Nuffoods Spectrum - NUFFOODS Spectrum Oct 2025

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Surging F&B Investment turns SHELF APPEAL to R&D India’s food and beverage (F&B) startup ecosystem is burgeoning with new-age brands promising healthier, trendier, and more convenient products, with investors raring to fund. Much of this early-stage capital flowed into directto-consumer (D2C) plays, where the money was primarily used to acquire customers, expand retail distribution, or boost marketing spends. In the last two years, however, the funding landscape has evolved. Investors are no longer satisfied with branding stories alone. Their focus is, now, on companies that can build strong product differentiation through innovation, in-house manufacturing, and scientific research and development. Evidently, consumers in India are increasingly health-conscious, demanding not just trendy packaging but credible, functional, and science backed products. At the same time, global demand for nutraceuticals, functional foods, and alternative proteins is rising sharply, positioning India as a low-cost manufacturing hub. Let's explore how smart capital is flowing into manufacturing and innovation in Indian F&B and nutraceutical companies, the notable players attracting this capital, investor rationale, and challenges.