consumer health in india

CONSUMER HEALTH IN INDIA

Euromonitor International

June 2015

C O N S U M E R H E A L T H I N I N D I A P a s s p o r t I

E u r o m o n i t o r I n t e r n a t i o n a l

LIST OF CONTENTS AND TABLES

Consumer Health in India - Industry Overview ............................................................................. 1 Executive Summary ..................................................................................................................... 1

Consumer Health Registers Steady Growth in 2014 ................................................................ 1 Herbal/traditional Products Continues To Enjoy Strong Sales .................................................. 1 Domestic Companies Lead Consumer Health in Terms of Share............................................. 1 Chemists/pharmacies Continues To Rule Retail Distribution .................................................... 1 Weight Management Is Expected To Drive Growth in the Future ............................................. 1

Key Trends and Developments .................................................................................................... 1

Rising Awareness Regarding Health and Wellness Drives Growth .......................................... 1 International Companies Continue To Dominate Majority of Value Sales ................................. 2 Unconventional Retail Channels Continue To Be the Strongest ............................................... 2

Territory Key Trends and Developments ...................................................................................... 3

East and Northeast India .......................................................................................................... 3 North India ................................................................................................................................ 4 South India ............................................................................................................................... 4 West India ................................................................................................................................. 5

Rural Vs Urban Key Trends and Developments ........................................................................... 6

Trends ...................................................................................................................................... 6 Competitive Landscape ............................................................................................................ 6 Prospects .................................................................................................................................. 6

Market Indicators .......................................................................................................................... 7

Table 1 Consumer Expenditure on Health Goods and Medical Services: Value 2009-2014 .................................................................................................... 7

Table 2 Life Expectancy at Birth 2009-2014 ............................................................. 7

Market Data .................................................................................................................................. 7

Table 3 Sales of Consumer Health by Category: Value 2009-2014 .......................... 7 Table 4 Sales of Consumer Health by Category: % Value Growth 2009-2014 ......... 8 Table 5 Sales of Consumer Health by Region: Value 2009-2014 ............................. 8 Table 6 Sales of Consumer Health by Region: % Value Growth 2009-2014 ............ 8 Table 7 Sales of Consumer Health by Rural vs Urban: % Value 2014 ...................... 8 Table 8 NBO Company Shares of Consumer Health: % Value 2010-2014 ............... 9 Table 9 LBN Brand Shares of Consumer Health: % Value 2011-2014 ................... 10 Table 10 Distribution of Consumer Health by Format: % Value 2009-2014 .............. 10 Table 11 Distribution of Consumer Health by Format and Category: % Value

2014 ........................................................................................................... 11 Table 12 Forecast Sales of Consumer Health by Category: Value 2014-2019 ......... 13 Table 13 Forecast Sales of Consumer Health by Category: % Value Growth

2014-2019 .................................................................................................. 14 Table 14 Forecast Sales of Consumer Health by Region: Value 2014-2019 ............ 14 Table 15 Forecast Sales of Consumer Health by Region: % Value Growth

2014-2019 .................................................................................................. 14

Appendix .................................................................................................................................... 15

OTC Registration and Classification ....................................................................................... 15 Vitamins and Dietary Supplements Registration and Classification ........................................ 16 Self-medication/self-care and Preventive Medicine ................................................................ 16 Switches ................................................................................................................................. 17

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Sources ...................................................................................................................................... 17

Summary 1 Research Sources ...................................................................................... 17

Consumer Health in India - Company Profiles ............................................................................ 20 Amway India Enterprises Pvt Ltd in Consumer Health (india) .................................................... 20

Strategic Direction .................................................................................................................. 20 Key Facts ................................................................................................................................ 20

Summary 2 Amway India Enterprises Pvt Ltd: Key Facts .............................................. 20 Summary 3 Amway India Enterprises Pvt Ltd: Operational Indicators ........................... 20

Company Background ............................................................................................................ 20 Competitive Positioning .......................................................................................................... 21

Summary 4 Amway India Enterprises Pvt Ltd: Competitive Position 2014 .................... 21

Dabur India Ltd in Consumer Health (india) ............................................................................... 21


Summary 5 Dabur India Ltd: Key Facts ......................................................................... 21 Summary 6 Dabur India Ltd: Operational Indicators ...................................................... 22

Company Background ............................................................................................................ 22 Production .............................................................................................................................. 22 Competitive Positioning .......................................................................................................... 23

Summary 7 Dabur India Ltd: Competitive Position 2014 ............................................... 23

Emami Ltd in Consumer Health (india) ....................................................................................... 23


Summary 8 Emami Ltd: Key Facts ................................................................................ 23 Summary 9 Emami Ltd: Operational Indicators ............................................................. 24

Company Background ............................................................................................................ 24 Production .............................................................................................................................. 24 Competitive Positioning .......................................................................................................... 24

Summary 10 Emami Ltd: Competitive Position 2014 ....................................................... 25

Herbalife International India Pvt Ltd in Consumer Health (india) ................................................ 25


Summary 11 Herbalife International India Pvt Ltd: Key Facts ......................................... 25 Summary 12 Herbalife International India Pvt Ltd: Operational Indicators ...................... 26


Summary 13 Herbalife International India Pvt Ltd: Competitive Position 2014 ................ 26

Ranbaxy Laboratories Ltd in Consumer Health (india) ............................................................... 26


Summary 14 Ranbaxy Laboratories Ltd: Key Facts ........................................................ 27 Summary 15 Ranbaxy Laboratories Ltd: Operational Indicators ..................................... 27


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Summary 16 Ranbaxy Laboratories Ltd: Competitive Position 2014 ............................... 28

Adult Mouth Care in India - Category analysis ........................................................................... 29 Headlines ................................................................................................................................... 29 Trends ........................................................................................................................................ 29 Competitive Landscape .............................................................................................................. 29 Prospects ................................................................................................................................... 29 Category Data ............................................................................................................................ 30

Table 16 Sales of Adult Mouth Care: Value 2009-2014 ............................................ 30 Table 17 Sales of Adult Mouth Care: % Value Growth 2009-2014............................ 30 Table 18 NBO Company Shares of Adult Mouth Care: % Value 2010-2014 ............. 30 Table 19 LBN Brand Shares of Adult Mouth Care: % Value 2011-2014 ................... 31 Table 20 Forecast Sales of Adult Mouth Care: Value 2014-2019 ............................. 31 Table 21 Forecast Sales of Adult Mouth Care: % Value Growth 2014-2019 ............. 31

Analgesics in India - Category analysis ...................................................................................... 32 Headlines ................................................................................................................................... 32 Trends ........................................................................................................................................ 32 Competitive Landscape .............................................................................................................. 32 Prospects ................................................................................................................................... 33 Category Data ............................................................................................................................ 33

Table 22 Sales of Analgesics by Category: Value 2009-2014 .................................. 33 Table 23 Sales of Analgesics by Category: % Value Growth 2009-2014 .................. 33 Table 24 Sales of Topical Analgesics/Anaesthetic by Format: % Value

Breakdown 2009-2014 ............................................................................... 34 Table 25 NBO Company Shares of Analgesics: % Value 2010-2014 ....................... 34 Table 26 LBN Brand Shares of Analgesics: % Value 2011-2014 .............................. 35 Table 27 Forecast Sales of Analgesics by Category: Value 2014-2019 .................... 36 Table 28 Forecast Sales of Analgesics by Category: % Value Growth 2014-

2019 ........................................................................................................... 36

Calming and Sleeping in India - Category analysis .................................................................... 37 Trends ........................................................................................................................................ 37

Cough, Cold and Allergy (hay Fever) Remedies in India - Category analysis ............................ 38 Headlines ................................................................................................................................... 38 Trends ........................................................................................................................................ 38 Competitive Landscape .............................................................................................................. 39 Prospects ................................................................................................................................... 39 Category Data ............................................................................................................................ 39

Table 29 Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Category: Value 2009-2014 ....................................................................... 39

Table 30 Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Category: % Value Growth 2009-2014 ....................................................... 40

Table 31 Sales of Decongestants by Category: Value 2009-2014 ............................ 40 Table 32 Sales of Decongestants by Category: % Value Growth 2009-2014 ........... 40 Table 33 NBO Company Shares of Cough, Cold and Allergy (Hay Fever)

Remedies: % Value 2010-2014 ................................................................. 41 Table 34 LBN Brand Shares of Cough, Cold and Allergy (Hay Fever)

Remedies: % Value 2011-2014 ................................................................. 42 Table 35 Forecast Sales of Cough, Cold and Allergy (Hay Fever) Remedies by

Category: Value 2014-2019 ....................................................................... 42

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Table 36 Forecast Sales of Cough, Cold and Allergy (Hay Fever) Remedies by Category: % Value Growth 2014-2019 ....................................................... 43

Dermatologicals in India - Category analysis .............................................................................. 44 Headlines ................................................................................................................................... 44 Trends ........................................................................................................................................ 44 Competitive Landscape .............................................................................................................. 44 Prospects ................................................................................................................................... 45 Category Data ............................................................................................................................ 45

Table 37 Sales of Dermatologicals by Category: Value 2009-2014 .......................... 45 Table 38 Sales of Dermatologicals by Category: % Value Growth 2009-2014 ......... 46 Table 39 NBO Company Shares of Dermatologicals: % Value 2010-2014 ............... 46 Table 40 LBN Brand Shares of Dermatologicals: % Value 2011-2014 ..................... 46 Table 41 Forecast Sales of Dermatologicals by Category: Value 2014-2019 ........... 47 Table 42 Forecast Sales of Dermatologicals by Category: % Value Growth

2014-2019 .................................................................................................. 47

Digestive Remedies in India - Category analysis ....................................................................... 49 Headlines ................................................................................................................................... 49 Trends ........................................................................................................................................ 49 Competitive Landscape .............................................................................................................. 49 Prospects ................................................................................................................................... 50 Category Data ............................................................................................................................ 50

Table 43 Sales of Digestive Remedies by Category: Value 2009-2014 .................... 50 Table 44 Sales of Digestive Remedies by Category: % Value Growth 2009-

2014 ........................................................................................................... 51 Table 45 NBO Company Shares of Digestive Remedies: % Value 2010-2014 ......... 51 Table 46 LBN Brand Shares of Digestive Remedies: % Value 2011-2014 ............... 51 Table 47 Forecast Sales of Digestive Remedies by Category: Value 2014-2019 ..... 52 Table 48 Forecast Sales of Digestive Remedies by Category: % Value Growth

2014-2019 .................................................................................................. 53

Eye Care in India - Category analysis ........................................................................................ 54 Headlines ................................................................................................................................... 54 Trends ........................................................................................................................................ 54 Competitive Landscape .............................................................................................................. 54 Prospects ................................................................................................................................... 55 Category Data ............................................................................................................................ 55

Table 49 Sales of Eye Care by Category: Value 2009-2014 ..................................... 55 Table 50 Sales of Eye Care by Category: % Value Growth 2009-2014 .................... 55 Table 51 NBO Company Shares of Eye Care: % Value 2010-2014 .......................... 55 Table 52 LBN Brand Shares of Eye Care: % Value 2011-2014 ................................ 56 Table 53 Forecast Sales of Eye Care by Category: Value 2014-2019 ...................... 56 Table 54 Forecast Sales of Eye Care by Category: % Value Growth 2014-2019 ..... 56

Nrt Smoking Cessation Aids in India - Category analysis ........................................................... 57 Headlines ................................................................................................................................... 57 Trends ........................................................................................................................................ 57 Competitive Landscape .............................................................................................................. 57 Prospects ................................................................................................................................... 58 Category Indicators .................................................................................................................... 58

Table 55 Number of Smokers by Gender 2009-2014 ................................................ 58

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Category Data ............................................................................................................................ 58

Table 56 Sales of NRT Smoking Cessation Aids by Category: Value 2010-2014 ..... 58 Table 57 Sales of NRT Smoking Cessation Aids by Category: % Value Growth

2010-2014 .................................................................................................. 58 Table 58 Sales of NRT Gum by Flavour: % Value Breakdown 2009-2014 ............... 59 Table 59 NBO Company Shares of NRT Smoking Cessation Aids: % Value

2010-2014 .................................................................................................. 59 Table 60 LBN Brand Shares of NRT Smoking Cessation Aids: % Value 2011-

2014 ........................................................................................................... 59 Table 61 Forecast Sales of NRT Smoking Cessation Aids by Category: Value

2014-2019 .................................................................................................. 60 Table 62 Forecast Sales of NRT Smoking Cessation Aids by Category: %

Value Growth 2014-2019 ........................................................................... 60

Wound Care in India - Category analysis ................................................................................... 61 Headlines ................................................................................................................................... 61 Trends ........................................................................................................................................ 61 Competitive Landscape .............................................................................................................. 61 Prospects ................................................................................................................................... 61 Category Data ............................................................................................................................ 62

Table 63 Sales of Wound Care by Category: Value 2009-2014 ................................ 62 Table 64 Sales of Wound Care by Category: % Value Growth 2009-2014 ............... 62 Table 65 NBO Company Shares of Wound Care: % Value 2010-2014 .................... 62 Table 66 LBN Brand Shares of Wound Care: % Value 2011-2014 ........................... 62 Table 67 Forecast Sales of Wound Care by Category: Value 2014-2019 ................. 63 Table 68 Forecast Sales of Wound Care by Category: % Value Growth 2014-

2019 ........................................................................................................... 63

Sports Nutrition in India - Category analysis............................................................................... 64 Headlines ................................................................................................................................... 64 Trends ........................................................................................................................................ 64 Competitive Landscape .............................................................................................................. 64 Prospects ................................................................................................................................... 65 Category Data ............................................................................................................................ 65

Table 69 Sales of Sports Nutrition by Category: Value 2009-2014 ........................... 65 Table 70 Sales of Sports Nutrition by Category: % Value Growth 2009-2014 .......... 65 Table 71 NBO Company Shares of Sports Nutrition: % Value 2010-2014 ................ 66 Table 72 LBN Brand Shares of Sports Nutrition: % Value 2011-2014 ...................... 66 Table 73 Forecast Sales of Sports Nutrition by Category: Value 2014-2019 ............ 66 Table 74 Forecast Sales of Sports Nutrition by Category: % Value Growth

2014-2019 .................................................................................................. 67

Vitamins and Dietary Supplements in India - Category analysis ................................................ 68 Headlines ................................................................................................................................... 68 Trends ........................................................................................................................................ 68 Vitamins...................................................................................................................................... 68 Dietary Supplements .................................................................................................................. 69 Competitive Landscape .............................................................................................................. 69 Prospects ................................................................................................................................... 70 Category Data ............................................................................................................................ 70

Summary 17 Dietary Supplements: Brand Ranking by Positioning 2013 ........................ 70 Summary 18 Multivitamins: Brand Ranking by Positioning 2013 ..................................... 70

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Table 75 Sales of Vitamins and Dietary Supplements by Category: Value 2009-2014 ........................................................................................................... 71

Table 76 Sales of Vitamins and Dietary Supplements by Category: % Value Growth 2009-2014 ..................................................................................... 72

Table 77 Sales of Multivitamins by Positioning: % Value 2009-2014 ........................ 73 Table 78 Sales of Dietary Supplements by Positioning: % Value 2009-2014 ........... 73 Table 79 NBO Company Shares of Vitamins and Dietary Supplements: %

Value 2010-2014 ........................................................................................ 73 Table 80 LBN Brand Shares of Vitamins and Dietary Supplements: % Value

2011-2014 .................................................................................................. 74 Table 81 LBN Brand Shares of Vitamins: % Value 2011-2014 ................................. 75 Table 82 LBN Brand Shares of Dietary Supplements: % Value 2011-2014 .............. 76 Table 83 Forecast Sales of Vitamins and Dietary Supplements by Category:

Value 2014-2019 ........................................................................................ 77 Table 84 Forecast Sales of Vitamins and Dietary Supplements by Category: %

Value Growth 2014-2019 ........................................................................... 78

Weight Management in India - Category analysis ...................................................................... 79 Headlines ................................................................................................................................... 79 Trends ........................................................................................................................................ 79 Competitive Landscape .............................................................................................................. 80 Prospects ................................................................................................................................... 80 Category Data ............................................................................................................................ 80

Table 85 Sales of Weight Management by Category: Value 2009-2014 ................... 80 Table 86 Sales of Weight Management by Category: % Value Growth 2009-

2014 ........................................................................................................... 80 Table 87 NBO Company Shares of Weight Management: % Value 2010-2014........ 81 Table 88 LBN Brand Shares of Weight Management: % Value 2011-2014 .............. 81 Table 89 Forecast Sales of Weight Management by Category: Value 2014-

2019 ........................................................................................................... 81 Table 90 Forecast Sales of Weight Management by Category: % Value Growth

2014-2019 .................................................................................................. 82

Herbal/traditional Products in India - Category analysis ............................................................. 83 Headlines ................................................................................................................................... 83 Trends ........................................................................................................................................ 83 Competitive Landscape .............................................................................................................. 84 Prospects ................................................................................................................................... 84 Category Data ............................................................................................................................ 84

Table 91 Sales of Herbal/Traditional Products by Category: Value 2009-2014 ........ 84 Table 92 Sales of Herbal/Traditional Products by Category: % Value Growth

2009-2014 .................................................................................................. 85 Table 93 NBO Company Shares of Herbal/Traditional Products: % Value 2010-

2014 ........................................................................................................... 85 Table 94 LBN Brand Shares of Herbal/Traditional Products: % Value 2011-

2014 ........................................................................................................... 86 Table 95 Forecast Sales of Herbal/Traditional Products by Category: Value

2014-2019 .................................................................................................. 87 Table 96 Forecast Sales of Herbal/Traditional Products by Category: % Value

Growth 2014-2019 ..................................................................................... 87

C O N S U M E R H E A L T H I N I N D I A P a s s p o r t VII


C O N S U M E R H E A L T H I N I N D I A P a s s p o r t 1


CONSUMER HEALTH IN INDIA - INDUSTRY OVERVIEW

EXECUTIVE SUMMARY

Consumer Health Registers Steady Growth in 2014

2014 registered steady growth for consumer health on a year-on-year basis. The growth was

driven by the increased number of lifestyle-related disorders and a rising awareness amongst

consumers to be healthy and fit. This combined with the lack of time and increased annual

disposable incomes helped to drive the growth of consumer health in 2014.

Herbal/traditional Products Continues To Enjoy Strong Sales

Herbal/traditional products continued to enjoy strong growth in value sales. Though the trend

was moving towards the quick remedy of ailments, this remained primarily an urban

phenomenon. Semi-urban and rural population continued to prefer slow working but with no side

effect herbal/traditional consumer health products.

Domestic Companies Lead Consumer Health in Terms of Share

A longstanding presence and extremely strong distribution network across pan-India helped

domestic companies to remain the leader in terms of value. These domestic brands were not

just associated with medicines, but with most of the FMCG products, and continued to be

common household names.

Chemists/pharmacies Continues To Rule Retail Distribution

The majority of consumer health sales continued to be generated through

chemists/pharmacists. This was observed as chemists had the highest penetration in the

country along with the largest number of outlets. As a result, this channel continued to be the

most popular for consumer health sales. However, in terms of growth, non-store retail made a

distinct impression on the masses in 2014 as well.

Weight Management Is Expected To Drive Growth in the Future

Weight management is expected to grow the fastest over the forecast period. The growth will

be driven by urban consumers for whom looking fit became extremely important during 2014.

This will continue over the forecast period as well, and with the increasingly fast paced lives,

weight management will help them to manage their weight in a healthy and convenient manner.

KEY TRENDS AND DEVELOPMENTS

Rising Awareness Regarding Health and Wellness Drives Growth

2014 continued to witness strong current value growth for consumer health at 11%. The

growth was primarily driven by weight management and sports nutrition. Consumer health in

India in 2014 was no longer limited to solutions for physical ailments. Indian consumers were

acutely aware of the need to look good and be healthy in 2014. With their fast-paced lifestyles

and increased annual disposable incomes, this need was catered for by weight management



and sports nutrition. Although the awareness regarding these products and the overall rise in

health and wellness was primarily limited to urban India, the growth was driven by all consumers

whether in metropolitans or tier 2 cities. This was most apparent for weight loss due to the

corporate culture, where almost everyone has a sedentary job. The percentage of the

population aged 15 years and above suffering from obesity increased to 3% in 2014. This

combined with stress led the percentage of the adult population who smoked to remain steady

at 7%. Within a short space of time, and the lifestyle choices made by consumers, consumer

health registered strong popularity amongst urban consumers in 2014.

Outlook

The increase in growth of consumer health due to the lifestyle changes will continue over the

forecast period as well. In 2014 itself, the number of female smokers registered an increase,

whereas male smokers decreased. This was a unique phenomenon in Indian demography. The

increasingly fast paced lives, higher annual disposable incomes and less of a stigma regarding

drinking and smoking will help to drive the growth of consumer health over the forecast period.

This will be observed most conspicuously for weight management, sports nutrition and

emergency contraception. India is at the cusp of completely going through a revolutionary

change in lifestyle choices, consumers were moving away from the traditional living scenario of

staying with their parents to living alone, eating mostly at home to eating at restaurants and

many other lifestyle choices. These changes will drive consumers towards easier and quicker

solutions to their physical ailments, thereby driving the growth of consumer health in India.

International Companies Continue To Dominate Majority of Value Sales

The leading consumer health company in 2014 continued to be Dabur India Ltd. However,

overall the competitive landscape was dominated by international players. Companies such as

Herbalife International India Pvt Ltd, Amway India Enterprises Pvt Ltd, PGT Healthcare and

GlaxoSmithKline Consumer Healthcare Ltd and several others contributed nearly 31% share of

the total value sales generated in 2014. This was due to firstly, certain products such as weight

management and vitamins and dietary supplements being completely dominated by

international players. Vitamins and dietary supplements, weight management and sports

nutrition were promoted in the country by international companies, which helped to increase the

knowledge regarding them amongst consumers and also, develop strong brand recall as well.

As a result of this, consumers continued to prefer international companies over domestic ones.

Domestic manufacturers, although big in the country, were primarily known for OTC products,

as they enjoyed first mover advantage in this category.

Outlook

The stronger foothold of international brands may not continue into the forecast period.

Domestic companies realised the needs of the new age consumer, where consumer health

products were no longer ailment specific, but rather an everyday supplement along with a

wholesome meal. This will definitely be exploited by domestic manufacturers as well.

Furthermore, domestic companies have a much stronger distribution network and brand recall

value pan-India, and not just in urban India; hence, the chances of success is strong and will

remain an imminent threat to the growth of international companies in India.

Unconventional Retail Channels Continue To Be the Strongest

Beauty specialist retailers, other healthcare specialist retailers, homeshopping and internet

retailing emerged as the strongest growing channels in 2014, with 30%, 24%, 23% and 22%

respective increases. The growth was driven by vitamins and dietary supplements, sports



nutrition and weigh management. Although the biggest retail channel continued to be

chemists/pharmacies, the reach of these unconventional channels continued to grow in 2014.

This was observed as most of these smaller retail channels in the case of store-based retailing

allowed consumers to shop for more than one type of product under the same roof, thereby

allowing them to save time and provide them with the convenience of one-stop shopping. In the

case of non-store retailing, these unconventional retail channels provided consumers with the

lowest prices with the convenience of sitting at home and shopping. Hence, these retail

channels enjoyed a good year in 2014.

Outlook

The trend of strong sales through unconventional channels is expected to continue into the

forecast period as well. Consumers already had very busy lifestyles, which will continue to

become busier. This combined with the increased annual disposable income, reach of

technology and overall shortage of time, will push consumers to switch to retail channels, where

one can buy all related products under the same roof without spending too much time on the

same. As a result of this, non-store retailing is expected to register the strongest retail sales

growth over the forecast period.

TERRITORY KEY TRENDS AND DEVELOPMENTS

East and Northeast India

Trends

The weather conditions in the east and northeast India is primarily hot and humid. As a result

of which the biggest products such as topical analgesics/anaesthetic, cough remedies,

antacids, and topical germicidals/antiseptics continued to be very popular.

Chemists/pharmacies continued to dominate sales in consumer health in 2014 as modern

retailing is only present in urban areas. Chemists/pharmacies had a stronger reach in semi-

urban and rural areas.

Competitive landscape

The two most popular companies in east and northeast India continued to be Dabur India Ltd

and Emami Ltd. These companies have an extremely strong presence and brand image in

this region of the country.

Regional players were mostly involved in homeopathy in east and north east India. In the

case of standard medication the brands which continued to be popular were the same as a

pan-India level.

Prospects

Consumers in east and northeast India continued to be strong followers of homeopathic and

home remedies. These medicines were hence tough competition for allopathic medicines.

Consumer health is expected to grow by a value CAGR of 4% at constant 2014 prices over

the forecast period. This growth will be driven by weight management and sports nutrition.

This is expected across the country, as the penetration and knowledge regarding these

products continued to be low, and hence had extremely strong growth potential.

The continued preference of homeopathy over allopathy will prove to be a big threat for the

development of consumer health in east and northeast India. Companies will have to change



the mind-set of locals with the help of strong promotional campaigns so that consumers start

to make that switch.

North India

Trends

A rise in medical care costs (doctors consultation fees) for common ailments, encouraged

consumers to self-medication and thus there was an increased demand for OTC products.

Big pharmaceutical companies pushed the sales of unconventional OTC products, as per the

Indian consumer base, as there was greater acceptance of such products amongst educated

consumers. One such area was paediatric healthcare, which registered an increased

awareness amongst consumers.


Leading players in ayurvedic and homeopathy were Dabur India Ltd and The Himalaya Drug

Co. These companies registered strong growth as the majority of their products fall under

OTC. Direct selling companies including Herbalife International India Pvt Ltd and Amway

Enterprises India Pvt Ltd also registered the highest growth in their sales for North Indian

region.

Regional players were important, although in OTC they were not so successful. OTC as a

category was treated like FMCG and any company intending to build a strong demand for its

product was prepared to spend money on brand building, marketing, advertising and sales

promotion. Small companies did not carry out all of these activities and mainly relied on

chemists/pharmacies to push the products.

Prospects

The biggest strength of north India is that Delhi will remain as the most vital centre of

regulatory network as far as the pharma industry is concerned. The activities, if not

manufacturing or exporting, will continue to be in North India which was one of the most

promising regions for the industry. North India is still important for the pharma players as

states like Uttar Pradesh, Delhi, Punjab and Haryana will continue to be major markets of

consumption, due to the demographic and geographic strength of the region. This will help

push the sales of consumer health over the forecast period as well.

The Northern region is expected to witness high growth in overall healthcare products and

services and for OTC products as well. Northern Indian is gripped by many seasonal diseases

due to extreme weather situations and people usually try out self-medication before going to

physician. This will continue into the forecast period.

South India

Trends

South India registered current value growth of 10% and continued to be the second biggest in

terms of value sales after north India in 2014. The growth was primarily driven by increased

acceptance of consumer health products amongst consumers, as most of the working

population in the southern states worked in information technology, were educated and

modern. Hence, they were more open to the idea of trying these medicines for quicker relief

over other regional consumers in the country.



OTC, vitamins and dietary supplements, and herbal/traditional products continued to be the

leading consumer health value generators in south India. This was the same across pan-

India, as the penetration of each of the products remained low, and hence enjoyed strong

growth potential.


Dabur India Ltd, Herbalife International India Pvt Ltd and Emami Ltd had a strong presence in

south India as well. As south India mostly has tropical weather conditions, companies which

catered to ailments common in summers such as dermatologicals and digestives were

popular in the region.

Most of the companies in south India concentrated on expanding their distribution via modern

retail as the presence and popularity of modern retail was most strong in south India.

Prospects

South India is expected to grow by a value CAGR of 4% at constant 2014 prices over the

forecast period. The growth will be driven by weight management and sports nutrition, as both

of them had a niche presence across India, and hence the strongest growth potential.

With long summers and monsoons, the use of OTC and vitamins and dietary supplements in

south India is expected to continue growing strongly over the forecast period.

West India

Trends

2014 registered a strong drift towards the use of OTC in west India. More consumers

depended upon OTC medicines which were easily available across the cities. Advertisements

(television, printed, and in-store promotions) played an important role for increasing sales of

OTC medications especially for ailments such as cough, cold and hay fever, digestive

remedies and analgesics.

Consumers in west India, started to see the advantages of using OTC medication, and hence

worked towards increasing their knowledge regarding the same. Consumers realised that the

extra cost of going to a physician was not always required, and started to rely on OTC more in

2014.


Consumer health was dominated by international manufacturers as well as domestic

manufacturers. International brands such as Crocin by GlaxoSmithKline Consumer

Healthcare Ltd, Vicks by Procter & Gamble Hygiene & Health Care Ltd were the primary

choices for analgesics and cough, cold and allergy (hay fever) remedies in West India.

Domestic brands such as Hajmola by Dabur India Ltd and Himani Boroplus by Emami Ltd

were the leaders in digestive remedies and dermatologicals respectively.

Prospects

West India is expected to grow by a value CAGR of 4% at constant 2014 prices over the

forecast period. The growth will be driven by herbal/traditional medicines only. As consumers

will continue to prefer medicines with no side effects over standard medicines. Companies

such as Amrutanjan Health Care Ltd, The Himalaya Drug Co and Emami Ltd will continue to

remain popular amongst consumers.



Weight management, sports nutrition and vitamins and dietary supplement will continue to

grow over the forecast period as well, and help drive the growth of consumer health. Due to

changes in lifestyles, long working hours and insufficient time, consumers will definitely prefer

products which can be helpful in keeping their body healthy and stress free.

RURAL VS URBAN KEY TRENDS AND DEVELOPMENTS

Trends

Growth of vitamins and dietary supplements, weight management and sports nutrition

continued to be driven by urban consumers in India. This was observed as the prices for

these products were quite expensive and the awareness regarding these products was quite

low. Hence, the primary consumer base continued to be limited to the urban population base

only.

Consumption of medicines, even OTC, remained limited to a small consumer base. As

Indians either preferred home remedies for small ailments or obtaining a prescription. Indian

consumers continued to be sceptical about medicating themselves without a proper

consultation from the doctor. This was most apparent for children and the elderly population.

Competitive Landscape

Domestic companies such as Dabur India Ltd and Emami Ltd continued to be preferred

across pan-India, especially in rural India. This was observed as both companies had much

stronger distribution across rural India compared to other international brands. This was

further strengthened by the fact that these companies enjoyed first mover advantage and

were priced more affordably compared to international brands.

Rural areas preferred OTC over other consumer health products. This was evident as the

knowledge regarding vitamins and dietary supplements, weight management and sports

nutrition remained low amongst the rural consumer base.

Traditional medicine or Ayurveda was important across both rural and urban Indians.

Although urban Indians were more inclined towards trying standard medicines over rural, the

foothold of Ayurveda over standard medicines was still relatively stronger. This was observed

as Ayurveda is an extremely old form of medicine used in the country, it does not have any

side effects, available easily and much more affordable compared to standard medicines.

Prospects

The current low penetration represents a huge opportunity for pharmaceutical companies to

expand in the rural markets, which are expected to be the growth drivers for the domestic

pharma industry in the coming years.

Rising income levels leading to more affordability, improving health infrastructure, and

increasing incidence of lifestyle diseases along with the use of health insurance are fuelling

the growth in rural areas.

While the industry players admitted that there lay huge potential for future expansion for the

rural markets of the country, a new model for distribution and delivery is required to actually

achieve that feat.



MARKET INDICATORS

Table 1 Consumer Expenditure on Health Goods and Medical Services: Value 2009-2014

INR bn 2009 2010 2011 2012 2013 2014 Pharmaceuticals, 733.3 800.9 858.8 979.0 1,088.8 1,237.0 medical appliances/ equipment Outpatient services 517.8 571.4 617.6 707.6 790.0 902.0 Hospital services 264.9 291.5 314.4 359.7 401.1 457.3 Total 1,516.1 1,663.8 1,790.8 2,046.2 2,279.9 2,596.4

Source: Euromonitor International from official statistics, trade associations, trade interviews

Table 2 Life Expectancy at Birth 2009-2014

years 2009 2010 2011 2012 2013 2014 Males 63.7 64.0 64.3 64.5 64.7 65.0 Females 67.2 67.5 67.7 68.0 68.3 68.5

Source: Euromonitor International from official statistics

MARKET DATA

Table 3 Sales of Consumer Health by Category: Value 2009-2014

INR million 2009 2010 2011 2012 2013 2014 OTC 48,259.3 53,391.0 59,486.5 68,117.4 76,131.4 83,949.7 Sports Nutrition 2,316.4 2,530.0 2,927.2 3,483.2 4,200.5 5,000.0 Vitamins and Dietary 33,115.6 37,882.8 43,401.0 48,946.6 54,514.4 59,562.3 Supplements Weight Management 1,917.6 3,725.5 6,870.3 9,517.3 11,852.9 14,513.0 Herbal/Traditional 31,559.4 35,626.0 39,518.5 44,417.9 49,775.1 55,204.6 Products Allergy Care - - - - - - Paediatric OTC Healthcare 1,788.7 2,229.4 2,915.6 3,487.2 3,896.6 4,281.5 Consumer Health 85,608.8 97,529.4 112,684.9 130,064.4 146,699.1 163,025.0

Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources

Note 1: Consumer Health total is the sum of OTC, Sports Nutrition, Vitamins and Dietary Supplements, Weight Management, and the subcategories of Herbal Medicinal Teas and Herbal Smoking Cessation Aids.

Note 2: Sum of categories is greater than the market size because allergy care is a duplicate of categories found in cough, cold and allergy remedies, dermatologicals and eye care; paediatric OTC healthcare is an aggregate of paediatric categories in OTC and vitamins and dietary supplements; and herbal/traditional products is an aggregate of herbal/traditional categories in OTC and vitamins and dietary supplements, except herbal/traditional medicinal teas and herbal/traditional smoking cessation aids.

Note 3: 2014 data is provisional and based on part-year estimates.



Table 4 Sales of Consumer Health by Category: % Value Growth 2009-2014

% current value growth 2013/14 2009-14 CAGR 2009/14 Total OTC 10.3 11.7 74.0 Sports Nutrition 19.0 16.6 115.9 Vitamins and Dietary Supplements 9.3 12.5 79.9 Weight Management 22.4 49.9 656.9 Herbal/Traditional Products 10.9 11.8 74.9 Allergy Care - - - Paediatric OTC Healthcare 9.9 19.1 139.4 Consumer Health 11.1 13.7 90.4





Table 5 Sales of Consumer Health by Region: Value 2009-2014

INR million 2009 2010 2011 2012 2013 2014 East and Northeast India 16,028.5 18,384.2 21,320.5 24,825.3 28,166.1 31,525.4 North India 25,715.8 29,541.4 34,246.5 39,502.2 44,566.9 49,635.8 South India 22,760.8 25,651.9 29,508.2 33,958.9 38,064.7 41,939.0 West India 21,103.7 23,951.8 27,609.8 31,778.1 35,901.4 39,924.8 India 85,608.8 97,529.4 112,684.9 130,064.4 146,699.1 163,025.0


Note: 2014 data is provisional and based on part-year estimates.

Table 6 Sales of Consumer Health by Region: % Value Growth 2009-2014

% current value growth 2013/14 2009-14 CAGR 2009/14 Total East and Northeast India 11.9 14.5 96.7 North India 11.4 14.1 93.0 South India 10.2 13.0 84.3 West India 11.2 13.6 89.2 India 11.1 13.7 90.4



Table 7 Sales of Consumer Health by Rural vs Urban: % Value 2014

Urban Rural Total India 73.2 23.8 96.9





Table 8 NBO Company Shares of Consumer Health: % Value 2010-2014

% retail value rsp Company 2010 2011 2012 2013 2014 Dabur India Ltd 8.2 8.2 8.1 8.2 8.4 Herbalife International 2.5 4.8 5.8 6.6 7.3 India Pvt Ltd Emami Ltd 5.8 6.1 6.4 6.5 6.3 Allergan India Pvt Ltd 4.6 4.6 5.1 5.5 5.8 Amway India Enterprises 6.6 7.0 7.3 6.4 5.5 Pvt Ltd PGT Healthcare - - 4.7 4.6 4.6 Ranbaxy Laboratories Ltd 2.8 2.9 2.9 2.9 2.9 GlaxoSmithKline 3.1 3.0 2.9 2.8 2.7 Consumer Healthcare Ltd Heinz India Pvt Ltd 2.8 2.8 2.7 2.6 2.7 Johnson & Johnson 3.3 3.1 2.9 2.4 2.2 (India) Ltd Pfizer Ltd 2.3 2.3 2.2 2.2 2.2 Piramal Enterprises Ltd - - 1.8 2.1 2.1 Reckitt Benckiser 0.9 1.9 1.8 1.8 1.7 (India) Ltd Himalaya Drug Co, The 1.7 1.6 1.5 1.5 1.6 Neulife Nutrition Systems 1.1 1.2 1.2 1.3 1.4 Abbott India Ltd 1.5 1.4 1.3 1.3 1.3 Mankind Pharma Ltd 1.0 1.0 1.1 1.1 1.1 Mondelez India Foods Ltd - - - - 1.0 Amrutanjan Health Care 1.1 1.0 1.0 1.0 1.0 Ltd Franco-Indian 1.0 0.9 0.9 0.9 0.9 Pharmaceuticals Pvt Ltd Plethico 1.1 0.7 0.8 0.8 0.8 Pharmaceuticals Ltd Merck (India) Ltd 1.0 0.9 0.8 0.8 0.8 Forever Living Products 0.6 0.6 0.7 0.7 0.7 India Pvt Ltd Cadila Pharmaceuticals 0.7 0.7 0.6 0.6 0.6 Ltd GlaxoSmithKline 0.8 0.7 0.7 0.6 0.6 Pharmaceuticals Ltd Paras Pharmaceuticals Ltd 1.8 0.7 0.6 0.6 0.6 Novartis India Ltd 0.7 0.6 0.6 0.6 0.6 Alembic Ltd 0.6 0.5 0.5 0.5 0.5 Dr Reddy's Laboratories 0.5 0.5 0.5 0.5 0.5 Ltd TTK Healthcare Ltd 0.6 0.5 0.5 0.5 0.5 Cadbury India Ltd 1.0 1.0 1.0 1.0 - Procter & Gamble 5.1 4.9 - - - Hygiene & Health Care Ltd Piramal Healthcare Ltd 1.8 1.7 - - - Others 33.5 32.1 31.1 31.0 31.1 Total 100.0 100.0 100.0 100.0 100.0




Table 9 LBN Brand Shares of Consumer Health: % Value 2011-2014

% retail value rsp Brand Company 2011 2012 2013 2014 Refresh Tears Allergan India Pvt Ltd 4.6 5.1 5.5 5.8 Nutrilite Amway India Enterprises 6.6 6.9 6.4 5.5 Pvt Ltd Vicks PGT Healthcare - 4.7 4.6 4.6 Himani Emami Ltd 3.7 4.0 4.1 3.8 Dabur Dabur India Ltd 3.9 3.6 3.6 3.6 Glucon D Heinz India Pvt Ltd 2.8 2.7 2.6 2.7 Herbalife Cell-U-Loss Herbalife International 1.7 2.1 2.4 2.6 India Pvt Ltd Herbalife ShapeWorks Herbalife International 1.3 1.5 1.8 2.1 India Pvt Ltd Herbalife Protein Herbalife International 1.4 1.6 1.8 2.0 Powder India Pvt Ltd Hajmola Dabur India Ltd 1.8 1.8 1.8 1.9 Zandu Emami Ltd 1.6 1.6 1.7 1.7 Glucose-D Dabur India Ltd 1.3 1.3 1.4 1.6 Revital Ranbaxy Laboratories Ltd 1.6 1.7 1.6 1.4 Optimum Nutrition Neulife Nutrition Systems 1.1 1.1 1.2 1.3 i-pill Piramal Enterprises Ltd - 1.2 1.3 1.3 Volini Ranbaxy Laboratories Ltd 0.8 0.9 1.0 1.2 Unwanted 72 Mankind Pharma Ltd 1.0 1.1 1.1 1.1 Halls Mondelez India Foods Ltd - - - 1.0 Eno GlaxoSmithKline 1.0 1.0 1.0 1.0 Consumer Healthcare Ltd Moov Reckitt Benckiser 1.0 1.0 1.0 1.0 (India) Ltd Amrutanjan Amrutanjan Health Care Ltd 1.0 1.0 1.0 1.0 Becosules Pfizer Ltd 1.0 1.0 1.0 1.0 Pudin Hara Dabur India Ltd 0.9 0.9 0.9 0.9 Benadryl Johnson & Johnson 1.0 1.0 0.9 0.9 (India) Ltd Iodex GlaxoSmithKline 1.2 1.1 1.0 0.9 Consumer Healthcare Ltd Band-Aid Johnson & Johnson 1.2 1.1 1.0 0.9 (India) Ltd Dexorange Franco-Indian 0.9 0.9 0.9 0.9 Pharmaceuticals Pvt Ltd Digene Abbott India Ltd 0.9 0.9 0.8 0.8 Liv 52 Himalaya Drug Co, The 0.7 0.7 0.7 0.8 Crocin GlaxoSmithKline 0.8 0.8 0.8 0.8 Consumer Healthcare Ltd Halls Cadbury India Ltd 1.0 1.0 1.0 - Vicks Procter & Gamble 4.9 - - - Hygiene & Health Care Ltd i-pill Piramal Healthcare Ltd 1.1 - - - Others 46.1 44.7 44.0 43.9 Total 100.0 100.0 100.0 100.0


Table 10 Distribution of Consumer Health by Format: % Value 2009-2014



% retail value rsp 2009 2010 2011 2012 2013 2014 Store-Based Retailing 87.8 85.6 82.3 80.6 79.5 78.1 - Grocery Retailers 11.3 10.9 10.7 10.5 10.4 10.2 -- Modern Grocery 3.1 3.1 3.1 3.2 3.2 3.2 Retailers --- Convenience Stores 0.0 0.0 0.0 0.0 0.0 0.0 --- Discounters 0.0 0.0 0.0 0.0 0.0 0.0 --- Forecourt Retailers 0.0 0.0 0.0 0.0 0.0 0.0 --- Hypermarkets 2.0 2.1 2.2 2.2 2.3 2.3 --- Supermarkets 1.0 0.9 0.9 0.9 0.9 0.9 -- Traditional Grocery 8.3 7.8 7.5 7.4 7.2 7.0 Retailers --- Food/drink/tobacco 0.0 0.0 0.0 0.0 0.0 0.0 specialists --- Independent Small 6.5 6.0 5.7 5.6 5.5 5.4 Grocers --- Other Grocery 1.8 1.8 1.8 1.8 1.7 1.7 Retailers ---- Healthfood shops 0.0 0.0 0.0 0.0 0.0 0.0 ---- Other Other 1.8 1.8 1.8 1.8 1.7 1.7 Grocery Retailers - Mixed Retailers 0.0 0.0 0.0 0.0 0.0 0.0 -- Department Stores 0.0 0.0 0.0 0.0 0.0 0.0 -- Mass Merchandisers 0.0 0.0 0.0 0.0 0.0 0.0 -- Variety Stores 0.0 0.0 0.0 0.0 0.0 0.0 -- Warehouse Clubs 0.0 0.0 0.0 0.0 0.0 0.0 - Non-Grocery Retailers 76.5 74.8 71.7 70.1 69.1 67.9 -- Health and Beauty 75.1 73.4 70.4 68.8 67.7 66.5 Specialist Retailers --- Beauty Specialist 0.0 0.0 0.0 0.0 0.1 0.1 Retailers --- Chemists/Pharmacies 74.9 73.3 70.1 68.4 67.4 66.0 --- Optical Goods Stores 0.0 0.0 0.0 0.0 0.0 0.0 --- Parapharmacies/ 0.0 0.0 0.0 0.0 0.0 0.0 Drugstores --- Other Healthcare 0.2 0.2 0.2 0.3 0.3 0.3 Specialist Retailers -- Other Consumer 1.4 1.3 1.3 1.3 1.3 1.4 Health Non-Grocery Retailers Non-Store Retailing 12.2 14.4 17.7 19.4 20.5 21.9 - Vending 0.0 0.0 0.0 0.0 0.0 0.0 - Homeshopping 0.0 0.0 0.0 0.0 0.0 0.0 - Internet Retailing 0.5 0.5 0.5 0.5 0.6 0.6 - Direct Selling 11.7 13.9 17.2 18.9 19.9 21.3 Total 100.0 100.0 100.0 100.0 100.0 100.0


Table 11 Distribution of Consumer Health by Format and Category: % Value 2014

% retail value rsp OTC SN VDS WM HTP AC Store-Based Retailing 100.0 76.6 64.0 9.8 87.5 0.0 - Grocery Retailers 14.4 0.0 6.8 3.9 14.4 0.0



-- Modern Grocery 2.9 0.0 3.6 3.9 3.8 0.0 Retailers --- Convenience Stores 0.0 0.0 0.0 0.0 0.0 0.0 --- Discounters 0.0 0.0 0.0 0.0 0.0 0.0 --- Forecourt Retailers 0.0 0.0 0.0 0.0 0.0 0.0 --- Hypermarkets 1.8 0.0 3.1 2.5 2.6 0.0 --- Supermarkets 1.1 0.0 0.5 1.4 1.2 0.0 -- Traditional Grocery 11.5 0.0 3.2 0.0 10.6 0.0 Retailers --- Food/drink/tobacco 0.0 0.0 0.0 0.0 0.0 0.0 specialists --- Independent Small 8.2 0.0 3.2 0.0 7.9 0.0 Grocers --- Other Grocery 3.3 0.0 0.0 0.0 2.8 0.0 Retailers ---- Healthfood shops 0.0 0.0 0.0 0.0 0.0 0.0 ---- Other Other 3.3 0.0 0.0 0.0 2.8 0.0 Grocery Retailers - Mixed Retailers 0.0 0.0 0.0 0.0 0.0 0.0 -- Department Stores 0.0 0.0 0.0 0.0 0.0 0.0 -- Mass Merchandisers 0.0 0.0 0.0 0.0 0.0 0.0 -- Variety Stores 0.0 0.0 0.0 0.0 0.0 0.0 -- Warehouse Clubs 0.0 0.0 0.0 0.0 0.0 0.0 - Non-Grocery Retailers 85.6 76.6 57.2 5.9 73.0 0.0 -- Health and Beauty 85.6 31.0 57.2 5.9 73.0 0.0 Specialist Retailers --- Beauty Specialist 0.1 1.0 0.0 0.0 0.0 0.0 Retailers --- Chemists/Pharmacies 85.5 24.3 57.2 4.3 73.0 0.0 --- Optical Goods Stores 0.0 0.0 0.0 0.0 0.0 0.0 --- Parapharmacies/ 0.0 0.0 0.0 0.0 0.0 0.0 Drugstores --- Other Healthcare 0.0 5.8 0.0 1.6 0.0 0.0 Specialist Retailers -- Other Consumer 0.0 45.5 0.0 0.0 0.0 0.0 Health Non-Grocery Retailers Non-Store Retailing 0.0 23.4 36.0 90.2 12.5 0.0 - Vending 0.0 0.0 0.0 0.0 0.0 0.0 - Homeshopping 0.0 0.6 0.0 0.0 0.0 0.0 - Internet Retailing 0.0 19.8 0.0 0.0 0.0 0.0 - Direct Selling 0.0 3.0 36.0 90.2 12.5 0.0 Total 100.0 100.0 100.0 100.0 100.0 0.0 POTC Store-Based Retailing 72.5 - Grocery Retailers 10.2 -- Modern Grocery 3.6 Retailers --- Convenience Stores 0.0 --- Discounters 0.0 --- Forecourt Retailers 0.0 --- Hypermarkets 2.9 --- Supermarkets 0.7 -- Traditional Grocery 6.6 Retailers --- Food/drink/tobacco 0.0 specialists --- Independent Small 5.7 Grocers



--- Other Grocery 0.9 Retailers ---- Healthfood shops 0.0 ---- Other Other 0.9 Grocery Retailers - Mixed Retailers 0.0 -- Department Stores 0.0 -- Mass Merchandisers 0.0 -- Variety Stores 0.0 -- Warehouse Clubs 0.0 - Non-Grocery Retailers 62.3 -- Health and Beauty 62.3 Specialist Retailers --- Beauty Specialist 0.0 Retailers --- Chemists/Pharmacies 62.3 --- Optical Goods Stores 0.0 --- Parapharmacies/ 0.0 Drugstores --- Other Healthcare 0.0 Specialist Retailers -- Other Consumer 0.0 Health Non-Grocery Retailers Non-Store Retailing 27.5 - Vending 0.0 - Homeshopping 0.0 - Internet Retailing 0.0 - Direct Selling 27.5 Total 100.0


Key: OTC = over the counter; SN = sports nutrition; VDS = vitamins and dietary supplements; WM = weight management; HTP = herbal/traditional products; AC = Allergy Care; POTC = paediatric OTC healthcare

Table 12 Forecast Sales of Consumer Health by Category: Value 2014-2019

INR million 2014 2015 2016 2017 2018 2019 OTC 83,949.7 86,791.4 89,140.9 91,219.7 93,043.8 94,662.2 Sports Nutrition 5,000.0 5,550.0 6,127.2 6,746.0 7,400.5 8,081.3 Vitamins and Dietary 59,562.3 62,267.9 64,944.1 67,620.2 70,267.8 72,864.2 Supplements Weight Management 14,513.0 16,381.5 18,375.8 20,623.3 23,200.7 26,048.4 Herbal/Traditional 55,204.6 57,162.2 59,024.4 60,711.4 62,266.5 63,601.5 Products Allergy Care - - - - - - Paediatric OTC Healthcare 4,281.5 4,405.8 4,517.6 4,619.9 4,711.0 4,794.8 Consumer Health 163,025.0 170,990.8 178,588.0 186,209.2 193,912.8 201,656.1

Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources






Table 13 Forecast Sales of Consumer Health by Category: % Value Growth 2014-2019

% constant value growth 2014/2015 2014-19 CAGR 2014/19 TOTAL OTC 1.7 2.4 12.8 Sports Nutrition 9.2 10.1 61.6 Vitamins and Dietary Supplements 3.7 4.1 22.3 Weight Management 12.3 12.4 79.5 Herbal/Traditional Products 2.1 2.9 15.2 Allergy Care - - - Paediatric OTC Healthcare 1.8 2.3 12.0 Consumer Health 4.0 4.3 23.7





Table 14 Forecast Sales of Consumer Health by Region: Value 2014-2019

INR million 2014 2015 2016 2017 2018 2019 East and Northeast India 31,525.4 33,172.2 34,767.6 36,341.0 37,889.5 39,402.3 North India 49,635.8 52,066.9 54,530.2 57,012.9 59,556.3 62,140.2 South India 41,939.0 43,957.4 45,654.2 47,370.2 49,140.6 50,953.0 West India 39,924.8 41,794.3 43,636.0 45,485.1 47,326.3 49,160.7 India 163,025.0 170,990.8 178,588.0 186,209.2 193,912.8 201,656.1



Table 15 Forecast Sales of Consumer Health by Region: % Value Growth 2014-2019

% constant value growth 2014/2015 2014-19 CAGR 2014/19 TOTAL East and Northeast India 4.0 4.6 25.0 North India 4.3 4.6 25.2 South India 3.7 4.0 21.5 West India 3.9 4.2 23.1 India 4.0 4.3 23.7





APPENDIX

OTC Registration and Classification

In India, the import, manufacture, distribution and sale of drugs is regulated by the Drugs and

Cosmetics Act and its subordinate legislation, the Drugs and Cosmetics Rules. The legislation

is enforced by the Central Government (Ministry of Health and Family Welfare) in New Delhi.

The regulation of drugs in India is based on their positioning in the lists of drugs included in

Schedules G, H, and K and X, which are appended to the Drugs and Cosmetics Act.

OTC products in India have no official definition. Instead, all the drugs that are not listed by

the Act as prescription only drugs are considered as non-prescription drugs (or OTC drugs).

The regulation of drugs in India is based on their positioning in the lists of drugs included in

Schedules G, H, and K and X, which are appended to the Drugs and Cosmetics Act. The

product categories highlighted by Schedules G, H, K and X are as follows:

Schedule X: products containing controlled ingredients, such as barbitals, methamphetamines

and narcotics. Schedule X drugs must be labelled XRx in red on the top left corner of the

packaging. They must also be labelled: Warning: to be sold by retailer on the prescription of

a registered medical practitioner only.

Schedule H: products restricted to prescription sales. However, topical schedule H products

may be sold OTC, with this including ibuprofen. Schedule H drugs have to be labelled Rx in

red on the top left corner, and must also carry the words: Warning: to be sold by retailer on

the prescription of a registered medical practitioner only.

Schedule G: products that can be sold without prescription. The product must carry the

following warning: Caution. It is dangerous to take this preparation except under medical

supervision. Antihistamines fall into this category.

Schedule K: products considered as Household Remedies, including analgesics, antacids,

gripe water and inhalant decongestants. These products can be sold by non-drug-licensed

stores (non-chemists) in villages with fewer than 1,000 inhabitants.

The Drug and Magic Remedies (Objectionable Advertisement) Act details a list of ailments for

which the advertising of remedies is not permitted. It also prohibits misleading advertisements

which, directly or indirectly, give false impressions regarding the true character of the drug,

make false claims, or are otherwise false or misleading in any particular respect. Currently

there is no specific law which prohibits the advertising of prescription drugs. However, drugs

falling in Schedules G, H, and X are currently not advertised to the public under a voluntary

commitment by the pharmaceutical industry in India.

Products registered as Ayurvedic Medicines can be sold by non-drug-licensed stores. Some

of the top consumer healthcare brands in India, including Vicks, Eno and Amrutanjan Pain

Balm, are registered as Ayurvedic Proprietary Medicines because of their plant-based natural

active ingredients. Unlike the prices of other drugs and supplements, which are closely

controlled by the National Pharmaceutical Pricing Authority, there are no price controls on

ayurvedic medicines. The Drugs (Prices Control) Order 1995 restricts the prices of 74 bulk

drugs and their formulations (estimated to cover 40% of the total pharmaceuticals market in

India), and is implemented by the National Pharmaceutical Pricing Authority.

There are no separate labelling requirements for OTC drugs. Under the Standards of Weights

and Measures Rules, most packaged consumer products are required to have the Maximum

Retail Price printed on the label.

Most products are only permitted to be sold via licensed pharmacies, thus

chemists/pharmacies dominate the retailing of consumer health products.



Chemists/pharmacies accounted for 64% share of value sales in consumer health in 2014,

whilst parapharmacies/drugstores had negligible sales. This limited distribution inevitably

results in narrower access to consumer health products. It also results in a lack of price

competition. Many in the government want to make consumer health products more widely

available to the population as a whole, and to allow larger chained grocery outlets to enter the

market, thus driving down the prices of many products through their greater economies of

scale. In response, representatives of chemists/pharmacies point to concerns regarding the

dangers of self-medication and the damage that this increased competition would cause to

the pharmacy retail infrastructure in the country.

Vitamins and Dietary Supplements Registration and Classification

The manufacture and sale of vitamins is officially legislated under the Drugs and Cosmetics

Act 1945, with rules and regulations similar to those covering standard medical products. The

government is in talks with the Drug Controller General of India (DCGI) and Food Safety and

Standards Authority of India (FSSAI) to establish regulations which will make companies that

use medicinal ingredients for non-medicinal usage need permission from the DCGI for the

manufacturing and distribution of these products.

Vitamins also face strict price ceilings as the government considers vitamins to be essential in

combating the widespread malnutrition amongst consumers who have low purchasing power.

The regulatory authorities are in the process of setting up new regulations in order to make

sure companies cannot sell drugs or any medicinal composition as a food supplement as, in

doing so, these companies avoid the price ceiling set for medicines in India.

The packaging of supplements did not witness any changes in 2014, and was primarily in

hard plastic bottles with the dosage, ingredients and pricing stated on the label.

Vitamins and dietary supplements are available via chemists/pharmacies, hypermarkets,

supermarkets and health and beauty specialists amongst store-based retailers. In non-store

retailing, these products are mainly sold via internet retailing and direct selling. No particular

regulations are applicable to the distribution channel.

Self-medication/self-care and Preventive Medicine

There was an increasing trend of consumers preferring to opt for self-medication in recent

years. This trend was prominent mostly amongst urban consumers who have hectic lifestyles

and are pressed for time. These consumers find it difficult to take time to visit a doctor for

common ailments such as headaches, joint pain, coughs, colds, fevers and digestive issues,

and prefer to self-medicate. The number of doctors in India is low compared with the population,

and results in long queues at clinics. This also acts as a deterrent for urban consumers to visit a

doctor for common ailments.

Previously, most families used traditional home remedies for common ailments. However, as

nuclear families have become the norm in urban areas, especially in metros, the commonly

used traditional home remedies are less frequently being passed on to the younger generation.

As a result, these consumers are opting for readily available OTC products for common

ailments. The trend of traditional home remedies is still prevalent in rural areas, with consumers

not having enough access to OTC products. Manufacturers are aiming to increase the

distribution and presence of such products in rural areas in order to make them available to rural

consumers. The trend of rural consumers shifting to OTC products will only increase in the

coming years.

Urban consumers also became more conscious about their health in recent years, and have

opted for preventive medication such as chyawanprash to increase their immunity. Demand for



these preventive medications is also on the rise due to consumers having hectic work lives, and

being unwilling to miss any working days. Manufacturers such as Emami, Dabur India,

GlaxoSmithKline and Amrutanjan Health Care have recruited a number of celebrities and sports

stars to endorse their brands and increase awareness.

The prominent brand Zandu Pancharishta has the Indian cricket team captain MS Dhoni and

Padma Vibhushan Pandit Birju Maharaj as brand ambassadors. Sona Chandi Chyawanprash

has the popular Bollywood star Shahrukh Khan as its brand ambassador, Zandu Kesari Jivan

has Pandit Birju Maharaj as its brand ambassador and Dabur Indias popular product Dabur

Chyawanprash also has the Indian cricket team captain MS Dhoni as its brand ambassador.

Aggressive promotions and branding measures by manufacturers have ensured there is

increased awareness of their brands and the benefits these products offer consumers.

Switches

There were no particular switches in 2014. However, over the forecast period, more Rx

medicines might switch to OTC in order to reduce UTC sales of these drugs.

SOURCES Sources used during the research included the following:

Summary 1 Research Sources

Official Sources Aden Health Care

Ashoka Lifescience Ltd

Century Distributors

Department of Chemicals & Petrochemicals

Department of Family Welfare, India Government

Deys Medical Store Mfg Co

Draft National Policy on Indian System of Medicines

Eskag Pharma Pvt Ltd

KPMG

M S Life Drug House Pvt Ltd

Ministry of Health, Government of India

National Pharmaceutical Pricing Authority

Press Information Bureau

Skyways Health Care Pvt Ltd

Trade Associations Association of the European Self-Medication Industry (AESGP)

Confederation of Indian Industry (CII)

Health & Dietary Supplement Association of India

IBEF

Indian Drug Manufacturers Association



Organisation of Pharmaceutical Producers of India (OPPI)

World Self-Medication Industry (WSMI)

Trade Press Advertising & Marketing

AFAQS!

Asian Age, The

Bloomberg

Business India

Business Line

Business Standard

Business Today

Business Week

Business World

Chemical Weekly

Daily News & Analysis

Domain-b

Drug Today

Eastern Pharmacist

Economic Times, The

Equity Master

Express Pharma

Express Pharma Pulse

Financial Express

Financial Express, The

Hindu Business Line

Hindustan Times

IBN Live

India Health News

India PRWire

India Today

Indiabiz News

Indian Express

MedGuide India

MyIris

Newspolitan.com

Outlook India

Pharma News

Pharmabiz

Pharmabiz.com



Press Trust of India

Rediff India Business News

Talk Delhi

The City News

The Economic Times

The Hindu

The Times of India

Thomson Reuters

Time World

Times of India

Source: Euromonitor International



CONSUMER HEALTH IN INDIA - COMPANY PROFILES

AMWAY INDIA ENTERPRISES PVT LTD IN CONSUMER HEALTH (INDIA)

Strategic Direction

Amway India Enterprises Pvt Ltd had a difficult year in 2014, due to the legal problems faced

by the company against its managing director and chief executive officer. As a result of which

the company lost some ground. The company plans to concentrate on rebuilding its brand

name over the forecast period, in order to become the leading direct selling company again.

Key Facts

Summary 2 Amway India Enterprises Pvt Ltd: Key Facts

Full name of company: Amway India Enterprises Pvt Ltd

Address: Amway India Enterprises Pvt Ltd, Plot No 84, Sector 32, Gurgaon - 122001(HR)

Tel: +91 (124) 305 8888

Fax: +91 (124) 305 8899

www: www.amway.in

Activities: Manufacturer and direct seller for consumer health, beauty and personal care products

Source: Euromonitor International from company reports, company research, trade press, trade sources

Summary 3 Amway India Enterprises Pvt Ltd: Operational Indicators

Year-end December 2012 2013 2014

Net sales Rs9,521 million Rs9,374 million Rs8,923 million

Source: Euromonitor International from company reports, company research, trade press, trade sources

Company Background

Amway India Enterprises Pvt Ltd is a wholly-owned subsidiary of the direct selling company

Alticor Inc, US, which commenced commercial operations in India in May 1998. The company

offers around 115 products in India across four categories nutrition and wellness, cosmetics,

personal care and home care. Almost all products are manufactured in India through seven

third-party manufacturers, with the exception of Artistry and some nutritional and wellness

products.

The company is involved purely in the direct selling of health, nutrition and beauty and

personal care products.



Amway is the leading direct selling company in the country and one of the founder members

of the Indian Direct Selling Association. The company operates in India through a network of

close to 650,000 distributors known as Amway Business Owners (ABOs), and has a presence

in 4,000 cities in India. Amway has a nationwide chain of 152 offices, home delivery centres

and three brand assessment centres at Bengaluru, Kolkata and Pune. These share

information and expertise with consumers on nutrition, wellness and beauty.

Competitive Positioning

Amway held an overall share of 6% in consumer health to rank fifth. The company continued

to be one of the leading direct selling companies in India.

Amways share declined in 2014 due to the legal complaints against the chief executive officer

and managing director, William S. Pinckney, which led consumers to mistrust the brand and

its operations.

The company is positioned in fast-growing categories as vitamins and dietary s

consumer health in india

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