In order to develop and prosper, Indian food industry and all its components need to be integrated. Forming an ecosystem is one such approach towards an integrated system.
India is an ideal location for manufacturing nutraceuticals products due to the immense wealth of biodiversity as well as availability of medicinal and herbal plants, good quality produce of fruits and vegetables, this will also aid in positioning India as a nutraceutical hub with great potential. India also has other advantages like qualified human resources, upcoming world-class R&D facilities and varied raw material aspects; these give our country a leading edge.
Formation of clusters
In business, clusters usually refer to the hubs of innovation, where many businesses and creative minds form a business culture that fosters development of new products.
But here we are referring to clusters vis-à-vis groups or segments.
As I have been mentioning in my earlier articles as well, the nutraceutical, nutrition and health industry is not only transitioning but also diversifying or getting segmented into various small clusters. Nutrition is a vast area which also involves a number of different aspects affecting it or playing a role in it.
Now with the upsurge of various new products in the market and with more and more companies entering and investing in the industry, there has been a lot of product clutter in the industry, which has given rise to various segments or clusters.
The consumer needs and industry have propelled these segmentations and now have a segment for almost every target consumer group.
The ever-changing consumer trends and lifestyle along with the industry’s strategy to concentrate on these consumer trends and deliver products based on consumers’ needs have aided the formation of numerous small and big clusters and segments. The constant evolution in consumers’ trends can be in some ways attributed to their response to geographic, demographic, and scientific advancement.
As we move into 2017, we will continue witnessing exponential growth of nutraceutical market across all its segments as the market reaches new heights.
In the Indian nutraceutical industry, marketing focus on health claims, has brought about a change in segmentation dynamics. With the emergence of new sub-segments, evolution in nature of formats etc. the segmentation based on just the formats i.e. dietary supplements, functional foods and functional beverages seems inadequate.
As a result of the current format clutter in the industry, the marketing focus of nutraceuticals has moved to the health claim sector. This, in turn, has resulted in a parallel segmentation in the industry based on goal and disease-specifications. Within these segments there exists micro-segmentation which is mostly based on the age or gender. Example: Sub-variants of popular brands like Horlicks – divided into Junior Horlicks & Mothers Horlicks based on age groups.
Clusters of Nutrition:
Clusters can be classified on the basis of health conditions, formats/dosage forms and general well-being/health maintenance.
Clusters based on formats
Nutrients can be supplemented through various formats such as dietary supplements, functional/ fortified foods and functional beverages, all of which fall under the umbrella term nutraceuticals. These individual clusters are further segmented and micro-segmented. Functional foods are further segmented based on the type of product E.g. Dairy products, bakery products, fortified snacks, confectionary and others etc. In addition, the functional beverages segment also has sub-segmented into hot beverages such as herbal teas, green teas, fruit & vegetable juices, fortified drinking water, non-carbonated drinks, and dairy, dairy alternative drinks among others.
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