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The Baby Food and Child Nutrition Market in India is growing rapidly owing to the increased awareness among parents regarding proper nutritional well being of their child. In the recent years, the country has also witnessed growth in the number of young working mothers who suffers from shortage of time and has to depend on processed child nutrition products. In addition to this, some major corporate activities such as joint ventures, mergers and acquisitions by some of the top multinationals has also taken place in this sector, which indicates prominent signs of prosperity of the baby food and child nutrition market in the coming years.
The report begins with the introduction section which offers a brief description about child nutrition, its various aspects and its role in the proper development of a child. After this, the various factors determining the nutritional requirements of a child are mentioned along with the breakup percentage of energy spent by a child on different activities. It is then followed by the classification of the child nutrition products based on different compositions. It then moves into the market overview section, which provides an overview of the global baby food and child nutrition market with details about its current market scenario and growth. Apart from this, the section also highlights about the major global players of this market along with their respective market shares. The next section provides an insight about the Indian baby food and child nutrition market, highlighting the market size and its growth in the upcoming years. It also provides information about the major players in the Indian market with their respective market shares. In addition to this, survey results about consumer preference for child nutrition products and major brands in different baby foods categories are also provided. The next section elaborates on the value chain analysis of the sector.
A separate section on import and export of baby food and child nutrition products is also provided, highlighting the growth in import and export values over the years. Then, details regarding major importing and exporting nations are also provided.
An analysis of the drivers explains the factors for growth of the industry that include increase in disposable income, high infant mortality rate, increase in number of new born babies, increasing working women population and Increased reach and availability due to growing retail and pharma outlets. The key challenges include regulatory challenges, rise in ingredient price, high pricing and cultural aspects.
The next section speaks about the Government regulations for baby food and child nutrition products which include the Infant Milk Substitutes (IMS), Feeding bottles and Infant foods Amended Act 2003 and the various regulations by the Food Safety and Standards Authority of India (FSSAI).
Market Research Report : Baby Food and Child Nutrition Market in India 2012
1. Insert Cover Image using Slide Master View
Do not distort
Baby Food & Child Nutrition Market – India
November 2012
2. Executive Summary
Global baby food and child nutrition market has witnessed a turnover of INR x bn during 20__ and
Market is growing rapidly especially in the developing nations
Indian baby food and child nutrition market is also showing possitive growth and its market size
was found to be INR y bn during 20__
Drivers Challenges
Drivers & —Increase in Number of New Born Babies —Regulatory Challenges
Challenges —Increase in Disposable Income —Rise in Ingredient Price
LE
—Increasing Working Women Population —Cultural Aspect
—Increased Reach and Availability —High Pricing
MP
The Infant Milk Substitutes (IMS), Feeding bottles and Infant foods Amended Act 20__
SA
Government Food Safety and Standards Authority of India (FSSAI)
Modification in Packaged Commodities Rules 20__
Innovation in product variants
Inclination Towards Health and Wellness Foods
Trends
Collaborations and acquisitions
Innovative brand building activities
Major Players
Competition Company A Company B. Company C
Company D Company E Company F
BABY FOOD AND CHILD NUTRITION MARKET IN INDIA 2012.PPT 2
4. Proper nutrition during the child’s growing phase reinforces
the overall well‐being of the child for a healthy life in future
LE
P
Introduction
SAM
Child nutrition or pediatric nutrition refers to the intake of a nutritionally adequate balanced diet, consisting of
all the essential nutrients and sufficient calories required for a child’s proper growth within the age group of
0‐5 years in order to maintain the different physiological requirements at the various stages of the
developmental process
Factors determining the various levels of nutritional requirements
Age of the child Level of activity Environmental conditions
• During infancy calorie requirements is high and Breakdown of energy expenditure by a child in
has to be provided mostly in the form of different activities
proteins, to support proper growth in height and
weight x1 a b
• The growth is irregular during toddlerhood, x2
c d
preschool and middle childhood years, which
x4
results in variation in desire to eat and calorie x3
consumption
BABY FOOD AND CHILD NUTRITION MARKET IN INDIA 2012.PPT 4
5. Classification of baby food and child nutrition products (1/3)
• Generally, the food administered to babies of upto two years of age are termed as baby foods, which can be
in solid, liquid or semi‐solid form
• But, as various socio‐economic, health‐related and geo‐societal conventions persist in the society, children
more than two years old are also fed with these food products baby foods are also given to children older
than two years depending on socio‐economic, health‐related and geo‐societal conventions
Baby Food and Child Nutrition – Classification
LE
Cereal based
MP Ready‐to‐feed liquids
S A Cereal based with milk
Milk based Rusk and biscuits
Malt based beverages
BABY FOOD AND CHILD NUTRITION MARKET IN INDIA 2012.PPT 5
6. The manufacturers of child nutrition products are targeting
the developing nations to grab more market share
Global Market – Overview Market Size
estimated to be INR x1 bn in 20__
LE
• The global baby food and child nutrition market was INR bn
3,000 Z%
x6
x7
x8
P
• It is expected to reach INR x2 bn in 20__, growing at x4 x5
x3
a CAGR of z% between 20__‐20__ 2,000 x1 x2
S AM
• It is growing rapidly, owing to the changing lifestyle
and mindset of parents for acquiring healthy and
hygienic growth of the child
• This growth is being witnessed more in developing
1,000
0
20__ 20__ 20__e 20__e 20__e 20__e 20__e 20__e
nations in comparison to developed nations,
especially in the Asian countries Major player’s share (20__)*
• Birth rates in the emerging markets, such as Asia and
South America, exceed the U.S. by an average of a%
• Hence, the major players are targeting these emerging A
a6 a1
markets as U.S. and Europe have limited growth B
opportunity owing to lower birth rates and static market C
conditions D
• Among the various baby foods and child nutrition E
a5 a2
products available globally, the infant formula F
market is dominated by five major players – A (a1%),
a4
B(a2%), C(a3%), D(a4%) and E(a5%) a3
*Note: Figures are as of Jul 2011 and
represents the infant formula market
BABY FOOD AND CHILD NUTRITION MARKET IN INDIA 2012.PPT 6
7. Increasing awareness among parents about proper child
nutrition is driving the growth of this market
Indian Market – Overview (1/2) Market Size
• Indian food supplement market consist of a varied INR bn
portfolio of products targeting different age groups 50
• Child nutrition or pediatric nutrition market is one of Z% y7
40 y6
those segments which focuses on nutritional y5
30 y4
y2 y3
requirements of a child 20
y1
• The total market size of baby food and child nutrition
10
E
market for 20__ is valued at INR y1 bn and is 0
L
expected to reach INR y7 bn by 20__ 20__ 20__ 20__e 20__e 20__e 20__e 20__e
P
• The major player in the Indian baby food market is A,
holding a market share of a1%, next is B with a share
of a2% and remaining share is occupied by other
M
Major player’s share (2011)
players such as c1,c2,c3
S A
• Rising income levels and better product availability
are some of the factors driving the child nutrition
products industry in India
a2%
a3%
A
B
C
• However, the child nutrition product manufacturers
witness various government regulations
The players are now trying to convince government bodies
to introduce their products in their different schemes to a1%
combat malnutrition among children
BABY FOOD AND CHILD NUTRITION MARKET IN INDIA 2012.PPT 7
8. Import of major child nutrition products (1/4)
Food preparations for infants Major importing nations (20__)
Volume Value
INR mn ‘000 Kg
a3% A D
100
x3 400 a1% a4%
B E
80 a2%
x1 300 C
60
E
200
L
40 x2 y3
P
20 100 a5%
y1 y2
0 0
20__
Other foods prepared from cereals
20__
Volume
S AM20__
Value
Major importing nations (20__)
INR mn ‘000 Kg
F I
40 x3 250 b1%
G J
30 200 b2%
b6% b5% H K
x2 150
20 b4%
x1 y3 100
10 50
y1 y2 b3%
0 0
20__ 20__ 20__
*Note: Figures are value wise, HS Code 190110 (Food preparation for infant use put up for retail sale), HS Code 19049000 (Other prepared food obtained from roasted
cereal flakes)
BABY FOOD AND CHILD NUTRITION MARKET IN INDIA 2012.PPT 8
9. Drivers & Challenges – Summary
LE
P
Challenges
Drivers
Increase in Number of New Born S AM Regulatory Challenges
Rise in Ingredient Price
Babies High Pricing
Increase in Disposable Income Cultural Aspect
Increasing Working Women
Population
Increased Reach and Availability
BABY FOOD AND CHILD NUTRITION MARKET IN INDIA 2012.PPT 9
10. Trends – Summary
LE
MP
S A Innovation in product variants
Inclination Towards Health and
Wellness Foods
Innovative brand building
activities Collaborations and acquisitions
BABY FOOD AND CHILD NUTRITION MARKET IN INDIA 2012.PPT 10
11. Public: Domestic Company – Company A (1/3)
Company Information Offices and Centres – India
Company A, Street A
Corporate Address City B
State C
LE
City B
P
Tel No. 91 124 7239
Fax No. 91 124 4734111
Website
Year of Incorporation
Ticker Symbol
www.company.co.in
1767
123456
S AM
Stock Exchange ABC
Products and Services Head Office
Category Products/Services
Key People
Malt based food Malt based food for different age group Name Designation
Person A MD, CEO
Cereal based beverages, powdered Person B. Director
milk, protein rich foods, nutritional
Other nutritional Person C Director
food powders, ghee, biscuits, nutrition
products
bar sweetmeat products and non Person D Director
carbonated water based beverages
BABY FOOD AND CHILD NUTRITION MARKET IN INDIA 2012.PPT 11
12. Public: Domestic Company – Company A (2/3)
Financial Snapshot
Total Income
LE Key Ratios
Particulars
y‐o‐y change
(2011‐10)
2011 2010 2009 2008
P
Net Profit / Loss
INR bn INR bn Profitability Ratios
x4 Operating Margin
M
300 x3 40
x2 Net Margin
A
200 x1 Profit Before Tax Margin
y4 20
S
y3 Return on Equity
100 y1 y2
Return on Capital Employed
0 0 Return on Working Capital
20__ 20__ 20__ 20__ Return on Assets
Financial Summary Return on Fixed Assets
Cost Ratios
• The company earned a net profit of INR x4 bn in FY 20__, as Operating costs (% of Sales)
compared to net profit of INR x3 bn in FY 20__ Administration costs (% of
• The company reported total income of INR y4 bn in FY 20__, Sales)
registering an increase of z per cent over FY 20__ Interest costs (% of Sales)
Liquidity Ratios
• The company earned an operating margin of a1 per cent in FY 20__,
Current Ratio
a decrease of z1 percentage points over FY 20__
Cash Ratio
• The company reported debt to equity ratio of a2 in FY 2011, a Leverage Ratios
decrease of z2 per cent over FY 20__ Debt to Equity Ratio
Debt to Capital Ratio
Key Financial Performance Indicators
Interest Coverage Ratio
Indicators Value (dd/mm/yyyy) Efficiency Ratios
Market Capitalization (INR mn) u Fixed Asset Turnover
Asset Turnover
Total Enterprise Value (INR mn) v
Current Asset Turnover
EPS (INR) w Working Capital Turnover
PE Ratio (Absolute) x Capital Employed Turnover
Improved Decline
BABY FOOD AND CHILD NUTRITION MARKET IN INDIA 2012.PPT 12
13. Public: Domestic Company – Company A (3/3)
Key Business Segments
A
LE Key Geographic Segments
B
P
100% 100%
M
80% 80%
A
60% For the last four years, the 60% India is the only geographic
Z% X%
S
40% company has been involved 40% segment in which the
solely in the nutrition company has been operating
20% 20%
business for the last four years
0% 0%
20__ 20__
Business Highlights
Description News
• The company primarily operates in the health food drinks industry in India
Overview The company is widespread in India, having regional offices at New Delhi, Kolkata, Mumbai, Chennai and depots at
Bangalore, Cochin, Pondicherry, Madurai, Cuttack, Guwahati, Ranchi, Ahmendabad, Indore, Goa, Pune, Raipur,
Dehradun, Jaipur and many other cities
• The company has decided to invest INR x mn during 201__and INR y mn during 20__ for expanding the
Expansion Plans existing production capacities
• It exports its products to countries such as Bangladesh, Sri Lanka, Nepal, Bhutan, the Middle East,
Export Myanmar, Malaysia, Nigeria, and Kenya
BABY FOOD AND CHILD NUTRITION MARKET IN INDIA 2012.PPT 13
14. Appendix
Ratio Calculations Ratio Calculations
(Operating Current Assets / Current
Operating Margin Current Ratio
Income/Revenues)*100 Liabilities
Net Margin (Net Profit / Revenues) *100 {(Cash & Bank Balance +
Cash Ratio Marketable Securities) / Current
(Income Before Tax / Revenues Liabilities)}
Profit Before Tax Margin
*100
Total Liabilities / Shareholders
Debt to Equity
(Net Income / Shareholders Equity
Return on Equity (ROE)
Equity)*100
{Total Debt / (Shareholders
Debt to Capital Ratio
EBIT / (Total Assets – Current Equity + Total Debt)}
Return on Capital (ROCE)
Liabilities)*100
Interest Coverage Ratio EBIT / Interest Expense
(Net Income / Working Capital)
Return on Working Capital
*100
Fixed Asset Turnover Sales / Fixed Assets
Return on Assets (Net Income / Total Assets)*100
Asset Turnover Sales / Total Assets
Return on Fixed Assets (Net Income / Fixed Assets) *100
(Operating Expenses / Sales) Current Asset Turnover Sales / Current Assets
Operating Costs (% of Sales)
*100
Administration Costs (% of (Administrative Expenses / Sales) Working Capital Turnover Sales / Working Capital
Sales) *100
Capital Employed Turnover Sales / Shareholders Equity
Interest Costs (% of Sales) (Interest Expenses / Sales) *100
BABY FOOD AND CHILD NUTRITION MARKET IN INDIA 2012.PPT 14
15. Sources of Information
Secondary Research Primary Research
Print Medium Interviews
Leading Newspapers Leading Industry Vendors
Journals / Magazines Industry Stakeholders
Business Magazines Industry Experts
Electronic Medium Surveys Conducted in Social / Technology Focused
Forums
Company Websites
Government Websites / Resources
Online Magazines
Online Journals / Articles
Premium Databases
Social Networking Space
BABY FOOD AND CHILD NUTRITION MARKET IN INDIA 2012.PPT 15
16. Thank you for the attention
The Baby Food and Child Nutrition Market – India report is part of Netscribes’ Food and
Beverage Series.
For the complete market research report, contact us at:
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