Multinational firms dominate vitamins market in India

Euromonitor, too, predicted a compounded annual growth rate of 3.6% between 2017 and 2021

India’s share in the global nutraceuticals market is set to rise, but the vitamins and dietary supplements segment is dominated by multinational companies (MNCs) with limited representation from domestic firms. The top five players in this Rs 10,000-crore market are all MNCs.  

Data from Euromonitor show that the US-headquartered Amway has maintained its leadership position in the segment in the Indian market for the past five years. Its share, however, has dipped from a 43.2 per cent in 2013 to 33.8 per cent in 2016.

It is followed by Pfizer, known for its Becosules brand, with a share of 16.8 per cent. The third, fourth and fifth spots are taken by Merck, Bayer and Abbott, respectively. Home-grown firm Wockhardt had the seventh spot. 

A recent study by Assocham and RNCOS highlighted that the Indian nutraceuticals market was expected to touch $8.5 billion by 2022 from $2.8 billion in 2015. It also said that India’s share in the global market was set to rise from 2 per cent in 2015 to 3 per cent by 2022, given the country’s increasing urban belt and growing awareness. Of this, the vitamins and minerals market was expected to reach a value of $2.1 billion by 2022, said the Assocham-RNCOS study.

Euromonitor, too, predicted a compounded annual growth rate of 3.6 per cent between 2017 and 2021. 

Experts feel that the prime reason behind the dominance by MNCs is that their brands are over three or four decades old. “They have already built the brands and established their hold. It is not easy to build a new brand from scratch in this segment,” Cadila Healthcare Chairman Pankaj Patel said, while adding Zydus Cadila did not have a significant presence earlier. 

It is not that the Indian players have not taken initiative. Sun Pharmaceutical Industries owns the Revital brand (erstwhile Ranbaxy brand), which it had relaunched last year as a health supplement brand. However, the company’s FY16 annual report states that vitamins, minerals and nutrients account for about 4 per cent of its overall revenues. FY17 report is yet to be released. 

Similarly, Lupin (which has off late increased its focus on the over-the-counter segment) draws 5 per cent of its revenues from the vitamins, minerals and nutrients segment in its overall therapeutic mix, largely dominated by the cardiology and anti-diabetic segments. “We have sustained our position in the anti-TB and cardiology therapy, where we are ranked No.1 and No.2, respectively,” Lupin said in its FY17 annual report. 

D G Shah, secretary general of the Indian Pharmaceutical Alliance, said that the OTC segment requires sustained spending on promotions. “For the pure play vitamins segment, one cannot use commercial advertising and instead has to depend on prescriptions. That deters some new players as well,” he said. 

The MNCs, too, are sticking with their game to maintain market share. Pfizer, for example, launched Becosules Women, a multivitamin, last year, expanding its Becosules franchise. 

“Becosules is the No.1 vitamin brand in vitamins, minerals and supplements category. With a wide-range of portfolio including line extensions such as Becosules Syrup, Becosules Performance, Becosules Plus and Becosules Women, we continue to develop customised offerings targeted at various age groups and lifestyle requirements” said a Pfizer spokesperson.