Currently healthcare segment growth has started but hasn’t boomed yet. It has yet to come and that is expected soon. The way nutritional education in India will grow, the sector will grow accordingly. As per the figures revealed by FSSAI India's health supplement and nutraceutical industry is rapidly growing and is poised to be USD 10 billion industry by 2025. Due to exponential growth and rising per capita income the demand for health supplients is growing exponentially also such products are finding newer distribution channels which is far behind pharmacy chains.
The market scenario
Still the nutrition education and awareness is very poor. Consumers are lured by various kinds of advertisement and compensated with various kinds of free sale schemes rather than giving them the right quality nutritional products. So many channels have been involved in between the manufacturers and consumers which is affecting the product quality.
Nutrimed Healthcare is one of the leading manufactures in healthcare segment s with whole range of products including infant milk formula, baby food cereals, child growth milk formula, pregnant & lactating mothers’ milk protein formula, sports & fitness supplements, whey protein/ milk based nutritional formulations
Speaking on current market scenario, T.N. Tiwari, Founder and CEO of Nutrimed Healthcare said, “The online marketing is increasing to minimize the gap between consumers and manufacturers so that quality of products doesn’t suffer due to many middlemen.”
According to Tiwari, there are ample factors which are propelling growth in this segment. For example, there is a growing trend of education and awareness of nutrition as fitness supplements. Also, India being the capital for obese, diabetics & cardiac patients etc., new generation is afraid of these ailments and want to maintain their fitness. That is the reason there has been exponential growth in gyms, and more and more people are opting for fitness and wellness programs. And, people have improved purchasing capacity which in turn spurting growth in this segment.
Certainly the increased number of channels in retailing has their margins against their services. Now every manufacture have to think how to provide good quality product at cheaper prices to customers without any compromises. That is a challenge that almost every manufacture is dealing with. Speaking on same Tiwari said, “We too look forward to hear from someoneonthisissue. Fitness Supplements are going through online channel to safeguard the nutritional quality of the products and to avail them directly to the customers with minimal channels present between the manufacturer and customer.”
As per him infant nutrition and Baby food cereals are going through offline channels so far. Distribution can be scaled up if both above lines can be made strong enough to make our products presence everywhere. Nutrimed Healthcare is selling its fitness supplements majorly through our own ecommerce website. Nutrimed Healthcare’s e-commerce website started 4 years back and has customers throughout the country, in every nook and corner of India, with 1,00,000+ registered customers.
Sharing the sales split between online and offline Tiwari said, “We sell Nutrimed Healthcare Fitness Supplements mostly through online channels and also do contract manufacturing for many companies which is business through offline channel as well as offline distribution in different states through appointed dealers. Our split for Fitness supplements sale is 75% Online : 25% Offline.”
For Infant milk formula and Baby foods, the company is selling through offline distribution channels such as appointed distributors PAN India and regional MRs in various districts. “We are also doing export of Baby foods to many SAARC countries as well as doing contract manufacturing for baby foods and infant milk formula for many export clients from Afghanistan, Bangladesh, Oman, Iraq, Nepal, Sri Lanka, Yemen,” as he shared.
Nutrimed Healthcare is listed on these marketplaces including Flipkart, Healthkart, Amazon, Paytm, Merricart.
The road ahead
Healthcare is emerging as one of the largest sectors in terms of revenue and employment. As per the report shared by ibef the Indian healthcare sector is growing at a brisk pace due to its strengthening coverage, services and increasing expenditure by public as well private players.
There is a significant scope for enhancing healthcare services considering that healthcare spending as a percentage of Gross Domestic Product (GDP) is rising. Rural India, which accounts for over 70 per cent of the population, is set to emerge as a potential demand source. Hence, we see ample retail growth for this segment.