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  • India-Today, A Fast Growing Market For Nutraceuticals & Dietary Supplements

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    Gunjan Lalchandani
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    This document discusses the growing nutraceutical market in India. It provides definitions of nutraceuticals and outlines that the global market was estimated at $120 billion in 2007 growing at 7% annually. The Indian market was estimated at $275 million in 2007 growing at 21% annually. Key growth drivers for the Indian market include an aging population, changing lifestyles and diseases, increasing medical costs, and greater spending power and awareness of preventive healthcare. However, issues include legal regulations, intense competition, and low consumer awareness. Retail provides opportunities to directly engage consumers and sell products targeted to specific market segments.

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    This document discusses the growing nutraceutical market in India. It provides definitions of nutraceuticals and outlines that the global market was estimated at $120 billion in 2007 growing at 7% annually. The Indian market was estimated at $275 million in 2007 growing at 21% annually. Key growth drivers for the Indian market include an aging population, changing lifestyles and diseases, increasing medical costs, and greater spending power and awareness of preventive healthcare. However, issues include legal regulations, intense competition, and low consumer awareness. Retail provides opportunities to directly engage consumers and sell products targeted to specific market segments.

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    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
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    39 views29 pages

    India-Today, A Fast Growing Market For Nutraceuticals & Dietary Supplements

    Uploaded by

    Gunjan Lalchandani
    This document discusses the growing nutraceutical market in India. It provides definitions of nutraceuticals and outlines that the global market was estimated at $120 billion in 2007 growing at 7% annually. The Indian market was estimated at $275 million in 2007 growing at 21% annually. Key growth drivers for the Indian market include an aging population, changing lifestyles and diseases, increasing medical costs, and greater spending power and awareness of preventive healthcare. However, issues include legal regulations, intense competition, and low consumer awareness. Retail provides opportunities to directly engage consumers and sell products targeted to specific market segments.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 29

    India- Today, a fast growing Market for Nutraceuticals & Dietary Supplements

    Nutraceuticals : A Definition
    Nutraceuticals is a broad term that includes foods, dietary supplements and medical foods offering health/medical benefits, including the prevention and/or treatment of disease. Any food that positively impacts an individuals health, physical performance or state of mind.

    A Definition

    Agenda
    Nutraceuticals : An overview Indian Market : An Overview Growth Drivers Issues and Challenges

    Nutraceuticals A Retail Perspective

    Agenda
    Nutraceuticals : An overview Indian Market : An Overview Growth Drivers Issues and Challenges

    Nutraceuticals A Retail Perspective

    Nutraceuticals : An overview
    Global Nutraceuticals market in 2007 was estimated at USD 120 billion, growing at a CAGR of 7%.
    An overview

    The US is the major market with 36% of market share followed by Asia at 30% and Europe at 24%.
    Source = Cygnus Business Consulting & Research 2008
    5

    Nutraceuticals : An overview
    Market expected to reach USD 137 Billion in 2009 Increased Health Consciousness biggest growth driver Strong Income growth in Asian economies driving demand
    Source = Cygnus Business Consulting & Research 2008
    6

    An overview

    Nutraceuticals : An overview
    The worldwide market is expected to grow rapidly, owing to availability of clear clinical evidence on safety and health benefits
    An overview

    Maximum growth is anticipated from broadening applications in functional foods, meal replacements, isoflavones, soy proteins, probiotics and Omega 3 fatty acids
    Source = Cygnus Business Consulting & Research 2008
    7

    Agenda
    Nutraceuticals : An overview Indian Market : An Overview Growth Drivers Issues and Challenges

    Nutraceuticals A Retail Perspective

    Indian Market : An overview


    In 2007, Indian Nutraceutical market was estimated at INR 18.75 billion, growing at CAGR 21%
    An overview

    Estimated to reach INR 27 Bn in 2009. VMS = 40% and Food Supplements = 60% of market
    Source = Cygnus Business Consulting & Research 2008
    9

    Indian Market : An overview


    India, largely market. a prescription

    An overview

    Companies now pushing Nutraceuticals as a PREVENTIVE THERAPY Supplementation seen as fitting well into the fast-paced contemporary lifestyle

    10

    Indian Market : An overview


    Market Segments
    Food Supplements 1. Protein Powders 2. Health Drinks & Shakes 3. Pediatric Nutrition Products 4. Protein Bars 5. Herbal Extracts 6. Enteral Nutrition Products Vitamins & Mineral Supplements 1. Multivitamins 2. B-Complex 3. Anti-Oxidants
    11

    An overview

    Indian Market : An overview


    Market Channels
    Direct Sales Amway, Herbalife
    An overview

    Specialty Retail Guardian (GNC) Religare (Vitamin Shoppe) Internet Sales www.guardiannutrition.in www.health-shoppe.com Ethical Sales through Doctors

    12

    Indian Market : An overview


    Target Consumer
    Typically a person
    An overview

    With no scope/time for grandmother remedies Inclined to take scientifically proven medication Believes in preventive medicine Is increasingly aware of healthrelated issues arising out of hectic lifestyle and food habits

    13

    Agenda
    Nutraceuticals : An overview Indian Market : An Overview Growth Drivers Issues and Challenges

    Nutraceuticals A Retail Perspective

    14

    Indian Market : Growth Drivers


    Aging Population Increased Life expectancy to boost aging population
    Growth Drivers

    Demand for products of middle-aged life needs like multi-vitamins expected to grow fast

    15

    Indian Market : Growth Drivers


    Changing Lifestyle Urban Population Rapidly increasing thus driving a fast change in dietary habits Increased incidence of Lifestyle disorders like Diabetes, CVD etc.

    Growth Drivers

    16

    Indian Market : Growth Drivers


    Increasing Medical Costs Lifestyle diseases driving demand for Multi and Super Specialty healthcare services thus escalating treatment costs Increase usage of nutraceutcials as supplementary to the pharma products in therapeutic segments

    Growth Drivers

    17

    Indian Market : Growth Drivers


    Higher Spending Power According to National Commission of Population By 2021, Working Population will be 64% of Total Population

    Growth Drivers

    18

    Indian Market : Growth Drivers


    Awareness of Preventive healthcare
    Growth Drivers

    With Major MNC and Indian Pharma as well as Food Companies jumping onto the Nutraceutical bandwagon, the market is slated to grow rapidly.

    19

    Indian Market : Growth Drivers


    Baby Boomers
    Born between 1946 to1964
    Are the highest risk age groups for
    Growth Drivers

    many lifestyle diseases and illnesses. Actively examining the close link between diet and health Health-conscious baby boomers are eating their way to a better life, fuelling a sharp rise in demand for functional foods or Nutraceuticals.

    20

    Agenda
    Nutraceuticals : An overview Indian Market : An Overview Growth Drivers Issues and Challenges

    Nutraceuticals A Retail Perspective

    21

    Issues and Challenges


    Legal Environment
    Current legal framework suited to rapid growth of Nutraceutical industry in India.
    Issues & Challenges

    Current Registration norms allow for easier introduction of newer products. Impact of the implementation of the Food Safety and Standards Act 2006 to be viewed carefully.

    22

    Issues and Challenges


    Intense Competition
    Pharmaceutical companies, FMCG, FMHG, companies that sell Nutraceuticals products to supermarkets, large chain discount retailers, drug store chains and independent medical stores, health food stores, others who sell to wholesalers, and also mail order vendors, electronic commerce and network marketing companies Will lead to maturing of the market in terms of Innovative Product Development, Positioning, aggressive Promotion and Distribution Strategies.

    Issues & Challenges

    23

    Issues and Challenges


    Consumer Awareness
    Current Consumer Awareness levels are among the lowest in the World.
    Issues & Challenges

    More innovative communication strategy will need to be adopted by the companies to increase equity of Nutraceuticals in the consumer mind space.

    24

    Agenda
    Nutraceuticals : An overview Indian Market : An Overview Growth Drivers Issues and Challenges

    Nutraceuticals A Retail Perspective

    25

    A Retail Perspective
    An excellent channel to establish direct link with the consumer and receive meaningful feedback
    A Retail Perspective

    Greater potential to sell at higher profit margins since merchandise is targeted to specific market segments

    26

    A Retail Perspective
    One to One relationship of the store staff and consumer can be a boon to sales
    A Retail Perspective

    Hence the need to invest in store staff training to increase productivity. Sell On Value rather on Price

    27

    A Retail Perspective
    Develop and maintain resilient operations Comfortable environment for
    A Retail Perspective

    consumer

    to

    look

    feel

    understand products Efficiency in maintaining width and depth of merchandise

    28

    THANK YOU

    29

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