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Food for Special Medical Purposes in India
Clinical Nutrition: The Big Picture
The big picture: India's Food for Special Medical Purposes (FSMP) market is experiencing rapid transformation, with projected growth reaching ₹3,500 crore ($420 million) by 2025, driven by increasing healthcare awareness and rising chronic disease burden.
Why It Matters
FSMPs are becoming critical in Indian healthcare delivery, especially for managing malnutrition in hospitals and supporting patients with specific medical conditions.
  • 35%
    Hospitalized patients in India face malnutrition
  • USD 265 mn
    India Market size (2024); CAGR 15% 2025-2030

  • 65%
    Market share held by multinational companies
Key Players Shaping India's FSMP Landscape
  • 1
    Nestle Health Science India
    • 30% market share
    • Key products: Resource, Peptamen, Novasource
    • Recent launch: India-specific formulations with local flavors
  • 2
    Abbott India
    • 25% market share
    • Flagship brands: Ensure, Glucerna
    • Strong hospital channel presence
    • Manufacturing facility in Pune
  • 3
    Fresenius Kabi India
    • 15% market share
    • Focus: Critical care nutrition
    • Local manufacturing in Pune
    • Recent expansion: ₹250 crore investment in new facility
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Emerging players
  • 1
    Dr. Reddy's Laboratories
    • Formed JV with Nestle Health Science in 2024
    • Focus on affordable alternatives
    • Local R&D center in Hyderabad
  • 2
    Zydus Wellness
    • Recent FSMP portfolio expansion
    • Targeting tier-2/3 markets
    • Manufacturing facility in Gujarat
State of Play
  • 1
    Regulatory Framework - State of play
    FSSAI's 2022 regulations created distinct FSMP category, separate from regular supplements.

    Key requirements:
    • Mandatory clinical validation
    • Local language labeling
    • Specific nutrient parameters
    • Hospital-only distribution for certain products
  • 2
    Market Dynamics: What We're Watching
    Geography matters
    • Tier-1 cities: 60% of current market
    • Tier-2 cities: Fastest growing segment
    • Rural markets: Largely untapped

    Channel distribution
    • Hospitals: 45%
    • Retail pharmacies: 35%
    • E-commerce: 20% (growing rapidly)

    Therapeutic areas
    • Oncology nutrition: Largest segment
    • Critical care: Fastest growing
    • Pediatric nutrition: High potential
  • 3
    Growth Drivers: The Bottom Line
    Demographics
    • 138 million Indians over 60 years by 2025
    • Rising chronic disease prevalence
    • Growing middle class healthcare spending

    Healthcare infrastructure
    • 65% increase in corporate hospitals since 2020
    • Rising insurance penetration
    • Telemedicine adoption driving awareness
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What's Next
Key Trends to Watch
  • 1
    Product innovation
    • Traditional Indian flavor adaptations
    • Affordable pack sizes
    • Condition-specific formulations
  • 2
    Market expansion
    • Direct-to-consumer channels
    • Rural market penetration
    • Hospital partnership programs
  • 3
    Manufacturing landscape
    • Increasing local production
    • Contract manufacturing opportunities
    • Raw material indigenization
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The bottom line: India's FSMP market represents a significant opportunity, with domestic players challenging multinational dominance through localization and affordability strategies.
If you are a founder or investor in the Indian healthcare space and would like to have a chat – please reach out to me at chandra@pharma-pro.in
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