작성일자: 2014.3.12

작성자: 뉴델리무역관 Ms. Drishti Arora(drishti@ktcdelhi.net)

 

 

1. Nutraceuticals and Dietry Supplements Market In India

 

□ Nutraceuticals is a broad term that includes foods, dietary supplements and medical foods offering health/medical benefits, including the prevention and/or treatment of disease.

 

□ India is the most potential market for Nutraceuticals and Dietary Supplement products. The burgeoning affluent middle class population in the country is increasingly becoming health conscious. The awareness about the positive impact of using nutraceuticals and dietary supplements is the new phenomenon among the young Indians.

 

□ In India nearly 400 million people belong to the middle class and have the disposable income which made them capable to buy nutraceuticals and dietary supplements. It is an inevitable fact that affluence is one of the causes of lifestyle diseases, which nutraceuticals and dietary supplements often address.

 

□ Over the past five years (2008~2012), the Indian Nutraceuticals Market has been growing at a rapid pace. The Indian Nutraceuticals market is the fastest growing sector among other sectors of Indian food and Pharmaceuticals market and is expected to sustain its growth in the coming years.

 

□ Given the changing demographics of the Indian population and increasing focus on fitness and good health, the nutraceuticals market is being identified as a high potential market in India.

 

□ The nutraceutical market in India is growing at a compound annual growth rate (CAGR) of 18.46 per cent and is expected to be worth Rs 19,500 crore (3billion dollars) by the end of 2013~14, as per a recent research report. For the uninitiated, nutraceuticals is a food containing health giving additives.

 

2. India, largely a prescription market

 

* Companies are now pushing Nutraceuticals as a Preventive Therapy

* Supplementation seen as fitting well into the fast-paced contemporary lifestyle

 

□ Market Segments

 

 ○ Indian nutraceuticals market can be classified into three submarkets – functional foods, functional beverages, and dietary supplements. The functional foods segment dominates the market in terms of value, the functional beverages segment is set to experience the highest growth over the next five years.

 

 ○ Traditionally, pharma-dominated dietary supplement segment has been dominating the nutraceutical market but the changing consumer preferences has paved way for segments like functional food and functional beverages capturing a strong 67 per cent market share in India.

 

 

□ Growth Drivers

 

 ○ Aging Population

 

 ○ Annual Disposable Income

 

 ○ Internet Users

 

 ○ Healthcare Spending

 

 ○ Affluence of working population with changing lifestyles

 

□ Opportunities

 

 ○ Size of the market at INR 65 Billion, India is just 2% of the global neutraceutical market.

 

 ○ The rising incidence of certain diet related health problems.

 

 ○ Growing Consumer awareness. With mass media conversations, players in this segment are educating the consumers.

 

□ The Market Scenario

 

 ○ It is interesting to note that the domestic nutraceutical market is mainly concentrated in southern region of the country, followed by the eastern region with leading top three states being Andhra Pradesh, Tamil Nadu and West Bengal. The urban-centric nutraceutical market is gradually gaining ground in rural India with the rural market capturing almost 1/3rd of the total nutraceutical market in India. However, in terms of penetration, urban India still scores high at 22.51 per cent while it stands at 6.32 per cent in rural India.

 

 ○  Although a considerable share of the nutraceuticals market in India is still occupied by unorganized players, the market is witnessing increasing investments from the organized sector where the major players are the established pharmaceuticals and FMCG companies.

 

 ○ The dynamics of the market can drastically change as the players are engaged in improving awareness levels amongst the population, developing need-based products and devising appropriate pricing and distribution strategy. Food encapsulation and increasing focus of pharmaceutical companies towards development and promotion of supplements would drive the market over the next five years.

 

□ Some of the Market Players in the Indian Neutraceuticals market are:

 

 ○ GSK Consumer Healthcare: is an Industry leader with an estimated seven percent of the World's Pharmaceuticals market. GSK has two products: Nutritionals and OTC.

 

 ○ Amway: is one of the world's largest direct selling Companies. Amway operates in more than 80 countries and territories on six continents. More than 450 unique, high quality products carry the Amway in the areas of nutrition, wellness, beauty, and home. In addition, Amway distributors in selected markets sell additional brand name goods through local merchandise catalogues, plus a variety of services and educational products. The Indian arm of Amway Corporation has achieved a turnover of INR 22.88 billion in 2012.

 

 ○ Abbott Nutrition: is a division of Abbott, the global, broad based healthcare Company. It offers a range of nutritional products for Children, Infants, adults, people with diabetes etc.

 

 ○ Baidyanath Group: One of India's most respected Companies, Shree Baidyanath Ayurved Bhawan Ltd. popularly known as Baidyanath, is the acknowledged leader of Ayurvedic know-how. Ayurveda is now backed by modern scientific research and technologies and provides its gentle healing touch to million around the world.

 

 ○ Herbalife Limited: A global nutrition Company with more than 2.3 million independent Distributors in more than 80 countries. The product range includes Weight Management/Nutritional food products, Energy and Fintenss, Personal care products and Targeted Nutrition.

 

 ○ Dabur: Dabur India Limited is India's leading FMCG company with interests in health care, personal care and foods. Dabur has a history of more than 100 years and the company has carved a niche for itself in the field of Ayurvedic medicines. The products of Dabur are marketed in more than 50 countries worldwide.

 

 ○ Most of these Big Players in India don’t offer Chlorella.

 

3. Distribution

 

 

 

□ Market Channels

 

 ○ Direct Sales

  - By Companies such as Amway, Herbalife etc.

 

 ○ Specialty Retail

  - Guardian(GNC)

  - Religare(Vitamin Shoppe)

 

 ○ Internet Sales

  - www.health-mall.in

  - www.healthkart.com

 

 ○ Ethical Sales through Doctor

 

□ Target Consumers

 

 ○ Typically a person:

  - with no scope/time for grandmother remedies.

  - Inclined to take scientifically proven medication.

  - believes in preventive medicine

  - is increasingly aware of health-related issues arising out of hectic lifestyle and food habits

 

4. Import

 

□ Import Statistics (HS Code 210220)

 

Rank	Partner Country	Value in USD			% Share
		2011 (Jan–Dec)	2012 (Jan–Dec)	2013 (Jan-Sept)		2011	2012	2013 (Jan-Sept)
-	World	1	0	0		100	100	100
1	Brazil	0	0	0		23.39	26.7	32.62
2	United States	0	0	0		7.93	15.88	32.08
3	Estonia	0	0	0		14.63	26.31	23.39
4	France	0	0	0		2.66	8.68	5.2
5	United Kingdom	0	0	0		5.43	0.99	1.9
6	Japan	0	0	0		0	3.21	1.42
7	Ireland	0	0	0		0	0.04	0.96
8	China	0	0	0		1.41	7.71	0.94
9	Denmark	0	0	0		3.38	5.45	0.76
10	Germany	0	0	0		0.73	0.56	0.65

Source: DGCI&S, Ministry of Commerce

 

□ Import Tariff

 

HS Code	210220
Item Description	2102:- Yeasts (Active or Inactive); other single cell micro-organisms, dead (but not including vac-cines of heading 3002); prepared Baking Powders 2102 20 00 :-Inactive Yeasts, other Single cell micro-organisms, dead
Total import Duty	36.136%
Duty Structure	Basic Duty (BD): 30% Countervailing Duty (CVD) : 0% Special CVD  (SCVD) : 4% Educational Cess (EC) : 3 %
Import Policy	Free