Entering The Nutraceutical Industry

ENTERING THE NUTRACEUTICAL INDUSTRY
After establishing its base as a major producer of natural beauty and other fmcg products EMAMI now wants to
foray into the nutraceutical industry
CURRENT MARKET SCENARIO AND COMPETITORS

Nutraceutical, a term combining the words “nutrition” and “pharmaceutical”, is a food or food product that
provides health and medical benefits, including the prevention and treatment of disease. A nutraceutical is
demonstrated to have a physiological benefit or provide protection against chronic disease. Such products
may range from isolated nutrients, dietary supplements and specific diets to genetically engineered foods,
herbal products, and processed foods such as cereals, soups, and beverages
Global nutraceuticals market as per Cygnus estimates in 2007 was over $120 billion and it was growing at
a compound annual growth rate (CAGR) of 6.8%. “Right now, the global market is dominated by the US
having a market share of 36% followed by European market having 24% share and Asia with 30%,
whereas rest of the world has 10% of market share. In the Asian continent, Japan sweeps the market share
by 22% of the global market, whereas remaining 8% share is among other Asian countries. Some of the
major players worldwide include Monsanto, American Home Products, Dupont, Abbott Laboratories,
Warner-Lambert, Johnson & Johnson, Novartis, Metabolex, Genzyme Transgenic, PPL Therapeutics, and
Interneuron.
CLASSIFICATION
These products can be broadly classified into the following subtypes:
Dietary supplements: They are products that contain nutrients derived from food products that are
concentrated in liquid or capsule form. The "dietary ingredients" in these products may include: vitamins,
minerals, herbs or other botanicals, amino acids, and substances such as enzymes, organ tissues.
Functional foods: Functional foods are designed to allow consumers to eat enriched foods close to their
natural state, rather than by taking dietary supplements manufactured in liquid or capsule form. Functional
foods have been either enriched or fortified, a process called nutrification.
Medical foods: Medical foods aren’t available as an over-the-counter product to consumers. They are
generally formulated to be consumed or administered internally under the supervision of a physician, and
which is intended for the specific dietary management of a disease.
THE INDIAN PICTURE

Currently, the domestic market for nutraceutical is around Rs 4,400 crore, which is just 0.9% of the total
global business in the category.
However India’s nutritional supplement market is expected to more than double in the next four years at
over Rs 9,500 crore. The growth in the nutraceutical products business will be fuelled mainly because of
the changing lifestyle and increasing awareness about nutritional supplements.
The Indian market is composed of food supplements and vitamins and mineral supplements. Food
supplements include food products and supplements, malted beverages, protein powder, paediatric
nutrition. In health food ingredients, the major share is held by food supplements like sweetener, meal
replacer etc. The next major pie is held by malted beverages (Horlicks, Complan, Bournvita, Boost and Red
Bull).
Emami has a huge potential to enter this segment because of its association with natural products as
Nutraceutical ayurvedic products like neem, tulsi, amla, psyillum, fish oil and brahmi have been used over
the years for various treatments across the length and breadth of India.
Traditionally these products have been targeted at the aging population who start having various health
problems but recently a shift has occurred as companies try to focus on the working segment of India.
Yuvraj Singh endorsing Revital for RANBAXY is a nice example.
ROADMAP TO LAUNCH
After a thorough analysis of the current market the consumer expectations from these products can be
obtained.
Surveys can be conducted using questionnaires and analysis can be done to segment the market.
Then a particular segment can be chosen (which should be in line with the company’s core competencies)
to be targeted and appropriate promotional campaigns have to be launched.
Proper positioning would be of utmost importance while carrying out this scheme of things.
A suitable place to start could be medical stores and monitoring over the counter sales of products.

Entering The Nutraceutical Industry

Uploaded by

Copyright:

Available Formats

Entering The Nutraceutical Industry

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Entering The Nutraceutical Industry

Uploaded by

Copyright:

Available Formats

ENTERING THE NUTRACEUTICAL INDUSTRY

CURRENT MARKET SCENARIO AND COMPETITORS

THE INDIAN PICTURE

You might also like