Nutraceuticals Market in India 2010 - Sample

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Nutraceuticals is one of the booming markets India. Owing to the growing health consciousness amongst consumers over preventive measures for diseases, this market is being fueled with growth potential. Predominantly vitamins and minerals derived from oral pills were used for curing certain diseases and ailments. People today are becoming more prone to consume immunity enhancing food supplements and wellness related products. This is promoting the growth of the industry with players diversifying into production of various new varieties of products in the form of powders, beverages, jellies and OTC products. The nutraceuticals market in India is growing at 21% annually. Further assistance from the government and increasing demand from consumers will fuel growth in this market.

The report begins with an introduction to the overall nutraceuticals market and its classification on the basis of the ingredients and benefits incurred from them. This is followed by the market overview section which includes the market size and growth as well as the market share of various segments namely functional foods, dietary supplements and functional beverages. A detailed description of each segment in the market has been provided along with the dominant products in the said category. Focusing on one the major sub-segments, an overview of the probiotic market in India has been included. This segment has been highlighted owing to the fact that it is one of the most promising categories under the nutraceutical market and has huge growth potential in the near future with growing interests of the players both in the pharma segment and the finished packaged food product providers. The genesis of probiotics has been highlighted showing the types dominant in India and the key therapeutic benefits derived from them. This section also contains information regarding the market size and growth of probiotics in India as well as the key segments and the active players in this space.

This is followed by an analysis of the drivers in the market including increasing shift towards preventive therapies, increase in disposable income, increasing shift towards self-medication, increase in healthcare spending, ageing population, growth in pharma and wellness related retail chains, and favorable pricing environment. The key challenges identified include lack of standardization, high pricing, lack of awareness and marketing and distribution challenges. The key trends in the market have also been identified which include fortified foods, ayurvedic nutraceuticals, foreign tie-ups and initiatives by players to educate consumers. Furthermore, the report also covers the government regulations in the market including the Food Safety and Standards Act 2006.

The competition section provides information regarding the overall market share of major players as well as the market share players in the health food drinks segment in India. A clear segmentation of the players has been done indicating the segments they operate in. A brief profile of the various companies that operate in the market has been provided. The PE investments in the market have also been highlighted; followed by the key development section that includes the recent happenings in the industry.

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Nutraceuticals Market in India 2010 - Sample

  1. 1. Nutraceuticals Market – India July 2010
  2. 2. Executive Summary Market valued at INR X bn in 20--; Estimated to reach INR Y bn in 20-- Comprises of three segments: Segment 1, Segment 2 and Segment 3 Market India accounts for less than X% of the total world market Probiotics in India generally comes in two forms : Segment 1 and Segment 2 LE Probiotic Major pharmaceuticals companies have become active in this space and are devising newer Market drugs and products, however current drugs are predominant in the area of X Drivers: MP Players are also devising packaged products like Product 1, 2 and 3 Challenges: Drivers & Challenges – – – – A Increasing shift towards preventive therapies S Increase in disposable income Increasing shift towards self-medication Increase in healthcare spending – – – – Lack of standardization High pricing Lack of awareness Marketing and distribution challenges – Ageing population – Pharma retail growth – Favorable pricing environment Fortified foods Foreign tie-ups Trends Ayurvedic nutraceuticals Initiatives by players to educate consumers Company 1 leads the overall market followed by Company 3 Company 2 enjoys a B% market share in the health drink market Competition With increasing awareness among consumers for wellness related products, pharmaceuticals and functional food companies are creating brand awareness and devising newer products NUTRACEUTICALS MARKET IN INDIA 2010.PPT 2
  3. 3. •Introduction •Market Overview •Probiotic Market •Drivers & Challenges •Trends •Government Regulations •Competition •PE Investments •Key Developments NUTRACEUTICALS MARKET IN INDIA 2010.PPT 3
  4. 4. Nutraceuticals are classified on the basis of their ingredients or therapeutic use Nutraceuticals refers to extracts of foods having a medicinal effect on human health. It comprises of foods, dietary supplements, and medical foods meant for prevention or treatment of disease Traditional Nutraceuticals Non - Traditional Nutraceuticals Modern Nutraceuticals are available as forms of food, or Traditionally, nutraceuticals came in a medicinal format included in foods or as whole food itself such as probiotic such as a capsule, tablet or powder in a prescribed dose drinks and yogurt Nutraceuticals can be classified on the basis of the beneficial ingredient and/or therapeutic benefit claimed Ingredients Therapeutic Use • Bone & joint health • Antioxidants, carotenoids • Cancer risk reduction • Dairy-based ingredients • Cardiovascular health and diabetes • Fibres and carbohydrates • Cognitive and mental function • Minerals • Energy & endurance • Nutritional lipids and oils • Eye health • Phytochemicals, plant extracts • Immune system • Probiotics and prebiotics • Maternal & infant health • Proteins, peptides, amino acids • Respiratory health • Soy-based ingredients • Skin health • Vitamins & premixes • Weight management NUTRACEUTICALS MARKET IN INDIA 2010.PPT 4
  5. 5. Increasing shift towards preventive therapies and increasing disposable income has led to a growing market Market Overview Market Size and Growth •India accounts for less than A% of the world INR bn nutraceuticals market 100 q X% LE •Nutraceuticals market in India is growing at a 80 very fast pace and expected to become more 60 P p than X in the next Y years 40 growth in this sector SAM •Increasing shift towards preventive therapies and increasing disposable income is driving •Several pharmaceutical companies are 20 0 2008 2012e entering this space, realizing that nutraceutical Market Segmentation (20--) products can be supplement products for their therapeutic products Nutraceuticals •X is one of the most emerging and nascent Market segments in this market with increasing consumer acceptance and greater player attention expected to drive its growth Segment 1 Segment 2 Segment 3 (A%) (B%) (C%) Source: NUTRACEUTICALS MARKET IN INDIA 2010.PPT 5
  6. 6. Probiotics is a nascent market in India but with activities of players it is set to grow rapidly Probiotics in India – Overview Market Size and Growth •Probiotics in product form made its appearance in INR bn dairy products in India in early 20-- with Company 8 1’s Product X and is at a nascent stage but shows b LE 6 P% major growth prospect 4 P •Z is the most popular probiotic drug used by pharmaceuticals companies 2 a AM •The target consumer base of probiotics has been predominantly restricted to the metro cities and key urban towns •Company 1 dominates this market in India S 0 2007 Types of Probiotic Products 2012e followed by Company 2,3 and 4 Probiotics •Players have gradually devised newer foods and beverages like wellness Product 1, 2 and 3 Segment 1 Segment 2 Innovative probiotic products like Product 1, 2 and 3 with health claims are also evolving Natural raw materials and •Pharma companies like Company 5, 6, have botanicals supplied to Contains finished, launched drugs with probiotic microorganisms supplement and packaged food and Players are trying to introduce products to treat functional food industries beverages devised by problems of X, Y and Z as well as to researchers players and scientific institutions Major drug products in probiotics in India cater to the area of X Source: NUTRACEUTICALS MARKET IN INDIA 2010.PPT 6
  7. 7. Drivers & Challenges – Summary Drivers Increasing shift towards preventive therapies Challenges Increasing in disposable income Lack of standardisation Increasing shift towards self- High pricing medication Increase in Healthcare Spending Lack of awareness Ageing population Marketing and distribution challenges Growth in pharma and wellness related retail chains Favorable pricing environment NUTRACEUTICALS MARKET IN INDIA 2010.PPT 7
  8. 8. Trends – Summary Initiatives by players to educate Fortified Foods consumers Trends Foreign Tie-ups Ayurvedic Nutraceuticals NUTRACEUTICALS MARKET IN INDIA 2010.PPT 8
  9. 9. Company 1 leads the overall market Competition Overview Market Share – Overall (20--) • There are more Indian players than multinationals in Company 3 Company 4 Company 5 the market as it’s a relatively low technology section Company 2 C% in pharma LE B% D% E% • Company 1 leads the overall market, followed by Company 2 • Company 1’s protein powder Product X, was the MP Company 1 A% F% A most popular brand followed by Company 2’s Company 6 S Product Z • In health food drinks segment: Company 1 has four brands : Brand 1, Brand 2, Brand 3 Market Share – Health Food Drinks (20--) and Brand 4 Product X, Y from Company 3 and Company 4's Product Z are also popular Company 2 • In Vitamin B-Complex market Company 1 is the A% leader, followed by Company 2, 3 and 4 Company 1’s Product 1 enjoys a X% market share B% Company 1 • In Probiotics, Company 1 leads the market in India with significant players trying to enter the Indian market Source: NUTRACEUTICALS MARKET IN INDIA 2010.PPT 9
  10. 10. Major Players (1/17) Players Location Business Description Company 1 • State X • It manufactures fortified X capsules • In paediatric nutrition its prominent brand is Brand 1, in adult nutrition its brand include Brand 2 and 3 nutrition products for Disease X • It is acquiring the Z businesses of Company 4 for USD X mn Financials: • The company reported net sales of INR X bn and net profit of INR Y mn in FY’09 Company 2 • State Y • It is in the business of X as well as Y • It manufactures A, B, C, D, E, F, G, H and I • Some of its prominent products include Product 1, 2, 3, 4, 5, 6, 7, 8 and 9 • The company is investing INR X mn for setting up new Z facility for high volume products at State 1 Financials: • The company reported net sales of INR X bn and net profit of INR Y mn in FY’10 Note: This list is not exhaustive SAMPLE Source: NUTRACEUTICALS MARKET IN INDIA 2010.PPT 10
  11. 11. Thank you for the attention The Nutraceuticals Market report is part of Research on India’s Healthcare Industry Series. For more detailed information or customized research requirements please contact: Gagan Uppal Gaurav Kumar Phone: +91 96191 00122 Phone: +91 98303 09715 E-Mail: gagan.uppal@netscribes.com E-Mail: gaurav.kumar@netscribes.com Research on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quick insights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries on About Netscribes Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth objectives. Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction. NUTRACEUTICALS MARKET IN INDIA 2010.PPT 11

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