On a positive note, I would like to congratulate MM Activ group for their new venture. On behalf of Herbalife India, I would like to extend good wishes to NuFFooDS Spectrum which will play a catalytic role to make India a world leader in the NuFFooDS segment.
The contemporary Indian consumer today is extremely conscious about health and their looks which has opened a broad opportunity for the dietary supplements, sports nutrition and weight management products that are broadly classified as nutraceuticals in India. The nutraceuticals market has been growing at the compound annual growth rate of 20% for the last three years. However, the Indian market for nutraceuticals is at a nascent stage.The US and Europe are the largest markets for such products. The growing healthcare industry in India is now witnessing an emerging trend in the form of Fast Moving Health Goods (FMHG).
With the increasing health consciousness among the people, rising disposable incomes, increasing number of people being affected by lifestyle diseases, and the shifting age structure of the Indian population, like higher median age, the need of the hour is easy availability and accessibility of customized products, targeted at specific health problems and deficiencies, even in Tier II & Tier III cities.
A report released by Bourne Partnersin April 2013, Nutraceutical Sector Report, says that developing nations are increasingly becoming the preferred source for cheaper raw material supply found in many nutraceutical products. It also reports that globally there is consensus among nutraceutical companies that increased regulation related to quality and safety will benefit the industry, and help mitigate the risk of regulatory backlash if scrupulous players engage in abusive practices and are left unchecked. Lack of supportive regulatory norms is yet another roadblock which affects the functioning of our industry. However, on the merits of quality we can assure products that are safe, healthy and effective.
The key to success for companies will have to be focused on product innovation. Mulitinational companies are setting up production facilities in India which is an indicator of the potential that the Indian market holds. Convergence of manufacturing companies combined with pharmaceutical companies to market and manufacture nutraceuticals products is a trend to look for. However it will only be the distribution channels that will play an imperative role in the future growth of business.
Ajay Khanna, country head, Herbalife International India