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HEALTH AND WELLNESS IN INDIA Euromonitor International November 2011


HEALTH AND W ELLNESS IN INDIA

LIST OF CONTENTS AND TABLES Executive Summary ..................................................................................................................... 1 Health and Wellness Grows on the Back of Expanded Product Ranges .................................. 1 Fortified/functional and Naturally Healthy Food and Beverages Gain Popularity...................... 1 Small Players Dominate Health and Wellness Food and Beverages........................................ 1 Increasing Popularity of Supermarkets Driving Health and Wellness ....................................... 1 Healthy Growth Is Expected ..................................................................................................... 1 Key Trends and Developments .................................................................................................... 1 New Launches Drive Growth .................................................................................................... 1 Health and Wellness Grows on the Back of Supermarkets/hypermarkets’ Development ......... 3 Health Consciousness Remains Limited To Commodity Products ........................................... 4 Government Becoming Pro-active in Setting Health and Wellness Standards ......................... 5 Low-income Groups Becoming Focus for Major Manufacturers ............................................... 6 Market Data .................................................................................................................................. 7 Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10 Table 11

Sales of Health and Wellness by Type: Value 2005-2010............................ 7 Sales of Health and Wellness by Type: % Value Growth 2005-2010 ........... 7 Sales of Health and Wellness by Category: Value 2005-2010 ..................... 7 Sales of Health and Wellness by Category: % Value Growth 20052010 ............................................................................................................. 7 Health and Wellness GBO Company Shares 2006-2010 ............................. 8 Health and Wellness NBO Company Shares 2006-2010 ............................. 8 Health and Wellness Brand Shares 2007-2010 ........................................... 9 Forecast Sales of Health and Wellness by Type: Value 2010-2015 ........... 10 Forecast Sales of Health and Wellness by Type: % Value Growth 2010-2015 .................................................................................................. 11 Forecast Sales of Health and Wellness by Category: Value 20102015 ........................................................................................................... 11 Forecast Sales of Health and Wellness by Category: % Value Growth 2010-2015 .................................................................................................. 11

Appendix .................................................................................................................................... 11 National Legislation ................................................................................................................ 11 Definitions................................................................................................................................... 12 Sources ...................................................................................................................................... 12 Summary 1

Research Sources ...................................................................................... 12

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HEALTH AND W ELLNESS IN INDIA

HEALTH AND WELLNESS IN INDIA EXECUTIVE SUMMARY Health and Wellness Grows on the Back of Expanded Product Ranges In 2010, India saw a large number of new health and wellness products in niche categories as well as products targeted towards lower-income groups. This expanded the market in terms of both product range as well as consumer base.

Fortified/functional and Naturally Healthy Food and Beverages Gain Popularity Health-conscious consumers are looking for products with additional benefits and nutrients such as proteins, vitamins and minerals and now even omega-3, which offer significant health benefits. They are also opting for naturally healthy beverages such as green tea and 100% juices instead of carbonates. Better for you products on the other hand are not perceived as particularly healthy since many people equate them as being just a little less unhealthy than their regular counterparts instead of thinking them to be more healthy.

Small Players Dominate Health and Wellness Food and Beverages Due to the nature of the industry, no domestic player has achieved significant national status when considering health and wellness in India. There are many minor players with products ranging across different categories. There are a large number of small players who have presence in niche categories as well as large national players that lead a particular subcategory only. For example, Hindustan Lever Ltd leads sales in reduced fat soup; NestlĂŠ India leads high fibre noodles; and GlaxoSmithKline Consumer Healthcare leads fortified/functional hot drinks.

Increasing Popularity of Supermarkets Driving Health and Wellness Supermarkets provide an excellent opportunity for manufacturers to make their products easily visible to consumers. Hence health and wellness manufacturers can easily create awareness about their products without recourse to expensive advertising. Since supermarkets are fast becoming the preferred shopping destination for many people, the popularity of health and wellness food and beverages is following suit.

Healthy Growth Is Expected Small sales base aside, due to increased consumer awareness and growing health concerns, health and wellness food and beverages in India are expected to grow at a healthy rate. New launches suited to Indian tastes and easily affordable will further drive growth in the health and wellness industry.

KEY TRENDS AND DEVELOPMENTS New Launches Drive Growth New product launches are expanding health and wellness product ranges in India. Products are emerging in niche categories which have increased the variety of choice for healthconscious consumers. Prior to the review period, health-conscious Indians had very limited

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options in packaged food and beverages, but now they have a very wide range of products to choose from. 2010 witnessed the emergence of products such as reduced sugar juice-based non-cola carbonates, which had not been seen on the market prior to 2009. 2010 also saw the emergence of many fortified foods such as noodles, rice, cooking sauces, flavoured milk drinks and many more. Categories such as superfruit juices are also emerging. The new launches have increased the number of options for health-conscious consumers and have therefore expanded sales of health and wellness foods. Current Impact The new launches have expanded product ranges of health and wellness packaged food significantly. Prior to the review period, health-conscious Indians were typically forced to avoid most packaged foods in order to remain healthy. However, with a wide range of options now available which also offer excellent taste, the health-conscious consumer can indulge in health and wellness packaged foods with few guilt concerns. This trend is popular among consumers and they are excited and attracted by the new range of health and wellness packaged foods. They are able to enjoy tasty noodles without worrying about their low fibre content and at the same time they also obtain their daily requirement of vitamins and minerals. Consumers can now enjoy rice without worrying about its fattening properties. They now have a choice of controlling weight and obtaining vitamins, proteins and minerals while enjoying their favourite biscuits. They can now use cooking sauces without worrying about preservatives and at the same time obtain their vitamins. They can now enjoy juice-based carbonates and not be concerned about their high sugar content. Manufacturers are becoming more aggressive in introducing new and niche health and wellness products. Aqua Montana India Pvt Ltd introduced juice-based reduced sugar carbonates in two variants. Zydus Wellness Ltd launched new flavours such as passion fruit in its reduced sugar carbonates range and also introduced reduced sugar RTD tea. Dabur India Ltd has launched two superfruit juices: cranberry and pomegranate. ITC Ltd has launched oat fibre Marie biscuits, and Diät Foods India Ltd has introduced diabetic chocolate confectionery, pastries, cookies, etc. Nestlé India introduced fortified cooking sauce which can be added to regular food. Marico Ltd introduced fortified rice with low GI. Narang Hospitality Services launched functional bottled water. Hindustan Unilever Ltd introduced a vitamin-enriched tea. GlaxoSmithKline Consumer Healthcare Ltd introduced fortified pouch instant noodles. The new launches have significantly expanded the health and wellness packaged food and beverages market and now health-conscious consumers are more willing to buy packaged health and wellness food and beverages. There is still considerable room for growth as health and wellness products still do not mirror the complete range of packaged food and beverages. For example, there are still very few healthy products in chocolate confectionery, toffees, sandwich biscuits, ice cream, table sauces, and coffee, among others, in India. Additionally, these new launches have satisfied a part of the consumer desire and need for greater variety in health and wellness food and beverages. The new launches always create a buzz in the market as consumers want to try out new products especially if they are positioned differently from most existing products in the market. New launches in most industries create initial excitement and expand the market at least temporarily. Outlook The trend for new launches is likely to continue for many reasons. Firstly, India is a country with very diverse food habits and so no one product can satisfy the entire country’s eating habits. Secondly, the range of health and wellness packaged foods is far from exhaustive. In fact, India has a very limited range of health and wellness packaged foods but Indian consumers are becoming more health conscious and are demanding health and wellness products and

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hence new launches are likely to continue driving growth in sales of health and wellness packaged food and beverages. Since it is the consumers who are demanding more choice in health and wellness food and beverages, manufacturers are likely to take advantage of this opportunity and introduce more and more products with health and wellness positioning. Future Impact Health and wellness market players in India are likely to respond positively to this trend and introduce more health and wellness products and push them aggressively in the market. Manufacturers are expected to enter into niche segments to carve out monopolistic markets for themselves. They are also likely to become more aggressive in terms of increasing their retail presence as well as creating awareness about their products and their benefits through advertising and promotion, such as exhibitions etc. Up to 2010, there was very limited advertising of health and wellness products and hence sales were largely confined to already aware and health-conscious upper middle class Indians. However, in order to continue growth in the market and to expand it, manufacturers will have to invest in mass media advertising to increase awareness among medium- and low-income groups, in order to increase the consumer base for health and wellness products. However, the high prices of most health and wellness food and beverage products are a major obstacle to growth as many consumers shy away from buying a product which is 20% more expensive than a similar product just because of a claimed added health advantage. However, due to increased health awareness and higher disposable incomes, people’s attitudes are changing and they are now more willing to pay a few extra rupees to obtain some added health advantage and hence are in fact demanding more variety in health and wellness packaged food and beverages, in order to gain the twin benefits of taste and health. In terms of niche categories, the market is not expected to be very different in 2015 compared to 2010, as Indian consumers typically accept new products only gradually; however, in terms of popular categories such as bread, biscuits, milk, tea, etc, new launches are expected to expand the market considerably. However, growth will not be rapid unless manufacturers start advertising health and wellness packaged food and beverages and create awareness for them.

Health and Wellness Grows on the Back of Supermarkets/hypermarkets’ Development In India, supermarkets and hypermarkets are playing a major role in increasing health and wellness food and beverage sales as well as awareness. In supermarkets and hypermarkets, health and wellness packaged food and beverages are displayed next to their regular counterparts with an easy-to-pick positioning. Consumers can readily choose a health and wellness product and compare its benefits with the regular product. This helps create on-thespot awareness as well as influencing a buyer’s decision to purchase a healthier alternative. On the other hand, in a traditional grocery store in India, the consumer does not have the opportunity to pick up packs in this manner and compare them, as the foods are stacked on shelves out of the reach of the customer. Customers simply order at the counter what they want and the shopkeeper hands them the requested products. Thus there is no option of comparing at the point of sale and choosing a healthier alternative. Therefore, only a consumer who is already aware of health and wellness food and beverage brands actually shops for health and wellness products from traditional grocery stores, while sales at supermarkets/hypermarkets are also characterised by a great many impulse purchases. Current Impact The emergence of supermarkets and hypermarkets, or what is more commonly termed “modern trade”, has opened up a new opportunity for health and wellness food and beverage

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manufacturers to place their products in a retail format where consumers can see the claimed health benefits for themselves without any advertising or promotion. Through supermarkets and hypermarkets, health and wellness products are made easily accessible to many more consumers. Even those consumers who are unaware of the benefits of health and wellness products, have the opportunity to compare them with regular products simply by looking at the information printed on the packs. Many health and wellness packaged food and beverage manufacturers see supermarkets/hypermarkets as a great opportunity to promote their products without having to spend heavily on conventional advertising and promotion. Manufacturers simply printed their products’ benefits on pack labels and left it to consumers to compare and make the appropriate purchasing decision. Breakfast cereals in particular saw a 30% increase in sales simply because of supermarkets. However, supermarkets and hypermarkets contribute less than 10% of overall fmcg industry sales, so manufacturers cannot rely entirely on supermarkets/hypermarkets alone. However, they can use supermarkets as launch pads for their products before gradually moving to traditional grocers to cover the widest consumer base. Outlook Though sales through supermarkets and hypermarkets are growing steadily, they lag far behind traditional grocery stores in terms of food and beverage sales. However, the young generation is more inclined towards shopping at supermarkets than through traditional grocery outlets. Health awareness in India is also increasing but most health and wellness food and beverage manufacturers in India are small players which do not have the budgets for extensive advertising. For these manufacturers, supermarkets provide an ideal opportunity to make their products visible to customers which is not usually possible through traditional retail outlets. Once manufacturers have managed to create awareness for their products and their benefits, they can then move to traditional grocers in order to exploit the full potential of the market. Future Impact Manufacturers and distributors of health and wellness products are likely to take full advantage of this trend and position more and more products through supermarkets to create awareness among consumers. Consumers are also steadily adopting supermarkets as their preferred place for shopping and health awareness is also increasing in consumers. However, supermarkets themselves are not expected to grow dramatically over the forecast period and become as significant as traditional grocery stores. Therefore, their contribution to overall health and wellness sales is likely to be limited. However, supermarkets will be used as launch points for any new product or brand in order to raise its visibility as well as educate people about the product’s benefits. Consumers make many impulse purchases in supermarkets, and they are more likely to try a new health and wellness food or beverage if it is clearly visible at a supermarket.

Health Consciousness Remains Limited To Commodity Products Though health awareness is increasing in India and consumers are demanding healthier food and beverages, their choices remain limited largely to healthier alternatives of commodity products with very few options available in healthy packaged foods. For example, while consumers can buy high fibre rice, low calorie sugar, organic pulses and spices and even low sodium salt, they do not have many options in packaged products, for example, there are few organic breakfast cereals, biscuits/cookies, noodles or even reduced sugar biscuits available. In addition, India also does not have any major healthy chocolate or sugar confectionery brands, or any healthy ready meals.

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Current Impact Urbanisation is increasing consumers’ demand for packaged and processed foods, but they have very limited options available which provide health, taste and convenience in one product. Consumers have to rely on healthy commodity products and make their own snacks at home if they are particularly concerned about their health. However, due to busier lifestyles, many Indians do not have time to make meals at home, and hence they are compromising on their health by purchasing regular packaged food and beverages for their convenience and timesaving attributes. Hence, the health and wellness industry has not been able to grow in line with its potential because manufacturers have failed to provide consumers with the type of products they want. Outlook Since large fmcg players are not making any great efforts to launch health and wellness products, growth in the health and wellness industry is likely to continue to be slow as small players in the health and wellness industry do not have enough strength to launch wide ranges of products or embark on extensive advertising to increase sales. However, many new players, such as Morarka Organic Foods Pvt Ltd and Diät Foods India Ltd, are introducing a wide range of health and wellness products which is expected to expand the health and wellness food and beverages market. Future Impact Due to the limited options available to consumers, the health and wellness industry is expected to grow at a slow pace over the forecast period. With very limited advertising and promotion, the health and wellness industry will find it difficult to create awareness among consumers and hence growth will be constrained. The introduction of new products offering consumers greater convenience and better taste may lead to more dynamic growth in the health and wellness industry.

Government Becoming Pro-active in Setting Health and Wellness Standards The Indian government is becoming very pro-active in setting new food safety standards for guarding against food adulteration as well as promoting domestic sales of health and wellness food, especially organic food. In 2009, the Indian government made it compulsory for all food and beverage manufacturers to print the nutritional information on pack labels. In 2006, the Indian government gave its approval for the implementation of the Participatory Guarantee System (PGS) for Organic Farming for domestic consumption, which resulted in a flood of organic foods on the market, in sharp contrast to the situation that pertained prior to the review period when very little organic food was available in India. Current Impact The new laws ensure that Indian consumers can obtain good-quality food and can make an informed purchasing decision based on a product’s nutritional value. In 2010, an independent scientific body found that all major honey brands in India contain high quantities of antibiotics which are harmful to children. The government is now expected to set strict standards on product quality. The introduction of the Participatory Guarantee System (PGS) for Organic Farming has made it easier for farmers to become educated about organic farming practices, obtain certification for being organic producers and to market their products directly to consumers.

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Outlook With stricter laws about food safety standards as well as holistic methods of organic farming, it is expected that manufacturers, in large numbers, will be forced to shift to production of health and wellness foods. Since the printing of nutritional information on pack labels allows people to compare products based on their nutritional content, it is likely that manufacturers will introduce more fortified products in the market which will increase the range of health and wellness products available in India. Through PGS, many non-government agencies (NGOs) are involved in the development of organic farms and arranging sales of organic products in the Indian market. This is likely to increase the availability of organic food and beverages in India. Future Impact While the new laws will definitely force manufacturers to rework their strategies and may also force large fmcg players to reformulate their products, the high prices of health and wellness products may constrain the growth of the health and wellness industry. While more health and wellness products are expected to be launched on the market, growth is not expected to be dramatic due to the high prices.

Low-income Groups Becoming Focus for Major Manufacturers Large manufacturers such as Hindustan Lever Ltd (HUL), Nestlé India Ltd, and Coca-Cola India Pvt Ltd are introducing fortified food and beverages targeted at low-income groups. 2010 saw the introduction of at least three health and wellness products by large fmcg players which were targeted at lower-income groups. While HUL introduced Brooke Bond Sehatmand, a fortified tea, and Nestlé India Ltd introduced Maggi Masala-ae-Magic, a fortified cooking spice mix which can be added to any food. Coca-Cola India Pvt Ltd introduced an affordable nutritional soft drink, Vitingo, in order to address the micro nutrient deficiency in lower-income consumers in the state of Orissa. Current Impact These efforts have expanded the consumer base for health and wellness food and beverages. While many of the existing small players were focusing only on the elite segment, major players have started manufacturing health and wellness food and beverages for economically-weaker sections of the Indian population which are major buyers of packaged food and beverages. This trend is likely to expand the consumer base for health and wellness food and beverages and turn them into mainstream products. Outlook Introducing health and wellness food and beverages for economically-weaker sections of the Indian population is expected to be a successful means of growing the industry. The major growth constraint for this industry has been the high prices of health and wellness food and beverages. Introducing low-priced health and wellness products is expected to expand the consumer base of health and wellness industry to include people from every level of Indian society. Future Impact While major manufacturers have started introducing health and wellness products for lowerincome groups, their product ranges at present are very narrow. However, more manufacturers may be tempted to focus on the economically-weaker section of the Indian population and introduce a wide range of health and wellness products targeted specifically at them. The limited product range will constrain growth of the health and wellness industry. However, if a wide range of easily affordable products were to be introduced in 2012, then the health and wellness

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industry may experience a sharp rise over the forecast period and the market in 2015 could be very different from that in 2010.

MARKET DATA Table 1

Sales of Health and Wellness by Type: Value 2005-2010

Rs million

Better For You (BFY) Food Intolerance Fortified/Functional (FF) Naturally Healthy (NH) Organic Health and Wellness Source:

2005

2006

2007

2008

2009

2010

75,034.3 116.3 58,194.4 11,952.9 591.5 145,889.4

93,472.1 126.0 64,171.0 13,908.3 716.1 172,393.5

117,607.6 136.9 71,109.5 16,248.7 848.3 205,951.1

136,584.4 148.0 81,242.0 19,194.9 1,008.8 238,178.2

159,299.8 158.3 89,056.8 22,734.9 1,230.6 272,480.3

187,762.7 176.9 100,107.9 26,833.9 1,582.4 316,463.8

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 2

Sales of Health and Wellness by Type: % Value Growth 2005-2010

% current value growth

Better For You (BFY) Food Intolerance Fortified/Functional (FF) Naturally Healthy (NH) Organic Health and Wellness Source:

2009/10

2005-10 CAGR

2005/10 Total

17.9 11.7 12.4 18.0 28.6 16.1

20.1 8.7 11.5 17.6 21.8 16.8

150.2 52.0 72.0 124.5 167.5 116.9

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 3

Sales of Health and Wellness by Category: Value 2005-2010

Rs million

HW Beverages HW Packaged Food Health and Wellness Source:

Table 4

2005

2006

2007

2008

2009

2010

23,950.4 121,939.0 145,889.4

27,009.2 145,384.3 172,393.5

30,014.7 175,936.5 205,951.1

32,902.6 205,275.5 238,178.2

37,129.5 235,350.8 272,480.3

42,439.1 274,024.7 316,463.8

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Sales of Health and Wellness by Category: % Value Growth 2005-2010

% current value growth

HW Beverages HW Packaged Food Health and Wellness

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2009/10

2005-10 CAGR

2005/10 Total

14.3 16.4 16.1

12.1 17.6 16.8

77.2 124.7 116.9

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HEALTH AND W ELLNESS IN INDIA

Source:

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 5

Health and Wellness GBO Company Shares 2006-2010

% retail value rsp Company GlaxoSmithKline Plc Gujarat Co-operative Milk Marketing Federation Ltd National Dairy Development Board Karnataka Cooperative Milk Producers Federation Ltd Tamil Nadu Cooperative Milk Producers Federation Ltd Britannia Industries Ltd NestlĂŠ SA Kerala Cooperative Milk Marketing Federation Ltd Kraft Foods Inc Marico Ltd ConAgra Foods Inc Dabur India Ltd Kellogg Co Rasna International Dairy Development Department Maharashtra State PepsiCo Inc Unilever Group Hatsun Agro Products Ltd Procter & Gamble Co, The ITC Group Parle Products Pvt Ltd Wockhardt Ltd Red Bull GmbH ITC Ltd Bagrry's India Ltd Golden Tips Tea Co Pvt Ltd Girnar Food & Beverages Pvt Ltd SOS Corp Alimentaria SA Paschim Sales Pvt Ltd Perfetti Van Melle Group Others Total Source:

Table 6

PASSPORT

2006

2007

2008

2009

2010

9.6 7.4

8.8 7.5

8.7 8.1

8.9 8.0

8.5 8.0

6.3

6.9

7.4

7.7

7.9

5.9

6.3

7.1

6.7

6.7

5.4

5.8

6.0

6.2

6.4

7.0 6.4 2.5

6.7 6.1 2.4

6.6 5.9 2.5

6.4 5.5 2.7

6.1 5.4 2.7

0.0 1.7 1.5 1.0 0.7 1.3 0.8

0.0 1.6 1.4 1.0 0.7 1.1 0.9

0.0 1.9 1.5 1.0 0.7 1.0 0.9

0.0 1.7 1.3 1.0 0.9 0.9 0.9

1.8 1.6 1.1 1.0 0.9 0.9 0.8

0.4 0.9 0.4 0.6 0.5 0.5 0.5 0.1 0.4 0.2 0.3

0.5 0.8 0.4 0.5 0.5 0.4 0.4 0.2 0.4 0.2 0.3

0.6 0.6 0.5 0.6 0.6 0.4 0.4 0.2 0.3 0.2 0.3

0.7 0.7 0.6 0.6 0.5 0.4 0.4 0.3 0.3 0.3 0.2

0.8 0.7 0.6 0.6 0.5 0.5 0.3 0.3 0.3 0.3 0.2

0.3

0.3

0.2

0.2

0.2

0.0 0.1 0.1 37.2 100.0

0.0 0.1 0.1 37.5 100.0

0.2 0.2 0.1 35.3 100.0

0.2 0.1 0.1 35.6 100.0

0.2 0.2 0.2 34.2 100.0

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Health and Wellness NBO Company Shares 2006-2010

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% retail value rsp Company GlaxoSmithKline Consumer Healthcare Ltd Gujarat Co-operative Milk Marketing Federation Ltd Mother Dairy Fruit & Vegetable Ltd Karnataka Cooperative Milk Producers Federation Ltd Tamil Nadu Cooperative Milk Producers Federation Ltd Britannia Industries Ltd Nestlé India Ltd Kerala Cooperative Milk Marketing Federation Ltd Cadbury India Ltd Marico Ltd Agro Tech Foods Ltd Dabur India Ltd Kellogg India Ltd Rasna International Dairy Development Department Maharashtra State ITC Ltd Hindustan Lever Ltd Hatsun Agro Products Ltd Procter & Gamble Hygiene & Health Care Ltd PepsiCo India Holdings Pvt Ltd Parle Products Pvt Ltd Frito-Lay India Wockhardt Ltd Red Bull GmbH Bagrry's India Ltd Golden Tips Tea Co Pvt Ltd Girnar Food & Beverages Pvt Ltd Paschim Sales Pvt Ltd Perfetti Van Melle India Pvt Ltd Wrigley India Pvt Ltd Dabur Foods Ltd Hindustan Unilever Ltd Others Total Source:

PASSPORT

2006

2007

2008

2009

2010

9.6

8.8

8.7

8.9

8.5

7.4

7.5

8.1

8.0

8.0

6.4

6.9

7.4

7.8

8.0

5.9

6.3

7.1

6.7

6.7

5.4

5.8

6.0

6.2

6.4

7.0 6.4 2.5

6.7 6.1 2.4

6.6 5.9 2.5

6.3 5.5 2.7

6.0 5.4 2.7

1.9 1.7 1.5 0.0 0.7 1.3 0.8

1.7 1.6 1.4 1.0 0.7 1.1 0.9

1.6 1.9 1.5 1.0 0.7 1.0 0.9

1.7 1.7 1.3 1.0 0.9 0.9 0.9

1.8 1.6 1.1 1.0 0.9 0.9 0.8

0.9 0.5 0.4 0.6

0.9 0.7 0.4 0.5

0.9 0.6 0.5 0.6

0.9 0.7 0.6 0.6

0.8 0.7 0.6 0.6

0.3

0.4

0.4

0.4

0.5

0.5 0.0 0.5 0.1 0.2 0.3

0.4 0.1 0.4 0.2 0.2 0.3

0.4 0.2 0.4 0.2 0.2 0.3

0.4 0.3 0.4 0.3 0.3 0.2

0.5 0.4 0.3 0.3 0.3 0.2

0.3

0.3

0.2

0.2

0.2

0.1 0.1

0.1 0.1

0.2 0.1

0.1 0.1

0.2 0.2

0.1 0.9 0.2 35.4 100.0

0.1 35.9 100.0

0.1 33.7 100.0

0.1 33.9 100.0

0.1 34.3 100.0

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 7

Health and Wellness Brand Shares 2007-2010

% retail value rsp

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Brand

Company

Mother Dairy

Mother Dairy Fruit & Vegetable Ltd Gujarat Co-operative Milk Marketing Federation Ltd Karnataka Cooperative Milk Producers Federation Ltd GlaxoSmithKline Consumer Healthcare Ltd Tamil Nadu Cooperative Milk Producers Federation Ltd Britannia Industries Ltd Kerala Cooperative Milk Marketing Federation Ltd Marico Ltd GlaxoSmithKline Consumer Healthcare Ltd Nestlé India Ltd Cadbury India Ltd Nestlé India Ltd Agro Tech Foods Ltd Gujarat Co-operative Milk Marketing Federation Ltd ITC Ltd Dairy Development Department Maharashtra State Nestlé India Ltd Nestlé India Ltd Kellogg India Ltd Dabur India Ltd Hatsun Agro Products Ltd Nestlé India Ltd Procter & Gamble Hygiene & Health Care Ltd Rasna International Parle Products Pvt Ltd Hindustan Lever Ltd GlaxoSmithKline Consumer Healthcare Ltd Nestlé India Ltd Dabur India Ltd Cadbury India Ltd Nestlé India Ltd

Amul

Nandini

Horlicks Aavin

Britannia Milma Saffola Boost Lactogen Cadbury's Bournvita Cerelac Sundrop Amul Kool

Sunfeast Aarey

Nestogen Nestum Kellogg's Corn Flakes Dabur Komatha Maggi Vicks Rasna Parle Modern Maltova Nestlé Réal Halls Milo Others Total Source:

2007

2008

2009

2010

6.9

7.4

7.7

7.9

6.7

6.9

6.8

6.8

6.3

7.1

6.7

6.7

6.7

6.6

6.8

6.6

5.8

6.0

6.2

6.4

6.7 2.4

6.6 2.5

6.3 2.7

6.0 2.7

1.6 1.5

1.9 1.4

1.7 1.4

1.6 1.4

1.7 1.4 1.2 1.4 0.8

1.6 1.3 1.2 1.5 0.9

1.5 1.3 1.2 1.3 0.9

1.4 1.4 1.2 1.1 0.9

0.9 0.8

0.9 0.8

0.9 0.8

0.8 0.8

0.9 0.7 0.5 0.7 0.4 0.4 0.5

0.9 0.7 0.5 0.7 0.5 0.5 0.6

0.8 0.7 0.6 0.7 0.6 0.5 0.6

0.8 0.7 0.6 0.6 0.6 0.6 0.6

0.6 0.4 0.5 0.5

0.5 0.4 0.4 0.5

0.5 0.4 0.4 0.5

0.5 0.5 0.4 0.4

0.2 0.3 0.3 0.6 39.6 100.0

0.3 0.3 0.3 0.4 37.8 100.0

0.3 0.3 0.3 0.1 38.3 100.0

0.4 0.4 0.4 38.8 100.0

2014

2015

Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Table 8

Forecast Sales of Health and Wellness by Type: Value 2010-2015

Rs million 2010

© Euromonitor International

2011

2012

2013

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Better For You (BFY) Food Intolerance Fortified/Functional (FF) Naturally Healthy (NH) Organic Health and Wellness Source:

PASSPORT

187,762.7 176.9 100,107.9 26,833.9 1,582.4 316,463.8

204,705.9 187.0 106,108.6 29,491.3 1,786.5 342,279.3

222,265.6 197.2 112,598.0 32,648.3 2,045.2 369,754.3

240,104.8 207.6 119,626.9 36,326.3 2,347.9 398,613.5

258,063.6 218.1 127,231.7 40,654.4 2,665.3 428,833.0

275,915.0 228.5 135,465.1 45,754.4 2,972.2 460,335.1

Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

Table 9

Forecast Sales of Health and Wellness by Type: % Value Growth 2010-2015

% constant value growth 2010-15 CAGR

2010/15 TOTAL

8.0 5.3 6.2 11.3 13.4 7.8

46.9 29.2 35.3 70.5 87.8 45.5

Better For You (BFY) Food Intolerance Fortified/Functional (FF) Naturally Healthy (NH) Organic Health and Wellness Source:

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Table 10

Forecast Sales of Health and Wellness by Category: Value 2010-2015

Rs million

HW Beverages HW Packaged Food Health and Wellness Source:

2010

2011

2012

2013

2014

2015

42,439.1 274,024.7 316,463.8

45,736.7 296,542.7 342,279.3

49,600.2 320,154.1 369,754.3

54,089.3 344,524.2 398,613.5

59,342.9 369,490.1 428,833.0

65,598.0 394,737.2 460,335.1

Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

Table 11

Forecast Sales of Health and Wellness by Category: % Value Growth 20102015

% constant value growth

HW Beverages HW Packaged Food Health and Wellness Source:

2010-15 CAGR

2010/15 TOTAL

9.1 7.6 7.8

54.6 44.1 45.5

Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

APPENDIX National Legislation The main legislation concerning food safety and protection of consumer health is the Food Safety and Standards Act (FSSA), 2006. This law is a single reference point for all issues

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HEALTH AND W ELLNESS IN INDIA

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related to food safety and standards and is responsible for harmonisation with international standards such as CODEX. This law also governs dynamic issues such as genetically modified food and has clear procedures for food recall. The implementation of this law is ensured by the Food Safety and Standards Authority of India (FSSAI) which was set up in 2008 to lay down scientific standards and ensure availability of safe food for human consumption. However, a new Food Safety and Standards Act 2010 was implemented in January 2011, replacing the previous Prevention of Food Adulteration Act.

DEFINITIONS Local terminology used:  Kirana store - an independent grocery store selling all groceries including commodity products. This type of store contributes more than 60% of total fmcg sales in India;  Ayurvedic - an ingredient or product formulated according to guidelines laid down in the ancient system of Indian medicine called Ayurveda.

SOURCES Sources used during research include the following: Summary 1 Research Sources Official Sources

Agricultural & Processed Food Products Export Development Authority (APEDA) Ministry of Food Processing India

Trade Associations

Federation of Biscuit Manufacturers Association of India International Copetence Centre for Organic Agriculture

Trade Press

Business Line Business Standard, The Domain B Economic Times, The FnB News FoodAsia Hindu Business Line, The I Love India India Infoline Times Food Processing Journal

Source:

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