Sports Nutrition Industry in India – Market
Analysis
Report prepared by Sujata Halarnkar
LIBR 282-5
Fall 2008
December 3, 2008
Sujata Halarnkar_LIBR 282-5_Fall 2008
2
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
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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 workingage 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
Population (m)
Total
1,034.2 1 110.4 1
Male
534.1
572.1
Female
500.1
538.3
Age profile (percentage of total population)
0-14
33.5
32.4
15-64
62.5
64.2
65+
4.6
5.2
Young-age dependency ratio
0.54
0.50
Old-age dependency ratio
0.07
0.08
Working-age population (m)
645.9 713.0
Urbanization (% of total)
28.1
29.3
Labor force (m)
470.2 516.4
2012
187.0
610.0
576.9
30.8
66.3
5.9
0.47
0.09
786.5
30.7
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,
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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
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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 uppermiddle 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 megatrend 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 (BCCResearchReporthttp://www.bccresearch.com/report/FOD027A.html) 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.
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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.
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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.H.Complex,
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
http://www.muscleguru.in/index.php
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
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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: 91-2232513869 Website: http://www.sulekhab2b.com/vishalorgannix/
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:
http://www.NutritionWorld.in
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.
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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 cuttingedge 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: http://www.supplementcity.vze.com
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: http://www.supplementcity.vze.com
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
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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: 9122-56603999 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
http://www.reportlinker.com/p092492/World-Sports-and-Fitness-Nutrition-Market.html
India economy: Demographic profile. Economist Intelligence Unit - ViewsWire(C)
2008 The Economist Intelligence Unit Ltd.
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Mindbranch Research Report
http://www.mindbranch.com/Sports-Fitness-Nutrition-R263-3567/
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
MarketResearch.com
World Sports and Fitness Nutrition Market
http://www.reportlinker.com/p092492/World-Sports-and-Fitness-Nutrition-Market.html
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.
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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.