Sports Nutrition Industry in India – Market Analysis



Sports Nutrition Industry in India – Market Analysis

Report prepared by Sujata Halarnkar

LIBR 282-5

Fall 2008

December 3, 2008

Competitive Intelligence Project: Sports Nutrition Industry in India – Market Analysis

Introduction:

United States is a major player in the sports nutrition industry. The client from the United States is interested in becoming a distributor of sports nutrition products in India. The client needs the market report on Indian market for such products. He needs information about Indian manufacturers, distributors of sports nutrition products. He also needs information on background information on India’s economy, demographic, major consumer group interested in buying such products, current trends in nutrition industry, and socio-cultural attitudes of consumers.

I identified following information goals based on the client’s needs.

Identify leading Indian companies and brands

Strategic analysis of key factors influencing the market

Background information on Indian economy and demographic

Information on Indian lifestyle and its role in shaping sports nutrition industry

Indian consumer behavior

Identify potential buyers of sports nutrition products

Detailed picture of the health and wellness nutritional industry in India

Research Strategy:

- Explore variety of sources that include paid as well as free databases

- Use news reports for up to date information

- Use market reports and consumer reports for identifying general trends in the industry

India and Indian Economy Background Information

India will become the most populous country within the next 30 years. Although the population growth rate is gradually falling, the past failure of family planning policy means that India is expected to overtake China as the world's most populous country in the early 2030s, with a population approaching 1.5bn. Governments have shifted away from sterilization as the cornerstone of family planning to an emphasis on improving family social and economic welfare. This, coupled with rising living standards, particularly in urban areas, is leading to a fall in the population growth rate. Nonetheless, although strong economic growth is slowing the fertility rate, at 3.1 children per woman, it is one-third above the official target of replacement-level fertility. India is in the phase of a rapid demographic transition. Life expectancy is increasing while birth rates are on the decline. The share of the population above 60 years of age is growing at a rapid rate and is expected to exceed 200 million in 25 years. Those who cross the age of 60 today

are expected to live up to or over the age of 75 years.

The rising population will lead to opportunities and costs. Increased environmental degradation and a growing strain on water and food resources appear inevitable. By 2012, the proportion of the population in the 0-14 age group is expected to fall to around 30%, with potentially beneficial implications for the education system. The proportion of the population over 65 is projected to rise slightly, but in the absence of a national pension system, this does not have the worrying implications for pension liabilities that more highly developed countries face. India will enjoy a growing working-age population at a time when other countries (including China) will face increasing dependency ratios.

India's urban population is expected to rise from just over one-quarter of the total population in the mid-1990s to over one-third by 2010. This will put pressure on the infrastructure of cities, which in most cases is unable to support even current population levels.

Demographic profile

2002 2007 2012

Population (m)

Total 1,034.2 1 110.4 1 187.0

Male 534.1 572.1 610.0

Female 500.1 538.3 576.9

Age profile (percentage of total population)

0-14 33.5 32.4 30.8

15-64 62.5 64.2 66.3

65+ 4.6 5.2 5.9

Young-age dependency ratio 0.54 0.50 0.47

Old-age dependency ratio 0.07 0.08 0.09

Working-age population (m) 645.9 713.0 786.5

Urbanization (% of total) 28.1 29.3 30.7

Labor force (m) 470.2 516.4 570.1

Period averages 2003-07 2008-12

Population growth (%) 1.4 1.3

Working-age population growth (%) 2.0 2.0

Labor force growth (%) 1.9 2.0

Crude birth rate (per 1,000) 23.6 21.4

Crude death rate (per 1,000) 7.0 6.1

Infant mortality rate (per 1,000 live

births) 39.8 28.2

Life expectancy at birth (years)

Male 65.0 68.0

Female 69.6 73.3

Average 67.2 70.5

Sources: International Labor Organization

(ILO), labor force projections; Economist Intelligence Unit estimates and

forecasts; national statistics (2008).

India’s traditional and regional foods have been documented throughout the

history as containing healthy properties, beyond just their nutritional value. Such

historically functional foods include herbal extracts, fortified foods, spices,

pulses (lentils), and vegetables and fruits. The proven special health properties of functional foods have treated common ailments for centuries. New research is showing that many of these foods have preventive properties as well. Functional foods research and development in India is rapidly expanding and includes, among other products, nutraceuticals, prebiotics and probiotics, and newer additives, which are known to prevent certain diseases or other maladies.

As in China, India’s health foods history dates back centuries. The

developments over the last few decades now recognize the value of traditional

medicines and naturally health-enhancing foods. With its strong tradition of

healthful eating, India ranks among the top 10 nations in buying functional

foods (Watson 2006). India’s food industry is generating $6.8 billion in annual

revenue, and this is expected to nearly double in the next five years. The government is working to help India become a major force in the international functional foods market by updating its intellectual property laws and increasing investment in R&D infrastructure.

Consumer Trends in Indian Sports Nutrition Industry

Consumers’ search for authenticity reflects their active pursuit for higher quality experiences from consumption.

Ever-growing consumer demand for convenience, combined with a healthy diet and preference for natural ingredients has led to a growth in functional beverage markets.

Modern consumers are increasingly interested in their personal health, and expect the food that they eat to be healthy or even capable of preventing illness.

The demand for fermented milk products is increasing and it has been estimated that about 10% of total milk produced in India is used for preparation of traditional

fermented milk products.

Another important global trend, also affecting India, is the increasing demand for consumer convenience. Present day consumers prefer foods that promote good health and prevent disease. Furthermore, these foods must fit into current lifestyles providing convenience of use, good flavor, and an acceptable price value ratio.

According to the 2006 Hindu-CNN-IBN State of the Nation Survey, 31% of Indians are vegetarians, while another 9% consumes eggs. Such consumer habits play important role in any food related production. Another popular habit of Indians is daily consumption of yogurt. Yogurt eating is a healthy habit in tropical country like India and it has a great potential of becoming part of sports nutrition product.

Huge growth in health and fitness centers in major urban centers of India reflects growing health awareness among Indians. For a long time, health and fitness clubs in India were available to a mostly well-to-do, affluent clientele. In recent years, numerous clubs and gyms have opened in cosmopolitan cities such as New Delhi and Mumbai, bustling metropolises such as Bangalore and Chennai, and are gaining a presence in places such as Kolkata and Hyderabad. Working out has become affordable for not only the upper-middle class, but the middle and lower-middle classes as well. These clubs see growing demand for personal trainers and dieticians and are potential target markets to advertise sports nutrition products.

Key Findings:

Industry executives surveyed globally believe that health is the most important mega-trend influencing their business today. Changes in consumer values and behavior have been profound. Going forward, the trend will only increase in significance.

The increasing awareness of overweight consumers to become dieters as a means of promoting good health and avoid health risks linked with obesity will fuel growth of weight loss products.

BCC (BCCResearchReport) forecasts that total sales for weight loss supplements, foods, and beverages will increase from $19.1 billion in 1999 to $23.8 billion in 2004, at the rate of 4.5% per year. Most of these products are available in any type of retailing outlet, including retailers - so dieters find product selection easy and convenient.

The Indian Protein Ingredients Market is broadly classified into -Soya protein, Whey protein and Wheat Gluten. Frost & Sullivan's comprehensive analysis indicates that the total market for Indian protein ingredients was valued at INR 279.2 million representing market volumes of 1650 MT in the year 2006. The soya protein market contributes 72.0 percent of the total revenues generated, the whey protein market contributes 23.0 percent and the wheat gluten market contributes only 5.0 percent of the total revenues. The estimated growth rate was 5.6 percent per annum in the year 2006.

Consumer preferences are often counter-intuitive leading to a scenario of trends and counter trends. On one level, shoppers are more experimental and value customized choice.

Consumers will increasingly expect brands to show they are responsible in the public domain whether contributing to the local community, divulging the means of sourcing, or offering a responsible consumer buying choice.

All of the BRIC (Brazil, Russia, India and China) markets have great potential for overcoming their past economic underperformance and establishing the most stabilizing of forces a prosperous middle class. This group in each country is growing at varying rates but the future direction is clear: the middle class will both broaden and deepen providing a solid base for the development of a strong consumer packaged goods industry.

Markets such as Brazil, China, India and Russia (BRIC) should be seen within the context of a transitional period, moving in the direction of developed markets and experiencing a marked aging of their populations in coming years. This will emphasize the need to respond to a reshaping of consumer demand to accommodate the differing needs of an older populace.

Brand loyalty is decreasing across all age groups. This has been a general trend in developed markets for the past few decades that the BRIC countries are set to emulate. A shift towards higher average ages means that a change in marketers' priorities and message away from a focus on younger consumers is necessary to retain competitiveness.

Current trends and changing consumer needs indicate a great opportunity for innovations and developments in fermented milks. Scientific and clinical evidence is also mounting to corroborate the consumer perception of health from fermented milks. Probiotics, prebiotics, synbiotics and associated ingredients also add an attractive dimension to cultured dairy products. Also, owing to expanding market share and size of dairy companies, there has been a reduction of clearly structured markets i.e. merging of dairy products and fruit beverage markets with introduction of ‘juiceceuticals’ like fruit-yogurt beverages that are typical example of hybrid dairy products

Another potential growth area for fermented milks includes added-value

products such as low calorie, reduced-fat varieties and those fortified with physiologically active ingredients including fibers, phytosterols, omega-3-fatty acids, whey based ingredients, antioxidant vitamins, isoflavones that provide specific

health benefits beyond basic nutrition. Efforts have been devoted to develop fermented milks containing certain nonconventional food sources like soybeans and millets and convert them to more acceptable and palatable form thus producing low cost, nutritious fermented foods especially for developing and underdeveloped nations where

malnutrition exists.

The increasing demand from consumers for dairy products with 'functional' properties is a key factor driving value sales growth in developed markets. This led to the

promotion of added-value products such as probiotic and other functional yoghurts, reduced-fat, enriched milk products, fermented dairy drinks, and organic cheese. In the Indian subcontinent, fermented milk products such as dahi (yogurt), Lassi (sweetened yoghurt drink like product)/chhach (buttermilk) and shrikhand (drained curd added with sugar and flavoring) figure prominently in people’s diet. The demand for fermented milk products is increasing and it has been estimated that about 10% of total milk produced in India is used for preparation of traditional fermented milk products. Dahi is an age-old indigenous fermented milk of India and has managed its popularity in

Indian diet despite changing lifestyles and food habits. About 6.9% of total milk produced in India is utilized for making yogurt intended for direct consumption. The volume of yogurt and yogurt products was reported to be 6.0 million tones with a market value of 120 billion rupees.

Although China is seen as the major competitor, Indian research technology in areas like fermentation processes, plant extraction, and chemical synthesis are more developed than their Chinese counterparts are, and they still benefit from the labor cost savings that make outsourcing to India so attractive.

A major feature of the developmental transition in India is the rapid urbanization and the large shifts in population from rural to urban areas.

As developing societies like India industrialize and urbanize, and as standards of living continue to rise, weight gain and obesity are beginning to pose a growing threat to the health of the citizens. More people are looking for solutions in health products.

Manufacturers and Suppliers of Sports Nutrition Products in India

Following list gives an idea of players in the sports nutrition market. Considering the global demand for the US health products, many Indian manufacturers and distributors have entered the nutrition products market. Many of them manufacture their own products suitable to local demands. On the other hand, some of them are distributors of US and European products. This list is by no means exhaustive but gives an idea of competitive market.

Muscelguru

Manufacturer of whey Protein,weight loss products,Energy Drinks,Breakfast Cereals,Gym Accessories,Mass Gainers and Bodybuilding Supplements.

Contact Information

6/7, 1st Floor, B.plex,

Besides Utkarsh Petrol Pump,

Karelibaug, Vadodara-390018

Gujarat.

Calling from India

Phone No. : 0265 2488065

Mobile No. : 09825244450

Fax No : 0265 2487230

Email : info@muscleguru.in

Calling from Overseas

Phone No. : +91 265 2488065

Mobile No. : +91 9825244450

Fax No : +91 265 2487230



Plethico Pharmaceuticals

Indian company Plethico Pharmaceuticals has launched what it claims is India's first international level protein supplement for sports nutrition. 'Coach's Formula - Super Protein' is a whey protein supplement, developed with input from a team of international fitness instructors, nutritionists and fitness experts. The technology for manufacturing the product in India comes from a technical tie-up with US-based company Dolster Pharmaceuticals. The chocolate-flavoured supplement is vegetarian and enriched with 24 vitamins and minerals. It has 65 per cent protein and contains no saturated fat. The supplement has been recommended for sportspeople and bodybuilders as it helps increase endurance, stamina, power, and lean body mass. Coach's Formula is the first product to be launched by Nutriscience Healthcare, a division of Plethico Pharmaceuticals. Plethico is a transnational healthcare company with a presence in more than 20 countries spread across the world.

Vishal Organnix

Contact Person:  Venugopal N Suvarna Company:  Vishal Organnix Email: 

Address:  C-15, Gangawadi Co. sg. Soc., Gangawadi L. B. S. Road, Ghatkopar (W) Maharashtra India Zip/Postal:  400086 Telephone:  912232513869 Mobile:  Fax:  91-22-32513869 Website:   

Vishal Organnix was started by Mr. Venugopal N Suvarna in the year 2001. Mr. Suvarna has a long experience in Marketing of Herbal Products. He started the venture with only one product i.e. Atharva Soap (Aloe Vera) but today he can boast of 56 products.

Because of the quality of the products, customers always preferred an Atharva Product. At present Atharva has a wide range of products. Their products include Soaps, Hair Gel, Body Gel, Shampoo, Aloe Vera Juice and many more products. Products of Atharva Brand are distributed in Southern States of Tamil Nadu, Andhra Pradesh, Kerala, Karnataka and allover Maharashtra. Customers always appreciate Atharva products as a much superior products than its competitors.The Vision of Mr. Venugopal Suvarna is to provide quality products at a reasonable price to common masses. Very soon Tooth Paste and Shaving Gel will be launched in the Market.

NUTRITION WORLD Email:  Address:  T-806 C/4 Sukdev Mkt., Kotla mubarak pur, Near Defence Colony,(Red Light, sabka bzr) DELHI India Zip/Postal:  110003 Telephone:  09211000007 Mobile:  Fax:  01146536677 Website:   

Their mission is to deliver discount bodybuilding supplements, sports supplements & weight loss supplements FAST to your door anywhere in INDIA.They have the largest range of protein powders, creatine, glutamine, testosterone boosters, fat loss supplements, weight gainers, nitric oxide and much, much more all in stock. bioformx nutrition, nutrabolics, iron-tek, champion nutrition, met-rx, syntrax, body fortress, scifit, a.n.s, a.p.i, american spotrs nutrition, b.s.n, bodyfuelz, e.a.s, inner armour, isopure, labrada, medi globai, mega pro, muscletech, nutramen, optimum nutrition, prolab, protein factory, twinlab, ultimate nutrition, universal, weider, xtrem sports science.

The company sets the standard in the nutritional supplement industry by demanding truth in labeling, ingredient safety and product potency, all while remaining on the cutting-edge of nutritional science. As the company has grown over the years, so has their commitment to LIVING WELL. In fact, NUTRITION WORLD.in is the India’s largest supplement showroom of its kind devoted exclusively to helping its customers improve the quality of their efforts.

The company takes pride in their rigorous approach to ensuring quality. Their commitment to quality extends to their interactions with you in their stores and after you buy their products.

SUPPLEMENT CITY DELHI Email:  Address:  G-4, Vardhman Plaza CSC, Ram Vihar, Near Cross River Mall and Yamuna Sports Complex, Opp. Anand Vihar Petrol Pump, Delhi-110092 India Zip/Postal:  N/A Telephone:  01143036117 Mobile:  Fax:  N/A Website:   

Body Muscle Grow (Creatine) Weight Gainers Fat Burners Slimming Products Mass Gainers Human Growth Hormone Boosters Protein (Whey, Soy, Amino Etc.) General Health Supplements Prolab Twinlab Muscletech Weider Universal Optimum Designer Ultimate Eas Myopro Whey 5 Lbs Optimum Nutrition 100% Whey Protein 5 Lbs Next Proteins Designer Whey W/ Glycerlean 4 Lbs Sci Fit Econo Whey Protein 5 Lbs Cytosport Muscle Milk 2.48 Lbs Prolab 100% Pure Whey 5 Lbs Eas Myoplex 17Oz Rtd One Case (3 Four Packs) Pinnacle Juiced Protein W/ Myozap 2 Lbs Optimum Nutrition 100% Whey Protein 10 Lbs Muscletech Nitro-Tech 2 Lbs Ergopharm 1-Ad 60 Caps Bsn 1-Testabolin-Aq 90 Caps Pinnacle Andro 150 Poppers 100 Tabs Sci Fit Get Mass Stack 60 Caps Pinnacle Ecdybol 90 Caps Ids 1-Ad Xtreme 60 Caps Sci Fit 19-Nor Androstack Ii 60 Caps Mhp Elite Hrp Kit 6 Week Kit Biotest Tribex 110 Caps Iforce Nutrition Testabolan 90 Caps. We offer complete range of physical fitness solutions, herbal food remedies and sports nutritions products such as:-

Creatine Monohydrate, Whey Protein, Weight Gainers, Mass Builders, Amino Tabs / Liquids, Glutamine, Fat Burners, Muscle Builder, Meal Replacement, Joint Care, Pro Hormones, Nutrition Bars / Foods, Vitamins, Herbal and General Health food supplements

Supplement City Email:  Address:  A13, Top Floor, Vivek Vihar, Ph1, Delhi India Zip/Postal:  110095 Telephone:  0091-011-20034927 Mobile:  Fax:  0091-011-20034927 Website:   

ody Muscle Grow (Creatine) Weight Gainers Fat Burners Slimming Products Mass Gainers Human Growth Hormone Boosters Protein (Whey, Soy, Amino Etc.) General Health Supplements Prolab Twinlab Muscletech Weider Universal Optimum Designer Ultimate Eas Myopro Whey 5 Lbs Optimum Nutrition 100% Whey Protein 5 Lbs Next Proteins Designer Whey W/ Glycerlean 4 Lbs Sci Fit Econo Whey Protein 5 Lbs Cytosport Muscle Milk 2.48 Lbs Prolab 100% Pure Whey 5 Lbs Eas Myoplex 17Oz Rtd One Case (3 Four Packs) Pinnacle Juiced Protein W/ Myozap 2 Lbs Optimum Nutrition 100% Whey Protein 10 Lbs Muscletech Nitro-Tech 2 Lbs Ergopharm 1-Ad 60 Caps Bsn 1-Testabolin-Aq 90 Caps Pinnacle Andro 150 Poppers 100 Tabs Sci Fit Get Mass Stack 60 Caps Pinnacle Ecdybol 90 Caps Ids 1-Ad Xtreme 60 Caps Sci Fit 19-Nor Androstack Ii 60 Caps Mhp Elite Hrp Kit 6 Week Kit Biotest Tribex 110 Caps Iforce Nutrition Testabolan 90 Caps

Influx Pharmaceuticals Email:  Address:  2, Unique Comp, 90 Ft Road, Opp Krishna Hindu Hotel, Kandivali W Maharashtra India Zip/Postal:  400067 Telephone:  28612209 Mobile:  Fax:  N/A Website:   NA

Manufacturers of skimmed milk powder, whey protein, vitamin, iron capsules.

Engichem Specialities Pvt Ltd Email:  Address:  Peninsula Center S S Rao Road Parel Maharashtra India Zip/Postal:  400012 Telephone:  91-22-56608999 Mobile:  Fax:  91-22-56603999 Website:   NA

Leading importers and distrubutors of various raw materials catering to the needs of pharmaceutical , paint, ink, coatings and allied industries. Agents for various multinational companies in India.

Mahaan Proteins Ltd.

 Mahaan, has led to a major breakthrough in the value-added dairy food segments in the Indian market with its complete range of whey powders and concentrates, with other companies following suit. Mahaan commands 80 percent plus market share in the Indian whey protein market. The Group has also set up Manufacturing Facilities in a 100% Excise Free Zone, meeting international standards for Contract Research and Manufacturing services (CRAMS) for the manufacturing of wide range of Nutraceuticals."

Resources consulted:

The Burgeoning Middle Classes in Brazil, Russia, India and China (BRIC)

Report published by Datamonitor

Published: 30 Apr 2007

Country Case Study: India

The Functional Foods Sector in India

Get a Deep Insight into the World Sports and Fitness Nutrition Market



India economy: Demographic profile. Economist Intelligence Unit - ViewsWire(C) 2008 The Economist Intelligence Unit Ltd.

Mindbranch Research Report



New Developments in Global Consumer Trends

Report published by Datamonitor

Published: 16 Apr 2007

Nutrition transition in India

Prakash S Shetty*†

Nutrition Planning, Assessment and Evaluation, Food and Nutrition Division, Food and Agriculture Organization

(FAO) of the United Nations, Via delle Terme di Caracalla, I-00100 Rome, Italy

Nutritionals in India. Report published by Euromonitor International



World Sports and Fitness Nutrition Market



Conclusion:

In spite of the fact that there are several indigenous companies coming up in the sports nutrition industry in India, there is still a huge scope in this rapidly developing market. It has been predicted by many economists that at least for a decade, Indian economic growth will not slow down. With consistent economic progress in the near future, India’s middle class and urban population will be growing rapidly. Western influence and financial stability will encourage people to explore the fitness industry. Financially well off and educated middle class will be the potential buyers or consumers of health products in India. Advertising products through popular sports advertisements may prove useful to promote products in India.

However, anyone exploring business prospects in India should be aware of many challenges. Dealing with Indian bureaucracy will be one of the major challenges. As far as distribution and manufacturing of products is concerned, India’s weak infrastructure is a main hurdle. Due to growing health awareness among strongly growing middle class, many Indian companies are coming up with their own health products that give a competitive edge to any outsider. European competitors should also be kept in mind while entering India’s sports nutrition market.

Consumers’ attitudes are largely determined by socio-cultural attitudes play a key role in any industry. India is a country of many religions and a large percentage is vegetarian due to religious reasons. Therefore, ingredients in sports nutrition related products do matter. Functional food industry is very strong and well established in India and it certainly gives a competitive edge to other health products.

The best advice would be to develop competitive pricing strategies, strong sales force strategy, ability to establish brand awareness through promotional activities and advertising, strategic alliances that expand customer base, and finally product innovation which also includes developing new technologies. Collaborating with Indian companies is also a wise choice.

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