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  1. 1. Analysis or paralysis For better navigation?
  2. 2. The nutraceutical market today <ul><li>Caters to 3 categories of nutritional needs: </li></ul><ul><ul><li>Nutrition deficiency need - arising out of not getting proper nutrition (micro- and macro-nutrients) in the balanced proportion required for proper development </li></ul></ul><ul><ul><li>Disease or condition specific need - because of the disease or certain conditions. Eg, </li></ul></ul><ul><ul><ul><li>Requirement is normal but body is unable to provide nutrition. </li></ul></ul></ul><ul><ul><ul><li>Requirement is increased as during pregnancy; and </li></ul></ul></ul><ul><ul><li>Achievement need - excess nutrition required for better physical performance. </li></ul></ul>
  3. 3. Nutraceuticals in demand today <ul><li>Nutraceuticals can be broadly be classified into 3 categories: </li></ul><ul><ul><li>Functional foods </li></ul></ul><ul><ul><ul><li>generic term that has been linked to health benefits. </li></ul></ul></ul><ul><ul><li>Functional beverages </li></ul></ul><ul><ul><ul><li>Gaining momentum because of aggressive marketing by the FMCG players; and </li></ul></ul></ul><ul><ul><li>Dietary supplements </li></ul></ul><ul><ul><ul><li>yet to claim a substantial share in nutraceuticals </li></ul></ul></ul>
  4. 4. Functional foods <ul><li>Functional foods can be of 3 types: </li></ul><ul><ul><li>Products that are inherently healthy </li></ul></ul><ul><ul><ul><li>includes products that do not add any bioactives, but intrinsically contain nutritional compounds that have scientific data to support functionality. </li></ul></ul></ul><ul><ul><li>Products which add a researched bioactive compound to provide a health benefit </li></ul></ul><ul><ul><ul><li>Eg, Burnvita which reformulated its line with added DHA, growing sales exponentially and building a new category with the reintroduction of orphaned phytonutrients; and </li></ul></ul></ul><ul><ul><li>Products that are engineered or formulated specifically to deliver a desired functional benefit </li></ul></ul><ul><ul><ul><li>Red bull, Gatorade, Power bar, etc. </li></ul></ul></ul>
  5. 5. Parameters that influence demand <ul><li>There are 3 parameters based on which demand of the food products varies: </li></ul><ul><ul><li>Health or nutrition, and </li></ul></ul><ul><ul><li>Convenience. </li></ul></ul><ul><ul><li>Taste. </li></ul></ul><ul><ul><ul><li>Although taste and nutrition are opposite poles, companies are trying to find a compromise between the two. </li></ul></ul></ul><ul><ul><ul><li>Hence in many advertisements we hear the slogan “Taste bhi; health bhi”. </li></ul></ul></ul><ul><ul><ul><ul><li>The health or nutritional value of the product is the entry cost to the category but the differentiator is the palatability. </li></ul></ul></ul></ul><ul><ul><ul><li>BB got it right for its proteins. </li></ul></ul></ul>
  6. 6. Factors influencing functional foods <ul><li>There are 2 factors influencing functional foods: </li></ul><ul><ul><li>Bottom up </li></ul></ul><ul><ul><ul><li>application of a new technology or bioactive into a product form. In general this approach is platform driven—such as exploring the many ways probiotics can be delivered. and </li></ul></ul></ul><ul><ul><li>Top down </li></ul></ul><ul><ul><ul><li>driven by the desire to address a consumer need. For example, this approach utilizes probiotics to address better immune function in children. </li></ul></ul></ul>
  7. 7. Bottom up trends <ul><li>These are varied: </li></ul><ul><ul><li>Fiber: soluble & insoluble. </li></ul></ul><ul><ul><li>Omega 3s: </li></ul></ul><ul><ul><li>Plant Sterols: </li></ul></ul><ul><ul><li>Peptides: </li></ul></ul><ul><ul><li>Probiotics: </li></ul></ul><ul><ul><li>Phyto-specifics: polyphenols and catechins, and very specific fractions. </li></ul></ul><ul><ul><li>Nanotechnology: new compounds and carriers. </li></ul></ul>
  8. 8. Top down trends <ul><li>These are varied: </li></ul><ul><ul><li>Beauty from Within: currently in its infancy. </li></ul></ul><ul><ul><li>Mood Food: reduce stress and anxiety. </li></ul></ul><ul><ul><li>Sleep: growing rapidly every year. </li></ul></ul><ul><ul><li>Digestive Health: </li></ul></ul><ul><ul><li>Immune Enhancement: parental health concern. </li></ul></ul><ul><ul><li>Cognitive Function: </li></ul></ul><ul><ul><li>Libido: </li></ul></ul><ul><ul><li>Phytonutrition: to control diseases </li></ul></ul><ul><ul><li>Weight Management:satiety-a strong growth sector </li></ul></ul><ul><ul><li>Energy: sub-segmentation & alternative MOA. </li></ul></ul><ul><ul><li>Joint Health: aging population- category will grow </li></ul></ul>
  9. 9. Top down trends through market segments <ul><li>These are varied: </li></ul><ul><ul><li>Kids: </li></ul></ul><ul><ul><ul><li>90% of parents bothered. </li></ul></ul></ul><ul><ul><li>Diabetics: </li></ul></ul><ul><ul><ul><li>1 in 4 people suffering from Type II diabetes also have heart disease but shows no obvious signs of the disease. </li></ul></ul></ul><ul><ul><li>Seniors: </li></ul></ul><ul><ul><ul><li>Many seniors already take several medications, and functional foods can offer nutritive support to balance pharmaceutical depletion without more pills. </li></ul></ul></ul><ul><ul><li>Menopausal Women: </li></ul></ul><ul><ul><ul><li>Greater risk market begging for proven solutions and functional foods may just be the answer. </li></ul></ul></ul>
  10. 10. 4 critical rules for functional foods <ul><li>There are 4 rules that are critical to the success of functional foods: </li></ul><ul><ul><li>Provide a benefit that is appreciated and understood—science tells and emotion sells. </li></ul></ul><ul><ul><ul><li>Strong and appropriate scientific research to identify, characterize and support the functional food product, but stay away from any kind of therapeutic message. </li></ul></ul></ul><ul><ul><ul><li>It is hard for people to make quantum leaps in improvement; and hence much better to demonstrate incremental steps up the knowledge and perception tree. </li></ul></ul></ul>
  11. 11. 4 critical rules for functional foods <ul><li>There are 4 rules that are critical to the success of functional foods: </li></ul><ul><ul><li>Use appropriate validation- 3 types: </li></ul></ul><ul><ul><ul><li>First person validation </li></ul></ul></ul><ul><ul><ul><ul><li>when you try something and it meets your expectations. </li></ul></ul></ul></ul><ul><ul><ul><li>Second party validation </li></ul></ul></ul><ul><ul><ul><ul><li>when you rely on an expert, to provide a recommendation or validation. </li></ul></ul></ul></ul><ul><ul><ul><li>Third party validation </li></ul></ul></ul><ul><ul><ul><ul><li>a regulatory or institutional seal of approval. </li></ul></ul></ul></ul>
  12. 12. 4 critical rules for functional foods <ul><li>There are 4 rules that are critical to the success of functional foods: </li></ul><ul><ul><li>Deliver a wellness solution, not a medicine. </li></ul></ul><ul><ul><ul><li>Market shows disfavor for functional foods trying to market themselves as therapeutics. </li></ul></ul></ul><ul><ul><ul><li>Eg, in CVD, it is so much easier and validated to take a statin or statin like functional food than to bypass a dietary sacrifice and “hope” that it will have an impact. </li></ul></ul></ul>
  13. 13. 4 critical rules for functional foods <ul><li>There are 4 rules that are critical to the success of functional foods: </li></ul><ul><ul><li>Consumers eat to enjoy, and everything else is secondary. </li></ul></ul><ul><ul><ul><li>A product must be experiential (whether by taste or use), intuitive (in how to use or how it works), safe & validated. </li></ul></ul></ul>
  14. 14. Market Structures <ul><li>Degree of competition in the industry </li></ul><ul><li>Too many products with no clear differentiation; </li></ul><ul><ul><li>Visible and clinical differences not easily perceived by clinicians for vested reasons </li></ul></ul><ul><li>What do we do? </li></ul><ul><ul><li>Keep an open mind and provide solutions </li></ul></ul><ul><ul><li>Probe Gray areas, not necessarily medicines </li></ul></ul><ul><ul><li>Tap non existent need-gap products. </li></ul></ul>
  15. 15. Suggestions <ul><li>Derma conditions like Psoriasis, eczema </li></ul><ul><li>Metabolic disorders like thyroid problems, Weight loss, weight gain, cholesterol, etc. </li></ul><ul><li>Products apart from medications like the amniotic fluid detection kit. </li></ul><ul><li>IV fluid bottle alarms </li></ul>