International

Markets

Bureau

MARKET INDICATOR REPORT | APRIL 2010

Health and Wellness Trends

In India

EXECUTIVE SUMMARY

INSIDE THIS ISSUE

DID YOU KNOW

PAGE 2

ALTERNATIVE BEVERAGES TO

CARBONATED DRINKS ARE ENJOYING GREAT

SUCCESS IN THE INDIAN MARKET

ldquo

rdquo

Health and Wellness in India

Market Data 3

FortifiedFunctional 4-5

Better-For-You 6-8

Nutraceuticals 8-11

Organics 11-12

Definitions 13

Reducing fat intake is the most important and frequently practiced dietary approach by Asia Pacific consumers

Health-conscious urbanites have increased spending on the services of dieticians nutr i t ion is ts weight - loss centres and gyms

This report uses definitions for fortifiedfunctional better-for-you

nutraceutical and organic foods as defined in Annex ldquoArdquo

Indiarsquos population of 11 billion second highest in the world is

expected to reach 13 billion by 2015 India also has one of the

youngest populations in the world with the proportion of under-29s

projected to reach 56 by 2015 This group views shopping as a

form of entertainment and is brand-conscious With more than half of

the population young and single the processed food eating out

leisure and health and fitness sectors have experienced high

consumer spending Middle-aged adults (ages 45-55) currently form

the second largest proportion of the Indian population (212) a

share expected to increase to 234 by 2015 Health related

products are an important part of this grouprsquos discretionary spending

Pensionerrsquos make up only 51 of the Indian population but due to

increased health consciousness they are spending more on fitness

and medication A key trend is the move toward natural products

comprising herbs vitamins and minerals

Indiarsquos economic progress has given rise to a stronger middle class

which is the main driver behind most consumer trends however they

are spending on non-consumable products The Indian middle class is

expected to grow from 50 million in 2005 to 583 million in 2025 This

increase could boost consumer spending to US $30 billion on high-

end goods by 2015 High-income families will account for 2 of the

population but 20 of consumption by 2025

The food and drink market is emerging as one of the fastest-growing

segments in the Indian retail industry The processed food industry is

likely to register growth of more than 15 in 2008-2009 owing to

rising exports and an expanding domestic market Packaged food is

considered to be clean hygienic and of good qualitymdashdriving factors

in the purchasing of convenience foods

The increased emphasis on a healthy lifestyle is part of a trend to look

fitter and well-groomed The rise in health-consciousness explains

the huge increase of 2035 on health goods and medical services

expenditures from 1995-2007 The growth is expected to continue at a

rate of 633 over 2007-2015 Indian consumers are joining weight

loss clinics a trend very popular with northern Indians whose diets

have a high intake of saturated foods

The market for products that reduce stress prevent aging help the

heart and fight diabetes are all on a growth curve Industry refers to

the broad basket of health-oriented wellness products as the fast-

moving health goods (FMHG) sector FMHG includes OTC

medications as well as pain relievers nutraceuticals digestives and

anti-aging and revitalizing potions

Low brand loyalty and increased price-sensitivity is still preventing the

Indian food retail market to unfold to itrsquos true potential However

unique-to-the-Indian-consumer innovative products that provide qual-

ity and affordability will benefit

PAGE 3

India Health amp WellnessmdashFood amp Beverage Market Retail Sales

(US$ millions) 2004 2005 2006 2007

Organic Food and Beverages - - - -

FortifiedFunctional Food and Beverages

5129 5536 6333 7167

Better for you Food and Beverages 16168 17308 21578 27133

Source Health and Wellness Sector Euromonitor Note (-) no statistics available at this time

India Health amp WellnessmdashNutritionals Market Retail Sales

(US$ mn ) 2005 2006 2007 2008

Vitamins and dietary supplements 4606 5056 5486 6062

Herbaltraditional products 4111 4523 4939 5471

Slimming products 247 295 343 393

Sports nutrition - - - -

Source Health and Wellness Sector Euromonitor Note (-) no statistics available at this time

India Health amp Wellness Market Retail Sales

(US$ mn ) 2003 2004 2005 2006 2007

Health and WellnessmdashNutritionals

6504 7052 7766 8526 9336

Health and Wellnessmdash Food and Beverage 22844 24494 26441 3199 38973

Source Health and Wellness Euromonitor from trade sourcesnational statistics

FORTIFIEDFUNCTIONAL

PAGE 4

Consumer Trends

Generally speaking consumer awareness of fortifiedfunctional products is low A recent survey shows 80 of Indians agree that health considerations significantly influence their choice of food and drinks Approximately 48 of these respondents feel that functional food claims play a significant role in their purchasing decisions for food and beverage products

Products that reduce stress prevent aging help the heart and fight diabetes are all on a positive growth curve in India

Dairy-based beverages such as reduced-fat flavoured milk drinks and sour milk drinks are expected to witness double-digit value growth over the forecast period of 2007to 2015 India the worlds largest malt-based drink market accounts for 22 of the worlds retail volume sales as they are traditionally consumed as milk substitutes These drinks are marketed as nutritious and are mainly consumed by the old the young and those who are ill Sales got a boost by improved retail and distribution in recent years

Cereal bars digestive biscuits and functional bread products have also found acceptance among Indian consumers Cereals and cereal substitutes account for 38 of rural consumersrsquo monthly household food spend-ingWheat is the main cereal eaten in northern and western Indian states Rice cereal is preferred in the south-ern and eastern states

Distribution

Source Health and Wellness Sector Euromonitor

0

10

20

30

40

50

60

70

80

90

2003 2004 2005 2006 2007 2008

Grocery Retailers

Non-Grocery Retailers

ChemistsPharmacies

Healthfood shops

Other Non-Grocery Retailers

Direct Selling

FortifiedFunctional Purchases by Retail TypemdashAnalysis by

Percentage

PAGE 5

Companies and Brands

With rising pressure on margins following the economic slowdown retailers are now looking at private label sales to boost their bottom lines These retailers have projected at 10 to 15 increase in private label sales over the next two to three years

RSP Retail Sales Price Source Euromonitor Health and Wellness

Brand Shares (by Global Brand Name) - Retail Value RSP - Breakdown

Brand Company Name 2005 2006 2007 Horlicks GlaxoSmithKline PLC 424 422 416

Cadburys Bournvita Cadbury Schweppes Plc 10 99 97

Milo Nestle SA 4 43 42

Vicks Proctor amp Gamble Co 45 42 38

Parle Parle Products Pvt Ltd 3 32 34

Maltova GlaxoSmithKline PLC 33 33 32

Halls Cadbury Schweppes Plc 25 23 24

Britannia Britannia Industries Ltd 2 21 22

Kelloggs Corn Flakes Kellogg Co 12 13 14

Viva GlaxoSmithKline PLC 17 16 13

True VitaMilk Vitamin Enriched Milk Biscuits

Aurofood Pvt Ltd

12 13 13

Kellogs Chocos Kellogg Co 07 08 08

Orbit Wrigley Jr Co William 03 05 07

Happydent Perfetti Van Melle Group 04 04 05

Kellogs Frosties Kellogg Co 06 05 05

Acti-V Nestle SA 02 0 0

Others Others 222 22 232

New Products

The following information has been taken from Mintel

Over the past 12 months there have been 116 new functional foods products launched in India Below you will find the

details concerning these products launches

Eighty new functional-cardiovascular products were launched The most active sub-category was oils with 19 new

products introduced followed by 10 new hot cereal product introduction Both the cold cereals and sweet biscuits

cookies categories introduced five new products each The nuts and savory biscuitscrackers sub-categories each had

four new products appear on store shelves

Under the functionalndashimmune system product category 36 products were launched Ten baby food products were

introduced Seven new oils were launched two medicated confectionery two cold cereals and one syrup products were

also introduced to the market

PAGE 6

BETTER-FOR-YOU

Consumer Trends

Reducing fat intake is the most important and frequently practiced dietary approach by consumers in Asia Pacific Low cholesterol oil products are becoming increasingly popular among the Indian consumers who are most prone to heart disease in the world due to their lifestyle and eating habits

Indian consumers are increasingly seeking to reduce or modify their sugar intake Shops are now stocking more low-

fat products and sugar-free foods but these are still niche markets In urban areas these products are showing

impressive growth year-on-year

In urban areas people often prefer to buy bottled drinking water in restaurants and while travelling

Indians have a strong preference for fresh products and traditional spices and ingredients

Urban homes are spending on processed food and fruits The most popular fruit for Indian consumers is the banana followed by guavas mangoes and mangosteens and tomatoes

In India rice and pulses such as lentils are the base ingredients of the diet

Distribution

Source Euromonitor International

0

10

20

30

40

50

60

2004 2005 2006 2007

SupermarketsHypermarkets

Discounters

Small Grocery Stores

Other store based retailing

Better for you Purchases by Retail TypemdashAnalysis by Percentage

PAGE 7

Companies and Brands

The table below highlights a continuous decline in market share in the better-for-you category for the

major players

Private label brands are often perceived to offer quality at par with other national brands and offer tiered pricing

which caters to a broader spectrum of consumers

Tamil Nadu Cooperative Milk Producers Federation Ltd showed growth at a minimal 001 in 2006 This

increase may be attributed to the fact that Indian consumers are moving away from carbonated drinks due to more

health conscious awareness

Source Euromonitor International

New Products

The following information has been taken from Mintel

Over 2009 there were 788 new better-for-you foods products launched in India Below are the top new products

launches

There were 190 new lownoreduced fat products launched Cold cereals topped the chart with the most new

product introductions at 32 Savourysalty snacks came in second with 25 new products Dry soup was close

behind with 24 new products Both cheese and bakery products had 10 new product releases Spoonable yogurt

saw eight new product launches followed by fish products with seven new products introduced There were nine

new deserts amp ice cream products launched The oils and dressings and vinegar sub-categories each had five new

products introduced

Brand Shares (by Global Brand Name) - Retail Value RSP - Breakdown Brand Company Name 2005 2006 2007

Mother Dairy National Dairy Development Board 139 129 119

Nandini Karnataka Cooperative Milk Producers Federation Ltd 123 115 104

Amul Gujarat Cooperative Milk Marketing Federation Ltd 101 95 88

Aarey Dairy Development Department Ma-harashtra State 82 75 69

Milma Kerala Cooperative Milk Marketing Fed-erastion Ltd 51 48 43

Anikspray Royal Friesland Foods NV 41 39 37

Gagan Amrit Banjaspati Co Ltd 31 29 27

Sagar Gujarat Cooperative Milk Marketing Federation Ltd 26 24 23

Vijaya Andhra Pradesh Dairy Development Co-operative Federation Ltd 21 21 2

Komatha Hatsun Agro Products Ltd 21 19 18

Aavin Tamil Nadu Cooperative Milk Producers Federation Ltd 17 18 18

Britannia Britannia Industries Ltd 17 17 16

Diet Pepsi PepsiCo Inc 02 02 01

Diet Coke Coca-Cola Co 02 02 01

Others Others 327 369 416

PAGE 8

There were 178 new lownoreduced cholesterol products launched The savourysalty snacks

sub-category was the busiest with 29 new product launches followed closely by nuts with 26

launches and cold cereals also with 26 launches The dry soup sub-category saw 19 new product

introductions followed by nine cookiesbiscuits seven oils and six each for rice and meat substitutes There were

five cerealenergy bar and five savoury biscuitscrackers new products launched

There were 138 new lownoreduced sugar products launched Twenty-one new products were launched in

the gum sub-category followed by 13 in sweet biscuitscookies and 11 in the hot cereals Ten sweeteners amp

sugars eight standard amp power mints and seven cold cereals new products were introduced Boiled sweets

sub-category had six new product launches while the fruit products desserts and yogurts chocolate tablets and

amp baking ingredients mixes sub-categories all had five new product launches

There were 135 new lownoreduced transfats products launched Savourysalty snacks was the top

sub-category with 56 new product launches The sweet biscuitscookies sub-category had 19 new products fol-

lowed by savoury biscuitscrackers with 11 The instant noodle pasta amp rice potato products and snackcereal

energy bar sub-categories had five new product introductions each The oils and seasonings sub-categories each

had four new product launches The cold cereals sub-category saw three new product launches while the boiled

sweets sub-category had two new product launches

There were 83 new lownoreduced calorie products launched Sweeteners and sugars were at the top of the

list with 17 new product launches a close second was savourysalty snacks with 14 new product launches

Following were eight new product introductions in the snackcerealenergy bar sub-category Four oils products

were introduced in addition to three each for boiled sweets rice sweet biscuitscookies and ldquoothersrdquo categories

There were 35 new lownoreduced sodium products launched Hot cereals led this category in new product

launches with six followed by three new products under the rice and fish products sub-categories The boiled

sweets instant noodle pasta and rice nuts oils and meat substitutes sub-categories each launched two new

products

There were 23 new lownoreduced glycemic products launched Savoursalty snacks new products had the

most new product launches with four Rice cold cereals and sweet biscuitscookies each had three new product

launches The sweeteners and sugar sub-category had two new product launches while fruit snacks meat

substitutes shelf-stable deserts stuffing polenta and other side dishes and confiture amp fruit spreads all had only

one new product launch each

There were 6 new lownoreduced carbohydrates products launched Two boiled sweets products were

introduced The remaining sub-categories each launched one new product sweeteners amp sugar nuts cheese and

baking ingredients amp mixes

Consumer Trends

Vitamin and dietary supplement retail sales have doubled since 2001 totaling US$5632 million in 2008 and are

expected to reach US$7494 million by 2013

In response to declining health and increased awareness of good health Indiarsquos over -the-counter (OTC) vitamins and minerals supplement market is growing rapidly

Nutraceutical sales in India for 2009 reached US$13232 million

NUTRACEUTICALS

PAGE 9

There is a marked difference in consumption between urban and rural consumers Urban

consumers represent 70 of the vitamin and dietary supplement market versus 30 attributed to

rural consumers

Indian consumers are spending more on nutritional supplements to combat the effects of stressProtein

supplements and items relating to muscle building are popular due to the increasing fitness and bodybuilding

activity among the urban elite

India consumes the largest quantity of tea in the world Tea makes up 94 of out-of-home per capita hot drink consumption and almost 70 of in-home consumptionSales of coffee tea and cocoa in India increased by 14 from 1995 to 2007The availability of imported tea on retail shelves has increased and there has been growth in sales of tea bag and flavoured teas

Dieting is more prevalent than walking or cycling for weight-loss Rising obesity levels and hypertension in India means that health will become an increasingly important focus for consumers who will therefore seek out products that aid weight loss

In comparison to Western or European countries sports do not play a dominant role in the Indian culture which is traditionaly male dominatedHowever young urban adults are increasingly attracted to adventure sports and this has led to growth in the popularity of river rafting rock climbing and mountaineering clubs This trend may lead to more market interest in reasonably priced sports nutrition products

Sport drinks comprise a niche category in India with consumption largely centered in urban areas High prices however discourage the average consumer from purchasing them Energy-boosting drinks that are glucose-based (such as Glucon-D) are more traditionally used in India for rehydration Note 2009 data is provisional and based on part-year estimates

Distribution

Source Euromonitor Health and Wellness

0

10

20

30

40

50

60

70

80

90

2003 2004 2005 2006

Grocery Retailers

Non-Grocery

Retailers

Mass Merchandisers

Other Non-Grocery

Retailers

Non-Store Retailing

Vending

Homeshopping

Internet Retailing

Nutraceutical Purchases by Retail TypemdashAnalysis by Percentage

PAGE 10

Companies amp Brands

Ayurvedic products (more traditional products sought for their medicinal value) such as chyawanprash are competing with Western products in the supplements market

Direct sellers such as Amway and Herbalife which have been in operation since 1999 are taking the lead in

promoting health supplements despite the availability of many low-cost Indian versions Amway Corp appears to be

leading with a steady hold on first place with a 10 market share

Indian consumers are shifting to private label products The ldquoOthersrdquo grouping of brands holds 527 of market share

though it has been declining over the past few years As stated earlier the possible reason for this group having

captured such a large portion of the market is most likely due to price sensitivity and higher-end offerings Of the

remaining 35 companies 33 hold less than 3 market share

Brands strong in Fast Moving Health Goods (FMHG) in India are Elder Pharma Emami Dabur Hamdard Zandu

Biotique and AUM Himalaya

Gatorade and Stamina are the two major player sports drinks

Imported brands such as Coachs are finding takers in select cities

Brand amp Company Shares - Retail Sales - Breakdown

Brand Company Name 2005 2006 2007 Real Dabur India Ltd 86 102 117

Tropicana PepsiCo Inc 67 67 91

Britannia Britannia Industries Ltd 67 67 68

Dabur Honey Dabur India Ltd 0 0 68

Sunfeast ITC Group 48 5 5

Golden Tips Golden Tips Tea Co Pvt Ltd 33 31 29

Ginar Green Tea Girnar Food amp Beverages Pvt Ltd 31 3 28

Artisanal Artisanal 19 2 22

Jay Green Tea Jay Shree Tea amp Industries Ltd 2 2 18

Modern Unilever Group 17 17 18

McVities Digestive United Biscuits (Holdings) Plc 14 16 18

Bagrrys Bagrrys India Ltd 15 15 16

Figaro Paschim Salts Pvt Ltd 13 14 16

Hot Breads BampM Hot Breads Pvt Ltd 14 15 15

Tilda United Riceland Ltd 14 15 15

Infinitea Gopaldhara Tea Co Pvt Ltd 17 16 15

Haldirams Haldiram Foods Intl Ltd 15 15 14

Daawat LT Overseas Ltd 15 15 14

Bertolli Unilever Group 13 14 14

Wuyi Mountain Tea Lochan Tea Ltd 12 12 12

Sofit Hershey Co 0 0 07

KhoCha Pure Darjeeling Green Tea Kho-Cha Darjeeling Tea Bureau 1 08 06

Hey-Song Himalaya Drug Co 06 06 06

Staeta ProSoya Corp USA 05 05 06

Source Euromonitor Health and Wellness

PAGE 11

New Products

The following information has been taken from Mintel

Over 2009 there were 302 nutraceutical products launched in India Below are the top new products

There were 55 new product launches in the high protein category Hot cereals and meat substitutes each

introduced seven new products Snackcerealenergy bars tied with baking ingredients and mixes at five new

products a piece Instant noodles pasta and rice launched four new products

while vegetables and cold cereals introduced three new products each Baby

cereals introduced two new products as did the nut sub-category ldquoOthersrdquo

rounded out the protein category with 12 new products

Fifty-three new diabetic products entered the market Sweeteners dominated

the category with 11 new products Six baking ingredients and mixes appeared

on the shelves Rice chocolate tablets and meat substitute each had three new

product launches Last boiled sweets fruit snacks seasonings and shelf-stable

deserts categories each launched two new products into the market The ldquootherrdquo

category rounded out this group with 15 new products introduced

The all natural category had 24 new product launches in the prepared meals

sub-category Following closely behind is the seasonings category with 22 new product

launches Savorysalty snacks and oils tied for third place with 13 new product launches

each There were 10 new hot cereal product launches and seven new honey products

The anti-aging category had little activity in the way of new product launches however

there were three introductions two oils and one medicated confectionery

ORGANICS

Consumer Trends

According to the Indian Competence Centre for Organic Agriculture the organic food industry in India is estimated currently at US$129 million in 2009 Of the Indian consumers buying organics 66 cited the health of their children as the main thrust for purchasing organic food

Naturalness and wholesomeness is driving growth in the consumption of organic eggs

Indian consumers prefer organic marmalade organic strawberry jam organic tea organic honey organic

cashew butter and various organic flours

PAGE 12

Distribution

Production of organic food has increased in India over the last couple of years however about 70 of the organic food produced in India is exported Due to low consumer awareness about organic food supermarkets hardly stock any on their shelves So it is even more unlikely for smaller stores sell organic food The awareness of organics is gradually increasing in urban areas and in the future supermarkets are expected to stock more of it as the middle class grows and consumer awareness improves

Various stakeholders in the Indian organicrsquos community are pushing to have organic products carried in regular chainstores making it more easily accessible

Companies amp Brands

No statistical data is available for brand or company market share however in the table below listed in descending order are the most popular brands of organic food and beverages in the Indian market for 2008-2009 Source Mintel India Organic Products

Brand Company

24 Letter Mantra Sresta Natural Bioproducts

Fabindia Organics Fabindia Overseas

Waitrose Organic Waitrose

Amalgam Keya Amalgam Foods

India Gate KRBL

Bajaj SK Gajaj Sanjay

Grewals Organic Agriculture Farm Grewals Organic Agriculture Farm

Kohinoors Exclusive Organic Kinhinoor Foods

Pro Nature Organic Staples Pro Nature Organic Foods

Earths Best Organic Hain-Celestial Group

New Products

The following information has been taken from Mintel

Over the past 12 months there have been 70 new organic products launched in India with the Top 10

companies claiming 64 new product launches Below are the top new organic product launches

Sauces and seasonings led with 23 introductions with 24 Letter Mantra producing eight and Fabindia Organics

releasing seven followed by ldquoOthersrdquo whose combined new products totaled six

24 Letter Mantra released seven new snacks with no other competition

The bakery category saw six new product launches The players involved are 24 Letter Mantra (3) Waitrose

Organic (1) Gerwalrsquos Organic Ag Farm (1) and ldquoOthersrdquo (1)

Sweet spread launches totaled four as did sweeteners amp sugars

The other category had five new product introductions which fell under the side dishes sub-category India

Gate and Hello Organic both released two new products with only 24 Letter Mantra rounding out the competition

with one new product released

The processed fish meat and egg products dairy and breakfast cereals categories each launched 3 new

products

A large majority of the new products launched were plain or unflavoured Garlic was the most popular flavouring

followed by mustard herbs thai lentil sugar and spice

PAGE 13

This report analyses the market for Health and Wellness Food and Beverages in India For the purposes of this study

the market has been defined as follows

Functional Foodsmdash Items to which health ingredients have been added These functional foods and beverages should

have a specific physiological function andor are enhanced with added ingredients not normally found in the product

providing health benefits beyond their nutritional value The categories covered in this segment are added calcium

functional digestive functional immune system functional bone health and vitaminmineral fortified

Better for you (BFY) Foodsmdash The category includes packaged food and beverage products where the amount of a

substance considered to be less healthy (fat sugar salt carbohydrates) has been actively reduced during production

To qualitfy for inclusion in this category the ldquoless healthyrdquo element of the food stuff needs to have been actively removed

or substituted during the processing This should form part of the positioningmarketing of the product Products which

are naturally fatsugarcarbohydratemdashfree are not included The categories covered in this segment are lownoreduced

fat lownoreduced sugar lownoreduced sodium lownoreduced glycemic and nolowreduced cholesterol

NutraceuticalsmdashNatural substances are found in food which have medicinal properties to treat or prevent certain

diseases These natural substances can be added to the diet by increasing consumption of certain foods or can be taken

as nutritional supplements Products typically claim to prevent chronic diseases improve health delay the aging process

and increase life expectancy The categories covered in this segment are vitamins sports products herbal

supplements meal replacement products and slimming products

OrganicmdashProducts that are certified organic by an approved certification body Depending on the country such

products are called ldquoorganicrdquo biologicalrdquo or ldquoecologicalrsquo

The usage of the above categories are taken from both Euromonitor International and Mintel These groupings represent

globally accepted classification and product identification for the purpose of data collection

ANNEX lsquoArsquo DEFINITIONS

EXECUTIVE SUMMARY

INSIDE THIS ISSUE

DID YOU KNOW

PAGE 2

ALTERNATIVE BEVERAGES TO

CARBONATED DRINKS ARE ENJOYING GREAT

SUCCESS IN THE INDIAN MARKET

ldquo

rdquo

Health and Wellness in India

Market Data 3

FortifiedFunctional 4-5

Better-For-You 6-8

Nutraceuticals 8-11

Organics 11-12

Definitions 13

Reducing fat intake is the most important and frequently practiced dietary approach by Asia Pacific consumers

Health-conscious urbanites have increased spending on the services of dieticians nutr i t ion is ts weight - loss centres and gyms

This report uses definitions for fortifiedfunctional better-for-you

nutraceutical and organic foods as defined in Annex ldquoArdquo

Indiarsquos population of 11 billion second highest in the world is

expected to reach 13 billion by 2015 India also has one of the

youngest populations in the world with the proportion of under-29s

projected to reach 56 by 2015 This group views shopping as a

form of entertainment and is brand-conscious With more than half of

the population young and single the processed food eating out

leisure and health and fitness sectors have experienced high

consumer spending Middle-aged adults (ages 45-55) currently form

the second largest proportion of the Indian population (212) a

share expected to increase to 234 by 2015 Health related

products are an important part of this grouprsquos discretionary spending

Pensionerrsquos make up only 51 of the Indian population but due to

increased health consciousness they are spending more on fitness

and medication A key trend is the move toward natural products

comprising herbs vitamins and minerals

Indiarsquos economic progress has given rise to a stronger middle class

which is the main driver behind most consumer trends however they

are spending on non-consumable products The Indian middle class is

expected to grow from 50 million in 2005 to 583 million in 2025 This

increase could boost consumer spending to US $30 billion on high-

end goods by 2015 High-income families will account for 2 of the

population but 20 of consumption by 2025

The food and drink market is emerging as one of the fastest-growing

segments in the Indian retail industry The processed food industry is

likely to register growth of more than 15 in 2008-2009 owing to

rising exports and an expanding domestic market Packaged food is

considered to be clean hygienic and of good qualitymdashdriving factors

in the purchasing of convenience foods

The increased emphasis on a healthy lifestyle is part of a trend to look

fitter and well-groomed The rise in health-consciousness explains

the huge increase of 2035 on health goods and medical services

expenditures from 1995-2007 The growth is expected to continue at a

rate of 633 over 2007-2015 Indian consumers are joining weight

loss clinics a trend very popular with northern Indians whose diets

have a high intake of saturated foods

The market for products that reduce stress prevent aging help the

heart and fight diabetes are all on a growth curve Industry refers to

the broad basket of health-oriented wellness products as the fast-

moving health goods (FMHG) sector FMHG includes OTC

medications as well as pain relievers nutraceuticals digestives and

anti-aging and revitalizing potions

Low brand loyalty and increased price-sensitivity is still preventing the

Indian food retail market to unfold to itrsquos true potential However

unique-to-the-Indian-consumer innovative products that provide qual-

ity and affordability will benefit

PAGE 3

India Health amp WellnessmdashFood amp Beverage Market Retail Sales

(US$ millions) 2004 2005 2006 2007

Organic Food and Beverages - - - -

FortifiedFunctional Food and Beverages

5129 5536 6333 7167

Better for you Food and Beverages 16168 17308 21578 27133

Source Health and Wellness Sector Euromonitor Note (-) no statistics available at this time

India Health amp WellnessmdashNutritionals Market Retail Sales

(US$ mn ) 2005 2006 2007 2008

Vitamins and dietary supplements 4606 5056 5486 6062

Herbaltraditional products 4111 4523 4939 5471

Slimming products 247 295 343 393

Sports nutrition - - - -

Source Health and Wellness Sector Euromonitor Note (-) no statistics available at this time

India Health amp Wellness Market Retail Sales

(US$ mn ) 2003 2004 2005 2006 2007

Health and WellnessmdashNutritionals

6504 7052 7766 8526 9336

Health and Wellnessmdash Food and Beverage 22844 24494 26441 3199 38973

Source Health and Wellness Euromonitor from trade sourcesnational statistics

FORTIFIEDFUNCTIONAL

PAGE 4

Consumer Trends

Generally speaking consumer awareness of fortifiedfunctional products is low A recent survey shows 80 of Indians agree that health considerations significantly influence their choice of food and drinks Approximately 48 of these respondents feel that functional food claims play a significant role in their purchasing decisions for food and beverage products

Products that reduce stress prevent aging help the heart and fight diabetes are all on a positive growth curve in India

Dairy-based beverages such as reduced-fat flavoured milk drinks and sour milk drinks are expected to witness double-digit value growth over the forecast period of 2007to 2015 India the worlds largest malt-based drink market accounts for 22 of the worlds retail volume sales as they are traditionally consumed as milk substitutes These drinks are marketed as nutritious and are mainly consumed by the old the young and those who are ill Sales got a boost by improved retail and distribution in recent years

Cereal bars digestive biscuits and functional bread products have also found acceptance among Indian consumers Cereals and cereal substitutes account for 38 of rural consumersrsquo monthly household food spend-ingWheat is the main cereal eaten in northern and western Indian states Rice cereal is preferred in the south-ern and eastern states

Distribution

Source Health and Wellness Sector Euromonitor

0

10

20

30

40

50

60

70

80

90

2003 2004 2005 2006 2007 2008

Grocery Retailers

Non-Grocery Retailers

ChemistsPharmacies

Healthfood shops

Other Non-Grocery Retailers

Direct Selling

FortifiedFunctional Purchases by Retail TypemdashAnalysis by

Percentage

PAGE 5

Companies and Brands

With rising pressure on margins following the economic slowdown retailers are now looking at private label sales to boost their bottom lines These retailers have projected at 10 to 15 increase in private label sales over the next two to three years

RSP Retail Sales Price Source Euromonitor Health and Wellness

Brand Shares (by Global Brand Name) - Retail Value RSP - Breakdown

Brand Company Name 2005 2006 2007 Horlicks GlaxoSmithKline PLC 424 422 416

Cadburys Bournvita Cadbury Schweppes Plc 10 99 97

Milo Nestle SA 4 43 42

Vicks Proctor amp Gamble Co 45 42 38

Parle Parle Products Pvt Ltd 3 32 34

Maltova GlaxoSmithKline PLC 33 33 32

Halls Cadbury Schweppes Plc 25 23 24

Britannia Britannia Industries Ltd 2 21 22

Kelloggs Corn Flakes Kellogg Co 12 13 14

Viva GlaxoSmithKline PLC 17 16 13

True VitaMilk Vitamin Enriched Milk Biscuits

Aurofood Pvt Ltd

12 13 13

Kellogs Chocos Kellogg Co 07 08 08

Orbit Wrigley Jr Co William 03 05 07

Happydent Perfetti Van Melle Group 04 04 05

Kellogs Frosties Kellogg Co 06 05 05

Acti-V Nestle SA 02 0 0

Others Others 222 22 232

New Products

The following information has been taken from Mintel

Over the past 12 months there have been 116 new functional foods products launched in India Below you will find the

details concerning these products launches

Eighty new functional-cardiovascular products were launched The most active sub-category was oils with 19 new

products introduced followed by 10 new hot cereal product introduction Both the cold cereals and sweet biscuits

cookies categories introduced five new products each The nuts and savory biscuitscrackers sub-categories each had

four new products appear on store shelves

Under the functionalndashimmune system product category 36 products were launched Ten baby food products were

introduced Seven new oils were launched two medicated confectionery two cold cereals and one syrup products were

also introduced to the market

PAGE 6

BETTER-FOR-YOU

Consumer Trends

Reducing fat intake is the most important and frequently practiced dietary approach by consumers in Asia Pacific Low cholesterol oil products are becoming increasingly popular among the Indian consumers who are most prone to heart disease in the world due to their lifestyle and eating habits

Indian consumers are increasingly seeking to reduce or modify their sugar intake Shops are now stocking more low-

fat products and sugar-free foods but these are still niche markets In urban areas these products are showing

impressive growth year-on-year

In urban areas people often prefer to buy bottled drinking water in restaurants and while travelling

Indians have a strong preference for fresh products and traditional spices and ingredients

Urban homes are spending on processed food and fruits The most popular fruit for Indian consumers is the banana followed by guavas mangoes and mangosteens and tomatoes

In India rice and pulses such as lentils are the base ingredients of the diet

Distribution

Source Euromonitor International

0

10

20

30

40

50

60

2004 2005 2006 2007

SupermarketsHypermarkets

Discounters

Small Grocery Stores

Other store based retailing

Better for you Purchases by Retail TypemdashAnalysis by Percentage

PAGE 7

Companies and Brands

The table below highlights a continuous decline in market share in the better-for-you category for the

major players

Private label brands are often perceived to offer quality at par with other national brands and offer tiered pricing

which caters to a broader spectrum of consumers

Tamil Nadu Cooperative Milk Producers Federation Ltd showed growth at a minimal 001 in 2006 This

increase may be attributed to the fact that Indian consumers are moving away from carbonated drinks due to more

health conscious awareness

Source Euromonitor International

New Products

The following information has been taken from Mintel

Over 2009 there were 788 new better-for-you foods products launched in India Below are the top new products

launches

There were 190 new lownoreduced fat products launched Cold cereals topped the chart with the most new

product introductions at 32 Savourysalty snacks came in second with 25 new products Dry soup was close

behind with 24 new products Both cheese and bakery products had 10 new product releases Spoonable yogurt

saw eight new product launches followed by fish products with seven new products introduced There were nine

new deserts amp ice cream products launched The oils and dressings and vinegar sub-categories each had five new

products introduced

Brand Shares (by Global Brand Name) - Retail Value RSP - Breakdown Brand Company Name 2005 2006 2007

Mother Dairy National Dairy Development Board 139 129 119

Nandini Karnataka Cooperative Milk Producers Federation Ltd 123 115 104

Amul Gujarat Cooperative Milk Marketing Federation Ltd 101 95 88

Aarey Dairy Development Department Ma-harashtra State 82 75 69

Milma Kerala Cooperative Milk Marketing Fed-erastion Ltd 51 48 43

Anikspray Royal Friesland Foods NV 41 39 37

Gagan Amrit Banjaspati Co Ltd 31 29 27

Sagar Gujarat Cooperative Milk Marketing Federation Ltd 26 24 23

Vijaya Andhra Pradesh Dairy Development Co-operative Federation Ltd 21 21 2

Komatha Hatsun Agro Products Ltd 21 19 18

Aavin Tamil Nadu Cooperative Milk Producers Federation Ltd 17 18 18

Britannia Britannia Industries Ltd 17 17 16

Diet Pepsi PepsiCo Inc 02 02 01

Diet Coke Coca-Cola Co 02 02 01

Others Others 327 369 416

PAGE 8

There were 178 new lownoreduced cholesterol products launched The savourysalty snacks

sub-category was the busiest with 29 new product launches followed closely by nuts with 26

launches and cold cereals also with 26 launches The dry soup sub-category saw 19 new product

introductions followed by nine cookiesbiscuits seven oils and six each for rice and meat substitutes There were

five cerealenergy bar and five savoury biscuitscrackers new products launched

There were 138 new lownoreduced sugar products launched Twenty-one new products were launched in

the gum sub-category followed by 13 in sweet biscuitscookies and 11 in the hot cereals Ten sweeteners amp

sugars eight standard amp power mints and seven cold cereals new products were introduced Boiled sweets

sub-category had six new product launches while the fruit products desserts and yogurts chocolate tablets and

amp baking ingredients mixes sub-categories all had five new product launches

There were 135 new lownoreduced transfats products launched Savourysalty snacks was the top

sub-category with 56 new product launches The sweet biscuitscookies sub-category had 19 new products fol-

lowed by savoury biscuitscrackers with 11 The instant noodle pasta amp rice potato products and snackcereal

energy bar sub-categories had five new product introductions each The oils and seasonings sub-categories each

had four new product launches The cold cereals sub-category saw three new product launches while the boiled

sweets sub-category had two new product launches

There were 83 new lownoreduced calorie products launched Sweeteners and sugars were at the top of the

list with 17 new product launches a close second was savourysalty snacks with 14 new product launches

Following were eight new product introductions in the snackcerealenergy bar sub-category Four oils products

were introduced in addition to three each for boiled sweets rice sweet biscuitscookies and ldquoothersrdquo categories

There were 35 new lownoreduced sodium products launched Hot cereals led this category in new product

launches with six followed by three new products under the rice and fish products sub-categories The boiled

sweets instant noodle pasta and rice nuts oils and meat substitutes sub-categories each launched two new

products

There were 23 new lownoreduced glycemic products launched Savoursalty snacks new products had the

most new product launches with four Rice cold cereals and sweet biscuitscookies each had three new product

launches The sweeteners and sugar sub-category had two new product launches while fruit snacks meat

substitutes shelf-stable deserts stuffing polenta and other side dishes and confiture amp fruit spreads all had only

one new product launch each

There were 6 new lownoreduced carbohydrates products launched Two boiled sweets products were

introduced The remaining sub-categories each launched one new product sweeteners amp sugar nuts cheese and

baking ingredients amp mixes

Consumer Trends

Vitamin and dietary supplement retail sales have doubled since 2001 totaling US$5632 million in 2008 and are

expected to reach US$7494 million by 2013

In response to declining health and increased awareness of good health Indiarsquos over -the-counter (OTC) vitamins and minerals supplement market is growing rapidly

Nutraceutical sales in India for 2009 reached US$13232 million

NUTRACEUTICALS

PAGE 9

There is a marked difference in consumption between urban and rural consumers Urban

consumers represent 70 of the vitamin and dietary supplement market versus 30 attributed to

rural consumers

Indian consumers are spending more on nutritional supplements to combat the effects of stressProtein

supplements and items relating to muscle building are popular due to the increasing fitness and bodybuilding

activity among the urban elite

India consumes the largest quantity of tea in the world Tea makes up 94 of out-of-home per capita hot drink consumption and almost 70 of in-home consumptionSales of coffee tea and cocoa in India increased by 14 from 1995 to 2007The availability of imported tea on retail shelves has increased and there has been growth in sales of tea bag and flavoured teas

Dieting is more prevalent than walking or cycling for weight-loss Rising obesity levels and hypertension in India means that health will become an increasingly important focus for consumers who will therefore seek out products that aid weight loss

In comparison to Western or European countries sports do not play a dominant role in the Indian culture which is traditionaly male dominatedHowever young urban adults are increasingly attracted to adventure sports and this has led to growth in the popularity of river rafting rock climbing and mountaineering clubs This trend may lead to more market interest in reasonably priced sports nutrition products

Sport drinks comprise a niche category in India with consumption largely centered in urban areas High prices however discourage the average consumer from purchasing them Energy-boosting drinks that are glucose-based (such as Glucon-D) are more traditionally used in India for rehydration Note 2009 data is provisional and based on part-year estimates

Distribution

Source Euromonitor Health and Wellness

0

10

20

30

40

50

60

70

80

90

2003 2004 2005 2006

Grocery Retailers

Non-Grocery

Retailers

Mass Merchandisers

Other Non-Grocery

Retailers

Non-Store Retailing

Vending

Homeshopping

Internet Retailing

Nutraceutical Purchases by Retail TypemdashAnalysis by Percentage

PAGE 10

Companies amp Brands

Ayurvedic products (more traditional products sought for their medicinal value) such as chyawanprash are competing with Western products in the supplements market

Direct sellers such as Amway and Herbalife which have been in operation since 1999 are taking the lead in

promoting health supplements despite the availability of many low-cost Indian versions Amway Corp appears to be

leading with a steady hold on first place with a 10 market share

Indian consumers are shifting to private label products The ldquoOthersrdquo grouping of brands holds 527 of market share

though it has been declining over the past few years As stated earlier the possible reason for this group having

captured such a large portion of the market is most likely due to price sensitivity and higher-end offerings Of the

remaining 35 companies 33 hold less than 3 market share

Brands strong in Fast Moving Health Goods (FMHG) in India are Elder Pharma Emami Dabur Hamdard Zandu

Biotique and AUM Himalaya

Gatorade and Stamina are the two major player sports drinks

Imported brands such as Coachs are finding takers in select cities

Brand amp Company Shares - Retail Sales - Breakdown

Brand Company Name 2005 2006 2007 Real Dabur India Ltd 86 102 117

Tropicana PepsiCo Inc 67 67 91

Britannia Britannia Industries Ltd 67 67 68

Dabur Honey Dabur India Ltd 0 0 68

Sunfeast ITC Group 48 5 5

Golden Tips Golden Tips Tea Co Pvt Ltd 33 31 29

Ginar Green Tea Girnar Food amp Beverages Pvt Ltd 31 3 28

Artisanal Artisanal 19 2 22

Jay Green Tea Jay Shree Tea amp Industries Ltd 2 2 18

Modern Unilever Group 17 17 18

McVities Digestive United Biscuits (Holdings) Plc 14 16 18

Bagrrys Bagrrys India Ltd 15 15 16

Figaro Paschim Salts Pvt Ltd 13 14 16

Hot Breads BampM Hot Breads Pvt Ltd 14 15 15

Tilda United Riceland Ltd 14 15 15

Infinitea Gopaldhara Tea Co Pvt Ltd 17 16 15

Haldirams Haldiram Foods Intl Ltd 15 15 14

Daawat LT Overseas Ltd 15 15 14

Bertolli Unilever Group 13 14 14

Wuyi Mountain Tea Lochan Tea Ltd 12 12 12

Sofit Hershey Co 0 0 07

KhoCha Pure Darjeeling Green Tea Kho-Cha Darjeeling Tea Bureau 1 08 06

Hey-Song Himalaya Drug Co 06 06 06

Staeta ProSoya Corp USA 05 05 06

Source Euromonitor Health and Wellness

PAGE 11

New Products

The following information has been taken from Mintel

Over 2009 there were 302 nutraceutical products launched in India Below are the top new products

There were 55 new product launches in the high protein category Hot cereals and meat substitutes each

introduced seven new products Snackcerealenergy bars tied with baking ingredients and mixes at five new

products a piece Instant noodles pasta and rice launched four new products

while vegetables and cold cereals introduced three new products each Baby

cereals introduced two new products as did the nut sub-category ldquoOthersrdquo

rounded out the protein category with 12 new products

Fifty-three new diabetic products entered the market Sweeteners dominated

the category with 11 new products Six baking ingredients and mixes appeared

on the shelves Rice chocolate tablets and meat substitute each had three new

product launches Last boiled sweets fruit snacks seasonings and shelf-stable

deserts categories each launched two new products into the market The ldquootherrdquo

category rounded out this group with 15 new products introduced

The all natural category had 24 new product launches in the prepared meals

sub-category Following closely behind is the seasonings category with 22 new product

launches Savorysalty snacks and oils tied for third place with 13 new product launches

each There were 10 new hot cereal product launches and seven new honey products

The anti-aging category had little activity in the way of new product launches however

there were three introductions two oils and one medicated confectionery

ORGANICS

Consumer Trends

According to the Indian Competence Centre for Organic Agriculture the organic food industry in India is estimated currently at US$129 million in 2009 Of the Indian consumers buying organics 66 cited the health of their children as the main thrust for purchasing organic food

Naturalness and wholesomeness is driving growth in the consumption of organic eggs

Indian consumers prefer organic marmalade organic strawberry jam organic tea organic honey organic

cashew butter and various organic flours

PAGE 12

Distribution

Production of organic food has increased in India over the last couple of years however about 70 of the organic food produced in India is exported Due to low consumer awareness about organic food supermarkets hardly stock any on their shelves So it is even more unlikely for smaller stores sell organic food The awareness of organics is gradually increasing in urban areas and in the future supermarkets are expected to stock more of it as the middle class grows and consumer awareness improves

Various stakeholders in the Indian organicrsquos community are pushing to have organic products carried in regular chainstores making it more easily accessible

Companies amp Brands

No statistical data is available for brand or company market share however in the table below listed in descending order are the most popular brands of organic food and beverages in the Indian market for 2008-2009 Source Mintel India Organic Products

Brand Company

24 Letter Mantra Sresta Natural Bioproducts

Fabindia Organics Fabindia Overseas

Waitrose Organic Waitrose

Amalgam Keya Amalgam Foods

India Gate KRBL

Bajaj SK Gajaj Sanjay

Grewals Organic Agriculture Farm Grewals Organic Agriculture Farm

Kohinoors Exclusive Organic Kinhinoor Foods

Pro Nature Organic Staples Pro Nature Organic Foods

Earths Best Organic Hain-Celestial Group

New Products

The following information has been taken from Mintel

Over the past 12 months there have been 70 new organic products launched in India with the Top 10

companies claiming 64 new product launches Below are the top new organic product launches

Sauces and seasonings led with 23 introductions with 24 Letter Mantra producing eight and Fabindia Organics

releasing seven followed by ldquoOthersrdquo whose combined new products totaled six

24 Letter Mantra released seven new snacks with no other competition

The bakery category saw six new product launches The players involved are 24 Letter Mantra (3) Waitrose

Organic (1) Gerwalrsquos Organic Ag Farm (1) and ldquoOthersrdquo (1)

Sweet spread launches totaled four as did sweeteners amp sugars

The other category had five new product introductions which fell under the side dishes sub-category India

Gate and Hello Organic both released two new products with only 24 Letter Mantra rounding out the competition

with one new product released

The processed fish meat and egg products dairy and breakfast cereals categories each launched 3 new

products

A large majority of the new products launched were plain or unflavoured Garlic was the most popular flavouring

followed by mustard herbs thai lentil sugar and spice

PAGE 13

This report analyses the market for Health and Wellness Food and Beverages in India For the purposes of this study

the market has been defined as follows

Functional Foodsmdash Items to which health ingredients have been added These functional foods and beverages should

have a specific physiological function andor are enhanced with added ingredients not normally found in the product

providing health benefits beyond their nutritional value The categories covered in this segment are added calcium

functional digestive functional immune system functional bone health and vitaminmineral fortified

Better for you (BFY) Foodsmdash The category includes packaged food and beverage products where the amount of a

substance considered to be less healthy (fat sugar salt carbohydrates) has been actively reduced during production

To qualitfy for inclusion in this category the ldquoless healthyrdquo element of the food stuff needs to have been actively removed

or substituted during the processing This should form part of the positioningmarketing of the product Products which

are naturally fatsugarcarbohydratemdashfree are not included The categories covered in this segment are lownoreduced

fat lownoreduced sugar lownoreduced sodium lownoreduced glycemic and nolowreduced cholesterol

NutraceuticalsmdashNatural substances are found in food which have medicinal properties to treat or prevent certain

diseases These natural substances can be added to the diet by increasing consumption of certain foods or can be taken

as nutritional supplements Products typically claim to prevent chronic diseases improve health delay the aging process

and increase life expectancy The categories covered in this segment are vitamins sports products herbal

supplements meal replacement products and slimming products

OrganicmdashProducts that are certified organic by an approved certification body Depending on the country such

products are called ldquoorganicrdquo biologicalrdquo or ldquoecologicalrsquo

The usage of the above categories are taken from both Euromonitor International and Mintel These groupings represent

globally accepted classification and product identification for the purpose of data collection

ANNEX lsquoArsquo DEFINITIONS

PAGE 3

India Health amp WellnessmdashFood amp Beverage Market Retail Sales

(US$ millions) 2004 2005 2006 2007

Organic Food and Beverages - - - -

FortifiedFunctional Food and Beverages

5129 5536 6333 7167

Better for you Food and Beverages 16168 17308 21578 27133

Source Health and Wellness Sector Euromonitor Note (-) no statistics available at this time

India Health amp WellnessmdashNutritionals Market Retail Sales

(US$ mn ) 2005 2006 2007 2008

Vitamins and dietary supplements 4606 5056 5486 6062

Herbaltraditional products 4111 4523 4939 5471

Slimming products 247 295 343 393

Sports nutrition - - - -

Source Health and Wellness Sector Euromonitor Note (-) no statistics available at this time

India Health amp Wellness Market Retail Sales

(US$ mn ) 2003 2004 2005 2006 2007

Health and WellnessmdashNutritionals

6504 7052 7766 8526 9336

Health and Wellnessmdash Food and Beverage 22844 24494 26441 3199 38973

Source Health and Wellness Euromonitor from trade sourcesnational statistics

FORTIFIEDFUNCTIONAL

PAGE 4

Consumer Trends

Generally speaking consumer awareness of fortifiedfunctional products is low A recent survey shows 80 of Indians agree that health considerations significantly influence their choice of food and drinks Approximately 48 of these respondents feel that functional food claims play a significant role in their purchasing decisions for food and beverage products

Products that reduce stress prevent aging help the heart and fight diabetes are all on a positive growth curve in India

Dairy-based beverages such as reduced-fat flavoured milk drinks and sour milk drinks are expected to witness double-digit value growth over the forecast period of 2007to 2015 India the worlds largest malt-based drink market accounts for 22 of the worlds retail volume sales as they are traditionally consumed as milk substitutes These drinks are marketed as nutritious and are mainly consumed by the old the young and those who are ill Sales got a boost by improved retail and distribution in recent years

Cereal bars digestive biscuits and functional bread products have also found acceptance among Indian consumers Cereals and cereal substitutes account for 38 of rural consumersrsquo monthly household food spend-ingWheat is the main cereal eaten in northern and western Indian states Rice cereal is preferred in the south-ern and eastern states

Distribution

Source Health and Wellness Sector Euromonitor

0

10

20

30

40

50

60

70

80

90

2003 2004 2005 2006 2007 2008

Grocery Retailers

Non-Grocery Retailers

ChemistsPharmacies

Healthfood shops

Other Non-Grocery Retailers

Direct Selling

FortifiedFunctional Purchases by Retail TypemdashAnalysis by

Percentage

PAGE 5

Companies and Brands

With rising pressure on margins following the economic slowdown retailers are now looking at private label sales to boost their bottom lines These retailers have projected at 10 to 15 increase in private label sales over the next two to three years

RSP Retail Sales Price Source Euromonitor Health and Wellness

Brand Shares (by Global Brand Name) - Retail Value RSP - Breakdown

Brand Company Name 2005 2006 2007 Horlicks GlaxoSmithKline PLC 424 422 416

Cadburys Bournvita Cadbury Schweppes Plc 10 99 97

Milo Nestle SA 4 43 42

Vicks Proctor amp Gamble Co 45 42 38

Parle Parle Products Pvt Ltd 3 32 34

Maltova GlaxoSmithKline PLC 33 33 32

Halls Cadbury Schweppes Plc 25 23 24

Britannia Britannia Industries Ltd 2 21 22

Kelloggs Corn Flakes Kellogg Co 12 13 14

Viva GlaxoSmithKline PLC 17 16 13

True VitaMilk Vitamin Enriched Milk Biscuits

Aurofood Pvt Ltd

12 13 13

Kellogs Chocos Kellogg Co 07 08 08

Orbit Wrigley Jr Co William 03 05 07

Happydent Perfetti Van Melle Group 04 04 05

Kellogs Frosties Kellogg Co 06 05 05

Acti-V Nestle SA 02 0 0

Others Others 222 22 232

New Products

The following information has been taken from Mintel

Over the past 12 months there have been 116 new functional foods products launched in India Below you will find the

details concerning these products launches

Eighty new functional-cardiovascular products were launched The most active sub-category was oils with 19 new

products introduced followed by 10 new hot cereal product introduction Both the cold cereals and sweet biscuits

cookies categories introduced five new products each The nuts and savory biscuitscrackers sub-categories each had

four new products appear on store shelves

Under the functionalndashimmune system product category 36 products were launched Ten baby food products were

introduced Seven new oils were launched two medicated confectionery two cold cereals and one syrup products were

also introduced to the market

PAGE 6

BETTER-FOR-YOU

Consumer Trends

Reducing fat intake is the most important and frequently practiced dietary approach by consumers in Asia Pacific Low cholesterol oil products are becoming increasingly popular among the Indian consumers who are most prone to heart disease in the world due to their lifestyle and eating habits

Indian consumers are increasingly seeking to reduce or modify their sugar intake Shops are now stocking more low-

fat products and sugar-free foods but these are still niche markets In urban areas these products are showing

impressive growth year-on-year

In urban areas people often prefer to buy bottled drinking water in restaurants and while travelling

Indians have a strong preference for fresh products and traditional spices and ingredients

Urban homes are spending on processed food and fruits The most popular fruit for Indian consumers is the banana followed by guavas mangoes and mangosteens and tomatoes

In India rice and pulses such as lentils are the base ingredients of the diet

Distribution

Source Euromonitor International

0

10

20

30

40

50

60

2004 2005 2006 2007

SupermarketsHypermarkets

Discounters

Small Grocery Stores

Other store based retailing

Better for you Purchases by Retail TypemdashAnalysis by Percentage

PAGE 7

Companies and Brands

The table below highlights a continuous decline in market share in the better-for-you category for the

major players

Private label brands are often perceived to offer quality at par with other national brands and offer tiered pricing

which caters to a broader spectrum of consumers

Tamil Nadu Cooperative Milk Producers Federation Ltd showed growth at a minimal 001 in 2006 This

increase may be attributed to the fact that Indian consumers are moving away from carbonated drinks due to more

health conscious awareness

Source Euromonitor International

New Products

The following information has been taken from Mintel

Over 2009 there were 788 new better-for-you foods products launched in India Below are the top new products

launches

There were 190 new lownoreduced fat products launched Cold cereals topped the chart with the most new

product introductions at 32 Savourysalty snacks came in second with 25 new products Dry soup was close

behind with 24 new products Both cheese and bakery products had 10 new product releases Spoonable yogurt

saw eight new product launches followed by fish products with seven new products introduced There were nine

new deserts amp ice cream products launched The oils and dressings and vinegar sub-categories each had five new

products introduced

Brand Shares (by Global Brand Name) - Retail Value RSP - Breakdown Brand Company Name 2005 2006 2007

Mother Dairy National Dairy Development Board 139 129 119

Nandini Karnataka Cooperative Milk Producers Federation Ltd 123 115 104

Amul Gujarat Cooperative Milk Marketing Federation Ltd 101 95 88

Aarey Dairy Development Department Ma-harashtra State 82 75 69

Milma Kerala Cooperative Milk Marketing Fed-erastion Ltd 51 48 43

Anikspray Royal Friesland Foods NV 41 39 37

Gagan Amrit Banjaspati Co Ltd 31 29 27

Sagar Gujarat Cooperative Milk Marketing Federation Ltd 26 24 23

Vijaya Andhra Pradesh Dairy Development Co-operative Federation Ltd 21 21 2

Komatha Hatsun Agro Products Ltd 21 19 18

Aavin Tamil Nadu Cooperative Milk Producers Federation Ltd 17 18 18

Britannia Britannia Industries Ltd 17 17 16

Diet Pepsi PepsiCo Inc 02 02 01

Diet Coke Coca-Cola Co 02 02 01

Others Others 327 369 416

PAGE 8

There were 178 new lownoreduced cholesterol products launched The savourysalty snacks

sub-category was the busiest with 29 new product launches followed closely by nuts with 26

launches and cold cereals also with 26 launches The dry soup sub-category saw 19 new product

introductions followed by nine cookiesbiscuits seven oils and six each for rice and meat substitutes There were

five cerealenergy bar and five savoury biscuitscrackers new products launched

There were 138 new lownoreduced sugar products launched Twenty-one new products were launched in

the gum sub-category followed by 13 in sweet biscuitscookies and 11 in the hot cereals Ten sweeteners amp

sugars eight standard amp power mints and seven cold cereals new products were introduced Boiled sweets

sub-category had six new product launches while the fruit products desserts and yogurts chocolate tablets and

amp baking ingredients mixes sub-categories all had five new product launches

There were 135 new lownoreduced transfats products launched Savourysalty snacks was the top

sub-category with 56 new product launches The sweet biscuitscookies sub-category had 19 new products fol-

lowed by savoury biscuitscrackers with 11 The instant noodle pasta amp rice potato products and snackcereal

energy bar sub-categories had five new product introductions each The oils and seasonings sub-categories each

had four new product launches The cold cereals sub-category saw three new product launches while the boiled

sweets sub-category had two new product launches

There were 83 new lownoreduced calorie products launched Sweeteners and sugars were at the top of the

list with 17 new product launches a close second was savourysalty snacks with 14 new product launches

Following were eight new product introductions in the snackcerealenergy bar sub-category Four oils products

were introduced in addition to three each for boiled sweets rice sweet biscuitscookies and ldquoothersrdquo categories

There were 35 new lownoreduced sodium products launched Hot cereals led this category in new product

launches with six followed by three new products under the rice and fish products sub-categories The boiled

sweets instant noodle pasta and rice nuts oils and meat substitutes sub-categories each launched two new

products

There were 23 new lownoreduced glycemic products launched Savoursalty snacks new products had the

most new product launches with four Rice cold cereals and sweet biscuitscookies each had three new product

launches The sweeteners and sugar sub-category had two new product launches while fruit snacks meat

substitutes shelf-stable deserts stuffing polenta and other side dishes and confiture amp fruit spreads all had only

one new product launch each

There were 6 new lownoreduced carbohydrates products launched Two boiled sweets products were

introduced The remaining sub-categories each launched one new product sweeteners amp sugar nuts cheese and

baking ingredients amp mixes

Consumer Trends

Vitamin and dietary supplement retail sales have doubled since 2001 totaling US$5632 million in 2008 and are

expected to reach US$7494 million by 2013

In response to declining health and increased awareness of good health Indiarsquos over -the-counter (OTC) vitamins and minerals supplement market is growing rapidly

Nutraceutical sales in India for 2009 reached US$13232 million

NUTRACEUTICALS

PAGE 9

There is a marked difference in consumption between urban and rural consumers Urban

consumers represent 70 of the vitamin and dietary supplement market versus 30 attributed to

rural consumers

Indian consumers are spending more on nutritional supplements to combat the effects of stressProtein

supplements and items relating to muscle building are popular due to the increasing fitness and bodybuilding

activity among the urban elite

India consumes the largest quantity of tea in the world Tea makes up 94 of out-of-home per capita hot drink consumption and almost 70 of in-home consumptionSales of coffee tea and cocoa in India increased by 14 from 1995 to 2007The availability of imported tea on retail shelves has increased and there has been growth in sales of tea bag and flavoured teas

Dieting is more prevalent than walking or cycling for weight-loss Rising obesity levels and hypertension in India means that health will become an increasingly important focus for consumers who will therefore seek out products that aid weight loss

In comparison to Western or European countries sports do not play a dominant role in the Indian culture which is traditionaly male dominatedHowever young urban adults are increasingly attracted to adventure sports and this has led to growth in the popularity of river rafting rock climbing and mountaineering clubs This trend may lead to more market interest in reasonably priced sports nutrition products

Sport drinks comprise a niche category in India with consumption largely centered in urban areas High prices however discourage the average consumer from purchasing them Energy-boosting drinks that are glucose-based (such as Glucon-D) are more traditionally used in India for rehydration Note 2009 data is provisional and based on part-year estimates

Distribution

Source Euromonitor Health and Wellness

0

10

20

30

40

50

60

70

80

90

2003 2004 2005 2006

Grocery Retailers

Non-Grocery

Retailers

Mass Merchandisers

Other Non-Grocery

Retailers

Non-Store Retailing

Vending

Homeshopping

Internet Retailing

Nutraceutical Purchases by Retail TypemdashAnalysis by Percentage

PAGE 10

Companies amp Brands

Ayurvedic products (more traditional products sought for their medicinal value) such as chyawanprash are competing with Western products in the supplements market

Direct sellers such as Amway and Herbalife which have been in operation since 1999 are taking the lead in

promoting health supplements despite the availability of many low-cost Indian versions Amway Corp appears to be

leading with a steady hold on first place with a 10 market share

Indian consumers are shifting to private label products The ldquoOthersrdquo grouping of brands holds 527 of market share

though it has been declining over the past few years As stated earlier the possible reason for this group having

captured such a large portion of the market is most likely due to price sensitivity and higher-end offerings Of the

remaining 35 companies 33 hold less than 3 market share

Brands strong in Fast Moving Health Goods (FMHG) in India are Elder Pharma Emami Dabur Hamdard Zandu

Biotique and AUM Himalaya

Gatorade and Stamina are the two major player sports drinks

Imported brands such as Coachs are finding takers in select cities

Brand amp Company Shares - Retail Sales - Breakdown

Brand Company Name 2005 2006 2007 Real Dabur India Ltd 86 102 117

Tropicana PepsiCo Inc 67 67 91

Britannia Britannia Industries Ltd 67 67 68

Dabur Honey Dabur India Ltd 0 0 68

Sunfeast ITC Group 48 5 5

Golden Tips Golden Tips Tea Co Pvt Ltd 33 31 29

Ginar Green Tea Girnar Food amp Beverages Pvt Ltd 31 3 28

Artisanal Artisanal 19 2 22

Jay Green Tea Jay Shree Tea amp Industries Ltd 2 2 18

Modern Unilever Group 17 17 18

McVities Digestive United Biscuits (Holdings) Plc 14 16 18

Bagrrys Bagrrys India Ltd 15 15 16

Figaro Paschim Salts Pvt Ltd 13 14 16

Hot Breads BampM Hot Breads Pvt Ltd 14 15 15

Tilda United Riceland Ltd 14 15 15

Infinitea Gopaldhara Tea Co Pvt Ltd 17 16 15

Haldirams Haldiram Foods Intl Ltd 15 15 14

Daawat LT Overseas Ltd 15 15 14

Bertolli Unilever Group 13 14 14

Wuyi Mountain Tea Lochan Tea Ltd 12 12 12

Sofit Hershey Co 0 0 07

KhoCha Pure Darjeeling Green Tea Kho-Cha Darjeeling Tea Bureau 1 08 06

Hey-Song Himalaya Drug Co 06 06 06

Staeta ProSoya Corp USA 05 05 06

Source Euromonitor Health and Wellness

PAGE 11

New Products

The following information has been taken from Mintel

Over 2009 there were 302 nutraceutical products launched in India Below are the top new products

There were 55 new product launches in the high protein category Hot cereals and meat substitutes each

introduced seven new products Snackcerealenergy bars tied with baking ingredients and mixes at five new

products a piece Instant noodles pasta and rice launched four new products

while vegetables and cold cereals introduced three new products each Baby

cereals introduced two new products as did the nut sub-category ldquoOthersrdquo

rounded out the protein category with 12 new products

Fifty-three new diabetic products entered the market Sweeteners dominated

the category with 11 new products Six baking ingredients and mixes appeared

on the shelves Rice chocolate tablets and meat substitute each had three new

product launches Last boiled sweets fruit snacks seasonings and shelf-stable

deserts categories each launched two new products into the market The ldquootherrdquo

category rounded out this group with 15 new products introduced

The all natural category had 24 new product launches in the prepared meals

sub-category Following closely behind is the seasonings category with 22 new product

launches Savorysalty snacks and oils tied for third place with 13 new product launches

each There were 10 new hot cereal product launches and seven new honey products

The anti-aging category had little activity in the way of new product launches however

there were three introductions two oils and one medicated confectionery

ORGANICS

Consumer Trends

According to the Indian Competence Centre for Organic Agriculture the organic food industry in India is estimated currently at US$129 million in 2009 Of the Indian consumers buying organics 66 cited the health of their children as the main thrust for purchasing organic food

Naturalness and wholesomeness is driving growth in the consumption of organic eggs

Indian consumers prefer organic marmalade organic strawberry jam organic tea organic honey organic

cashew butter and various organic flours

PAGE 12

Distribution

Production of organic food has increased in India over the last couple of years however about 70 of the organic food produced in India is exported Due to low consumer awareness about organic food supermarkets hardly stock any on their shelves So it is even more unlikely for smaller stores sell organic food The awareness of organics is gradually increasing in urban areas and in the future supermarkets are expected to stock more of it as the middle class grows and consumer awareness improves

Various stakeholders in the Indian organicrsquos community are pushing to have organic products carried in regular chainstores making it more easily accessible

Companies amp Brands

No statistical data is available for brand or company market share however in the table below listed in descending order are the most popular brands of organic food and beverages in the Indian market for 2008-2009 Source Mintel India Organic Products

Brand Company

24 Letter Mantra Sresta Natural Bioproducts

Fabindia Organics Fabindia Overseas

Waitrose Organic Waitrose

Amalgam Keya Amalgam Foods

India Gate KRBL

Bajaj SK Gajaj Sanjay

Grewals Organic Agriculture Farm Grewals Organic Agriculture Farm

Kohinoors Exclusive Organic Kinhinoor Foods

Pro Nature Organic Staples Pro Nature Organic Foods

Earths Best Organic Hain-Celestial Group

New Products

The following information has been taken from Mintel

Over the past 12 months there have been 70 new organic products launched in India with the Top 10

companies claiming 64 new product launches Below are the top new organic product launches

Sauces and seasonings led with 23 introductions with 24 Letter Mantra producing eight and Fabindia Organics

releasing seven followed by ldquoOthersrdquo whose combined new products totaled six

24 Letter Mantra released seven new snacks with no other competition

The bakery category saw six new product launches The players involved are 24 Letter Mantra (3) Waitrose

Organic (1) Gerwalrsquos Organic Ag Farm (1) and ldquoOthersrdquo (1)

Sweet spread launches totaled four as did sweeteners amp sugars

The other category had five new product introductions which fell under the side dishes sub-category India

Gate and Hello Organic both released two new products with only 24 Letter Mantra rounding out the competition

with one new product released

The processed fish meat and egg products dairy and breakfast cereals categories each launched 3 new

products

A large majority of the new products launched were plain or unflavoured Garlic was the most popular flavouring

followed by mustard herbs thai lentil sugar and spice

PAGE 13

This report analyses the market for Health and Wellness Food and Beverages in India For the purposes of this study

the market has been defined as follows

Functional Foodsmdash Items to which health ingredients have been added These functional foods and beverages should

have a specific physiological function andor are enhanced with added ingredients not normally found in the product

providing health benefits beyond their nutritional value The categories covered in this segment are added calcium

functional digestive functional immune system functional bone health and vitaminmineral fortified

Better for you (BFY) Foodsmdash The category includes packaged food and beverage products where the amount of a

substance considered to be less healthy (fat sugar salt carbohydrates) has been actively reduced during production

To qualitfy for inclusion in this category the ldquoless healthyrdquo element of the food stuff needs to have been actively removed

or substituted during the processing This should form part of the positioningmarketing of the product Products which

are naturally fatsugarcarbohydratemdashfree are not included The categories covered in this segment are lownoreduced

fat lownoreduced sugar lownoreduced sodium lownoreduced glycemic and nolowreduced cholesterol

NutraceuticalsmdashNatural substances are found in food which have medicinal properties to treat or prevent certain

diseases These natural substances can be added to the diet by increasing consumption of certain foods or can be taken

as nutritional supplements Products typically claim to prevent chronic diseases improve health delay the aging process

and increase life expectancy The categories covered in this segment are vitamins sports products herbal

supplements meal replacement products and slimming products

OrganicmdashProducts that are certified organic by an approved certification body Depending on the country such

products are called ldquoorganicrdquo biologicalrdquo or ldquoecologicalrsquo

The usage of the above categories are taken from both Euromonitor International and Mintel These groupings represent

globally accepted classification and product identification for the purpose of data collection

ANNEX lsquoArsquo DEFINITIONS

FORTIFIEDFUNCTIONAL

PAGE 4

Consumer Trends

Generally speaking consumer awareness of fortifiedfunctional products is low A recent survey shows 80 of Indians agree that health considerations significantly influence their choice of food and drinks Approximately 48 of these respondents feel that functional food claims play a significant role in their purchasing decisions for food and beverage products

Products that reduce stress prevent aging help the heart and fight diabetes are all on a positive growth curve in India

Dairy-based beverages such as reduced-fat flavoured milk drinks and sour milk drinks are expected to witness double-digit value growth over the forecast period of 2007to 2015 India the worlds largest malt-based drink market accounts for 22 of the worlds retail volume sales as they are traditionally consumed as milk substitutes These drinks are marketed as nutritious and are mainly consumed by the old the young and those who are ill Sales got a boost by improved retail and distribution in recent years

Cereal bars digestive biscuits and functional bread products have also found acceptance among Indian consumers Cereals and cereal substitutes account for 38 of rural consumersrsquo monthly household food spend-ingWheat is the main cereal eaten in northern and western Indian states Rice cereal is preferred in the south-ern and eastern states

Distribution

Source Health and Wellness Sector Euromonitor

0

10

20

30

40

50

60

70

80

90

2003 2004 2005 2006 2007 2008

Grocery Retailers

Non-Grocery Retailers

ChemistsPharmacies

Healthfood shops

Other Non-Grocery Retailers

Direct Selling

FortifiedFunctional Purchases by Retail TypemdashAnalysis by

Percentage

PAGE 5

Companies and Brands

With rising pressure on margins following the economic slowdown retailers are now looking at private label sales to boost their bottom lines These retailers have projected at 10 to 15 increase in private label sales over the next two to three years

RSP Retail Sales Price Source Euromonitor Health and Wellness

Brand Shares (by Global Brand Name) - Retail Value RSP - Breakdown

Brand Company Name 2005 2006 2007 Horlicks GlaxoSmithKline PLC 424 422 416

Cadburys Bournvita Cadbury Schweppes Plc 10 99 97

Milo Nestle SA 4 43 42

Vicks Proctor amp Gamble Co 45 42 38

Parle Parle Products Pvt Ltd 3 32 34

Maltova GlaxoSmithKline PLC 33 33 32

Halls Cadbury Schweppes Plc 25 23 24

Britannia Britannia Industries Ltd 2 21 22

Kelloggs Corn Flakes Kellogg Co 12 13 14

Viva GlaxoSmithKline PLC 17 16 13

True VitaMilk Vitamin Enriched Milk Biscuits

Aurofood Pvt Ltd

12 13 13

Kellogs Chocos Kellogg Co 07 08 08

Orbit Wrigley Jr Co William 03 05 07

Happydent Perfetti Van Melle Group 04 04 05

Kellogs Frosties Kellogg Co 06 05 05

Acti-V Nestle SA 02 0 0

Others Others 222 22 232

New Products

The following information has been taken from Mintel

Over the past 12 months there have been 116 new functional foods products launched in India Below you will find the

details concerning these products launches

Eighty new functional-cardiovascular products were launched The most active sub-category was oils with 19 new

products introduced followed by 10 new hot cereal product introduction Both the cold cereals and sweet biscuits

cookies categories introduced five new products each The nuts and savory biscuitscrackers sub-categories each had

four new products appear on store shelves

Under the functionalndashimmune system product category 36 products were launched Ten baby food products were

introduced Seven new oils were launched two medicated confectionery two cold cereals and one syrup products were

also introduced to the market

PAGE 6

BETTER-FOR-YOU

Consumer Trends

Reducing fat intake is the most important and frequently practiced dietary approach by consumers in Asia Pacific Low cholesterol oil products are becoming increasingly popular among the Indian consumers who are most prone to heart disease in the world due to their lifestyle and eating habits

Indian consumers are increasingly seeking to reduce or modify their sugar intake Shops are now stocking more low-

fat products and sugar-free foods but these are still niche markets In urban areas these products are showing

impressive growth year-on-year

In urban areas people often prefer to buy bottled drinking water in restaurants and while travelling

Indians have a strong preference for fresh products and traditional spices and ingredients

Urban homes are spending on processed food and fruits The most popular fruit for Indian consumers is the banana followed by guavas mangoes and mangosteens and tomatoes

In India rice and pulses such as lentils are the base ingredients of the diet

Distribution

Source Euromonitor International

0

10

20

30

40

50

60

2004 2005 2006 2007

SupermarketsHypermarkets

Discounters

Small Grocery Stores

Other store based retailing

Better for you Purchases by Retail TypemdashAnalysis by Percentage

PAGE 7

Companies and Brands

The table below highlights a continuous decline in market share in the better-for-you category for the

major players

Private label brands are often perceived to offer quality at par with other national brands and offer tiered pricing

which caters to a broader spectrum of consumers

Tamil Nadu Cooperative Milk Producers Federation Ltd showed growth at a minimal 001 in 2006 This

increase may be attributed to the fact that Indian consumers are moving away from carbonated drinks due to more

health conscious awareness

Source Euromonitor International

New Products

The following information has been taken from Mintel

Over 2009 there were 788 new better-for-you foods products launched in India Below are the top new products

launches

There were 190 new lownoreduced fat products launched Cold cereals topped the chart with the most new

product introductions at 32 Savourysalty snacks came in second with 25 new products Dry soup was close

behind with 24 new products Both cheese and bakery products had 10 new product releases Spoonable yogurt

saw eight new product launches followed by fish products with seven new products introduced There were nine

new deserts amp ice cream products launched The oils and dressings and vinegar sub-categories each had five new

products introduced

Brand Shares (by Global Brand Name) - Retail Value RSP - Breakdown Brand Company Name 2005 2006 2007

Mother Dairy National Dairy Development Board 139 129 119

Nandini Karnataka Cooperative Milk Producers Federation Ltd 123 115 104

Amul Gujarat Cooperative Milk Marketing Federation Ltd 101 95 88

Aarey Dairy Development Department Ma-harashtra State 82 75 69

Milma Kerala Cooperative Milk Marketing Fed-erastion Ltd 51 48 43

Anikspray Royal Friesland Foods NV 41 39 37

Gagan Amrit Banjaspati Co Ltd 31 29 27

Sagar Gujarat Cooperative Milk Marketing Federation Ltd 26 24 23

Vijaya Andhra Pradesh Dairy Development Co-operative Federation Ltd 21 21 2

Komatha Hatsun Agro Products Ltd 21 19 18

Aavin Tamil Nadu Cooperative Milk Producers Federation Ltd 17 18 18

Britannia Britannia Industries Ltd 17 17 16

Diet Pepsi PepsiCo Inc 02 02 01

Diet Coke Coca-Cola Co 02 02 01

Others Others 327 369 416

PAGE 8

There were 178 new lownoreduced cholesterol products launched The savourysalty snacks

sub-category was the busiest with 29 new product launches followed closely by nuts with 26

launches and cold cereals also with 26 launches The dry soup sub-category saw 19 new product

introductions followed by nine cookiesbiscuits seven oils and six each for rice and meat substitutes There were

five cerealenergy bar and five savoury biscuitscrackers new products launched

There were 138 new lownoreduced sugar products launched Twenty-one new products were launched in

the gum sub-category followed by 13 in sweet biscuitscookies and 11 in the hot cereals Ten sweeteners amp

sugars eight standard amp power mints and seven cold cereals new products were introduced Boiled sweets

sub-category had six new product launches while the fruit products desserts and yogurts chocolate tablets and

amp baking ingredients mixes sub-categories all had five new product launches

There were 135 new lownoreduced transfats products launched Savourysalty snacks was the top

sub-category with 56 new product launches The sweet biscuitscookies sub-category had 19 new products fol-

lowed by savoury biscuitscrackers with 11 The instant noodle pasta amp rice potato products and snackcereal

energy bar sub-categories had five new product introductions each The oils and seasonings sub-categories each

had four new product launches The cold cereals sub-category saw three new product launches while the boiled

sweets sub-category had two new product launches

There were 83 new lownoreduced calorie products launched Sweeteners and sugars were at the top of the

list with 17 new product launches a close second was savourysalty snacks with 14 new product launches

Following were eight new product introductions in the snackcerealenergy bar sub-category Four oils products

were introduced in addition to three each for boiled sweets rice sweet biscuitscookies and ldquoothersrdquo categories

There were 35 new lownoreduced sodium products launched Hot cereals led this category in new product

launches with six followed by three new products under the rice and fish products sub-categories The boiled

sweets instant noodle pasta and rice nuts oils and meat substitutes sub-categories each launched two new

products

There were 23 new lownoreduced glycemic products launched Savoursalty snacks new products had the

most new product launches with four Rice cold cereals and sweet biscuitscookies each had three new product

launches The sweeteners and sugar sub-category had two new product launches while fruit snacks meat

substitutes shelf-stable deserts stuffing polenta and other side dishes and confiture amp fruit spreads all had only

one new product launch each

There were 6 new lownoreduced carbohydrates products launched Two boiled sweets products were

introduced The remaining sub-categories each launched one new product sweeteners amp sugar nuts cheese and

baking ingredients amp mixes

Consumer Trends

Vitamin and dietary supplement retail sales have doubled since 2001 totaling US$5632 million in 2008 and are

expected to reach US$7494 million by 2013

In response to declining health and increased awareness of good health Indiarsquos over -the-counter (OTC) vitamins and minerals supplement market is growing rapidly

Nutraceutical sales in India for 2009 reached US$13232 million

NUTRACEUTICALS

PAGE 9

There is a marked difference in consumption between urban and rural consumers Urban

consumers represent 70 of the vitamin and dietary supplement market versus 30 attributed to

rural consumers

Indian consumers are spending more on nutritional supplements to combat the effects of stressProtein

supplements and items relating to muscle building are popular due to the increasing fitness and bodybuilding

activity among the urban elite

India consumes the largest quantity of tea in the world Tea makes up 94 of out-of-home per capita hot drink consumption and almost 70 of in-home consumptionSales of coffee tea and cocoa in India increased by 14 from 1995 to 2007The availability of imported tea on retail shelves has increased and there has been growth in sales of tea bag and flavoured teas

Dieting is more prevalent than walking or cycling for weight-loss Rising obesity levels and hypertension in India means that health will become an increasingly important focus for consumers who will therefore seek out products that aid weight loss

In comparison to Western or European countries sports do not play a dominant role in the Indian culture which is traditionaly male dominatedHowever young urban adults are increasingly attracted to adventure sports and this has led to growth in the popularity of river rafting rock climbing and mountaineering clubs This trend may lead to more market interest in reasonably priced sports nutrition products

Sport drinks comprise a niche category in India with consumption largely centered in urban areas High prices however discourage the average consumer from purchasing them Energy-boosting drinks that are glucose-based (such as Glucon-D) are more traditionally used in India for rehydration Note 2009 data is provisional and based on part-year estimates

Distribution

Source Euromonitor Health and Wellness

0

10

20

30

40

50

60

70

80

90

2003 2004 2005 2006

Grocery Retailers

Non-Grocery

Retailers

Mass Merchandisers

Other Non-Grocery

Retailers

Non-Store Retailing

Vending

Homeshopping

Internet Retailing

Nutraceutical Purchases by Retail TypemdashAnalysis by Percentage

PAGE 10

Companies amp Brands

Ayurvedic products (more traditional products sought for their medicinal value) such as chyawanprash are competing with Western products in the supplements market

Direct sellers such as Amway and Herbalife which have been in operation since 1999 are taking the lead in

promoting health supplements despite the availability of many low-cost Indian versions Amway Corp appears to be

leading with a steady hold on first place with a 10 market share

Indian consumers are shifting to private label products The ldquoOthersrdquo grouping of brands holds 527 of market share

though it has been declining over the past few years As stated earlier the possible reason for this group having

captured such a large portion of the market is most likely due to price sensitivity and higher-end offerings Of the

remaining 35 companies 33 hold less than 3 market share

Brands strong in Fast Moving Health Goods (FMHG) in India are Elder Pharma Emami Dabur Hamdard Zandu

Biotique and AUM Himalaya

Gatorade and Stamina are the two major player sports drinks

Imported brands such as Coachs are finding takers in select cities

Brand amp Company Shares - Retail Sales - Breakdown

Brand Company Name 2005 2006 2007 Real Dabur India Ltd 86 102 117

Tropicana PepsiCo Inc 67 67 91

Britannia Britannia Industries Ltd 67 67 68

Dabur Honey Dabur India Ltd 0 0 68

Sunfeast ITC Group 48 5 5

Golden Tips Golden Tips Tea Co Pvt Ltd 33 31 29

Ginar Green Tea Girnar Food amp Beverages Pvt Ltd 31 3 28

Artisanal Artisanal 19 2 22

Jay Green Tea Jay Shree Tea amp Industries Ltd 2 2 18

Modern Unilever Group 17 17 18

McVities Digestive United Biscuits (Holdings) Plc 14 16 18

Bagrrys Bagrrys India Ltd 15 15 16

Figaro Paschim Salts Pvt Ltd 13 14 16

Hot Breads BampM Hot Breads Pvt Ltd 14 15 15

Tilda United Riceland Ltd 14 15 15

Infinitea Gopaldhara Tea Co Pvt Ltd 17 16 15

Haldirams Haldiram Foods Intl Ltd 15 15 14

Daawat LT Overseas Ltd 15 15 14

Bertolli Unilever Group 13 14 14

Wuyi Mountain Tea Lochan Tea Ltd 12 12 12

Sofit Hershey Co 0 0 07

KhoCha Pure Darjeeling Green Tea Kho-Cha Darjeeling Tea Bureau 1 08 06

Hey-Song Himalaya Drug Co 06 06 06

Staeta ProSoya Corp USA 05 05 06

Source Euromonitor Health and Wellness

PAGE 11

New Products

The following information has been taken from Mintel

Over 2009 there were 302 nutraceutical products launched in India Below are the top new products

There were 55 new product launches in the high protein category Hot cereals and meat substitutes each

introduced seven new products Snackcerealenergy bars tied with baking ingredients and mixes at five new

products a piece Instant noodles pasta and rice launched four new products

while vegetables and cold cereals introduced three new products each Baby

cereals introduced two new products as did the nut sub-category ldquoOthersrdquo

rounded out the protein category with 12 new products

Fifty-three new diabetic products entered the market Sweeteners dominated

the category with 11 new products Six baking ingredients and mixes appeared

on the shelves Rice chocolate tablets and meat substitute each had three new

product launches Last boiled sweets fruit snacks seasonings and shelf-stable

deserts categories each launched two new products into the market The ldquootherrdquo

category rounded out this group with 15 new products introduced

The all natural category had 24 new product launches in the prepared meals

sub-category Following closely behind is the seasonings category with 22 new product

launches Savorysalty snacks and oils tied for third place with 13 new product launches

each There were 10 new hot cereal product launches and seven new honey products

The anti-aging category had little activity in the way of new product launches however

there were three introductions two oils and one medicated confectionery

ORGANICS

Consumer Trends

According to the Indian Competence Centre for Organic Agriculture the organic food industry in India is estimated currently at US$129 million in 2009 Of the Indian consumers buying organics 66 cited the health of their children as the main thrust for purchasing organic food

Naturalness and wholesomeness is driving growth in the consumption of organic eggs

Indian consumers prefer organic marmalade organic strawberry jam organic tea organic honey organic

cashew butter and various organic flours

PAGE 12

Distribution

Production of organic food has increased in India over the last couple of years however about 70 of the organic food produced in India is exported Due to low consumer awareness about organic food supermarkets hardly stock any on their shelves So it is even more unlikely for smaller stores sell organic food The awareness of organics is gradually increasing in urban areas and in the future supermarkets are expected to stock more of it as the middle class grows and consumer awareness improves

Various stakeholders in the Indian organicrsquos community are pushing to have organic products carried in regular chainstores making it more easily accessible

Companies amp Brands

No statistical data is available for brand or company market share however in the table below listed in descending order are the most popular brands of organic food and beverages in the Indian market for 2008-2009 Source Mintel India Organic Products

Brand Company

24 Letter Mantra Sresta Natural Bioproducts

Fabindia Organics Fabindia Overseas

Waitrose Organic Waitrose

Amalgam Keya Amalgam Foods

India Gate KRBL

Bajaj SK Gajaj Sanjay

Grewals Organic Agriculture Farm Grewals Organic Agriculture Farm

Kohinoors Exclusive Organic Kinhinoor Foods

Pro Nature Organic Staples Pro Nature Organic Foods

Earths Best Organic Hain-Celestial Group

New Products

The following information has been taken from Mintel

Over the past 12 months there have been 70 new organic products launched in India with the Top 10

companies claiming 64 new product launches Below are the top new organic product launches

Sauces and seasonings led with 23 introductions with 24 Letter Mantra producing eight and Fabindia Organics

releasing seven followed by ldquoOthersrdquo whose combined new products totaled six

24 Letter Mantra released seven new snacks with no other competition

The bakery category saw six new product launches The players involved are 24 Letter Mantra (3) Waitrose

Organic (1) Gerwalrsquos Organic Ag Farm (1) and ldquoOthersrdquo (1)

Sweet spread launches totaled four as did sweeteners amp sugars

The other category had five new product introductions which fell under the side dishes sub-category India

Gate and Hello Organic both released two new products with only 24 Letter Mantra rounding out the competition

with one new product released

The processed fish meat and egg products dairy and breakfast cereals categories each launched 3 new

products

A large majority of the new products launched were plain or unflavoured Garlic was the most popular flavouring

followed by mustard herbs thai lentil sugar and spice

PAGE 13

This report analyses the market for Health and Wellness Food and Beverages in India For the purposes of this study

the market has been defined as follows

Functional Foodsmdash Items to which health ingredients have been added These functional foods and beverages should

have a specific physiological function andor are enhanced with added ingredients not normally found in the product

providing health benefits beyond their nutritional value The categories covered in this segment are added calcium

functional digestive functional immune system functional bone health and vitaminmineral fortified

Better for you (BFY) Foodsmdash The category includes packaged food and beverage products where the amount of a

substance considered to be less healthy (fat sugar salt carbohydrates) has been actively reduced during production

To qualitfy for inclusion in this category the ldquoless healthyrdquo element of the food stuff needs to have been actively removed

or substituted during the processing This should form part of the positioningmarketing of the product Products which

are naturally fatsugarcarbohydratemdashfree are not included The categories covered in this segment are lownoreduced

fat lownoreduced sugar lownoreduced sodium lownoreduced glycemic and nolowreduced cholesterol

NutraceuticalsmdashNatural substances are found in food which have medicinal properties to treat or prevent certain

diseases These natural substances can be added to the diet by increasing consumption of certain foods or can be taken

as nutritional supplements Products typically claim to prevent chronic diseases improve health delay the aging process

and increase life expectancy The categories covered in this segment are vitamins sports products herbal

supplements meal replacement products and slimming products

OrganicmdashProducts that are certified organic by an approved certification body Depending on the country such

products are called ldquoorganicrdquo biologicalrdquo or ldquoecologicalrsquo

The usage of the above categories are taken from both Euromonitor International and Mintel These groupings represent

globally accepted classification and product identification for the purpose of data collection

ANNEX lsquoArsquo DEFINITIONS

PAGE 5

Companies and Brands

With rising pressure on margins following the economic slowdown retailers are now looking at private label sales to boost their bottom lines These retailers have projected at 10 to 15 increase in private label sales over the next two to three years

RSP Retail Sales Price Source Euromonitor Health and Wellness

Brand Shares (by Global Brand Name) - Retail Value RSP - Breakdown

Brand Company Name 2005 2006 2007 Horlicks GlaxoSmithKline PLC 424 422 416

Cadburys Bournvita Cadbury Schweppes Plc 10 99 97

Milo Nestle SA 4 43 42

Vicks Proctor amp Gamble Co 45 42 38

Parle Parle Products Pvt Ltd 3 32 34

Maltova GlaxoSmithKline PLC 33 33 32

Halls Cadbury Schweppes Plc 25 23 24

Britannia Britannia Industries Ltd 2 21 22

Kelloggs Corn Flakes Kellogg Co 12 13 14

Viva GlaxoSmithKline PLC 17 16 13

True VitaMilk Vitamin Enriched Milk Biscuits

Aurofood Pvt Ltd

12 13 13

Kellogs Chocos Kellogg Co 07 08 08

Orbit Wrigley Jr Co William 03 05 07

Happydent Perfetti Van Melle Group 04 04 05

Kellogs Frosties Kellogg Co 06 05 05

Acti-V Nestle SA 02 0 0

Others Others 222 22 232

New Products

The following information has been taken from Mintel

Over the past 12 months there have been 116 new functional foods products launched in India Below you will find the

details concerning these products launches

Eighty new functional-cardiovascular products were launched The most active sub-category was oils with 19 new

products introduced followed by 10 new hot cereal product introduction Both the cold cereals and sweet biscuits

cookies categories introduced five new products each The nuts and savory biscuitscrackers sub-categories each had

four new products appear on store shelves

Under the functionalndashimmune system product category 36 products were launched Ten baby food products were

introduced Seven new oils were launched two medicated confectionery two cold cereals and one syrup products were

also introduced to the market

PAGE 6

BETTER-FOR-YOU

Consumer Trends

Reducing fat intake is the most important and frequently practiced dietary approach by consumers in Asia Pacific Low cholesterol oil products are becoming increasingly popular among the Indian consumers who are most prone to heart disease in the world due to their lifestyle and eating habits

Indian consumers are increasingly seeking to reduce or modify their sugar intake Shops are now stocking more low-

fat products and sugar-free foods but these are still niche markets In urban areas these products are showing

impressive growth year-on-year

In urban areas people often prefer to buy bottled drinking water in restaurants and while travelling

Indians have a strong preference for fresh products and traditional spices and ingredients

Urban homes are spending on processed food and fruits The most popular fruit for Indian consumers is the banana followed by guavas mangoes and mangosteens and tomatoes

In India rice and pulses such as lentils are the base ingredients of the diet

Distribution

Source Euromonitor International

0

10

20

30

40

50

60

2004 2005 2006 2007

SupermarketsHypermarkets

Discounters

Small Grocery Stores

Other store based retailing

Better for you Purchases by Retail TypemdashAnalysis by Percentage

PAGE 7

Companies and Brands

The table below highlights a continuous decline in market share in the better-for-you category for the

major players

Private label brands are often perceived to offer quality at par with other national brands and offer tiered pricing

which caters to a broader spectrum of consumers

Tamil Nadu Cooperative Milk Producers Federation Ltd showed growth at a minimal 001 in 2006 This

increase may be attributed to the fact that Indian consumers are moving away from carbonated drinks due to more

health conscious awareness

Source Euromonitor International

New Products

The following information has been taken from Mintel

Over 2009 there were 788 new better-for-you foods products launched in India Below are the top new products

launches

There were 190 new lownoreduced fat products launched Cold cereals topped the chart with the most new

product introductions at 32 Savourysalty snacks came in second with 25 new products Dry soup was close

behind with 24 new products Both cheese and bakery products had 10 new product releases Spoonable yogurt

saw eight new product launches followed by fish products with seven new products introduced There were nine

new deserts amp ice cream products launched The oils and dressings and vinegar sub-categories each had five new

products introduced

Brand Shares (by Global Brand Name) - Retail Value RSP - Breakdown Brand Company Name 2005 2006 2007

Mother Dairy National Dairy Development Board 139 129 119

Nandini Karnataka Cooperative Milk Producers Federation Ltd 123 115 104

Amul Gujarat Cooperative Milk Marketing Federation Ltd 101 95 88

Aarey Dairy Development Department Ma-harashtra State 82 75 69

Milma Kerala Cooperative Milk Marketing Fed-erastion Ltd 51 48 43

Anikspray Royal Friesland Foods NV 41 39 37

Gagan Amrit Banjaspati Co Ltd 31 29 27

Sagar Gujarat Cooperative Milk Marketing Federation Ltd 26 24 23

Vijaya Andhra Pradesh Dairy Development Co-operative Federation Ltd 21 21 2

Komatha Hatsun Agro Products Ltd 21 19 18

Aavin Tamil Nadu Cooperative Milk Producers Federation Ltd 17 18 18

Britannia Britannia Industries Ltd 17 17 16

Diet Pepsi PepsiCo Inc 02 02 01

Diet Coke Coca-Cola Co 02 02 01

Others Others 327 369 416

PAGE 8

There were 178 new lownoreduced cholesterol products launched The savourysalty snacks

sub-category was the busiest with 29 new product launches followed closely by nuts with 26

launches and cold cereals also with 26 launches The dry soup sub-category saw 19 new product

introductions followed by nine cookiesbiscuits seven oils and six each for rice and meat substitutes There were

five cerealenergy bar and five savoury biscuitscrackers new products launched

There were 138 new lownoreduced sugar products launched Twenty-one new products were launched in

the gum sub-category followed by 13 in sweet biscuitscookies and 11 in the hot cereals Ten sweeteners amp

sugars eight standard amp power mints and seven cold cereals new products were introduced Boiled sweets

sub-category had six new product launches while the fruit products desserts and yogurts chocolate tablets and

amp baking ingredients mixes sub-categories all had five new product launches

There were 135 new lownoreduced transfats products launched Savourysalty snacks was the top

sub-category with 56 new product launches The sweet biscuitscookies sub-category had 19 new products fol-

lowed by savoury biscuitscrackers with 11 The instant noodle pasta amp rice potato products and snackcereal

energy bar sub-categories had five new product introductions each The oils and seasonings sub-categories each

had four new product launches The cold cereals sub-category saw three new product launches while the boiled

sweets sub-category had two new product launches

There were 83 new lownoreduced calorie products launched Sweeteners and sugars were at the top of the

list with 17 new product launches a close second was savourysalty snacks with 14 new product launches

Following were eight new product introductions in the snackcerealenergy bar sub-category Four oils products

were introduced in addition to three each for boiled sweets rice sweet biscuitscookies and ldquoothersrdquo categories

There were 35 new lownoreduced sodium products launched Hot cereals led this category in new product

launches with six followed by three new products under the rice and fish products sub-categories The boiled

sweets instant noodle pasta and rice nuts oils and meat substitutes sub-categories each launched two new

products

There were 23 new lownoreduced glycemic products launched Savoursalty snacks new products had the

most new product launches with four Rice cold cereals and sweet biscuitscookies each had three new product

launches The sweeteners and sugar sub-category had two new product launches while fruit snacks meat

substitutes shelf-stable deserts stuffing polenta and other side dishes and confiture amp fruit spreads all had only

one new product launch each

There were 6 new lownoreduced carbohydrates products launched Two boiled sweets products were

introduced The remaining sub-categories each launched one new product sweeteners amp sugar nuts cheese and

baking ingredients amp mixes

Consumer Trends

Vitamin and dietary supplement retail sales have doubled since 2001 totaling US$5632 million in 2008 and are

expected to reach US$7494 million by 2013

In response to declining health and increased awareness of good health Indiarsquos over -the-counter (OTC) vitamins and minerals supplement market is growing rapidly

Nutraceutical sales in India for 2009 reached US$13232 million

NUTRACEUTICALS

PAGE 9

There is a marked difference in consumption between urban and rural consumers Urban

consumers represent 70 of the vitamin and dietary supplement market versus 30 attributed to

rural consumers

Indian consumers are spending more on nutritional supplements to combat the effects of stressProtein

supplements and items relating to muscle building are popular due to the increasing fitness and bodybuilding

activity among the urban elite

India consumes the largest quantity of tea in the world Tea makes up 94 of out-of-home per capita hot drink consumption and almost 70 of in-home consumptionSales of coffee tea and cocoa in India increased by 14 from 1995 to 2007The availability of imported tea on retail shelves has increased and there has been growth in sales of tea bag and flavoured teas

Dieting is more prevalent than walking or cycling for weight-loss Rising obesity levels and hypertension in India means that health will become an increasingly important focus for consumers who will therefore seek out products that aid weight loss

In comparison to Western or European countries sports do not play a dominant role in the Indian culture which is traditionaly male dominatedHowever young urban adults are increasingly attracted to adventure sports and this has led to growth in the popularity of river rafting rock climbing and mountaineering clubs This trend may lead to more market interest in reasonably priced sports nutrition products

Sport drinks comprise a niche category in India with consumption largely centered in urban areas High prices however discourage the average consumer from purchasing them Energy-boosting drinks that are glucose-based (such as Glucon-D) are more traditionally used in India for rehydration Note 2009 data is provisional and based on part-year estimates

Distribution

Source Euromonitor Health and Wellness

0

10

20

30

40

50

60

70

80

90

2003 2004 2005 2006

Grocery Retailers

Non-Grocery

Retailers

Mass Merchandisers

Other Non-Grocery

Retailers

Non-Store Retailing

Vending

Homeshopping

Internet Retailing

Nutraceutical Purchases by Retail TypemdashAnalysis by Percentage

PAGE 10

Companies amp Brands

Ayurvedic products (more traditional products sought for their medicinal value) such as chyawanprash are competing with Western products in the supplements market

Direct sellers such as Amway and Herbalife which have been in operation since 1999 are taking the lead in

promoting health supplements despite the availability of many low-cost Indian versions Amway Corp appears to be

leading with a steady hold on first place with a 10 market share

Indian consumers are shifting to private label products The ldquoOthersrdquo grouping of brands holds 527 of market share

though it has been declining over the past few years As stated earlier the possible reason for this group having

captured such a large portion of the market is most likely due to price sensitivity and higher-end offerings Of the

remaining 35 companies 33 hold less than 3 market share

Brands strong in Fast Moving Health Goods (FMHG) in India are Elder Pharma Emami Dabur Hamdard Zandu

Biotique and AUM Himalaya

Gatorade and Stamina are the two major player sports drinks

Imported brands such as Coachs are finding takers in select cities

Brand amp Company Shares - Retail Sales - Breakdown

Brand Company Name 2005 2006 2007 Real Dabur India Ltd 86 102 117

Tropicana PepsiCo Inc 67 67 91

Britannia Britannia Industries Ltd 67 67 68

Dabur Honey Dabur India Ltd 0 0 68

Sunfeast ITC Group 48 5 5

Golden Tips Golden Tips Tea Co Pvt Ltd 33 31 29

Ginar Green Tea Girnar Food amp Beverages Pvt Ltd 31 3 28

Artisanal Artisanal 19 2 22

Jay Green Tea Jay Shree Tea amp Industries Ltd 2 2 18

Modern Unilever Group 17 17 18

McVities Digestive United Biscuits (Holdings) Plc 14 16 18

Bagrrys Bagrrys India Ltd 15 15 16

Figaro Paschim Salts Pvt Ltd 13 14 16

Hot Breads BampM Hot Breads Pvt Ltd 14 15 15

Tilda United Riceland Ltd 14 15 15

Infinitea Gopaldhara Tea Co Pvt Ltd 17 16 15

Haldirams Haldiram Foods Intl Ltd 15 15 14

Daawat LT Overseas Ltd 15 15 14

Bertolli Unilever Group 13 14 14

Wuyi Mountain Tea Lochan Tea Ltd 12 12 12

Sofit Hershey Co 0 0 07

KhoCha Pure Darjeeling Green Tea Kho-Cha Darjeeling Tea Bureau 1 08 06

Hey-Song Himalaya Drug Co 06 06 06

Staeta ProSoya Corp USA 05 05 06

Source Euromonitor Health and Wellness

PAGE 11

New Products

The following information has been taken from Mintel

Over 2009 there were 302 nutraceutical products launched in India Below are the top new products

There were 55 new product launches in the high protein category Hot cereals and meat substitutes each

introduced seven new products Snackcerealenergy bars tied with baking ingredients and mixes at five new

products a piece Instant noodles pasta and rice launched four new products

while vegetables and cold cereals introduced three new products each Baby

cereals introduced two new products as did the nut sub-category ldquoOthersrdquo

rounded out the protein category with 12 new products

Fifty-three new diabetic products entered the market Sweeteners dominated

the category with 11 new products Six baking ingredients and mixes appeared

on the shelves Rice chocolate tablets and meat substitute each had three new

product launches Last boiled sweets fruit snacks seasonings and shelf-stable

deserts categories each launched two new products into the market The ldquootherrdquo

category rounded out this group with 15 new products introduced

The all natural category had 24 new product launches in the prepared meals

sub-category Following closely behind is the seasonings category with 22 new product

launches Savorysalty snacks and oils tied for third place with 13 new product launches

each There were 10 new hot cereal product launches and seven new honey products

The anti-aging category had little activity in the way of new product launches however

there were three introductions two oils and one medicated confectionery

ORGANICS

Consumer Trends

According to the Indian Competence Centre for Organic Agriculture the organic food industry in India is estimated currently at US$129 million in 2009 Of the Indian consumers buying organics 66 cited the health of their children as the main thrust for purchasing organic food

Naturalness and wholesomeness is driving growth in the consumption of organic eggs

Indian consumers prefer organic marmalade organic strawberry jam organic tea organic honey organic

cashew butter and various organic flours

PAGE 12

Distribution

Production of organic food has increased in India over the last couple of years however about 70 of the organic food produced in India is exported Due to low consumer awareness about organic food supermarkets hardly stock any on their shelves So it is even more unlikely for smaller stores sell organic food The awareness of organics is gradually increasing in urban areas and in the future supermarkets are expected to stock more of it as the middle class grows and consumer awareness improves

Various stakeholders in the Indian organicrsquos community are pushing to have organic products carried in regular chainstores making it more easily accessible

Companies amp Brands

No statistical data is available for brand or company market share however in the table below listed in descending order are the most popular brands of organic food and beverages in the Indian market for 2008-2009 Source Mintel India Organic Products

Brand Company

24 Letter Mantra Sresta Natural Bioproducts

Fabindia Organics Fabindia Overseas

Waitrose Organic Waitrose

Amalgam Keya Amalgam Foods

India Gate KRBL

Bajaj SK Gajaj Sanjay

Grewals Organic Agriculture Farm Grewals Organic Agriculture Farm

Kohinoors Exclusive Organic Kinhinoor Foods

Pro Nature Organic Staples Pro Nature Organic Foods

Earths Best Organic Hain-Celestial Group

New Products

The following information has been taken from Mintel

Over the past 12 months there have been 70 new organic products launched in India with the Top 10

companies claiming 64 new product launches Below are the top new organic product launches

Sauces and seasonings led with 23 introductions with 24 Letter Mantra producing eight and Fabindia Organics

releasing seven followed by ldquoOthersrdquo whose combined new products totaled six

24 Letter Mantra released seven new snacks with no other competition

The bakery category saw six new product launches The players involved are 24 Letter Mantra (3) Waitrose

Organic (1) Gerwalrsquos Organic Ag Farm (1) and ldquoOthersrdquo (1)

Sweet spread launches totaled four as did sweeteners amp sugars

The other category had five new product introductions which fell under the side dishes sub-category India

Gate and Hello Organic both released two new products with only 24 Letter Mantra rounding out the competition

with one new product released

The processed fish meat and egg products dairy and breakfast cereals categories each launched 3 new

products

A large majority of the new products launched were plain or unflavoured Garlic was the most popular flavouring

followed by mustard herbs thai lentil sugar and spice

PAGE 13

This report analyses the market for Health and Wellness Food and Beverages in India For the purposes of this study

the market has been defined as follows

Functional Foodsmdash Items to which health ingredients have been added These functional foods and beverages should

have a specific physiological function andor are enhanced with added ingredients not normally found in the product

providing health benefits beyond their nutritional value The categories covered in this segment are added calcium

functional digestive functional immune system functional bone health and vitaminmineral fortified

Better for you (BFY) Foodsmdash The category includes packaged food and beverage products where the amount of a

substance considered to be less healthy (fat sugar salt carbohydrates) has been actively reduced during production

To qualitfy for inclusion in this category the ldquoless healthyrdquo element of the food stuff needs to have been actively removed

or substituted during the processing This should form part of the positioningmarketing of the product Products which

are naturally fatsugarcarbohydratemdashfree are not included The categories covered in this segment are lownoreduced

fat lownoreduced sugar lownoreduced sodium lownoreduced glycemic and nolowreduced cholesterol

NutraceuticalsmdashNatural substances are found in food which have medicinal properties to treat or prevent certain

diseases These natural substances can be added to the diet by increasing consumption of certain foods or can be taken

as nutritional supplements Products typically claim to prevent chronic diseases improve health delay the aging process

and increase life expectancy The categories covered in this segment are vitamins sports products herbal

supplements meal replacement products and slimming products

OrganicmdashProducts that are certified organic by an approved certification body Depending on the country such

products are called ldquoorganicrdquo biologicalrdquo or ldquoecologicalrsquo

The usage of the above categories are taken from both Euromonitor International and Mintel These groupings represent

globally accepted classification and product identification for the purpose of data collection

ANNEX lsquoArsquo DEFINITIONS

PAGE 6

BETTER-FOR-YOU

Consumer Trends

Reducing fat intake is the most important and frequently practiced dietary approach by consumers in Asia Pacific Low cholesterol oil products are becoming increasingly popular among the Indian consumers who are most prone to heart disease in the world due to their lifestyle and eating habits

Indian consumers are increasingly seeking to reduce or modify their sugar intake Shops are now stocking more low-

fat products and sugar-free foods but these are still niche markets In urban areas these products are showing

impressive growth year-on-year

In urban areas people often prefer to buy bottled drinking water in restaurants and while travelling

Indians have a strong preference for fresh products and traditional spices and ingredients

Urban homes are spending on processed food and fruits The most popular fruit for Indian consumers is the banana followed by guavas mangoes and mangosteens and tomatoes

In India rice and pulses such as lentils are the base ingredients of the diet

Distribution

Source Euromonitor International

0

10

20

30

40

50

60

2004 2005 2006 2007

SupermarketsHypermarkets

Discounters

Small Grocery Stores

Other store based retailing

Better for you Purchases by Retail TypemdashAnalysis by Percentage

PAGE 7

Companies and Brands

The table below highlights a continuous decline in market share in the better-for-you category for the

major players

Private label brands are often perceived to offer quality at par with other national brands and offer tiered pricing

which caters to a broader spectrum of consumers

Tamil Nadu Cooperative Milk Producers Federation Ltd showed growth at a minimal 001 in 2006 This

increase may be attributed to the fact that Indian consumers are moving away from carbonated drinks due to more

health conscious awareness

Source Euromonitor International

New Products

The following information has been taken from Mintel

Over 2009 there were 788 new better-for-you foods products launched in India Below are the top new products

launches

There were 190 new lownoreduced fat products launched Cold cereals topped the chart with the most new

product introductions at 32 Savourysalty snacks came in second with 25 new products Dry soup was close

behind with 24 new products Both cheese and bakery products had 10 new product releases Spoonable yogurt

saw eight new product launches followed by fish products with seven new products introduced There were nine

new deserts amp ice cream products launched The oils and dressings and vinegar sub-categories each had five new

products introduced

Brand Shares (by Global Brand Name) - Retail Value RSP - Breakdown Brand Company Name 2005 2006 2007

Mother Dairy National Dairy Development Board 139 129 119

Nandini Karnataka Cooperative Milk Producers Federation Ltd 123 115 104

Amul Gujarat Cooperative Milk Marketing Federation Ltd 101 95 88

Aarey Dairy Development Department Ma-harashtra State 82 75 69

Milma Kerala Cooperative Milk Marketing Fed-erastion Ltd 51 48 43

Anikspray Royal Friesland Foods NV 41 39 37

Gagan Amrit Banjaspati Co Ltd 31 29 27

Sagar Gujarat Cooperative Milk Marketing Federation Ltd 26 24 23

Vijaya Andhra Pradesh Dairy Development Co-operative Federation Ltd 21 21 2

Komatha Hatsun Agro Products Ltd 21 19 18

Aavin Tamil Nadu Cooperative Milk Producers Federation Ltd 17 18 18

Britannia Britannia Industries Ltd 17 17 16

Diet Pepsi PepsiCo Inc 02 02 01

Diet Coke Coca-Cola Co 02 02 01

Others Others 327 369 416

PAGE 8

There were 178 new lownoreduced cholesterol products launched The savourysalty snacks

sub-category was the busiest with 29 new product launches followed closely by nuts with 26

launches and cold cereals also with 26 launches The dry soup sub-category saw 19 new product

introductions followed by nine cookiesbiscuits seven oils and six each for rice and meat substitutes There were

five cerealenergy bar and five savoury biscuitscrackers new products launched

There were 138 new lownoreduced sugar products launched Twenty-one new products were launched in

the gum sub-category followed by 13 in sweet biscuitscookies and 11 in the hot cereals Ten sweeteners amp

sugars eight standard amp power mints and seven cold cereals new products were introduced Boiled sweets

sub-category had six new product launches while the fruit products desserts and yogurts chocolate tablets and

amp baking ingredients mixes sub-categories all had five new product launches

There were 135 new lownoreduced transfats products launched Savourysalty snacks was the top

sub-category with 56 new product launches The sweet biscuitscookies sub-category had 19 new products fol-

lowed by savoury biscuitscrackers with 11 The instant noodle pasta amp rice potato products and snackcereal

energy bar sub-categories had five new product introductions each The oils and seasonings sub-categories each

had four new product launches The cold cereals sub-category saw three new product launches while the boiled

sweets sub-category had two new product launches

There were 83 new lownoreduced calorie products launched Sweeteners and sugars were at the top of the

list with 17 new product launches a close second was savourysalty snacks with 14 new product launches

Following were eight new product introductions in the snackcerealenergy bar sub-category Four oils products

were introduced in addition to three each for boiled sweets rice sweet biscuitscookies and ldquoothersrdquo categories

There were 35 new lownoreduced sodium products launched Hot cereals led this category in new product

launches with six followed by three new products under the rice and fish products sub-categories The boiled

sweets instant noodle pasta and rice nuts oils and meat substitutes sub-categories each launched two new

products

There were 23 new lownoreduced glycemic products launched Savoursalty snacks new products had the

most new product launches with four Rice cold cereals and sweet biscuitscookies each had three new product

launches The sweeteners and sugar sub-category had two new product launches while fruit snacks meat

substitutes shelf-stable deserts stuffing polenta and other side dishes and confiture amp fruit spreads all had only

one new product launch each

There were 6 new lownoreduced carbohydrates products launched Two boiled sweets products were

introduced The remaining sub-categories each launched one new product sweeteners amp sugar nuts cheese and

baking ingredients amp mixes

Consumer Trends

Vitamin and dietary supplement retail sales have doubled since 2001 totaling US$5632 million in 2008 and are

expected to reach US$7494 million by 2013

In response to declining health and increased awareness of good health Indiarsquos over -the-counter (OTC) vitamins and minerals supplement market is growing rapidly

Nutraceutical sales in India for 2009 reached US$13232 million

NUTRACEUTICALS

PAGE 9

There is a marked difference in consumption between urban and rural consumers Urban

consumers represent 70 of the vitamin and dietary supplement market versus 30 attributed to

rural consumers

Indian consumers are spending more on nutritional supplements to combat the effects of stressProtein

supplements and items relating to muscle building are popular due to the increasing fitness and bodybuilding

activity among the urban elite

India consumes the largest quantity of tea in the world Tea makes up 94 of out-of-home per capita hot drink consumption and almost 70 of in-home consumptionSales of coffee tea and cocoa in India increased by 14 from 1995 to 2007The availability of imported tea on retail shelves has increased and there has been growth in sales of tea bag and flavoured teas

Dieting is more prevalent than walking or cycling for weight-loss Rising obesity levels and hypertension in India means that health will become an increasingly important focus for consumers who will therefore seek out products that aid weight loss

In comparison to Western or European countries sports do not play a dominant role in the Indian culture which is traditionaly male dominatedHowever young urban adults are increasingly attracted to adventure sports and this has led to growth in the popularity of river rafting rock climbing and mountaineering clubs This trend may lead to more market interest in reasonably priced sports nutrition products

Sport drinks comprise a niche category in India with consumption largely centered in urban areas High prices however discourage the average consumer from purchasing them Energy-boosting drinks that are glucose-based (such as Glucon-D) are more traditionally used in India for rehydration Note 2009 data is provisional and based on part-year estimates

Distribution

Source Euromonitor Health and Wellness

0

10

20

30

40

50

60

70

80

90

2003 2004 2005 2006

Grocery Retailers

Non-Grocery

Retailers

Mass Merchandisers

Other Non-Grocery

Retailers

Non-Store Retailing

Vending

Homeshopping

Internet Retailing

Nutraceutical Purchases by Retail TypemdashAnalysis by Percentage

PAGE 10

Companies amp Brands

Ayurvedic products (more traditional products sought for their medicinal value) such as chyawanprash are competing with Western products in the supplements market

Direct sellers such as Amway and Herbalife which have been in operation since 1999 are taking the lead in

promoting health supplements despite the availability of many low-cost Indian versions Amway Corp appears to be

leading with a steady hold on first place with a 10 market share

Indian consumers are shifting to private label products The ldquoOthersrdquo grouping of brands holds 527 of market share

though it has been declining over the past few years As stated earlier the possible reason for this group having

captured such a large portion of the market is most likely due to price sensitivity and higher-end offerings Of the

remaining 35 companies 33 hold less than 3 market share

Brands strong in Fast Moving Health Goods (FMHG) in India are Elder Pharma Emami Dabur Hamdard Zandu

Biotique and AUM Himalaya

Gatorade and Stamina are the two major player sports drinks

Imported brands such as Coachs are finding takers in select cities

Brand amp Company Shares - Retail Sales - Breakdown

Brand Company Name 2005 2006 2007 Real Dabur India Ltd 86 102 117

Tropicana PepsiCo Inc 67 67 91

Britannia Britannia Industries Ltd 67 67 68

Dabur Honey Dabur India Ltd 0 0 68

Sunfeast ITC Group 48 5 5

Golden Tips Golden Tips Tea Co Pvt Ltd 33 31 29

Ginar Green Tea Girnar Food amp Beverages Pvt Ltd 31 3 28

Artisanal Artisanal 19 2 22

Jay Green Tea Jay Shree Tea amp Industries Ltd 2 2 18

Modern Unilever Group 17 17 18

McVities Digestive United Biscuits (Holdings) Plc 14 16 18

Bagrrys Bagrrys India Ltd 15 15 16

Figaro Paschim Salts Pvt Ltd 13 14 16

Hot Breads BampM Hot Breads Pvt Ltd 14 15 15

Tilda United Riceland Ltd 14 15 15

Infinitea Gopaldhara Tea Co Pvt Ltd 17 16 15

Haldirams Haldiram Foods Intl Ltd 15 15 14

Daawat LT Overseas Ltd 15 15 14

Bertolli Unilever Group 13 14 14

Wuyi Mountain Tea Lochan Tea Ltd 12 12 12

Sofit Hershey Co 0 0 07

KhoCha Pure Darjeeling Green Tea Kho-Cha Darjeeling Tea Bureau 1 08 06

Hey-Song Himalaya Drug Co 06 06 06

Staeta ProSoya Corp USA 05 05 06

Source Euromonitor Health and Wellness

PAGE 11

New Products

The following information has been taken from Mintel

Over 2009 there were 302 nutraceutical products launched in India Below are the top new products

There were 55 new product launches in the high protein category Hot cereals and meat substitutes each

introduced seven new products Snackcerealenergy bars tied with baking ingredients and mixes at five new

products a piece Instant noodles pasta and rice launched four new products

while vegetables and cold cereals introduced three new products each Baby

cereals introduced two new products as did the nut sub-category ldquoOthersrdquo

rounded out the protein category with 12 new products

Fifty-three new diabetic products entered the market Sweeteners dominated

the category with 11 new products Six baking ingredients and mixes appeared

on the shelves Rice chocolate tablets and meat substitute each had three new

product launches Last boiled sweets fruit snacks seasonings and shelf-stable

deserts categories each launched two new products into the market The ldquootherrdquo

category rounded out this group with 15 new products introduced

The all natural category had 24 new product launches in the prepared meals

sub-category Following closely behind is the seasonings category with 22 new product

launches Savorysalty snacks and oils tied for third place with 13 new product launches

each There were 10 new hot cereal product launches and seven new honey products

The anti-aging category had little activity in the way of new product launches however

there were three introductions two oils and one medicated confectionery

ORGANICS

Consumer Trends

According to the Indian Competence Centre for Organic Agriculture the organic food industry in India is estimated currently at US$129 million in 2009 Of the Indian consumers buying organics 66 cited the health of their children as the main thrust for purchasing organic food

Naturalness and wholesomeness is driving growth in the consumption of organic eggs

Indian consumers prefer organic marmalade organic strawberry jam organic tea organic honey organic

cashew butter and various organic flours

PAGE 12

Distribution

Production of organic food has increased in India over the last couple of years however about 70 of the organic food produced in India is exported Due to low consumer awareness about organic food supermarkets hardly stock any on their shelves So it is even more unlikely for smaller stores sell organic food The awareness of organics is gradually increasing in urban areas and in the future supermarkets are expected to stock more of it as the middle class grows and consumer awareness improves

Various stakeholders in the Indian organicrsquos community are pushing to have organic products carried in regular chainstores making it more easily accessible

Companies amp Brands

No statistical data is available for brand or company market share however in the table below listed in descending order are the most popular brands of organic food and beverages in the Indian market for 2008-2009 Source Mintel India Organic Products

Brand Company

24 Letter Mantra Sresta Natural Bioproducts

Fabindia Organics Fabindia Overseas

Waitrose Organic Waitrose

Amalgam Keya Amalgam Foods

India Gate KRBL

Bajaj SK Gajaj Sanjay

Grewals Organic Agriculture Farm Grewals Organic Agriculture Farm

Kohinoors Exclusive Organic Kinhinoor Foods

Pro Nature Organic Staples Pro Nature Organic Foods

Earths Best Organic Hain-Celestial Group

New Products

The following information has been taken from Mintel

Over the past 12 months there have been 70 new organic products launched in India with the Top 10

companies claiming 64 new product launches Below are the top new organic product launches

Sauces and seasonings led with 23 introductions with 24 Letter Mantra producing eight and Fabindia Organics

releasing seven followed by ldquoOthersrdquo whose combined new products totaled six

24 Letter Mantra released seven new snacks with no other competition

The bakery category saw six new product launches The players involved are 24 Letter Mantra (3) Waitrose

Organic (1) Gerwalrsquos Organic Ag Farm (1) and ldquoOthersrdquo (1)

Sweet spread launches totaled four as did sweeteners amp sugars

The other category had five new product introductions which fell under the side dishes sub-category India

Gate and Hello Organic both released two new products with only 24 Letter Mantra rounding out the competition

with one new product released

The processed fish meat and egg products dairy and breakfast cereals categories each launched 3 new

products

A large majority of the new products launched were plain or unflavoured Garlic was the most popular flavouring

followed by mustard herbs thai lentil sugar and spice

PAGE 13

This report analyses the market for Health and Wellness Food and Beverages in India For the purposes of this study

the market has been defined as follows

Functional Foodsmdash Items to which health ingredients have been added These functional foods and beverages should

have a specific physiological function andor are enhanced with added ingredients not normally found in the product

providing health benefits beyond their nutritional value The categories covered in this segment are added calcium

functional digestive functional immune system functional bone health and vitaminmineral fortified

Better for you (BFY) Foodsmdash The category includes packaged food and beverage products where the amount of a

substance considered to be less healthy (fat sugar salt carbohydrates) has been actively reduced during production

To qualitfy for inclusion in this category the ldquoless healthyrdquo element of the food stuff needs to have been actively removed

or substituted during the processing This should form part of the positioningmarketing of the product Products which

are naturally fatsugarcarbohydratemdashfree are not included The categories covered in this segment are lownoreduced

fat lownoreduced sugar lownoreduced sodium lownoreduced glycemic and nolowreduced cholesterol

NutraceuticalsmdashNatural substances are found in food which have medicinal properties to treat or prevent certain

diseases These natural substances can be added to the diet by increasing consumption of certain foods or can be taken

as nutritional supplements Products typically claim to prevent chronic diseases improve health delay the aging process

and increase life expectancy The categories covered in this segment are vitamins sports products herbal

supplements meal replacement products and slimming products

OrganicmdashProducts that are certified organic by an approved certification body Depending on the country such

products are called ldquoorganicrdquo biologicalrdquo or ldquoecologicalrsquo

The usage of the above categories are taken from both Euromonitor International and Mintel These groupings represent

globally accepted classification and product identification for the purpose of data collection

ANNEX lsquoArsquo DEFINITIONS

PAGE 7

Companies and Brands

The table below highlights a continuous decline in market share in the better-for-you category for the

major players

Private label brands are often perceived to offer quality at par with other national brands and offer tiered pricing

which caters to a broader spectrum of consumers

Tamil Nadu Cooperative Milk Producers Federation Ltd showed growth at a minimal 001 in 2006 This

increase may be attributed to the fact that Indian consumers are moving away from carbonated drinks due to more

health conscious awareness

Source Euromonitor International

New Products

The following information has been taken from Mintel

Over 2009 there were 788 new better-for-you foods products launched in India Below are the top new products

launches

There were 190 new lownoreduced fat products launched Cold cereals topped the chart with the most new

product introductions at 32 Savourysalty snacks came in second with 25 new products Dry soup was close

behind with 24 new products Both cheese and bakery products had 10 new product releases Spoonable yogurt

saw eight new product launches followed by fish products with seven new products introduced There were nine

new deserts amp ice cream products launched The oils and dressings and vinegar sub-categories each had five new

products introduced

Brand Shares (by Global Brand Name) - Retail Value RSP - Breakdown Brand Company Name 2005 2006 2007

Mother Dairy National Dairy Development Board 139 129 119

Nandini Karnataka Cooperative Milk Producers Federation Ltd 123 115 104

Amul Gujarat Cooperative Milk Marketing Federation Ltd 101 95 88

Aarey Dairy Development Department Ma-harashtra State 82 75 69

Milma Kerala Cooperative Milk Marketing Fed-erastion Ltd 51 48 43

Anikspray Royal Friesland Foods NV 41 39 37

Gagan Amrit Banjaspati Co Ltd 31 29 27

Sagar Gujarat Cooperative Milk Marketing Federation Ltd 26 24 23

Vijaya Andhra Pradesh Dairy Development Co-operative Federation Ltd 21 21 2

Komatha Hatsun Agro Products Ltd 21 19 18

Aavin Tamil Nadu Cooperative Milk Producers Federation Ltd 17 18 18

Britannia Britannia Industries Ltd 17 17 16

Diet Pepsi PepsiCo Inc 02 02 01

Diet Coke Coca-Cola Co 02 02 01

Others Others 327 369 416

PAGE 8

There were 178 new lownoreduced cholesterol products launched The savourysalty snacks

sub-category was the busiest with 29 new product launches followed closely by nuts with 26

launches and cold cereals also with 26 launches The dry soup sub-category saw 19 new product

introductions followed by nine cookiesbiscuits seven oils and six each for rice and meat substitutes There were

five cerealenergy bar and five savoury biscuitscrackers new products launched

There were 138 new lownoreduced sugar products launched Twenty-one new products were launched in

the gum sub-category followed by 13 in sweet biscuitscookies and 11 in the hot cereals Ten sweeteners amp

sugars eight standard amp power mints and seven cold cereals new products were introduced Boiled sweets

sub-category had six new product launches while the fruit products desserts and yogurts chocolate tablets and

amp baking ingredients mixes sub-categories all had five new product launches

There were 135 new lownoreduced transfats products launched Savourysalty snacks was the top

sub-category with 56 new product launches The sweet biscuitscookies sub-category had 19 new products fol-

lowed by savoury biscuitscrackers with 11 The instant noodle pasta amp rice potato products and snackcereal

energy bar sub-categories had five new product introductions each The oils and seasonings sub-categories each

had four new product launches The cold cereals sub-category saw three new product launches while the boiled

sweets sub-category had two new product launches

There were 83 new lownoreduced calorie products launched Sweeteners and sugars were at the top of the

list with 17 new product launches a close second was savourysalty snacks with 14 new product launches

Following were eight new product introductions in the snackcerealenergy bar sub-category Four oils products

were introduced in addition to three each for boiled sweets rice sweet biscuitscookies and ldquoothersrdquo categories

There were 35 new lownoreduced sodium products launched Hot cereals led this category in new product

launches with six followed by three new products under the rice and fish products sub-categories The boiled

sweets instant noodle pasta and rice nuts oils and meat substitutes sub-categories each launched two new

products

There were 23 new lownoreduced glycemic products launched Savoursalty snacks new products had the

most new product launches with four Rice cold cereals and sweet biscuitscookies each had three new product

launches The sweeteners and sugar sub-category had two new product launches while fruit snacks meat

substitutes shelf-stable deserts stuffing polenta and other side dishes and confiture amp fruit spreads all had only

one new product launch each

There were 6 new lownoreduced carbohydrates products launched Two boiled sweets products were

introduced The remaining sub-categories each launched one new product sweeteners amp sugar nuts cheese and

baking ingredients amp mixes

Consumer Trends

Vitamin and dietary supplement retail sales have doubled since 2001 totaling US$5632 million in 2008 and are

expected to reach US$7494 million by 2013

In response to declining health and increased awareness of good health Indiarsquos over -the-counter (OTC) vitamins and minerals supplement market is growing rapidly

Nutraceutical sales in India for 2009 reached US$13232 million

NUTRACEUTICALS

PAGE 9

There is a marked difference in consumption between urban and rural consumers Urban

consumers represent 70 of the vitamin and dietary supplement market versus 30 attributed to

rural consumers

Indian consumers are spending more on nutritional supplements to combat the effects of stressProtein

supplements and items relating to muscle building are popular due to the increasing fitness and bodybuilding

activity among the urban elite

India consumes the largest quantity of tea in the world Tea makes up 94 of out-of-home per capita hot drink consumption and almost 70 of in-home consumptionSales of coffee tea and cocoa in India increased by 14 from 1995 to 2007The availability of imported tea on retail shelves has increased and there has been growth in sales of tea bag and flavoured teas

Dieting is more prevalent than walking or cycling for weight-loss Rising obesity levels and hypertension in India means that health will become an increasingly important focus for consumers who will therefore seek out products that aid weight loss

In comparison to Western or European countries sports do not play a dominant role in the Indian culture which is traditionaly male dominatedHowever young urban adults are increasingly attracted to adventure sports and this has led to growth in the popularity of river rafting rock climbing and mountaineering clubs This trend may lead to more market interest in reasonably priced sports nutrition products

Sport drinks comprise a niche category in India with consumption largely centered in urban areas High prices however discourage the average consumer from purchasing them Energy-boosting drinks that are glucose-based (such as Glucon-D) are more traditionally used in India for rehydration Note 2009 data is provisional and based on part-year estimates

Distribution

Source Euromonitor Health and Wellness

0

10

20

30

40

50

60

70

80

90

2003 2004 2005 2006

Grocery Retailers

Non-Grocery

Retailers

Mass Merchandisers

Other Non-Grocery

Retailers

Non-Store Retailing

Vending

Homeshopping

Internet Retailing

Nutraceutical Purchases by Retail TypemdashAnalysis by Percentage

PAGE 10

Companies amp Brands

Ayurvedic products (more traditional products sought for their medicinal value) such as chyawanprash are competing with Western products in the supplements market

Direct sellers such as Amway and Herbalife which have been in operation since 1999 are taking the lead in

promoting health supplements despite the availability of many low-cost Indian versions Amway Corp appears to be

leading with a steady hold on first place with a 10 market share

Indian consumers are shifting to private label products The ldquoOthersrdquo grouping of brands holds 527 of market share

though it has been declining over the past few years As stated earlier the possible reason for this group having

captured such a large portion of the market is most likely due to price sensitivity and higher-end offerings Of the

remaining 35 companies 33 hold less than 3 market share

Brands strong in Fast Moving Health Goods (FMHG) in India are Elder Pharma Emami Dabur Hamdard Zandu

Biotique and AUM Himalaya

Gatorade and Stamina are the two major player sports drinks

Imported brands such as Coachs are finding takers in select cities

Brand amp Company Shares - Retail Sales - Breakdown

Brand Company Name 2005 2006 2007 Real Dabur India Ltd 86 102 117

Tropicana PepsiCo Inc 67 67 91

Britannia Britannia Industries Ltd 67 67 68

Dabur Honey Dabur India Ltd 0 0 68

Sunfeast ITC Group 48 5 5

Golden Tips Golden Tips Tea Co Pvt Ltd 33 31 29

Ginar Green Tea Girnar Food amp Beverages Pvt Ltd 31 3 28

Artisanal Artisanal 19 2 22

Jay Green Tea Jay Shree Tea amp Industries Ltd 2 2 18

Modern Unilever Group 17 17 18

McVities Digestive United Biscuits (Holdings) Plc 14 16 18

Bagrrys Bagrrys India Ltd 15 15 16

Figaro Paschim Salts Pvt Ltd 13 14 16

Hot Breads BampM Hot Breads Pvt Ltd 14 15 15

Tilda United Riceland Ltd 14 15 15

Infinitea Gopaldhara Tea Co Pvt Ltd 17 16 15

Haldirams Haldiram Foods Intl Ltd 15 15 14

Daawat LT Overseas Ltd 15 15 14

Bertolli Unilever Group 13 14 14

Wuyi Mountain Tea Lochan Tea Ltd 12 12 12

Sofit Hershey Co 0 0 07

KhoCha Pure Darjeeling Green Tea Kho-Cha Darjeeling Tea Bureau 1 08 06

Hey-Song Himalaya Drug Co 06 06 06

Staeta ProSoya Corp USA 05 05 06

Source Euromonitor Health and Wellness

PAGE 11

New Products

The following information has been taken from Mintel

Over 2009 there were 302 nutraceutical products launched in India Below are the top new products

There were 55 new product launches in the high protein category Hot cereals and meat substitutes each

introduced seven new products Snackcerealenergy bars tied with baking ingredients and mixes at five new

products a piece Instant noodles pasta and rice launched four new products

while vegetables and cold cereals introduced three new products each Baby

cereals introduced two new products as did the nut sub-category ldquoOthersrdquo

rounded out the protein category with 12 new products

Fifty-three new diabetic products entered the market Sweeteners dominated

the category with 11 new products Six baking ingredients and mixes appeared

on the shelves Rice chocolate tablets and meat substitute each had three new

product launches Last boiled sweets fruit snacks seasonings and shelf-stable

deserts categories each launched two new products into the market The ldquootherrdquo

category rounded out this group with 15 new products introduced

The all natural category had 24 new product launches in the prepared meals

sub-category Following closely behind is the seasonings category with 22 new product

launches Savorysalty snacks and oils tied for third place with 13 new product launches

each There were 10 new hot cereal product launches and seven new honey products

The anti-aging category had little activity in the way of new product launches however

there were three introductions two oils and one medicated confectionery

ORGANICS

Consumer Trends

According to the Indian Competence Centre for Organic Agriculture the organic food industry in India is estimated currently at US$129 million in 2009 Of the Indian consumers buying organics 66 cited the health of their children as the main thrust for purchasing organic food

Naturalness and wholesomeness is driving growth in the consumption of organic eggs

Indian consumers prefer organic marmalade organic strawberry jam organic tea organic honey organic

cashew butter and various organic flours

PAGE 12

Distribution

Production of organic food has increased in India over the last couple of years however about 70 of the organic food produced in India is exported Due to low consumer awareness about organic food supermarkets hardly stock any on their shelves So it is even more unlikely for smaller stores sell organic food The awareness of organics is gradually increasing in urban areas and in the future supermarkets are expected to stock more of it as the middle class grows and consumer awareness improves

Various stakeholders in the Indian organicrsquos community are pushing to have organic products carried in regular chainstores making it more easily accessible

Companies amp Brands

No statistical data is available for brand or company market share however in the table below listed in descending order are the most popular brands of organic food and beverages in the Indian market for 2008-2009 Source Mintel India Organic Products

Brand Company

24 Letter Mantra Sresta Natural Bioproducts

Fabindia Organics Fabindia Overseas

Waitrose Organic Waitrose

Amalgam Keya Amalgam Foods

India Gate KRBL

Bajaj SK Gajaj Sanjay

Grewals Organic Agriculture Farm Grewals Organic Agriculture Farm

Kohinoors Exclusive Organic Kinhinoor Foods

Pro Nature Organic Staples Pro Nature Organic Foods

Earths Best Organic Hain-Celestial Group

New Products

The following information has been taken from Mintel

Over the past 12 months there have been 70 new organic products launched in India with the Top 10

companies claiming 64 new product launches Below are the top new organic product launches

Sauces and seasonings led with 23 introductions with 24 Letter Mantra producing eight and Fabindia Organics

releasing seven followed by ldquoOthersrdquo whose combined new products totaled six

24 Letter Mantra released seven new snacks with no other competition

The bakery category saw six new product launches The players involved are 24 Letter Mantra (3) Waitrose

Organic (1) Gerwalrsquos Organic Ag Farm (1) and ldquoOthersrdquo (1)

Sweet spread launches totaled four as did sweeteners amp sugars

The other category had five new product introductions which fell under the side dishes sub-category India

Gate and Hello Organic both released two new products with only 24 Letter Mantra rounding out the competition

with one new product released

The processed fish meat and egg products dairy and breakfast cereals categories each launched 3 new

products

A large majority of the new products launched were plain or unflavoured Garlic was the most popular flavouring

followed by mustard herbs thai lentil sugar and spice

PAGE 13

This report analyses the market for Health and Wellness Food and Beverages in India For the purposes of this study

the market has been defined as follows

Functional Foodsmdash Items to which health ingredients have been added These functional foods and beverages should

have a specific physiological function andor are enhanced with added ingredients not normally found in the product

providing health benefits beyond their nutritional value The categories covered in this segment are added calcium

functional digestive functional immune system functional bone health and vitaminmineral fortified

Better for you (BFY) Foodsmdash The category includes packaged food and beverage products where the amount of a

substance considered to be less healthy (fat sugar salt carbohydrates) has been actively reduced during production

To qualitfy for inclusion in this category the ldquoless healthyrdquo element of the food stuff needs to have been actively removed

or substituted during the processing This should form part of the positioningmarketing of the product Products which

are naturally fatsugarcarbohydratemdashfree are not included The categories covered in this segment are lownoreduced

fat lownoreduced sugar lownoreduced sodium lownoreduced glycemic and nolowreduced cholesterol

NutraceuticalsmdashNatural substances are found in food which have medicinal properties to treat or prevent certain

diseases These natural substances can be added to the diet by increasing consumption of certain foods or can be taken

as nutritional supplements Products typically claim to prevent chronic diseases improve health delay the aging process

and increase life expectancy The categories covered in this segment are vitamins sports products herbal

supplements meal replacement products and slimming products

OrganicmdashProducts that are certified organic by an approved certification body Depending on the country such

products are called ldquoorganicrdquo biologicalrdquo or ldquoecologicalrsquo

The usage of the above categories are taken from both Euromonitor International and Mintel These groupings represent

globally accepted classification and product identification for the purpose of data collection

ANNEX lsquoArsquo DEFINITIONS

PAGE 8

There were 178 new lownoreduced cholesterol products launched The savourysalty snacks

sub-category was the busiest with 29 new product launches followed closely by nuts with 26

launches and cold cereals also with 26 launches The dry soup sub-category saw 19 new product

introductions followed by nine cookiesbiscuits seven oils and six each for rice and meat substitutes There were

five cerealenergy bar and five savoury biscuitscrackers new products launched

There were 138 new lownoreduced sugar products launched Twenty-one new products were launched in

the gum sub-category followed by 13 in sweet biscuitscookies and 11 in the hot cereals Ten sweeteners amp

sugars eight standard amp power mints and seven cold cereals new products were introduced Boiled sweets

sub-category had six new product launches while the fruit products desserts and yogurts chocolate tablets and

amp baking ingredients mixes sub-categories all had five new product launches

There were 135 new lownoreduced transfats products launched Savourysalty snacks was the top

sub-category with 56 new product launches The sweet biscuitscookies sub-category had 19 new products fol-

lowed by savoury biscuitscrackers with 11 The instant noodle pasta amp rice potato products and snackcereal

energy bar sub-categories had five new product introductions each The oils and seasonings sub-categories each

had four new product launches The cold cereals sub-category saw three new product launches while the boiled

sweets sub-category had two new product launches

There were 83 new lownoreduced calorie products launched Sweeteners and sugars were at the top of the

list with 17 new product launches a close second was savourysalty snacks with 14 new product launches

Following were eight new product introductions in the snackcerealenergy bar sub-category Four oils products

were introduced in addition to three each for boiled sweets rice sweet biscuitscookies and ldquoothersrdquo categories

There were 35 new lownoreduced sodium products launched Hot cereals led this category in new product

launches with six followed by three new products under the rice and fish products sub-categories The boiled

sweets instant noodle pasta and rice nuts oils and meat substitutes sub-categories each launched two new

products

There were 23 new lownoreduced glycemic products launched Savoursalty snacks new products had the

most new product launches with four Rice cold cereals and sweet biscuitscookies each had three new product

launches The sweeteners and sugar sub-category had two new product launches while fruit snacks meat

substitutes shelf-stable deserts stuffing polenta and other side dishes and confiture amp fruit spreads all had only

one new product launch each

There were 6 new lownoreduced carbohydrates products launched Two boiled sweets products were

introduced The remaining sub-categories each launched one new product sweeteners amp sugar nuts cheese and

baking ingredients amp mixes

Consumer Trends

Vitamin and dietary supplement retail sales have doubled since 2001 totaling US$5632 million in 2008 and are

expected to reach US$7494 million by 2013

In response to declining health and increased awareness of good health Indiarsquos over -the-counter (OTC) vitamins and minerals supplement market is growing rapidly

Nutraceutical sales in India for 2009 reached US$13232 million

NUTRACEUTICALS

PAGE 9

There is a marked difference in consumption between urban and rural consumers Urban

consumers represent 70 of the vitamin and dietary supplement market versus 30 attributed to

rural consumers

Indian consumers are spending more on nutritional supplements to combat the effects of stressProtein

supplements and items relating to muscle building are popular due to the increasing fitness and bodybuilding

activity among the urban elite

India consumes the largest quantity of tea in the world Tea makes up 94 of out-of-home per capita hot drink consumption and almost 70 of in-home consumptionSales of coffee tea and cocoa in India increased by 14 from 1995 to 2007The availability of imported tea on retail shelves has increased and there has been growth in sales of tea bag and flavoured teas

Dieting is more prevalent than walking or cycling for weight-loss Rising obesity levels and hypertension in India means that health will become an increasingly important focus for consumers who will therefore seek out products that aid weight loss

In comparison to Western or European countries sports do not play a dominant role in the Indian culture which is traditionaly male dominatedHowever young urban adults are increasingly attracted to adventure sports and this has led to growth in the popularity of river rafting rock climbing and mountaineering clubs This trend may lead to more market interest in reasonably priced sports nutrition products

Sport drinks comprise a niche category in India with consumption largely centered in urban areas High prices however discourage the average consumer from purchasing them Energy-boosting drinks that are glucose-based (such as Glucon-D) are more traditionally used in India for rehydration Note 2009 data is provisional and based on part-year estimates

Distribution

Source Euromonitor Health and Wellness

0

10

20

30

40

50

60

70

80

90

2003 2004 2005 2006

Grocery Retailers

Non-Grocery

Retailers

Mass Merchandisers

Other Non-Grocery

Retailers

Non-Store Retailing

Vending

Homeshopping

Internet Retailing

Nutraceutical Purchases by Retail TypemdashAnalysis by Percentage

PAGE 10

Companies amp Brands

Ayurvedic products (more traditional products sought for their medicinal value) such as chyawanprash are competing with Western products in the supplements market

Direct sellers such as Amway and Herbalife which have been in operation since 1999 are taking the lead in

promoting health supplements despite the availability of many low-cost Indian versions Amway Corp appears to be

leading with a steady hold on first place with a 10 market share

Indian consumers are shifting to private label products The ldquoOthersrdquo grouping of brands holds 527 of market share

though it has been declining over the past few years As stated earlier the possible reason for this group having

captured such a large portion of the market is most likely due to price sensitivity and higher-end offerings Of the

remaining 35 companies 33 hold less than 3 market share

Brands strong in Fast Moving Health Goods (FMHG) in India are Elder Pharma Emami Dabur Hamdard Zandu

Biotique and AUM Himalaya

Gatorade and Stamina are the two major player sports drinks

Imported brands such as Coachs are finding takers in select cities

Brand amp Company Shares - Retail Sales - Breakdown

Brand Company Name 2005 2006 2007 Real Dabur India Ltd 86 102 117

Tropicana PepsiCo Inc 67 67 91

Britannia Britannia Industries Ltd 67 67 68

Dabur Honey Dabur India Ltd 0 0 68

Sunfeast ITC Group 48 5 5

Golden Tips Golden Tips Tea Co Pvt Ltd 33 31 29

Ginar Green Tea Girnar Food amp Beverages Pvt Ltd 31 3 28

Artisanal Artisanal 19 2 22

Jay Green Tea Jay Shree Tea amp Industries Ltd 2 2 18

Modern Unilever Group 17 17 18

McVities Digestive United Biscuits (Holdings) Plc 14 16 18

Bagrrys Bagrrys India Ltd 15 15 16

Figaro Paschim Salts Pvt Ltd 13 14 16

Hot Breads BampM Hot Breads Pvt Ltd 14 15 15

Tilda United Riceland Ltd 14 15 15

Infinitea Gopaldhara Tea Co Pvt Ltd 17 16 15

Haldirams Haldiram Foods Intl Ltd 15 15 14

Daawat LT Overseas Ltd 15 15 14

Bertolli Unilever Group 13 14 14

Wuyi Mountain Tea Lochan Tea Ltd 12 12 12

Sofit Hershey Co 0 0 07

KhoCha Pure Darjeeling Green Tea Kho-Cha Darjeeling Tea Bureau 1 08 06

Hey-Song Himalaya Drug Co 06 06 06

Staeta ProSoya Corp USA 05 05 06

Source Euromonitor Health and Wellness

PAGE 11

New Products

The following information has been taken from Mintel

Over 2009 there were 302 nutraceutical products launched in India Below are the top new products

There were 55 new product launches in the high protein category Hot cereals and meat substitutes each

introduced seven new products Snackcerealenergy bars tied with baking ingredients and mixes at five new

products a piece Instant noodles pasta and rice launched four new products

while vegetables and cold cereals introduced three new products each Baby

cereals introduced two new products as did the nut sub-category ldquoOthersrdquo

rounded out the protein category with 12 new products

Fifty-three new diabetic products entered the market Sweeteners dominated

the category with 11 new products Six baking ingredients and mixes appeared

on the shelves Rice chocolate tablets and meat substitute each had three new

product launches Last boiled sweets fruit snacks seasonings and shelf-stable

deserts categories each launched two new products into the market The ldquootherrdquo

category rounded out this group with 15 new products introduced

The all natural category had 24 new product launches in the prepared meals

sub-category Following closely behind is the seasonings category with 22 new product

launches Savorysalty snacks and oils tied for third place with 13 new product launches

each There were 10 new hot cereal product launches and seven new honey products

The anti-aging category had little activity in the way of new product launches however

there were three introductions two oils and one medicated confectionery

ORGANICS

Consumer Trends

According to the Indian Competence Centre for Organic Agriculture the organic food industry in India is estimated currently at US$129 million in 2009 Of the Indian consumers buying organics 66 cited the health of their children as the main thrust for purchasing organic food

Naturalness and wholesomeness is driving growth in the consumption of organic eggs

Indian consumers prefer organic marmalade organic strawberry jam organic tea organic honey organic

cashew butter and various organic flours

PAGE 12

Distribution

Production of organic food has increased in India over the last couple of years however about 70 of the organic food produced in India is exported Due to low consumer awareness about organic food supermarkets hardly stock any on their shelves So it is even more unlikely for smaller stores sell organic food The awareness of organics is gradually increasing in urban areas and in the future supermarkets are expected to stock more of it as the middle class grows and consumer awareness improves

Various stakeholders in the Indian organicrsquos community are pushing to have organic products carried in regular chainstores making it more easily accessible

Companies amp Brands

No statistical data is available for brand or company market share however in the table below listed in descending order are the most popular brands of organic food and beverages in the Indian market for 2008-2009 Source Mintel India Organic Products

Brand Company

24 Letter Mantra Sresta Natural Bioproducts

Fabindia Organics Fabindia Overseas

Waitrose Organic Waitrose

Amalgam Keya Amalgam Foods

India Gate KRBL

Bajaj SK Gajaj Sanjay

Grewals Organic Agriculture Farm Grewals Organic Agriculture Farm

Kohinoors Exclusive Organic Kinhinoor Foods

Pro Nature Organic Staples Pro Nature Organic Foods

Earths Best Organic Hain-Celestial Group

New Products

The following information has been taken from Mintel

Over the past 12 months there have been 70 new organic products launched in India with the Top 10

companies claiming 64 new product launches Below are the top new organic product launches

Sauces and seasonings led with 23 introductions with 24 Letter Mantra producing eight and Fabindia Organics

releasing seven followed by ldquoOthersrdquo whose combined new products totaled six

24 Letter Mantra released seven new snacks with no other competition

The bakery category saw six new product launches The players involved are 24 Letter Mantra (3) Waitrose

Organic (1) Gerwalrsquos Organic Ag Farm (1) and ldquoOthersrdquo (1)

Sweet spread launches totaled four as did sweeteners amp sugars

The other category had five new product introductions which fell under the side dishes sub-category India

Gate and Hello Organic both released two new products with only 24 Letter Mantra rounding out the competition

with one new product released

The processed fish meat and egg products dairy and breakfast cereals categories each launched 3 new

products

A large majority of the new products launched were plain or unflavoured Garlic was the most popular flavouring

followed by mustard herbs thai lentil sugar and spice

PAGE 13

This report analyses the market for Health and Wellness Food and Beverages in India For the purposes of this study

the market has been defined as follows

Functional Foodsmdash Items to which health ingredients have been added These functional foods and beverages should

have a specific physiological function andor are enhanced with added ingredients not normally found in the product

providing health benefits beyond their nutritional value The categories covered in this segment are added calcium

functional digestive functional immune system functional bone health and vitaminmineral fortified

Better for you (BFY) Foodsmdash The category includes packaged food and beverage products where the amount of a

substance considered to be less healthy (fat sugar salt carbohydrates) has been actively reduced during production

To qualitfy for inclusion in this category the ldquoless healthyrdquo element of the food stuff needs to have been actively removed

or substituted during the processing This should form part of the positioningmarketing of the product Products which

are naturally fatsugarcarbohydratemdashfree are not included The categories covered in this segment are lownoreduced

fat lownoreduced sugar lownoreduced sodium lownoreduced glycemic and nolowreduced cholesterol

NutraceuticalsmdashNatural substances are found in food which have medicinal properties to treat or prevent certain

diseases These natural substances can be added to the diet by increasing consumption of certain foods or can be taken

as nutritional supplements Products typically claim to prevent chronic diseases improve health delay the aging process

and increase life expectancy The categories covered in this segment are vitamins sports products herbal

supplements meal replacement products and slimming products

OrganicmdashProducts that are certified organic by an approved certification body Depending on the country such

products are called ldquoorganicrdquo biologicalrdquo or ldquoecologicalrsquo

The usage of the above categories are taken from both Euromonitor International and Mintel These groupings represent

globally accepted classification and product identification for the purpose of data collection

ANNEX lsquoArsquo DEFINITIONS

PAGE 9

There is a marked difference in consumption between urban and rural consumers Urban

consumers represent 70 of the vitamin and dietary supplement market versus 30 attributed to

rural consumers

Indian consumers are spending more on nutritional supplements to combat the effects of stressProtein

supplements and items relating to muscle building are popular due to the increasing fitness and bodybuilding

activity among the urban elite

India consumes the largest quantity of tea in the world Tea makes up 94 of out-of-home per capita hot drink consumption and almost 70 of in-home consumptionSales of coffee tea and cocoa in India increased by 14 from 1995 to 2007The availability of imported tea on retail shelves has increased and there has been growth in sales of tea bag and flavoured teas

Dieting is more prevalent than walking or cycling for weight-loss Rising obesity levels and hypertension in India means that health will become an increasingly important focus for consumers who will therefore seek out products that aid weight loss

In comparison to Western or European countries sports do not play a dominant role in the Indian culture which is traditionaly male dominatedHowever young urban adults are increasingly attracted to adventure sports and this has led to growth in the popularity of river rafting rock climbing and mountaineering clubs This trend may lead to more market interest in reasonably priced sports nutrition products

Sport drinks comprise a niche category in India with consumption largely centered in urban areas High prices however discourage the average consumer from purchasing them Energy-boosting drinks that are glucose-based (such as Glucon-D) are more traditionally used in India for rehydration Note 2009 data is provisional and based on part-year estimates

Distribution

Source Euromonitor Health and Wellness

0

10

20

30

40

50

60

70

80

90

2003 2004 2005 2006

Grocery Retailers

Non-Grocery

Retailers

Mass Merchandisers

Other Non-Grocery

Retailers

Non-Store Retailing

Vending

Homeshopping

Internet Retailing

Nutraceutical Purchases by Retail TypemdashAnalysis by Percentage

PAGE 10

Companies amp Brands

Ayurvedic products (more traditional products sought for their medicinal value) such as chyawanprash are competing with Western products in the supplements market

Direct sellers such as Amway and Herbalife which have been in operation since 1999 are taking the lead in

promoting health supplements despite the availability of many low-cost Indian versions Amway Corp appears to be

leading with a steady hold on first place with a 10 market share

Indian consumers are shifting to private label products The ldquoOthersrdquo grouping of brands holds 527 of market share

though it has been declining over the past few years As stated earlier the possible reason for this group having

captured such a large portion of the market is most likely due to price sensitivity and higher-end offerings Of the

remaining 35 companies 33 hold less than 3 market share

Brands strong in Fast Moving Health Goods (FMHG) in India are Elder Pharma Emami Dabur Hamdard Zandu

Biotique and AUM Himalaya

Gatorade and Stamina are the two major player sports drinks

Imported brands such as Coachs are finding takers in select cities

Brand amp Company Shares - Retail Sales - Breakdown

Brand Company Name 2005 2006 2007 Real Dabur India Ltd 86 102 117

Tropicana PepsiCo Inc 67 67 91

Britannia Britannia Industries Ltd 67 67 68

Dabur Honey Dabur India Ltd 0 0 68

Sunfeast ITC Group 48 5 5

Golden Tips Golden Tips Tea Co Pvt Ltd 33 31 29

Ginar Green Tea Girnar Food amp Beverages Pvt Ltd 31 3 28

Artisanal Artisanal 19 2 22

Jay Green Tea Jay Shree Tea amp Industries Ltd 2 2 18

Modern Unilever Group 17 17 18

McVities Digestive United Biscuits (Holdings) Plc 14 16 18

Bagrrys Bagrrys India Ltd 15 15 16

Figaro Paschim Salts Pvt Ltd 13 14 16

Hot Breads BampM Hot Breads Pvt Ltd 14 15 15

Tilda United Riceland Ltd 14 15 15

Infinitea Gopaldhara Tea Co Pvt Ltd 17 16 15

Haldirams Haldiram Foods Intl Ltd 15 15 14

Daawat LT Overseas Ltd 15 15 14

Bertolli Unilever Group 13 14 14

Wuyi Mountain Tea Lochan Tea Ltd 12 12 12

Sofit Hershey Co 0 0 07

KhoCha Pure Darjeeling Green Tea Kho-Cha Darjeeling Tea Bureau 1 08 06

Hey-Song Himalaya Drug Co 06 06 06

Staeta ProSoya Corp USA 05 05 06

Source Euromonitor Health and Wellness

PAGE 11

New Products

The following information has been taken from Mintel

Over 2009 there were 302 nutraceutical products launched in India Below are the top new products

There were 55 new product launches in the high protein category Hot cereals and meat substitutes each

introduced seven new products Snackcerealenergy bars tied with baking ingredients and mixes at five new

products a piece Instant noodles pasta and rice launched four new products

while vegetables and cold cereals introduced three new products each Baby

cereals introduced two new products as did the nut sub-category ldquoOthersrdquo

rounded out the protein category with 12 new products

Fifty-three new diabetic products entered the market Sweeteners dominated

the category with 11 new products Six baking ingredients and mixes appeared

on the shelves Rice chocolate tablets and meat substitute each had three new

product launches Last boiled sweets fruit snacks seasonings and shelf-stable

deserts categories each launched two new products into the market The ldquootherrdquo

category rounded out this group with 15 new products introduced

The all natural category had 24 new product launches in the prepared meals

sub-category Following closely behind is the seasonings category with 22 new product

launches Savorysalty snacks and oils tied for third place with 13 new product launches

each There were 10 new hot cereal product launches and seven new honey products

The anti-aging category had little activity in the way of new product launches however

there were three introductions two oils and one medicated confectionery

ORGANICS

Consumer Trends

According to the Indian Competence Centre for Organic Agriculture the organic food industry in India is estimated currently at US$129 million in 2009 Of the Indian consumers buying organics 66 cited the health of their children as the main thrust for purchasing organic food

Naturalness and wholesomeness is driving growth in the consumption of organic eggs

Indian consumers prefer organic marmalade organic strawberry jam organic tea organic honey organic

cashew butter and various organic flours

PAGE 12

Distribution

Production of organic food has increased in India over the last couple of years however about 70 of the organic food produced in India is exported Due to low consumer awareness about organic food supermarkets hardly stock any on their shelves So it is even more unlikely for smaller stores sell organic food The awareness of organics is gradually increasing in urban areas and in the future supermarkets are expected to stock more of it as the middle class grows and consumer awareness improves

Various stakeholders in the Indian organicrsquos community are pushing to have organic products carried in regular chainstores making it more easily accessible

Companies amp Brands

No statistical data is available for brand or company market share however in the table below listed in descending order are the most popular brands of organic food and beverages in the Indian market for 2008-2009 Source Mintel India Organic Products

Brand Company

24 Letter Mantra Sresta Natural Bioproducts

Fabindia Organics Fabindia Overseas

Waitrose Organic Waitrose

Amalgam Keya Amalgam Foods

India Gate KRBL

Bajaj SK Gajaj Sanjay

Grewals Organic Agriculture Farm Grewals Organic Agriculture Farm

Kohinoors Exclusive Organic Kinhinoor Foods

Pro Nature Organic Staples Pro Nature Organic Foods

Earths Best Organic Hain-Celestial Group

New Products

The following information has been taken from Mintel

Over the past 12 months there have been 70 new organic products launched in India with the Top 10

companies claiming 64 new product launches Below are the top new organic product launches

Sauces and seasonings led with 23 introductions with 24 Letter Mantra producing eight and Fabindia Organics

releasing seven followed by ldquoOthersrdquo whose combined new products totaled six

24 Letter Mantra released seven new snacks with no other competition

The bakery category saw six new product launches The players involved are 24 Letter Mantra (3) Waitrose

Organic (1) Gerwalrsquos Organic Ag Farm (1) and ldquoOthersrdquo (1)

Sweet spread launches totaled four as did sweeteners amp sugars

The other category had five new product introductions which fell under the side dishes sub-category India

Gate and Hello Organic both released two new products with only 24 Letter Mantra rounding out the competition

with one new product released

The processed fish meat and egg products dairy and breakfast cereals categories each launched 3 new

products

A large majority of the new products launched were plain or unflavoured Garlic was the most popular flavouring

followed by mustard herbs thai lentil sugar and spice

PAGE 13

This report analyses the market for Health and Wellness Food and Beverages in India For the purposes of this study

the market has been defined as follows

Functional Foodsmdash Items to which health ingredients have been added These functional foods and beverages should

have a specific physiological function andor are enhanced with added ingredients not normally found in the product

providing health benefits beyond their nutritional value The categories covered in this segment are added calcium

functional digestive functional immune system functional bone health and vitaminmineral fortified

Better for you (BFY) Foodsmdash The category includes packaged food and beverage products where the amount of a

substance considered to be less healthy (fat sugar salt carbohydrates) has been actively reduced during production

To qualitfy for inclusion in this category the ldquoless healthyrdquo element of the food stuff needs to have been actively removed

or substituted during the processing This should form part of the positioningmarketing of the product Products which

are naturally fatsugarcarbohydratemdashfree are not included The categories covered in this segment are lownoreduced

fat lownoreduced sugar lownoreduced sodium lownoreduced glycemic and nolowreduced cholesterol

NutraceuticalsmdashNatural substances are found in food which have medicinal properties to treat or prevent certain

diseases These natural substances can be added to the diet by increasing consumption of certain foods or can be taken

as nutritional supplements Products typically claim to prevent chronic diseases improve health delay the aging process

and increase life expectancy The categories covered in this segment are vitamins sports products herbal

supplements meal replacement products and slimming products

OrganicmdashProducts that are certified organic by an approved certification body Depending on the country such

products are called ldquoorganicrdquo biologicalrdquo or ldquoecologicalrsquo

The usage of the above categories are taken from both Euromonitor International and Mintel These groupings represent

globally accepted classification and product identification for the purpose of data collection

ANNEX lsquoArsquo DEFINITIONS

PAGE 10

Companies amp Brands

Ayurvedic products (more traditional products sought for their medicinal value) such as chyawanprash are competing with Western products in the supplements market

Direct sellers such as Amway and Herbalife which have been in operation since 1999 are taking the lead in

promoting health supplements despite the availability of many low-cost Indian versions Amway Corp appears to be

leading with a steady hold on first place with a 10 market share

Indian consumers are shifting to private label products The ldquoOthersrdquo grouping of brands holds 527 of market share

though it has been declining over the past few years As stated earlier the possible reason for this group having

captured such a large portion of the market is most likely due to price sensitivity and higher-end offerings Of the

remaining 35 companies 33 hold less than 3 market share

Brands strong in Fast Moving Health Goods (FMHG) in India are Elder Pharma Emami Dabur Hamdard Zandu

Biotique and AUM Himalaya

Gatorade and Stamina are the two major player sports drinks

Imported brands such as Coachs are finding takers in select cities

Brand amp Company Shares - Retail Sales - Breakdown

Brand Company Name 2005 2006 2007 Real Dabur India Ltd 86 102 117

Tropicana PepsiCo Inc 67 67 91

Britannia Britannia Industries Ltd 67 67 68

Dabur Honey Dabur India Ltd 0 0 68

Sunfeast ITC Group 48 5 5

Golden Tips Golden Tips Tea Co Pvt Ltd 33 31 29

Ginar Green Tea Girnar Food amp Beverages Pvt Ltd 31 3 28

Artisanal Artisanal 19 2 22

Jay Green Tea Jay Shree Tea amp Industries Ltd 2 2 18

Modern Unilever Group 17 17 18

McVities Digestive United Biscuits (Holdings) Plc 14 16 18

Bagrrys Bagrrys India Ltd 15 15 16

Figaro Paschim Salts Pvt Ltd 13 14 16

Hot Breads BampM Hot Breads Pvt Ltd 14 15 15

Tilda United Riceland Ltd 14 15 15

Infinitea Gopaldhara Tea Co Pvt Ltd 17 16 15

Haldirams Haldiram Foods Intl Ltd 15 15 14

Daawat LT Overseas Ltd 15 15 14

Bertolli Unilever Group 13 14 14

Wuyi Mountain Tea Lochan Tea Ltd 12 12 12

Sofit Hershey Co 0 0 07

KhoCha Pure Darjeeling Green Tea Kho-Cha Darjeeling Tea Bureau 1 08 06

Hey-Song Himalaya Drug Co 06 06 06

Staeta ProSoya Corp USA 05 05 06

Source Euromonitor Health and Wellness

PAGE 11

New Products

The following information has been taken from Mintel

Over 2009 there were 302 nutraceutical products launched in India Below are the top new products

There were 55 new product launches in the high protein category Hot cereals and meat substitutes each

introduced seven new products Snackcerealenergy bars tied with baking ingredients and mixes at five new

products a piece Instant noodles pasta and rice launched four new products

while vegetables and cold cereals introduced three new products each Baby

cereals introduced two new products as did the nut sub-category ldquoOthersrdquo

rounded out the protein category with 12 new products

Fifty-three new diabetic products entered the market Sweeteners dominated

the category with 11 new products Six baking ingredients and mixes appeared

on the shelves Rice chocolate tablets and meat substitute each had three new

product launches Last boiled sweets fruit snacks seasonings and shelf-stable

deserts categories each launched two new products into the market The ldquootherrdquo

category rounded out this group with 15 new products introduced

The all natural category had 24 new product launches in the prepared meals

sub-category Following closely behind is the seasonings category with 22 new product

launches Savorysalty snacks and oils tied for third place with 13 new product launches

each There were 10 new hot cereal product launches and seven new honey products

The anti-aging category had little activity in the way of new product launches however

there were three introductions two oils and one medicated confectionery

ORGANICS

Consumer Trends

According to the Indian Competence Centre for Organic Agriculture the organic food industry in India is estimated currently at US$129 million in 2009 Of the Indian consumers buying organics 66 cited the health of their children as the main thrust for purchasing organic food

Naturalness and wholesomeness is driving growth in the consumption of organic eggs

Indian consumers prefer organic marmalade organic strawberry jam organic tea organic honey organic

cashew butter and various organic flours

PAGE 12

Distribution

Production of organic food has increased in India over the last couple of years however about 70 of the organic food produced in India is exported Due to low consumer awareness about organic food supermarkets hardly stock any on their shelves So it is even more unlikely for smaller stores sell organic food The awareness of organics is gradually increasing in urban areas and in the future supermarkets are expected to stock more of it as the middle class grows and consumer awareness improves

Various stakeholders in the Indian organicrsquos community are pushing to have organic products carried in regular chainstores making it more easily accessible

Companies amp Brands

No statistical data is available for brand or company market share however in the table below listed in descending order are the most popular brands of organic food and beverages in the Indian market for 2008-2009 Source Mintel India Organic Products

Brand Company

24 Letter Mantra Sresta Natural Bioproducts

Fabindia Organics Fabindia Overseas

Waitrose Organic Waitrose

Amalgam Keya Amalgam Foods

India Gate KRBL

Bajaj SK Gajaj Sanjay

Grewals Organic Agriculture Farm Grewals Organic Agriculture Farm

Kohinoors Exclusive Organic Kinhinoor Foods

Pro Nature Organic Staples Pro Nature Organic Foods

Earths Best Organic Hain-Celestial Group

New Products

The following information has been taken from Mintel

Over the past 12 months there have been 70 new organic products launched in India with the Top 10

companies claiming 64 new product launches Below are the top new organic product launches

Sauces and seasonings led with 23 introductions with 24 Letter Mantra producing eight and Fabindia Organics

releasing seven followed by ldquoOthersrdquo whose combined new products totaled six

24 Letter Mantra released seven new snacks with no other competition

The bakery category saw six new product launches The players involved are 24 Letter Mantra (3) Waitrose

Organic (1) Gerwalrsquos Organic Ag Farm (1) and ldquoOthersrdquo (1)

Sweet spread launches totaled four as did sweeteners amp sugars

The other category had five new product introductions which fell under the side dishes sub-category India

Gate and Hello Organic both released two new products with only 24 Letter Mantra rounding out the competition

with one new product released

The processed fish meat and egg products dairy and breakfast cereals categories each launched 3 new

products

A large majority of the new products launched were plain or unflavoured Garlic was the most popular flavouring

followed by mustard herbs thai lentil sugar and spice

PAGE 13

This report analyses the market for Health and Wellness Food and Beverages in India For the purposes of this study

the market has been defined as follows

Functional Foodsmdash Items to which health ingredients have been added These functional foods and beverages should

have a specific physiological function andor are enhanced with added ingredients not normally found in the product

providing health benefits beyond their nutritional value The categories covered in this segment are added calcium

functional digestive functional immune system functional bone health and vitaminmineral fortified

Better for you (BFY) Foodsmdash The category includes packaged food and beverage products where the amount of a

substance considered to be less healthy (fat sugar salt carbohydrates) has been actively reduced during production

To qualitfy for inclusion in this category the ldquoless healthyrdquo element of the food stuff needs to have been actively removed

or substituted during the processing This should form part of the positioningmarketing of the product Products which

are naturally fatsugarcarbohydratemdashfree are not included The categories covered in this segment are lownoreduced

fat lownoreduced sugar lownoreduced sodium lownoreduced glycemic and nolowreduced cholesterol

NutraceuticalsmdashNatural substances are found in food which have medicinal properties to treat or prevent certain

diseases These natural substances can be added to the diet by increasing consumption of certain foods or can be taken

as nutritional supplements Products typically claim to prevent chronic diseases improve health delay the aging process

and increase life expectancy The categories covered in this segment are vitamins sports products herbal

supplements meal replacement products and slimming products

OrganicmdashProducts that are certified organic by an approved certification body Depending on the country such

products are called ldquoorganicrdquo biologicalrdquo or ldquoecologicalrsquo

The usage of the above categories are taken from both Euromonitor International and Mintel These groupings represent

globally accepted classification and product identification for the purpose of data collection

ANNEX lsquoArsquo DEFINITIONS

PAGE 11

New Products

The following information has been taken from Mintel

Over 2009 there were 302 nutraceutical products launched in India Below are the top new products

There were 55 new product launches in the high protein category Hot cereals and meat substitutes each

introduced seven new products Snackcerealenergy bars tied with baking ingredients and mixes at five new

products a piece Instant noodles pasta and rice launched four new products

while vegetables and cold cereals introduced three new products each Baby

cereals introduced two new products as did the nut sub-category ldquoOthersrdquo

rounded out the protein category with 12 new products

Fifty-three new diabetic products entered the market Sweeteners dominated

the category with 11 new products Six baking ingredients and mixes appeared

on the shelves Rice chocolate tablets and meat substitute each had three new

product launches Last boiled sweets fruit snacks seasonings and shelf-stable

deserts categories each launched two new products into the market The ldquootherrdquo

category rounded out this group with 15 new products introduced

The all natural category had 24 new product launches in the prepared meals

sub-category Following closely behind is the seasonings category with 22 new product

launches Savorysalty snacks and oils tied for third place with 13 new product launches

each There were 10 new hot cereal product launches and seven new honey products

The anti-aging category had little activity in the way of new product launches however

there were three introductions two oils and one medicated confectionery

ORGANICS

Consumer Trends

According to the Indian Competence Centre for Organic Agriculture the organic food industry in India is estimated currently at US$129 million in 2009 Of the Indian consumers buying organics 66 cited the health of their children as the main thrust for purchasing organic food

Naturalness and wholesomeness is driving growth in the consumption of organic eggs

Indian consumers prefer organic marmalade organic strawberry jam organic tea organic honey organic

cashew butter and various organic flours

PAGE 12

Distribution

Production of organic food has increased in India over the last couple of years however about 70 of the organic food produced in India is exported Due to low consumer awareness about organic food supermarkets hardly stock any on their shelves So it is even more unlikely for smaller stores sell organic food The awareness of organics is gradually increasing in urban areas and in the future supermarkets are expected to stock more of it as the middle class grows and consumer awareness improves

Various stakeholders in the Indian organicrsquos community are pushing to have organic products carried in regular chainstores making it more easily accessible

Companies amp Brands

No statistical data is available for brand or company market share however in the table below listed in descending order are the most popular brands of organic food and beverages in the Indian market for 2008-2009 Source Mintel India Organic Products

Brand Company

24 Letter Mantra Sresta Natural Bioproducts

Fabindia Organics Fabindia Overseas

Waitrose Organic Waitrose

Amalgam Keya Amalgam Foods

India Gate KRBL

Bajaj SK Gajaj Sanjay

Grewals Organic Agriculture Farm Grewals Organic Agriculture Farm

Kohinoors Exclusive Organic Kinhinoor Foods

Pro Nature Organic Staples Pro Nature Organic Foods

Earths Best Organic Hain-Celestial Group

New Products

The following information has been taken from Mintel

Over the past 12 months there have been 70 new organic products launched in India with the Top 10

companies claiming 64 new product launches Below are the top new organic product launches

Sauces and seasonings led with 23 introductions with 24 Letter Mantra producing eight and Fabindia Organics

releasing seven followed by ldquoOthersrdquo whose combined new products totaled six

24 Letter Mantra released seven new snacks with no other competition

The bakery category saw six new product launches The players involved are 24 Letter Mantra (3) Waitrose

Organic (1) Gerwalrsquos Organic Ag Farm (1) and ldquoOthersrdquo (1)

Sweet spread launches totaled four as did sweeteners amp sugars

The other category had five new product introductions which fell under the side dishes sub-category India

Gate and Hello Organic both released two new products with only 24 Letter Mantra rounding out the competition

with one new product released

The processed fish meat and egg products dairy and breakfast cereals categories each launched 3 new

products

A large majority of the new products launched were plain or unflavoured Garlic was the most popular flavouring

followed by mustard herbs thai lentil sugar and spice

PAGE 13

This report analyses the market for Health and Wellness Food and Beverages in India For the purposes of this study

the market has been defined as follows

Functional Foodsmdash Items to which health ingredients have been added These functional foods and beverages should

have a specific physiological function andor are enhanced with added ingredients not normally found in the product

providing health benefits beyond their nutritional value The categories covered in this segment are added calcium

functional digestive functional immune system functional bone health and vitaminmineral fortified

Better for you (BFY) Foodsmdash The category includes packaged food and beverage products where the amount of a

substance considered to be less healthy (fat sugar salt carbohydrates) has been actively reduced during production

To qualitfy for inclusion in this category the ldquoless healthyrdquo element of the food stuff needs to have been actively removed

or substituted during the processing This should form part of the positioningmarketing of the product Products which

are naturally fatsugarcarbohydratemdashfree are not included The categories covered in this segment are lownoreduced

fat lownoreduced sugar lownoreduced sodium lownoreduced glycemic and nolowreduced cholesterol

NutraceuticalsmdashNatural substances are found in food which have medicinal properties to treat or prevent certain

diseases These natural substances can be added to the diet by increasing consumption of certain foods or can be taken

as nutritional supplements Products typically claim to prevent chronic diseases improve health delay the aging process

and increase life expectancy The categories covered in this segment are vitamins sports products herbal

supplements meal replacement products and slimming products

OrganicmdashProducts that are certified organic by an approved certification body Depending on the country such

products are called ldquoorganicrdquo biologicalrdquo or ldquoecologicalrsquo

The usage of the above categories are taken from both Euromonitor International and Mintel These groupings represent

globally accepted classification and product identification for the purpose of data collection

ANNEX lsquoArsquo DEFINITIONS

PAGE 12

Distribution

Production of organic food has increased in India over the last couple of years however about 70 of the organic food produced in India is exported Due to low consumer awareness about organic food supermarkets hardly stock any on their shelves So it is even more unlikely for smaller stores sell organic food The awareness of organics is gradually increasing in urban areas and in the future supermarkets are expected to stock more of it as the middle class grows and consumer awareness improves

Various stakeholders in the Indian organicrsquos community are pushing to have organic products carried in regular chainstores making it more easily accessible

Companies amp Brands

No statistical data is available for brand or company market share however in the table below listed in descending order are the most popular brands of organic food and beverages in the Indian market for 2008-2009 Source Mintel India Organic Products

Brand Company

24 Letter Mantra Sresta Natural Bioproducts

Fabindia Organics Fabindia Overseas

Waitrose Organic Waitrose

Amalgam Keya Amalgam Foods

India Gate KRBL

Bajaj SK Gajaj Sanjay

Grewals Organic Agriculture Farm Grewals Organic Agriculture Farm

Kohinoors Exclusive Organic Kinhinoor Foods

Pro Nature Organic Staples Pro Nature Organic Foods

Earths Best Organic Hain-Celestial Group

New Products

The following information has been taken from Mintel

Over the past 12 months there have been 70 new organic products launched in India with the Top 10

companies claiming 64 new product launches Below are the top new organic product launches

Sauces and seasonings led with 23 introductions with 24 Letter Mantra producing eight and Fabindia Organics

releasing seven followed by ldquoOthersrdquo whose combined new products totaled six

24 Letter Mantra released seven new snacks with no other competition

The bakery category saw six new product launches The players involved are 24 Letter Mantra (3) Waitrose

Organic (1) Gerwalrsquos Organic Ag Farm (1) and ldquoOthersrdquo (1)

Sweet spread launches totaled four as did sweeteners amp sugars

The other category had five new product introductions which fell under the side dishes sub-category India

Gate and Hello Organic both released two new products with only 24 Letter Mantra rounding out the competition

with one new product released

The processed fish meat and egg products dairy and breakfast cereals categories each launched 3 new

products

A large majority of the new products launched were plain or unflavoured Garlic was the most popular flavouring

followed by mustard herbs thai lentil sugar and spice

PAGE 13

This report analyses the market for Health and Wellness Food and Beverages in India For the purposes of this study

the market has been defined as follows

Functional Foodsmdash Items to which health ingredients have been added These functional foods and beverages should

have a specific physiological function andor are enhanced with added ingredients not normally found in the product

providing health benefits beyond their nutritional value The categories covered in this segment are added calcium

functional digestive functional immune system functional bone health and vitaminmineral fortified

Better for you (BFY) Foodsmdash The category includes packaged food and beverage products where the amount of a

substance considered to be less healthy (fat sugar salt carbohydrates) has been actively reduced during production

To qualitfy for inclusion in this category the ldquoless healthyrdquo element of the food stuff needs to have been actively removed

or substituted during the processing This should form part of the positioningmarketing of the product Products which

are naturally fatsugarcarbohydratemdashfree are not included The categories covered in this segment are lownoreduced

fat lownoreduced sugar lownoreduced sodium lownoreduced glycemic and nolowreduced cholesterol

NutraceuticalsmdashNatural substances are found in food which have medicinal properties to treat or prevent certain

diseases These natural substances can be added to the diet by increasing consumption of certain foods or can be taken

as nutritional supplements Products typically claim to prevent chronic diseases improve health delay the aging process

and increase life expectancy The categories covered in this segment are vitamins sports products herbal

supplements meal replacement products and slimming products

OrganicmdashProducts that are certified organic by an approved certification body Depending on the country such

products are called ldquoorganicrdquo biologicalrdquo or ldquoecologicalrsquo

The usage of the above categories are taken from both Euromonitor International and Mintel These groupings represent

globally accepted classification and product identification for the purpose of data collection

ANNEX lsquoArsquo DEFINITIONS

PAGE 13

This report analyses the market for Health and Wellness Food and Beverages in India For the purposes of this study

the market has been defined as follows

Functional Foodsmdash Items to which health ingredients have been added These functional foods and beverages should

have a specific physiological function andor are enhanced with added ingredients not normally found in the product

providing health benefits beyond their nutritional value The categories covered in this segment are added calcium

functional digestive functional immune system functional bone health and vitaminmineral fortified

Better for you (BFY) Foodsmdash The category includes packaged food and beverage products where the amount of a

substance considered to be less healthy (fat sugar salt carbohydrates) has been actively reduced during production

To qualitfy for inclusion in this category the ldquoless healthyrdquo element of the food stuff needs to have been actively removed

or substituted during the processing This should form part of the positioningmarketing of the product Products which

are naturally fatsugarcarbohydratemdashfree are not included The categories covered in this segment are lownoreduced

fat lownoreduced sugar lownoreduced sodium lownoreduced glycemic and nolowreduced cholesterol

NutraceuticalsmdashNatural substances are found in food which have medicinal properties to treat or prevent certain

diseases These natural substances can be added to the diet by increasing consumption of certain foods or can be taken

as nutritional supplements Products typically claim to prevent chronic diseases improve health delay the aging process

and increase life expectancy The categories covered in this segment are vitamins sports products herbal

supplements meal replacement products and slimming products

OrganicmdashProducts that are certified organic by an approved certification body Depending on the country such

products are called ldquoorganicrdquo biologicalrdquo or ldquoecologicalrsquo

The usage of the above categories are taken from both Euromonitor International and Mintel These groupings represent

globally accepted classification and product identification for the purpose of data collection

ANNEX lsquoArsquo DEFINITIONS

Health and Wellness in India copy Her Majesty the Queen in Right of Canada 2010 ISSN 1920-6593 Market Indicator Report AAFC No 11206E Photo Credits All Photographs reproduced in this publication are used by permission of the rights holders All images unless otherwise noted are copyright Her Majesty the Queen in Right of Canada

For additional copies of this publication or to request an alternate format please contact Agriculture and Agri-Food Canada 1341 Baseline Road Tower 5 4th floor Ottawa ON Canada K1A 0C5 E-mail infoserviceagrgcca

Aussi disponible en franccedilais sous le titre Tendances du marcheacute des aliments de santeacute et de mieux-ecirctre en Inde

The Government of Canada has prepared this report based on primary and secondary sources of information Although every effort has been made to ensure that the information is accurate Agriculture and Agri-Food Canada assumes no liability for any actions taken based on the information contained herein