Increasing health
consciousness among consumers of different age categories, modern lifestyle and
brand trust is fueling the growth of malted health drinks market in India, thus
drawing more players into this segment and making malt-based drink brands run faster
to stay at the same spot.
According
to recently published report of Bonafide
Research "India
Malted Health Drinks Market Overview", the malted health drink
market size is expected to grow at a CAGR of more than 16% during the forecast
period of 2016 to 2021. Increase in standard of living, changing lifestyle,
rising income levels and growing inclination of consumers towards healthy
beverages is making a positive impact on the Indian malted health drinks market.
Various malted health drink brands like Horlicks, Bournvita, Complan, Boost,
Milo, Amul Pro, etc. have high impetus in the Indian market.
TARGET MARKET
MOVING BEYOND CHILDRENS
From
last two years, Health food drink brands such as Horlicks and Bournvita have
started targeting mothers during the exam season as it's not only the students
who are tensed, but also their parents. Malted food drinks usually have two
stories to tell in a year. During most part of the year, they talk about the
'body story' (nutrition for a growing child), and before exams, they are clever
enough to talk about the 'mind story' (nutrition for mind). In both cases,
mothers are the targets. Horlicks, which is sold by the consumer arm of British
pharmaceutical company GlaxoSmithKline (GSK), has designed a national workshop
to help parents & teachers understand the competition and students better. In
20145, the brand had developed four original soundtracks on exams with the help
of budding musicians across India, so that kids face exams more confidently. They
have been made into videos and are being promoted on social channels.
While
market leader Horlicks is playing up the insecurity of mothers about their
children's concentration through its marketing initiatives, rival Bournvita,
marketed by Mondelez India Foods, is focusing on
discipline and guidance. GSK has also designed a Concentration App that helps
parents gauge the concentration levels of their child. Exam month's help
Horlicks gain around 1% of the volume share and is considered a significant
spike by market watchers, given the fact that the category has been badly
affected by low consumer spending lately and growth has remained stagnant.
Bournvita also gains share in terms of volumes during exam season. The January
to March period does see an increase in overall malted food drinks consumption.
In 2015, Bournvita had strong trade activations coupled with a TVC in February
and consumer promotion in March. Their TVC under the campaign theme 'Tayyari
Jeet Ki' talks about a tough world out there and that parents need to prepare
their children to make healthy choices in their life, for which discipline and
guidance is as important as nutrition.
To
cut through the clutter, brands are increasingly becoming careful about their
core positioning. Bournvita chose to target the grandparent, often the daytime
caretaker of children with working parents, in its ad. Danone smartly reverses the roles;
a teenage girl admonishes her parents for not ensuring enough protein in her
meals and asks them to stop giving her 'bachhowala (kids') drink'. GSK's
enhanced focus on Horlicks in India comes at a time when it is considering
selling the business in the United Kingdom. The company is planning to sell its
small Horlicks business in Britain but will retain the much larger operation in
India, where the nutritional brand is still growing strongly.
ENTRY OF NEW PRODUCTS
In
2016, Heinz India entered the malt drink
category with a product called Heinz Power Sprouts and the company now has a
multi-brand strategy addressing different consumers. The impact of Patanjali made
MNCs such as Heinz India include ingredients like ragi and sprouts in its malted
drinks, which is all about having an ethnic type of nutrition. In 2015, Kraft
and Heinz merged into Kraft Heinz Company, the third largest food and beverage
company in North America and the fifth largest in the world. In early 2017, Nestle
brought back its health drink Milo, which it had discontinued about a decade
ago.
Another
player, Danone India expanded its portfolio in 2017 by launching ‘Protinex
Grow’ in the domestic market, with an aim to garner up to 10% market share in the
health food drinks segment by 2020. The French nutrition and dairy major has
introduced Protinex Grow in West Bengal and Karnataka in the first phase. Danone
plans to extend the portfolio by launching 10 more products in India. The
company has aggressive plans to double their sales in the nutrition portfolio
by year 2020 and also grow the overall business in India. Moreover, Danone recently
launched their global infant formula brand Aptamil in the country. The company
would soon introduce Neocate and a range of products for IEM (inborn error of
metabolism). Neocate is an infant formula and is for the children who have
severe allergy from cow milk. IEM is a rare genetic (inherited) disorder, in
which the body cannot properly turn food into energy. Besides this, Danone is
also working on fortification of UHT milk.
Some
time ago, companies like yoga-guru Baba Ramdev’s Patanjali Ayurved Limited also
pushed its health drink powder Powervita and Sri Sri Ravisharkar launched Ojasvita
in the health food drink segment. It was a good strategy to launch
ready-to-drink formats and low sugar products as the powder format is already
very competitive and hardly seeing volume growth.
GEARING UP COMPETITION
Horlicks
has been the market leader for years, positioning itself around the planks of
nostalgia and nutrition. But with competition from old hands such as Nestle and
relatively new entrants into the market such as Danone, GSK Consumer Healthcare
is revamping the brand's communication strategy. Recently in June-July 2017,
the company appointed a new ad agency FCB India for Horlicks, moving away
from its long-time partner JWT India. Also, GSK has extended its Horlicks brand
family through the introduction of Horlicks Lite and Women's Horlicks which are
based on functional benefits for diabetics and pregnant women.
Mondelez-owned
brand Cadbury Bournvita is focusing on how a combination of vitamin D, vitamin
C, iron, and other vitamins and minerals enhances the nutritional power of milk
for growing children. India is among the fastest growing markets for malted
health drinks, but prosperity is a mixed blessing of brands that control this
category in India. While increasing health consciousness among consumers is
fueling growth, it is also drawing more players into its fold, thus making
malt-based drink labels run faster to stay at the same spot. Companies such as
Nestle, GSK, Mondelez and others are casting their net wider for customers,
introducing new products and rebooting communication strategies.
MAJOR COMPANIES
Major
companies operating in the malted health drinks market of India are Mondelez
India Foods Private Limited, Heinz India Private Limited, GlaxoSmithKline
Consumer Healthcare Limited, Gujarat Co-operative Milk Marketing Federation
Ltd. (AMUL), MTR Foods Private Limited, Nestle India Limited, Continental
Milkose India Limited and Twinings Private Limited.
Base Year: 2015
Estimated Year:
2016
Forecast Year: 2021
Pages: 85, Figures: 22, Tables: 16
CONTACT US
Bonafide Research & Marketing Pvt. Ltd.
Steven Thomas – Sales & Marketing Manager
Telephone: +91-265-6551309/ +91-7878231309
Website: https://bonafideresearch.com/
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