Food Pharmacy Retail Business Opportunity

The "Food is Medicine" business size in India is measured across various overlapping sectors, including medical foods, health and wellness foods, dietary supplements, and Ayurvedic products. While specific market sizes differ depending on the category, several reports indicate strong growth driven by rising health awareness and chronic diseases. 

Market size by sector

• Medical foods: This segment, which  includes Foods for Special Medical Purposes (FSMP) and medical nutrition, is experiencing rapid growth. Reports vary on the precise market size, but a clear upward trend exists:
  • ₹3,500 crore ($420 million) by  2025 for FSMPs, driven by increasing healthcare awareness.
  • $504.63 million in 2024, projected to reach  $929.89 million by 2032 for the medical nutrition market, at a compound annual growth rate (CAGR) of 7.94%.
  • $1.77 billion by 2030 for the medical foods market, with a CAGR of 6.8%.
• Health and wellness food: The broader health and wellness food market, which aligns with the "Food is Medicine" philosophy, is forecast to expand significantly:
  • $25.8 billion in 2025, projected to reach $47.6 billion by 2031, growing at a CAGR of 10.5%.
  • $35.89 million in 2024, projected to reach $139.56 million by 2032, at a CAGR of 18.50%.
  • $30 billion by 2026 for the health food market, as forecast by Avendus Capital in 2022.
• Dietary supplements: This market is a major component of the "Food is Medicine" space, with a market size projected to reach ₹557.7 billion by 2033, growing at a CAGR of 12.82% from 2025 to 2033.
• Ayurvedic products: With deep roots in India's traditions, the Ayurvedic products market was valued at ₹875.9 billion in 2024 and is forecast to reach ₹3,605 billion by 2033, at a CAGR of 16.17%. 

Factors driving market growth

• Rising health  consciousness: The COVID-19 pandemic accelerated consumer interest in proactive, preventative healthcare and nutrition.
• Increase in lifestyle diseases: The growing prevalence of conditions like diabetes, obesity, and heart disease is driving demand for functional foods and medical nutrition products.
• Growing middle-class income: Rising disposable income makes premium health and wellness products more affordable for a wider segment of the population.
• Government initiatives: Programs like Ayushman Bharat and the promotion of the AYUSH industry (Ayurveda, Yoga, Unani, Siddha, and Homeopathy) support the growth of traditional and nutritional medicine sectors.
• E-commerce and online channels: Digital platforms have significantly improved product accessibility, especially for specialized supplements and health foods.
• Targeted nutrition: There is increasing demand for personalized nutritional products that cater to specific health conditions and lifestyle needs.