SECTOR CAPSULE: FORTIFIED/FUNCTIONAL BEVERAGES IN INDIA

24 Sep 2013

HEADLINES
Fortified/functional beverages sales grow to Rs46 billion in 2012, up 11% over 2011 Functional/fortified plant-based and malt-based hot drinks is the single largest category, at Rs36 billion in 2012, up 10% over 2011 Sports drinks sees a 46% increase by value to Rs659 million in 2012, the highest growth in fortified/functional beverages Unit prices go up by 3% in 2012, reflecting increases in sugar and raw material costs GlaxoSmithKline Consumer Healthcare holds two thirds market share by value in 2012 Functional/fortified beverage sales are forecast to grow at 4% CAGR in constant 2012 prices to Rs56 billion by 2017

COMPETITIVE LANDSCAPE
GlaxoSmithKline Consumer Healthcare held 67% share by value in 2012, marginally down from 2011, followed by Cadbury India at 11%, Red Bull GmbH at 7% and Pioma Industries with its Rasna brand, at 4%. The top four held 90% by value of all sales in 2012, same as in 2011. Hector Beverages saw a 146% rise in value sales in 2012, as it launched its energy drink Tzinga on the natural ingredients platform, whilst Kraft Jacobs Suchard India grew 120% as the company ramped up advertising for its Tang brand on the refreshment platform. PepsiCo Holdings saw a 38% rise in Gatorade sales, as sports drinks found acceptance with clear positioning as opposed to energy drinks in 2012.

Euromonitor International 2013

ISIEmergingMarketsPDF uk-insead2 from 194.221.86.126 on 2013-10-07 09:55:16 EDT. DownloadPDF.

www.euromonitor.com

Downloaded by uk-insead2 from 194.221.86.126 at 2013-10-07 09:55:16 EDT. ISI Emerging Markets. Unauthorized Distribution Prohibited.

NATIONAL BRAND OWNERS AND THEIR BRANDS

Company Name (NBO) Cadbury India Ltd Coca-Cola India Pvt Ltd GlaxoSmithKline Consumer Healthcare Ltd Goldwin Healthcare Pvt Ltd Hamdard (Wakf) Laboratories Hector Beverages Pvt Ltd Hindustan Unilever Ltd Kraft Jacobs Suchard India Pvt Ltd PepsiCo India Holdings Pvt Ltd Pioma Industries Ltd Red Bull GmbH
Source: Passport by Euromonitor International

Brand (GBO) Cadbury Bournvita (Mondelez International, Inc) Burn (Coca-Cola Co, The) Boost (GlaxoSmithKline Plc), Horlicks (GlaxoSmithKline Plc), Maltova (GlaxoSmithKline Plc), Viva (GlaxoSmithKline Plc) Cloud 9 (Goldwin Healthcare Pvt Ltd) Rooh Afza (Hamdard (Wakf) Laboratories) Tzinga (Hector Beverages Pvt Ltd) Kissan (Unilever Group) Tang (Kraft Foods Group, Inc) Gatorade (PepsiCo Inc) Rasna (Rasna International) Red Bull (Red Bull GmbH)

Euromonitor International 2013

ISIEmergingMarketsPDF uk-insead2 from 194.221.86.126 on 2013-10-07 09:55:16 EDT. DownloadPDF.

www.euromonitor.com

Downloaded by uk-insead2 from 194.221.86.126 at 2013-10-07 09:55:16 EDT. ISI Emerging Markets. Unauthorized Distribution Prohibited.

FORECAST

DEFINITIONS AND METHODOLOGY

Fortified/Functional Beverages This category includes fortified/functional soft and hot drinks. There is no universal definition of functional beverages, simply because all types of beverages are functional in the most basic sense that they help the body to function. When identifying fortified/functional products, we focus on products to which health ingredients (typically those with health claims) have been added. Fortified/functional beverages provide health benefits beyond their nutritional value and/or the level of added ingredients wouldnt normally be found in that product. To merit inclusion in this category, the defining criterion here is that the product must have been actively fortified/enhanced during production. As such, inherently healthy products such as 100% fruit/vegetable juices are only included under "fortified/functional" if additional health ingredients (e.g. calcium, omega-3) have been added. To be included, the health benefit needs to form part of positioning/marketing of the product. There is one exception to the inclusion of fortified products in this category: Products to which vitamins have been added to replace vitamins lost during processing are excluded. These products would not typically be positioned on the basis of containing added nutrients.

Methodology This report is derived from Euromonitor Internationals Passport information system. Industry research is carried out by a global team of more than 600 in-country analysts and is based on a core set of research techniques:
National-level desk research, company research and analysis, store checking, trade interviewing with national players and market analysis

Euromonitor International 2013

ISIEmergingMarketsPDF uk-insead2 from 194.221.86.126 on 2013-10-07 09:55:16 EDT. DownloadPDF.

www.euromonitor.com

Downloaded by uk-insead2 from 194.221.86.126 at 2013-10-07 09:55:16 EDT. ISI Emerging Markets. Unauthorized Distribution Prohibited.

International-level desk research, multinational company research and analysis, trade interviewing with international players and market analysis

Euromonitor International 2013

ISIEmergingMarketsPDF uk-insead2 from 194.221.86.126 on 2013-10-07 09:55:16 EDT. DownloadPDF.

www.euromonitor.com

Downloaded by uk-insead2 from 194.221.86.126 at 2013-10-07 09:55:16 EDT. ISI Emerging Markets. Unauthorized Distribution Prohibited.