Last month’s acquisitions started with Marico on Feb. 4, which purchased a 60% stakes in plant-based protein and superfood firm Cosmix for INR2.26 billion (US$25 million).
A week later, Hindustan Unilever (HUL) announced that it would acquire full ownership of OZiva, the decade-old plant-based protein and women’s health-focused firm for INR8.24 billion (US$90 million).
At the same time, it will divest its stake in Wellbeing Nutrition—known for its novel dosage forms—to USV Pharma, which is acquiring a 79% stake in the company at a valuation of INR15.8 billion (US$173.9 million).
While acquisitions and investments in nutrition companies have accelerated in India in recent years, much of the activity has centered on venture capital backing protein and clean label brands. For instance, the Whole Truth Foods recently raised US$51 million in a funding round led by Sofina and Sauce.vc.
However, last month’s string of deals has reignited interest in India’s nutraceutical market. Just how lucrative are these businesses and what makes nutrition-focused companies stand out from the rest?
The basics: Shifting consumer behavior, faster growth rate
Dr. Vaibhav Kulkarni, honorary secretary of India’s Health Foods and Dietary Supplements Association (HADSA), said that the the drivers behind the growing focus on health and well-being were multi-faceted, but the main motivator is an increased consumer focus on prevention.
“The primary driver is the fundamental shift in consumer behavior towards preventive health care, and that is where you have a high-growth potential market that is waiting for you,” he said, adding that India’s nutraceutical sector is growing at a faster rate than the pharmaceutical or FMCG sectors.
According to a report released by the Economic Division of India’s Ministry of Food Processing Industries (MPI), the country’s nutraceuticals market was valued at an estimated US$30.37 billion in 2024 and is projected to grow at a CAGR of 13.6% from 2025 to 2030. In 2023, India’s nutraceuticals industry held 9.22% of the global market revenue in 2023.
“The market growth is attributed to rising consumer focus on health-promoting diets, increasing instances of lifestyle-related disorders and preventive healthcare,” the report stated. “The increasing trend among consumers to alter dietary habits is expected to boost the demand for nutraceuticals.”
In contrast, India’s pharmaceutical sector has been plagued by slower growth, pricing pressure and intensifying global market competition, McKinsey & Company reported last November.
The report also noted that pharmaceutical sales in the Indian subcontinent are projected to grow at a CAGR of 9.3% between 2023 and 2028.
In comparison, India’s FMCG sector was valued at US$167 billion in 2023. After a period of sluggish growth, the industry is now showing signs of recovery, with rising demand from rural India fueling the rebound.
“In 2025, rural India overtook cities in affordable premium FMCG consumption with a 51% volume share and contributed 42% of super-premium sales, as average rural premium spend grew at 11% CAGR over five years, driving a INR980 billion (US$11.38 billion) market,” according to a report by India Brand Equity Foundation released last November. The foundation is a trust established by the Department of Commerce under India’s Ministry of Commerce and Industry.
Nonetheless, Dr. Vaibhav noted that India’s nutraceutical sector is growing at a faster rate than the FMCG and pharma sectors.
“India’s nutraceutical sector is going into 10% to 12% growth every year, which is a very good growth for pure pharma or FMCG companies at this point,” he said. “Having a nutraceutical portfolio also adds some ‘glamor’ to their traditional pharma or consumer goods business.”
Hindustan Unilever (HUL) is one of the companies recognizing health and well-being as a crucial growth driver.
“Health and well-being is an important growth vector for us, driven by rising consumer interest in everyday wellness,” Priya Nair, CEO and managing director of HUL said. “By taking full ownership of OZiva, we are doubling down on this exciting space to unlock the next phase of growth. Our decisions today reflect our intent of fewer, bigger bets where we can leverage HUL’s strengths in science, distribution and market development to scale purpose-led brands.”
For the FMCGs, fortifying their products with functional ingredients can also enhance value, allowing them to command higher prices, Dr. Vaibhav said. Currently, protein is undoubtedly the most talked-about nutrient in India.
A case-in-point is dairy company Amul, which has been actively expanding its protein-focused product portfolio. One of its launches, “High Protein Probiotic Dahi,” delivers 25 grams of protein per 400-gram serving and is priced at 70 rupees (US$0.77) on the e-commerce platform Big Basket.
What should nutra firms bring to the table?
As to why certain brands have attracted acquisition and investment, business synergies and proven track record of growth are among the key reasons.
In the case of USV Pharma, acquiring Wellbeing Nutrition could strengthen its metabolic health portfolio with products that include Liposomal Berberine HCL+ capsules, apple cider vinegar, Garcinia cambogia and pomegranate effervescent tablets. The company is preparing to launch Usema, a GLP-1 therapy, and sees the addition of Wellbeing Nutrition as a way to add a preventive dimension to its offerings.
“For over six decades, USV has been a trusted leader in diabetes, cardiac care and consumer care,” USV Pharma shared.
“This partnership aligns well with our vision of scaling into a holistic healthcare company with Wellbeing Nutrition’s brands. By bridging the gap between metabolic care and preventive wellness, we are reinforcing our commitment to addressing the emerging needs of modern India.”
HUL, on the other hand, highlighted that OZiva has delivered strong growth since its 2023 acquisition of a 51% stake in the company. According to HUL, OZiva has grown at a CAGR of 130% since then, with revenue reaching INR$4.8 billion (US$52.2 million) in 2025.
As a result, HUL’s board of directors has approved the acquisition of the remaining stakes, making OZiva a wholly owned subsidiary.
Like many of the newer nutraceutical companies, OZiva adopts a digital-first strategy, a trait that attracts larger firms. Strengthening its digital-first portfolio is also one of the reasons that Marico invested in Cosmix.
“The investment in Cosmix brings another strong and differentiated brand into our digital-first portfolio,” said said Saugata Gupta, MD, CEO of Marico.
“We foresee immense potential in the wellness and plant‑based nutrition space, and Cosmix has already demonstrated deep consumer resonance with its best-in-class, innovative offerings. Together, we are committed to accelerating their journey, expanding into relevant adjacent wellness categories and building a sustainable, profitable brand that inspires trust and delivers meaningful value to consumers across India.”
| FMGC / Pharma companies | Firms acquired | Acquisition amount (rupees) |
|---|---|---|
| Hindustan Unilever | OZiva | 8.24bn (US$90m) |
| Marico | Cosmix | 2.26bn (US$25m) |
| USV Pharma | Wellbeing Nutrition | 15.8bn (US$173.9m) |
Digital-first has become an important retail strategy in India since the COVID-19 pandemic, with 2020 Boston Consulting Group data confirming a spike in preference for online shopping, including for health supplements.
Aside from OZiva and Cosmix, Power Gummies and Australian brand Swisse are among the others adopting a digital-first strategy for their Indian operations.
How can pharma, FMCGs take nutra business further?
Pharmaceutical and FMCG companies are also investing in nutraceutical companies because of their ability to leverage their own capabilities to drive growth in the sector.
FMCGs can accelerate the growth of their newly acquired brands through existing branding and distribution networks, both online and offline. This is especially relevant when distributing in lower-tier cities and into rural areas.
“As you can see, HUL has a good network that allows them to reach the last mile in the villages, and they can capture the middle-class consumers—a group that is rapidly growing in India and is becoming increasingly health-conscious,” Dr. Vaibhav said. “The FMCG companies have a very good advantage in the D2C space, since they have been operating in this space for their products. This makes it easy for them to get newly acquired nutraceutical products into their normal supply chain route.”
FMCG companies often have expertise in producing a variety of packaged food formats, enabling them to help nutraceutical subsidiaries develop products in formats such as protein bars and gummies.
For dairy giants like Amul, there are also in-house supply chain advantages that facilitate acquisition of functional ingredients for use in products.
“Amul, for example, can obtain whey protein through their large-scale cheese production, where whey protein is a by-product and in the process enjoy cost competitiveness,” Dr. Vaibhav noted.
As for pharmaceutical companies, they can lend scientific credibility to and inspire consumer and practitioner trust in the nutraceutical business they acquire.
“Pharmaceutical companies have a good scientific background and know how to develop clinically backed and science-led products—which is an expertise that they can pass on to their nutraceutical subsidiaries," Vaibhav said.
“This creates a win-win situation and promotes consumer trust. Pharmaceutical companies also have a good medical prescription channel, which allows them to move nutraceutical products to healthcare professionals swiftly.”
Stepping out of India: The case of Reliance Industries
Beyond domestic firms, some major Indian companies are also starting to show interest in nutraceutical firms further afield in Oceania.
In a rare move by an Indian company, Reliance Consumer Products Limited (RCPL), the FMCG arm of Mumbai-based conglomerate Reliance Industries Limited (RIL), announced last month that it had acquired a majority stake in Sydney-based functional drinks firm Goodness Group Global Pty. Ltd.
Goodness Group’s offerings include Nexba, a range of ready-to-drink kombucha, nootropics, Bison (a protein-based beverage brand) and Pace, a hydration brand co-created with Australian cricket captain Pat Cummins.
According to RCPL, it plans to introduce Nexba and Pace into markets outside of Australia, including India. The acquisition is also part of the company’s efforts to develop a health-based beverages portfolio and solidifies its position as a rapidly emerging global FMCG player from India.
Before acquiring Goodness Group, RCPL’s overseas presence was largely in the UAE, Qatar, Oman, Bahrain, Nepal and Sri Lanka, where it sold products such as the herbal beverage brand Shunya.
“This strategic partnership is a bold step towards establishing RCPL as a global FMCG company from India,” said T. Krishnakumar, director at RCPL. “The addition of GGG’s health-focused consumer brands like Nexba and PACE will add strength to RCPL’s healthy beverages portfolio.”
With our strong supply chain and distribution capabilities, RCPL will ensure the expansion of GGG’s brands across newer markets and wide availability in India," he added. “This move will further help RCPL meet its promise of making the global quality accessible to everyone.”
Goodness Group’s functional beverages are currently sold in 21 international markets. Founder Troy Douglas said that the acquisition by RCPL would help expand the company’s global presence, with a goal of entering as many as 50 Western markets in the next five years.
