Indian Health Ingredients Market: Survival of the fittest! Abhik Mukherjee, Research Analyst Chemicals, Materials & Foods ...
Today’s Presenters   Anish Charles,  Assistant Manager,   Corporate Communications – Chemicals, Materials and Food and Hea...
<ul><li>Market Overview </li></ul><ul><li>Major Industry Challenges  </li></ul><ul><li>Key Market Drivers and Restraints <...
Forecast <ul><li>Forecast period -  2010 to 2016 </li></ul><ul><li>Base year -  2009 </li></ul><ul><li>Market Covered: Ind...
Market Overview <ul><li>The Indian health ingredients market is in a growth phase. The total market was estimated to be 77...
Market Challenges Industry  Challenges 1 Lack of legislation stunts growth 1 Low Consumer awareness hampers growth 2 1 Pri...
Market Drivers and Restraints New end use segments drives usage Nutritional initiatives by the Indian government Market Dr...
Key Functional Food Industry Trends  Food as medicine Industry Trends Micronutrient Deficiencies Child Nutrition Food as m...
Macro Market Forces Economic: GDP growth, Disposable Income and other factors that influence the economy Legal: Consumer l...
Total Indian Health Ingredients Market Forecast  The Indian Health Ingredients market had a total volume of 770.6 MT in 20...
Health Ingredients: Now and Beyond Market Maturity low High Growth Potential High Omega 3 Fatty Acids Probiotics Prebiotic...
Ingredient Manufacturers
Frost & Sullivan Research : Related / Upcoming <ul><li>Strategic Analysis of  US Market for Nutritional Solutions in Immun...
Conclusion  <ul><li>The Indian Health ingredients market is still nascent. Focus is on the burgeoning middle class to driv...
Next Steps <ul><li>Request a proposal for or  Growth Partnership Services  or  Growth Consulting Services  to support you ...
Your Feedback is Important to Us <ul><li>Growth Forecasts? </li></ul><ul><li>Competitive Structure? </li></ul><ul><li>Emer...
http://twitter.com/frost_sullivan Follow Frost & Sullivan on Facebook, LinkedIn, SlideShare, and Twitter http://www.facebo...
For Additional Information Anish Charles Corporate Communications Chemicals, Materials and Food/ Healthcare Practice (022)...
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Indian Health Ingredients Market

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India is a global hub for all that is good and great in food ingredients for while Health ingredients stand to attain large market shares if touted right they also face stiff challenges. For instance while fortified foods are an emerging segment in India and will greatly benefit from clarity in regulation and consumer acceptance, the onus is on the government to expedite development through regulation. Also large F&B firms need to invest in marketing dollars to improver consumer awareness. Additionally expansion into new end use segments compatible with the Indian palette can promote increased adoption.

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  • Indian Health Ingredients Market

    1. 1. Indian Health Ingredients Market: Survival of the fittest! Abhik Mukherjee, Research Analyst Chemicals, Materials & Foods Frost & Sullivan’s Growth Consulting can assist with your growth strategies
    2. 2. Today’s Presenters Anish Charles, Assistant Manager, Corporate Communications – Chemicals, Materials and Food and Healthcare Frost & Sullivan Abhik Mukherjee , Research Analyst, Chemicals, Materials & Foods Frost & Sullivan
    3. 3. <ul><li>Market Overview </li></ul><ul><li>Major Industry Challenges </li></ul><ul><li>Key Market Drivers and Restraints </li></ul><ul><li>Industry Trends </li></ul><ul><li>Macro Market Forces </li></ul><ul><li>Market Revenue Forecast </li></ul><ul><li>Product Life Cycle </li></ul><ul><li>Key Industry Participants </li></ul><ul><li>Frost & Sullivan Research : Related / Upcoming </li></ul><ul><li>Conclusion </li></ul>Focus Points
    4. 4. Forecast <ul><li>Forecast period - 2010 to 2016 </li></ul><ul><li>Base year - 2009 </li></ul><ul><li>Market Covered: India </li></ul><ul><li>Omega 3 fatty acids </li></ul><ul><li>Probiotics </li></ul><ul><li>Prebiotics </li></ul><ul><li>Vitamins & Minerals </li></ul>Segmentation GEOGRAPHICAL SCOPE Forecast and Segmentation
    5. 5. Market Overview <ul><li>The Indian health ingredients market is in a growth phase. The total market was estimated to be 770.6 MT in 2009, and is estimated to grow at a CAGR of 9.5% over the forecast period. </li></ul><ul><li>The Indian Functional Foods market is a nascent sector primarily catering to the urban market. Rapid urbanization, unhealthy eating habits, increased participation of women in the workforce and the trend towards nuclear families is causing a change in the consumption pattern. The major end use application for Health Ingredients is the Malted health Beverage segment. The milk and milk products segment is slowly evolving into a more organized sector. With a strong tradition of consuming dairy products, this should be a growth engine for the Health Ingredients market. </li></ul><ul><li>The market for functional foods in India is still in its infancy with an estimated revenues of INR 60 billion. A combination of economic, regulatory and demand dynamics have contributed to a slower than expected growth for the Functional foods industry. This has directly stunted the market growth for health ingredients. </li></ul><ul><li>Market participants comprise of large multinationals with long standing agreements with key end users. </li></ul>Indian Health Ingredients Omega 3 Fatty Acids Probiotics Prebiotics Vitamins & Minerals
    6. 6. Market Challenges Industry Challenges 1 Lack of legislation stunts growth 1 Low Consumer awareness hampers growth 2 1 Price sensitivity of consumers inhibits product innovation 3
    7. 7. Market Drivers and Restraints New end use segments drives usage Nutritional initiatives by the Indian government Market Drivers Market Restraints Rise in disposable income promotes switch to healthier lifestyles High barriers to entry Lack of product innovation Scientific studies on Indian population
    8. 8. Key Functional Food Industry Trends Food as medicine Industry Trends Micronutrient Deficiencies Child Nutrition Food as medicine Obesity & Lifestyle Diseases
    9. 9. Macro Market Forces Economic: GDP growth, Disposable Income and other factors that influence the economy Legal: Consumer law, antitrust law, patents and other laws that effect the business landscape Technology: R&D capabilities, technology change and other technology aspects that influence business development Demographic: Population growth, age distribution and related factors that can create market trends Social: Cultural factors, attitudes and behavior that can drive new businesses and product development Strong Weak Health Ingredients Vitamins & Minerals Omega 3 Probiotics Prebiotics Economic Legal Technology Demographic Social
    10. 10. Total Indian Health Ingredients Market Forecast The Indian Health Ingredients market had a total volume of 770.6 MT in 2009, with potential volumes of 1452.2 MT in 2016. The market is likely to grow at a CAGR of 9.5 percent from 2007 to 2016. Indian Health ingredients Market : Volume Forecasts (India), 2007-2016 CAGR 9.5 %
    11. 11. Health Ingredients: Now and Beyond Market Maturity low High Growth Potential High Omega 3 Fatty Acids Probiotics Prebiotics Vitamins & Minerals The Indian health ingredients market is at an early growth stage with regards to both the demand and supply ends. This is mainly attributed to lack of consumer awareness and low product innovation by FMCG firms. Vitamins & Minerals is the only segment which is in the middle of the growth curve. The trend of prebiotic as a sugar substitute is expected to stimulate strong growth The market for probiotics is expected to experience strong growth medium term aided by the culture of dairy product consumption Omega 3 fatty acid demand will be mainly driven by the malted health beverages sector for the forecasted period
    12. 12. Ingredient Manufacturers
    13. 13. Frost & Sullivan Research : Related / Upcoming <ul><li>Strategic Analysis of US Market for Nutritional Solutions in Immune & </li></ul><ul><li>Antihypertensive Health </li></ul><ul><li>Food & Beverage Ingredients Industry on Consolidation Drive </li></ul><ul><li>European Market for Sports & Fitness Nutrition </li></ul><ul><li>Global Market for Vegetarian Sources of Omega 3 Ingredients </li></ul><ul><li>Emerging Natural Flavors & Trends in European Functional Foods Market </li></ul><ul><li>Global Omega 3 Ingredients Market – Annualized Tracker </li></ul>
    14. 14. Conclusion <ul><li>The Indian Health ingredients market is still nascent. Focus is on the burgeoning middle class to drive market growth. However consumer demand for fortified food has not matched expectations. There is a case to look towards the BOP as a high growth segment for the FMCG firms. In addition to targeting micro-nutrient deficiencies, trendy ingredients like Omega – 3 can also be used. </li></ul><ul><li>The Health Ingredients industry is highly concentrated with big multinationals controlling majority of the market share. Technical and R&D capabilities, consistency in product quality, and economies of scale allow them to maintain a competitive advantage over local participants and deter new entrants. The consistency in product quality is a key barrier to entry for Chinese manufacturers. </li></ul><ul><li>The Indian health ingredients market has seen less than double digit volume growth. This trend is expected to persist for the next 3 – 5 years. However increasing consumer awareness is expected to provide impetus to the industry in the latter part of the forecasted period. </li></ul><ul><li>Regulatory authority will also play a key role in market development. The FSSAI has issued new RDA guidelines (draft stage). There are also ongoing discussions about the novel ingredients. Initiatives to expand efficacy testing on Indian populations is the next step. </li></ul>
    15. 15. Next Steps <ul><li>Request a proposal for or Growth Partnership Services or Growth Consulting Services to support you and your team to accelerate the growth of your company. ( [email_address] ) 1-877-GoFrost (1-877-463-7678) </li></ul><ul><li>Join us at our annual Growth, Innovation, and Leadership 2011: A Frost & Sullivan Global Congress on Corporate Growth, ( www.gil-global.com ) </li></ul><ul><li>Register for the next Chairman’s Series on Growth : </li></ul><ul><li>The CEO's Growth Survey: Are CEO’s in Touch with Reality? ( http:// www.frost.com /growth ) </li></ul><ul><li>Register for Frost & Sullivan’s Growth Opportunity Newsletter and keep abreast of innovative growth opportunities ( www.frost.com /news ) </li></ul>
    16. 16. Your Feedback is Important to Us <ul><li>Growth Forecasts? </li></ul><ul><li>Competitive Structure? </li></ul><ul><li>Emerging Trends? </li></ul><ul><li>Strategic Recommendations? </li></ul><ul><li>Other? </li></ul>Please inform us by taking our survey. What would you like to see from Frost & Sullivan? Frost & Sullivan’s Growth Consulting can assist with your growth strategies
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    18. 18. For Additional Information Anish Charles Corporate Communications Chemicals, Materials and Food/ Healthcare Practice (022) 6607 2019 [email_address] Natasha D’Costa Senior Research Analyst Chemicals, Materials and Food Practice (044) 3914 4700 [email_address] Hema Thakur Senior Consultant Chemicals, Materials and Food Practice (022) 6607 2026 [email_address]

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