Strategic M&A in India’s Nutraceutical Sector: The Wellbeing Nutrition Acquisition as a Catalyst for Growth

India’s nutraceutical sector is undergoing a transformative phase, driven by surging demand for preventive healthcare, Ayurvedic solutions, and immunity-boosting products. With the market projected to grow from USD 32.14 billion in 2024 to USD 75.81 billion by 2033 at a compound annual growth rate (CAGR) of 10.0% [1], strategic mergers and acquisitions (M&A) are emerging as critical tools for consolidating market share and capturing growth. The acquisition of Wellbeing Nutrition by Hindustan Unilever Limited (HUL) in 2022 and its subsequent Series B funding in 2025 exemplify how such transactions are reshaping the competitive landscape and offering compelling opportunities for investors.

The Financial and Strategic Rationale for HUL’s Investment

HUL’s acquisition of a 19.8% equity stake in Wellbeing Nutrition for INR 70 crore (approximately USD 8.5 million) in December 2022 marked a strategic pivot into the fast-growing health and wellness category [2]. This minority investment, structured through a combination of primary infusion and secondary buyouts, allowed HUL to access Wellbeing Nutrition’s innovative product portfolio—such as Melts (Oral Thin Strips) and Slow (2-in-1 capsule technology)—while minimizing upfront capital outlay [3]. The valuation of the stake, nearly five times Wellbeing Nutrition’s revenue run rate at the time, underscored HUL’s confidence in the startup’s disruptive potential [4].

The strategic rationale for HUL’s move is twofold. First, it aligns with Unilever’s global focus on nutrition as a core business area, enabling HUL to diversify its portfolio beyond traditional FMCG offerings [5]. Second, the partnership leverages HUL’s global R&D capabilities, distribution networks, and brand-building expertise to scale Wellbeing Nutrition’s reach, particularly in rural and semi-urban markets where e-commerce penetration is rising [6]. This synergy is critical in a sector where 47.9% of revenue in 2024 came from functional beverages, but dietary supplements are expected to grow rapidly due to demand for immunity-boosting solutions [1].

A Broader Trend: M&A as a Growth Engine

The Wellbeing Nutrition acquisition is part of a broader M&A trend in India’s nutraceutical sector. For instance, HUL’s earlier acquisition of OZiva in 2022 and Marico’s purchase of Plix in 2023 highlight the sector’s attractiveness to large players seeking to consolidate fragmented markets [7]. These transactions reflect a shift toward innovation-driven consolidation, where acquirers prioritize startups with science-backed, benefit-led products and digital-first strategies.

From a financial perspective, the sector’s growth is underpinned by robust consumer demand and supportive policy frameworks. Government initiatives such as the Production Linked Incentive (PLI) scheme for food processing and regulatory clarity from the Food Safety and Standards Authority of India (FSSAI) are enhancing market credibility [8]. Additionally, the sector’s valuation multiples—Wellbeing Nutrition’s 5x revenue run rate at the time of HUL’s investment—suggest strong investor appetite for high-growth nutraceutical startups [4].

Key Suppliers and Investment Opportunities

Investors seeking to position in India’s nutraceutical sector should focus on both acquirers and suppliers. Established players like Dabur, Abbott, and Himalaya Wellness are leveraging traditional Ayurvedic knowledge alongside modern science to develop immune-boosting and holistic health solutions [9]. Meanwhile, startups such as Nutriventia and Nutrimed Healthcare are gaining traction with clean-label ingredients and fitness-focused supplements [10].

The sector’s resilience is further evidenced by its performance in Q2 2025, where M&A activity in the broader healthcare sector remained active despite a 86% decline in deal values compared to the previous quarter [11]. This suggests that while large platform acquisitions may be cyclical, targeted M&A in niche areas like nutraceuticals will continue to thrive.

Conclusion: Positioning for Long-Term Value

For investors, the Wellbeing Nutrition acquisition underscores the importance of aligning with acquirers who can scale innovative startups and suppliers with strong R&D pipelines. HUL’s strategic minority stake, combined with its global expertise, positions it to capitalize on the sector’s projected USD 75.81 billion market size by 2033 [1]. Similarly, startups with Ayurvedic or plant-based product lines—such as those in the Nutraceuticals Tech sector, which has raised $576 million in funding—offer high-growth potential [12].

As India’s nutraceutical sector matures, strategic M&A will remain a key driver of consolidation and innovation. Investors who prioritize companies with strong distribution networks, regulatory compliance, and a focus on preventive healthcare are likely to reap significant returns in this dynamic market.

Source:
[1] India Nutraceuticals Market Size | Industry Report, 2033 [https://www.grandviewresearch.com/industry-analysis/india-nutraceuticals-market-report]
[2] HUL makes strategic investments in 'OZiva' and 'Wellbeing Nutrition' [https://www.hul.co.in/news/press-releases/2022/hul-makes-strategic-investments-in-oziva-and-wellbeing-nutrition/]
[3] HUL To Acquire 19.8 % Stake In Wellbeing Nutrition [https://www.entrepreneur.com/en-in/news-and-trends/hul-to-acquire-198-stake-in-wellbeing-nutrition/440740]
[4] Top pharma, FMCG firms line up to buy Wellbeing Nutrition ..., [https://www.livemint.com/companies/news/wellbeing-nutrition-acquisition-hindustan-unilever-hul-fireside-ventures-strategic-sale-pharma-companies-fmcg-11756471234640.html]
[5] India Nutraceuticals Market Future-proof Strategies: Trends ... [https://www.archivemarketresearch.com/reports/india-nutraceuticals-market-144]
[6] India Nutraceuticals Market Size | Industry Report, 2033 [https://www.grandviewresearch.com/industry-analysis/india-nutraceuticals-market-report]
[7] Nutraceuticals Tech Sector in India [https://tracxn.com/d/explore/nutraceuticals-tech-startups-in-india/__q6UMbRWkklmfpwMU5vPv2SMlUakjHGJZsYWJxJQcU2M]
[8] Past, Present, and Likely Future of Nutraceuticals in India [https://pmc.ncbi.nlm.nih.gov/articles/PMC10353663/]
[9] Top 10 Nutrition Companies & Industry Insights—2025 [https://indiapharmafranchise.com/2025/03/17/top-nutrition-companies-in-india/]
[10] India's pharma & healthcare sector records transactions worth $1.30 billion in Q2 [https://m.economictimes.com/industry/healthcare/biotech/pharmaceuticals/indias-pharma-healthcare-sector-records-transactions-worth-1-30-bn-in-q2/articleshow/122572709.cms]
[11] Rise of M&A in Healthcare [https://nishithdesai.com/NewsDetails/15101]
[12] Nutraceuticals in India: capitalizing on the shift toward preventive healthcare [https://www.kearney.com/industry/health/article/nutraceuticals-in-india-capitalizing-on-the-shift-toward-preventive-healthcare]