This report highlights the nutritional gaps across regional food plates in India - a country of nutritional paradox and thus emphasizes the need for various health supplements, while outlining the opportunity areas.

1. Tasting New Trends in
the Indian Health May
Supplements Market 2012
HIGHLIGHTS

2. Health & Wellness Market to Boom
• Hectic lifestyles, growing health awareness and need to look presentable has
made consumers explore healthy ways of living.
• The rising incidence of certain lifestyle-related health problems, including
obesity, chronic indigestion and cardiac problems, have also given this segment a
quick leg up due to the importance given to preventive care.
• Health supplements have started gaining attention in the past decade.
Continuous education of customers by various players has helped to build trust
and acceptance of such products in recent years to make up for the nutritional
gaps in their daily diet.
• However, the market is more or less saturated with products promising to boost
energy. Leaders have managed to gain a major chunk of market share, thus
making it difficult for other brands to penetrate.
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3. Health & Wellness Market to Boom
• Consumers’ importance to healthy living has also urged food companies to offer
products that play on health platform.
• Food products like low-fat milk, sugar-free sweeteners, multi-grain flour have
gained popularity in recent times.
• While the health and wellness market is expanding, the competitive landscape
is being redefined with healthcare as well as food companies jostling for a share
of the pie.
• Thus, it is imperative for marketers to understand the gaps in the market and
offer innovative products in order to gain and sustain consumer attention and
thus taste success in this lucrative market space.
A landscape of the opportunity areas has been provided in the latest report from
CubeX, “Tasting New Trends in the Indian Health Supplements Market”.
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4. Tasting New Trends in the Indian Health Supplements
Market - CONTENTS
• Executive Summary
The key takeaways from the report and opportunity areas to be explored have been
highlighted.
• Dietary Patterns Across Regional Populations
The food plate across regional communities has been analyzed to evaluate the nutritive
value of food in terms of macro as well as micro nutrients.
• Nutritional Concerns in India
An overview of the nutritional imbalances that prevail across demographic groups has
been covered, depicting the nutritional paradox that exists in India.
• Overview of Health Supplements Market (MFDs, OTC VMS and Nutraceuticals)
The market size of various categories like Malted Food Drinks (MFDs), OTC Vitamins,
Minerals and Supplements (VMS) and Nutraceuticals - mainly products sold OTC or as
Fast Moving Health Goods (FMHG) - has been estimated.
• Overview of Malted Food Drinks (MFDs)
An outlook of the Malted Food Drinks (MFDs) market has been provided with a case
study on the success of Horlicks.
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5. Tasting New Trends in the Indian Health Supplements
Market - CONTENTS
• Overview of Nutraceutical Market
This section presents the underlying needs and recent market trends in the
nutraceutical market.
• In-depth Analysis of OTC VMS Market as per Nicholas Hall DB06 2012 Database
The performance of OTC VMS market along with leading brands and companies has
been analyzed using the latest Nicholas Hall DB06 2012 Database (India). Category
insights and a gist of the latest happenings in the OTC VMS market have also been
provided.
• Overview of Health and Wellness Food Market
Companies like Britannia, Nestle, Marico and ITC have been profiled to understand how
they have leveraged opportunities with ‘Better for You’ variants and functional foods in
a bid to remain “healthy”.
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6. Tasting New Trends in the Indian Health Supplements
Market - CONTENTS
• Consumer & Doctor Perception of supplements
Interesting insights regarding consumer’s perceptions, motivations and barriers to the
use of health supplements have been emphasized. In addition, doctor’s prescription
patterns, perspectives on heath and nutrition as well as opinions on innovative product
formats have been underscored.
• Stop Press
A summary of the Media Reports wherein experts have mentioned their concerns on
Health Supplement Marketing in India, which confuses consumers has been highlighted.
• Conclusion
Growth drivers, challenges and way forward for health supplements market have been
detailed in the concluding section.
• Appendix: Brand Case Studies
Comprehensive case studies including strategic analysis, brand scorecard and success
factors of brands such as • Revital • Dabur Chyawanprash • Calcium Sandoz • Supractiv
• Nutrilite and • Nutrigo have also been provided.
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7. Tasting New Trends in the Indian Health Supplements
Market
HIGHLIGHTS OF THE REPORT
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8. Dietary Patterns across Regional Populations >>
Food Plate vs RDA
A study was commissioned by CubeX to map the food eating habits of regional
populations in relation to RDA and thus identify the gaps in the nutritional
content of food.
Design:
• Target Group: Convenience sampling of 40 families (8 from each zone:
North, South, West, East and Central) belonging to SEC A/B class
• The total adult diet was documented for macro as well as micronutrients
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9. Dietary Patterns across Regional Populations >>
Food Plate vs RDA
• The food plate comprising of major meals like breakfast, lunch and dinner across
regional communities was evaluated for their nutritional value.
• The total daily consumption of various nutrients was analyzed in relation to RDA.
While Indians are more than
sufficiently nourished in terms of
macro nutrients, they are deficient in
terms of micro nutrients.
Each of the major meals have been analyzed and
insights from the study have been mentioned in
the report.
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10. Nutritional Concerns
• India has earned the reputation of a nutritional paradox in recent times.
– Firstly, in terms of population segments being divided in terms of nutritional
status (under nourished or over nourished).
– Secondly, among those who are over nourished (calorie consumption far
exceeds the RDA), there is a gross deficiency of micro nutrients like vitamins
and minerals.
Nutritional concerns in India relating to over and under nutrition have been
addressed in the report.
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11. Overview of the Health Supplements market in India
• The health supplements market has been analyzed for products available either
OTC or as FMHG (Fast Moving Health Goods) products.
• This includes MFDs, nutraceutical and OTC VMS products.
Malted OTC
Food VMS
Drinks
Nutra-
ceuticals
Health Supplements Market
Each of these markets have been analyzed in detail in the report.
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12. OTC VMS Market
• Indian OTC VMS market was valued at US$ 645 mn in 2011 (value growth of 9%),
as per Nicholas Hall’s DB6 2012 database (India).
• Key segments in the OTC VMS market are Other minerals (comprising mainly of
Iron supplements), Multivitamins, Other VMS (chyawanprash), Single vitamins
and Calcium (contribution of over 90%). The key growth drivers have been iron
and chyawanprash.
• Leading companies have built themselves on blockbuster brands, rather than
leveraging the equity by expanding to other lucrative segments like
nutraceuticals and herbal segments.
• The largest brand Dabur Chyawanprash, has a market share of less than 10% in
the overall VMS market, an indication of clutter in the category.
The Indian OTC VMS market has been analysed in-depth to give a perspective on
the opportunity areas, using Nicholas Hall DB6 2012 Database (India).
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13. Health and Wellness Food Market
• Catering to the booming health and wellness market, provident marketers have
started taking a leap into the health and wellness food market.
• Promoting products like probiotic curds was a challenge in country like India
where generations of people are aware the benefits of curds and easily prepare
it at home. However bringing in flavoured variants and promoting these
products as healthy desserts has opened the way for these products.
• Indians are unwilling to compromise on taste and hence products which offered
health benefits at the expense of taste have not performed as well as expected.
– Breakfast is considered to be the healthiest meal of the day and hence
health and breakfast go well together.
• With multiple products flooding the market with similar claims, credibility of
product benefits has become a barrier, apart from taste.
An understanding of the Health and Wellness Food Market including product
offerings, growth drivers and case studies of leading players like Britannia, Marico,
ITC, Sunfeast have been provided in the report.
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14. Consumers’ and Doctors’ Perceptions Towards Supplements
Objective of the study:
Consumers
To understand the perception towards vitamins/minerals/dietary supplements.
Doctors
To understand:
1. Perception towards vitamins/minerals/dietary supplements
2. Problems with current supplements and recommendations for future
products
Design:
• Consumers: Convenience sampling of 40 families (8 from each zone –
North, South, West, East and Central) ,SEC A/B profile (This was a part of
the initial survey done with the food plate study)
• Doctors/Influencers : 60 (across GPs ,Paeds and Nutritionists)
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15. Consumers’ Perceptions Towards Supplements
They are artificial, natural sources are better
I am healthy and I don’t need them
75% They are medicines
of the respondents surveyed, I don’t believe they work
do not consume vitamins and
minerals supplements*
Doctor didn’t advise
I don’t take
Can’t say/ No reason supplements
because…
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16. Doctors’ Perceptions Towards Supplements
• Doctors cite fatigue as the major problem
plaguing a large number of patients – young
adults to middle-age groups.
• Faulty food habits are the key concerns in
children and young adults.
• Doctors are willing to recommend new and
innovative formats.
Many such insights regarding consumers’ and doctors’ perceptions
towards supplements have been captured in the study commissioned by
CubeX.
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17. Food For Thought
• In a resource abundant country like India, though more than half of the
population is under- nourished, the rest of the population falls under the
category of ‘improperly nourished’.
• Worrisome scenario is when the otherwise healthy lifestyle is put at the risk by
the excessive use of vitamins and supplements.
• Countless urban Indians are picking up vitamins sold over the counter like they
would purchase almonds or flax seeds as a health-fix. What many don't realize is
that they may be doing themselves more harm than good.
• Every coin has a flip side, so do Vitamin and Mineral Supplements. Vitamins,
though they are “vital”- amines for the body, should be used and prescribed only
when required and in right quantities for limited time.
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18. Health Supplements Market : Challenges
Price
Regulations
Consumer
Distribution
Perceptions
Market
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19. Health Supplements Market : Opportunity Areas
• The market has been largely dominated by brands that play on the energy or
immunity platform.
• Product launches in future that are customized would gain high
acceptance.
• On the go formats are likely to be new formats to gain momentum.
• Nutraceuticals offer multiple models for marketing and distribution.
• With regulatory, price concerns and stiff competition in the VMS OTC segment,
nutraceuticals could be the way forward for OTC marketers who
are strategizing their presence in the health supplements market.
• While food companies use H&W platform to differentiate their products in an
increasingly competitive and commoditized environment, it would be
imperative to understand the diversified
Indian palette and food
habits to create attractive products and convert non-users to
users.
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20. Brand Case Studies
An example of a The journey from
popular brand in a US$ 11 mn to US$
not-so-popular 70 mn in less than
segment! 10 years!
An Invigorated Strengthening the
Comeback but the “backbone” of
Fight for Survival is Novartis Consumer
Still On! Healthcare
A mega brand that A mega successful brand that
has maintained its is competing with itself,
growth momentum unlike conventional brands,
by adapting itself to as a result of its
the current needs of unconventional marketing
consumers strategy, making it the new
synonym for ‘success’!
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21. CubeX Consulting
• CubeX is the Strategic Consulting and Business Intelligence Division of Sorento
Healthcare Communications.
• If you would like further information about this report, please contact:
reports@cubex.co.in
• For information on CubeX Consulting as well as other products and services
provided by CubeX, please contact: reports@cubex.co.in
T: +91‐22‐42762100
F: +91‐22‐28754952
• Connect with us on LinkedIn at: http://in.linkedin.com/pub/cubex-consulting-
a-division-of-sorento-healthcare/45/385/682
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22. To know more about
us log onto
www.cubex.co.in
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