The Food Safety and Standards Authority of India’s recent crack down on major food brands for misleading health claims and labels should be a warning to nutraceutical brands.
In fact, FSSAI CEO Rajit Punhani’s key message at the 50th meeting of the Central Advisory Committee (CAC) of FSSAI, was to fill vacancies and scale up enforcement, with a key focus on enforcement, surveillance and regulatory strengthening. One of the key issues discussed was strengthening implementation of labelling requirements for nutraceuticals and health supplements.
Munab Ali Beik, Head Compliance Advisory, Core Integra confirms that food safety inspectors have recently intensified the verification of food labels and packaging to ensure compliance with the Food Safety and Standards (Labelling and Display) Regulations, 2020 and subsequent amendments. During these inspections, several non-conformities have been observed across multiple brands, including those in the nutraceutical industry.
The common labelling deficiencies identified include inadequate or incomplete mandatory information on the label, label sizes not meeting the prescribed minimum requirements, missing batch numbers, “Use By” dates, or expiry dates, overwriting or alterations on the package or label, labels that are detachable from the food package, font sizes not complying with the prescribed requirements, missing or incomplete declarations on ingredients and food allergens. These non-conformities highlight the need for stricter compliance with the Food Safety and Standards (Labelling and Display) Regulations.
Nutraceutical manufacturers can take some cues from FSSAI’s recent actions and work towards updating their labels and claims to be compliant with the latest amendments. FSSAI’s increased scrutiny is in line with the its stance on ORS brands. (Check: https://www.expressnutra.in/editors-note/fssais-ors-stance-should-caution-glp-1-nutrition-brands/452952)
Will increased scrutiny dampen growth? Not likely. Various reports continue to stress the growth opportunities in the sector though they also warn of challenges.
For instance, a recent CareEdge Ratings report expects India’s nutraceutical industry to grow with a 10-11 per cent CAGR till FY30, to reach $37–38 billion by 2026 and further expand to nearly $55–57 billion by 2030. As per stats from the Directorate General of Foreign Trade, India’s export of nutraceuticals has grown from 3.68 billion in FY21 to 5.07 billion in FY25. Functional foods and beverages dominate India’s nutraceutical market, accounting for ~70 per cent of consumption, while dietary supplements make up the remaining share.
The report flags challenges like an evolving regulatory system, lack of uniform regulation, gaps in scale up and manufacturing infrastructure, insufficient scientific evidence, and higher cost of the final product which limits their accessibility in lower-income populations. India’s nutraceutical sector is strategising to meet these challenges head on. Our cover story in the Express Nutra June-July 2026 edition, titled, Delivering the difference, analyses how nutraceutical companies are developing next-gen delivery systems and positioning them as a competitive edge.
The CareEdge Ratings report also points out that through innovation in product formats, from gummies and powders to ready-to-drink beverages, companies are developing convenient and appealing ways to deliver health benefits. These innovations are particularly effective in attracting younger consumers.
Increasing FSSAI scrutiny could turn out to be a blessing in disguise, as errant products and companies are weeded out. In the final analysis, it will increase consumer confidence in the nutraceutical sector. Thus regulation in the right dose is good medicine.
VIVEKA ROYCHOWDHURY
Editor
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