Nutraceutical industry growing at 25% CAGR, to hit Rs 20,000 crore market value by 2027

Dheeraj Nagpal, Co-founder of Zingavita, a leading health and wellness brand specialised in providing high quality, tailor-made nutraceuticals and supplements is confident of a promising future ahead for the fast expanding nutraceutical industry.

Zingavita is on a mission to provide a diverse range of high-quality supplements designed to cater to various age segments and wellness needs. The startup set up in 2021 distinguishes itself in a nascent and fragmented market by being the first brand with a dedicated focus on quality, innovation and affordability. In an exclusive interview to Bizz Buzz, he narrates about the brand's journey, its product range, the consumer response, the growth plans and projections for future. He says they want to eye the online segment as it is poised for rapid growth

How do you see India's position in the field of nutraceuticals? What are the projections in the next three years? At what rate do you expect CAGR?

India's nutraceuticals industry is booming with a strong 25 per cent annual growth, reaching over Rs 20,000 crore. A notable trend is the rising popularity of ayurvedic supplements, especially in online markets. Consumers are drawn to ayurveda for its holistic health benefits, blending traditional wisdom with modern lifestyles. Over the next three years, we expect this trend to continue due to increased focus on health, higher incomes, and a preference for natural remedies. As a health and wellness startup, we are well-placed to tap into this trend by offering quality, science-backed products that cater to the growing demand for holistic well-being. We aim to contribute to the industry's growth and achieve our own success in this dynamic market.

Can you specify the challenges and opportunities in the nutraceutical sector?

In the fast-changing world of nutraceuticals, there are challenges and opportunities. Unlike the mature market in the USA, India has its own dynamics that need a careful approach. One challenge is getting more people to understand and learn about nutraceuticals. Unlike the USA, Indian consumers are still figuring out the details.

Closing this awareness gap and explaining the benefits of different products can really help the sector grow in the long run. Another challenge is affordability. People want quality but may not know much about factors like raw material quality, label claims, and formulation strength. Balancing high-quality ingredients with affordability is a complex but crucial challenge. There's also a lack of awareness about different product forms like capsules, tablets, and gummies. Gummies, which are gaining popularity, need scrutiny for additives, highlighting the need for educating consumers.

But amidst these challenges, there are significant opportunities. Combining ancient Indian ayurveda with modern nutrition is exciting. The challenge is to create products that blend both seamlessly, possibly in innovative formats like effervescent tablets or gummies. If we can achieve this while focusing on customer awareness and trust, it could really boost the entire nutraceutical ecosystem. Balancing these aspects can tap into untapped market potential and contribute to the overall well-being of consumers.

Please describe your journey to bridge nutrition gaps and address the growing problem of lifestyle disorders after foraying into nutraceuticals in 2021.

Zingavita was founded in 2021 by Sachin Goel during the pandemic, driven by his personal journey to address nutritional gaps. As a new father, Sachin was concerned about his picky-eating son’s nutrition and couldn't find clean, transparent supplements in the market. This led to the birth of Zingavita, initially focusing on children's nutrition with a commitment to natural and exciting formats to meet kids' vitamin and mineral needs. Our core principle is addressing nutritional deficiencies, recognising their universal impact on health. We believe supplements play a crucial role in preventing common diseases by ensuring the body gets essential nutrients. With the recent addition of me (Dheeraj) Nagpal as a Co-Founder, Zingavita is further strengthening its position in the health and wellness space. Together, we aim to blend ayurveda and modern nutritional science, offering innovative and effective solutions for a balanced and healthy lifestyle.

Being born post-Delta variant turning into an epidemic world-over, was your mission to improve the immunity of the people?

Absolutely, Zingavita initially focused on providing nutritional supplements for children. However, the Delta variant pandemic highlighted the crucial role of immunity in overall health. The pandemic served as a wake-up call for people to proactively safeguard their well-being. Immunity gained increased attention, not just for worst-case scenarios but also as a preventive measure against smaller viral outbreaks.

Recognizing this demand, we adapted our mission to cater to the entire family, expanding our portfolio to over 25 products available on leading e-commerce platforms. These products are designed not only for children's nutritional needs but also as a comprehensive solution for all target age segments in the families looking to enhance their overall immunity and well-being. The company now offers solutions not restricted to problems related to hair, stress, sleep, gut health, sexual wellness, and weight management.

What is your USP? What kind of products do you offer? How does a brand differentiate itself from its competition?

Our unique selling proposition is our strong focus on transparency, innovation, and effectiveness. Our products stand out by being free from harmful additives like sugar, preservatives, artificial colours, and flavours. Notably, we have introduced India's first honey-sweetened gummies, a breakthrough in nutritional supplements for both kids and adults. Our innovative range includes specialized gummies like Eye Health for kids, countering screen time effects, multivitamins for kids supporting growth, Chawanprash for kids promoting long-term immunity, and Keratin Gummies for adults ensuring optimal hair health.

Additionally, Zingavita has expanded into premium ayurveda supplements, featuring sustained-release ashwagandha capsules for stress management. Our multivitamin and Omega 3 blend, infused with herbal extracts in a single soft gel, and Pure Himalayan Shilajit in effervescent tablet form showcase our commitment to revolutionizing wellness by blending traditional remedies with modern science. Zingavita's strength lies not just in the variety of products but in our dedication to delivering health solutions that are both innovative and wholesome, setting a new standard in the health and wellness industry.

What is the response from the consumers and growth witnessed by the Zingavita?

Zingavita has been met with an overwhelmingly positive response from consumers since the beginning. Our dedication to quality, transparency, and innovation has struck a chord with health-conscious individuals and families. The demand for our honey-sweetened gummies, known for their natural sweetness and health benefits, has been remarkable. Our ayurveda-infused supplements are also gaining popularity for their unique formulations and effectiveness.

The recently launched sustained-release Ashwagandha, backed by clinical research and clean label certification, has become one of our top-selling products. This success has led to significant growth in our customer base, and our products are now easily accessible on various e-commerce platforms, witnessing a 40 per cent+ year-on-year growth with a 4+ customer rating.

With this positive momentum, Zingavita is now looking to expand its innovative product range to overseas markets. The increasing market presence and positive feedback reflect the trust consumers have in Zingavita for their nutritional needs. Our vision is to cater to all target segments in the Indian family with high-quality health supplements, emphasizing quality, innovation, and affordability. By building trust and connection with our customers, we aim to become India's most loved health supplement brand.

Tell us about the recent funds raised by Zingavita and how will you be utilising the funds?

Yes, we recently closed our pre-Series A round of funding, raising Rs 10 crore in funding. This round was led by Anicut Capital. Also, joining this round were some of the marquee investors from the pharma and FMCG space like Venkat Krishnan (CEO at BionPharma), Puru Gupta (founder, True Elements), Vishesh Chandiok (CEO, Grant Thornton Bharat), Nikhil Bhandarkar (founding partner, Panthera Peak) and other seasoned angel investors.

For us, this funding is a testament and a vote of confidence from our investors as we embark on the expansion journey into new product development focusing on targeted nutrition. Our continued focus will be on the products which are devoid of harmful additives like sugar, preservatives, artificial colours & flavours and thereby, bring transparency, innovation, and efficacy to the market.

Additionally, the funds will fuel the brand's entry into the Premium Ayurvedic Supplement space. While we focus on creating formulations using superior quality ingredients intended to provide the best possible blend of ayurveda and modern nutritional science, this funding will enable us to accelerate our innovation cycle and meet our growth milestones in order to continue delivering on our promise of holistic nutrition for the entire family.