| Sreedevi Yallamrazu |
As the world turns into a global village, consumers are being exposed to various products across categories – from high-end technology to products that are consumed on a daily basis. Global launches have broadened our horizons and ‘modified our tastes’. There is a heightened demand for convenience products and in this scenario, food patterns have been one of the key areas that have witnessed this drastic shift.
As the western world takes note of the ill-effects of high calorie foods and modifies its diet, we are once again developing ‘new tastes’…healthier ones, this time. These new tastes are posing competition to traditional vitamin and mineral supplements. The health and wellness market is at an inflexion point where competition is being redefined.
India has earned the reputation of being a nutritional paradox. A large section of the population is under nourished because they do not have the purchasing power and at the other end of the spectrum, is another section, equally large, if not more, which is over nourished with macro nutrients but deficient in specific micro nutrients.
To put things in perspective, CubeX commissioned a study to understand the diverse food plates across the country. The nutritive content of food was analysed in relation to RDA of macro as well as micro nutrients. It was found that in most regional food diets, macro nutrients were in excess of RDA while vital micro nutrients fell short. Thus, there is a need for dietary supplements.
The need for innovation in OTC vitamins, minerals and supplements market
These brands have created a mirage of a lucrative market. In reality they are so well-entrenched that new brands without a differential positioning hardly have any scope to gain a sizeable share of the market. On the contrary, these new brands end up reinforcing the benefits of established brands, gaining little success themselves.
Despite the heavy promotional activities, uptake of supplements among consumers was found to be low. The key reason being supplements are generally taken on doctor’s advice or for specific illness. Building awareness and creating brand credibility among a plethora of similar products is a huge task.
The rising popularity of functional foods
Taking advantage of the fact that consumers generally do not like taking tablets and capsules for maintaining good health but are keen to explore options for healthy living, are food and beverage companies. New concepts like ‘better for you’ variants with reduced unhealthy ingredients and ‘fortified foods’ incorporated with healthy ingredients (nutraceuticals) – mainly vitamins and minerals, probiotics, omega-3 fatty acids, fibre, anti-oxidants – have been introduced in the market. Media reports claim that functional food products accounted for 60 per cent of the Indian nutraceutical market valued over $1,400 million in 2011.
Major food companies have expanded into the health segment with products positioned for specific health benefits. Britannia is creating a niche in the health and wellness food market by reaching out to diabetics with a tasty range of food products with its NutriChoice range and consumers’ testimony is proof of its success. Another case in point would be Yakult, the probiotic drink, which “created” the probiotics market in India, despite the availability of supplements, which could have easily taken a sizable share of the market by the time Yakult set foot in India. Probiotic curds soon followed but selling a product that is prepared everyday at home to Indian housewives is no mean task. Think of innovation and flavoured probiotic curds are storming the market with kids reaching out for it! Probiotics have moved on from being promoters of gut health to being recognised for their overall health benefits and thus, being classified as health supplements. These products have met with moderate success as consumers steadily warm up to these products.
One of the major challenges faced by food companies is the taste of Indians for good food. Consumers are also unwilling to compromise on taste and hence products which offered health benefits at the expense of taste have not performed as well as expected. However, players are willing to bet on this market as it is yet in a nascent stage and needs to be built.
The future beckons for health supplements
It is becoming imperative that healthcare companies will have to move into FMCG mode to understand consumers’ tastes and devise marketing strategies. Consumer focused FMCG companies will have to invest time and effort in understanding consumers’ perceptions of healthy living. Hence, it is important to view competition through a kaleidoscope to keep tab on the changing consumer pulse and to understand what constitutes competition from the consumers’ perspective.
Healthcare companies need to take advantage of their deep understanding of health and ailments. Innovative products and convenient formats will see major advancements in near future. Products that aid in effectively preventing or delaying the onset of diseases like cancer, diabetes, arthritis and those targeted for specific segments i.e. women, kids would be much sought after (rather than typical energy boosters), as they are customised to cater to specific needs. The need of the hour for VMS supplements is a strong brand proposition to sustain consumers’ interest.
CubeX’s latest report “Tasting New Trends in the Indian Health Supplements Market” covers many such interesting insights and encompasses the latest trends in the health supplements market. It also answers myriad questions that marketers would seek to enhance their presence in the booming health and wellness domain.
(CubeX is the Strategic Consulting and Business Intelligence division of Sorento Healthcare Communications with expertise in the Consumer Healthcare and Wellness domain. To know more about reports from CubeX, you can write to reports@cubex.co.in.)