to scientifically validate their traditional plant knowledge. This research helps identify valuable bioactive compounds that can be developed into new herbal nutraceuticals, giving India an edge in global markets.”
Her team has already filed four patents, including a nutrient-rich jam and a ready-todrink herbal beverage made with Bombax ceiba (Semal). These products retain their bioactive properties and are free of artificial preservatives, an example of how India’s indigenous ingredients can be reimagined for modern wellness markets.
Her work highlights how scientific evidence help India move from being a supplier of raw herbs to a creator of branded, evidence-backed nutraceuticals. “We need stronger links between research institutions, industry, and policy support. With proper standardisation, licensing, and awareness about their health benefits, such products can easily reach consumers,” she explains.
The challenges ahead
For all the promise, the road to growth comes with challenges, and the industry knows it. Let’s examine some of the major ones:
◆ Regulatory clarity: Regulation remains a key factor for India’s nutraceutical future. Currently, products may fall under FSSAI, AYUSH, or CDSCO, depending on formulation and claims, leading to overlap and ambiguity. While India’s regulatory ecosystem is improving, overlaps still create confusion around claims and labelling. A unified, framework would make compliance easier. Harmonising with global standards, will help Indian exporters compete on equal terms. Likewise, greater alignment with international frameworks like European Food Safety Authority (EFSA) and USFDA would allow Indian products to access premium markets more smoothly. Additionally, R&D incentives, export schemes, and faster IP approvals could accelerate innovation.
◆ Threat to biodiversity: As the market expands, sustainability and traceability are becoming non-negotiable. Overharvesting of wild herbs and unregulated sourcing practices threaten biodiversity and long-term viability Dr Radha cautions that sustainable cultivation and community participation are the key. She suggests, “Researchers can guide cultivation methods, and businesses can ensure ethical sourcing and fair benefit-sharing with local people.” Sustainable sourcing is not just an ecological necessity, it’s also emerging as a business differentiator. Global consumers increasingly value brands that can demonstrate transparency and ethical practices.
◆ Limited clinical research: Out of thousands of known herbs, only a small fraction have undergone human trials. Expanding peer-reviewed research is essential for global acceptance. Every herbal claim must be backed by research. Partnerships between universities, startups, and global contract research organisations (CROs) can speed up validation.
◆ Growing competition: Many nutra firms are small or mid-sized, lacking marketing scale and R&D depth. Industry consolidation or cluster-based models could help them grow faster. Indian exporters face stiff competition from countries like China and Japan, as well as tariffs and documentation hurdles in the US and EU. Competing on quality and traceability will be key for India. “Universities like Shoolini can connect traditional wisdom with advanced research and innovation. Through validation, value addition, and start-up incubation, we can help India become a global leader in herbal nutraceuticals,” says Dr Radha.
Opportunities for value creation
India’s herbal nutra story is more than a business opportunity. If AYUSH systems was India’s gift to the ancient world, herbal nutra products could be its offering to the future, powered by innovation, backed by evidence and rooted in trust.
And, its next leap will come from moving up the value chain, from raw material supplier to knowledge-driven innovator. So, how can we go about doing so?
◆ Branded ingredients: Develop proprietary, standardised herbal extracts with IP protection and clinical backing.
◆ Functional foods: Integrate Ayurvedic actives into modern consumption formats like bars, drinks, and gummies.
◆ Contract R&D and manufacturing: Leverage cost-effective infrastructure to become a preferred global CDMO hub.
◆ Sustainable wellness: Protect biodiversity through ethical sourcing, fair trade, and farmer partnerships. Build brand differentiation around traceable, ethical, and green supply chains. ◆ Digital transformation: Integrate AI and blockchain to monitor sourcing, quality, and compliance.
◆ Build global-quality infrastructure: Adopt pharma-grade GMP, automate traceability, and ensure rigorous quality assurance to meet international standards
◆ Encourage entrepreneurship: Support nutraceutical start-ups with funding, incubation, and market access under national wellness missions.
The decade ahead
India’s herbal nutra journey is at a defining phase. India has the knowledge, resources and credibility. What we need now is convergence between research and business, tradition and technology. The message is clear. With science-backed innovation, harmonised regulation, and sustainable ambition, India’s herbal nutra products can claim their place on the global stage, as the future of modern wellness. The foundation is ready. The market is ripe. Now, it’s India’s turn to lead the global wellness revolution. One herb, one idea at a time.
References :
1) https://www.expresspharma.in/unani-medicine-at-crossroads-of-tradition-and-modernity/ 2)https://www.expressnutra.in/leadership-insights/nutraceutical-exports-have-shown-asharp-upward-trajectory-post-covid/452539
