Dr. Anil Kumar Angrish
Shubham Sahu
Pharmaceutical companies and companies from Fast Moving Consumer Goods (FMCG) sector are tapping opportunities in Indian Consumer Healthcare Market. Traditionally, Pharmaceutical and FMCG sector are considered different from each other but this distinction gets blurred if we look at the manner in which prominent companies from both sectors are exploring Wellness Segment. If we dig deeper then we can find certain recognizable differences in their approach towards Wellness Segment in terms of product portfolio, marketing and consumer engagement.
Health is defined by the World Health Organization as being “a state of complete physical, mental, and social well-being and not merely the absence of disease or infirmity.” The Global Wellness Institute defined wellness as “the active pursuit of activities, choices, and lifestyles that lead to a state of holistic health”. Several key areas of one’s lifestyle are considered different dimensions of overall Wellness which include social connectedness, nutrition, exercise, sleep, and mindfulness as Wellness is an individual endeavour. Wellness Universe now comprises varied and diverse sectors such as Traditional & Complementary Medicine, Workplace wellness, Wellness tourism comprising wellness resorts, wellbeing centers, retreats, and ashrams, Healthy eating, Nutrition & Weight Loss – Wellness Cuisine (Organic, low-carb, farm-to-fork etc.), Thermal/Mineral Springs Industry, the Spa Economy, Preventive & Personalized Medicine and Public Health, Fitness – Body (Exercise, Gyms, Yoga, Fitness Centers, etc.) and Mind (Mental Health and Wellbeing), Personal Care, Fitness Wear, Beauty & Anti-Aging Industries, among others.
Pharma and FMCG companies’ portfolio categories in Focus under Wellness Segment include Supplements, Skin Care, Personal Care, Gut Health, Women’s Health, Pain Management, Respiratory Health, Sports Nutrition, Diet and Weight Management, and Children’s Health and Baby Care. Supplements Category encompasses a broad range of products aimed at enhancing overall health and addressing specific nutritional needs. This category includes multivitamins which cater to general nutritional supplementation. This category also features specific vitamins and minerals. It also comprises specialized supplements like Omega-3 fish oil for heart health, probiotics for gut health, weight management supplements and immune boosters. For example, Sun Pharma has 7 products in ‘Supplement’ category such as Revital, Prohance, etc. Torrent Pharma has Shelcal 500, LupinLife has BE ONE, and P&G Hygiene & Health Care has 5 products namely Evion, Livogen, Polybion, Neurobion, and Seven Seas. Cipla Health has 6 products, and Morepen Labs has 17 products, e.g., Fat Burner, Omega-3 Deep Sea Fish Oil. FMCG companies such as Dabur India has 17 products such as Vedic Suraksha Tea, Glucose D, Honey, Chayawanprash, Giloy Neem Juice with Tulsi, etc. under Health Supplements category. Emami has 41 products in Health Supplements category which comprise Chyawanprash, Nityam Vati, Honey, Detox juice range, etc.
Skin Care category is also prominent category for Pharma as well as FMCG companies and includes products targeted at diverse skincare needs, providing solutions for daily care as well as specialized treatments for conditions like acne, eczema, and fungal infections, e.g., Sun Pharma has Abzorb Powder and Abzorb Bar, Cipla has Cipladine Povidone Ointment, Cipladine Microbicidal Solution, Clocip Antifungal dusting Powder etc. Mankind Pharma has AcneStar Soap/gel, Ring Out, Heal-O-Kind, Piramal Pharma has Lacto Calamine Oil Balance Lotion, Tetmosol, Neko, etc. FMCG major Zydus Wellness has at least 19 Skincare products with Everyuth range including Scrub, Face Wash, Lotion, etc.
Women’s Health category is designed specifically for women’s health needs across various life stages. Cipla Health has a range of products under Mamaxpert, LupinLife Consumer Healthcare has one product (V-Bath), Piramal Pharma has products like i-pill, i-know, and i-can, and Amrutanjan Health Care has Comfy pads. Mankind Pharma has at least 9 products such as Unwanted-72, Prega News, etc.
Gut Health is gaining momentum and it focuses on digestive health and related issues. The category includes Probiotics, and digestive aids such as laxatives. The market focus of this category is on addressing digestive disorders, supporting gut flora balance, and promoting overall digestive wellness with products tailored for different age groups and specific digestive issues. Cipla Health has Prolyte ORS, Probiotics Sachets, Mankind Pharma has KABZEND, and LupinLife has SOFTOVAC, LUPIZYME, APTIVATE. FMCG major Emami has Zandu Triphala capsules, and Pancharishta.
Pain Management category provides relief from various types of pain through topical and oral formulations. Key products include topical pain relief gels, creams, sprays, as well as oral pain relievers. This category targets consumers seeking effective pain relief solutions for headaches, muscle pains, joint pains, and other discomforts. Companies like Sun Pharma has Volini Gel, Cipla Health has omnigel, Amrutanjan Health Care has Pain Balm, Roll-on, Stick-On Patch, whereas FMCG major Emami has six products such Zandu Balm, Ortho Vedic Oil, Knee Pain Relief Patch, etc.
Products in respiratory health category focus on treatment and prevention of respiratory ailments. This includes cough syrups, nasal sprays, and respiratory supplements for allergy relief and congestion management. Sports Nutrition category provides nutritional support for athletes and fitness enthusiasts. Key products include protein supplements, energy boosters for stamina and recovery, and the market focus is on active individuals looking to enhance performance, muscle growth, and recovery through nutritional supplementation. Diet and Weight Management category aims at supporting weight loss, weight gain, and overall dietary management. Personal Care products encompass a wide range of hygiene and healthcare items for daily use. This category includes oral care products such as tooth paste, mouthwash, and pain relief solutions, hygiene products like hand sanitizers, face masks, etc. Finally, Children’s Health and Baby Care category focuses on health and hygiene products for infants and children. This includes baby care products like lotions, diaper rash creams, washes, as well as children’s supplements.
Top pharmaceutical companies have become dominant player in Consumer Health Care business. For example, Sun Pharma’s Consumer Health Care business ranks as the 5th largest in the segment, and the company operates in about 25 emerging markets and has a strong portfolio of scientific formulations, featuring prominent brands such as Revital Abzorb, and Volini. The company’s consumer healthcare products are available in about 500,000+ pharmacy and retail outlets. Cipla Health Limited, a wholly-owned subsidiary of Cipla Limited, is no. 2 player in India’s consumer health space. By March 2023, the company had consumer reach through 450,000 retailers, 65,000+ grocers and others, and 7,700+ modern trade outlets. The company had onboarded over 1.35 lakh retailers by March 2023 through digital platforms. Torrent Pharma is another notable player that launched Shelcal 500 in OTC segment which was previously prescription-based. Torrent Pharma had acquired Shelcal from Elder Pharma in 2013.
LupinLife, Consumer Healthcare Division of Lupin Limited has expanded brand portfolio from one to multiple brands since 2017. Softovac, the flagship product has recorded 14% YoY growth in FY23. It has transitioned products like Vovilup in Pain Management and Lupihist in Cough and Cold categories. Glenmark Pharma has expanded its product range across three flagship brands namely Candid Powder, La Shield and Scalpe+. Candid Powder had 17 per cent revenue growth in FY23, La Shield portfolio had 73 per cent revenue growth during the same period whereas Scale+ portfolio had 13 per cent revenue growth in FY23.
Piramal Pharma, a subsidiary of Piramal Enterprises has the Consumer Products Division which caters to the Indian self-care market and is one of the fastest-growing businesses of the company. Piramal Enterprises forayed into the Over-the-Counter (OTC) market after acquiring Saridon from Roche and Lacto Calamine from Duphar in the early 1990s. The Consumer Products Division has a diverse product range of 21 brands across categories such as Skin Care, antacids, Vitamins & Nutrition, Gastrointestinal, Analgesics, and Baby-Care. Most of its brands are either no. 1 or no. 2 in their respective markets and product categories. In addition to this, six brands feature among top 100 OTC brands. Product innovation and expansion can be observed from the fact that it launched 26 new products and 37 new Stock Keeping Units (SKUs) in FY2023 along, and new launches since April 2020 accounted for 18 per cent of the Consumer Business revenues in FY23. Kerala Ayurveda Limited is also a notable early entrant (set up in 1945) that has vast wellness product range with more than 170 products in diverse categories.
Companies from FMCG sector have significant presence in Wellness Segment, e.g., Dabur India’s Health Care Segment contributes 31.7 per cent to the company’s overall FMCG business in India. This segment encompasses various sub-categories such as Health Supplements (Chyawanprash, Honey, Glucose, Vita and Vedic Tea), Digestives (Pudin Hara, Hingoli, Nature Care, Sat Isabgol etc.), OTC products (Honitus, Dabur Baby range, Dabur Lal Tail, etc.), and Ayurvedic Ethicals such as Rheumatil, Nectolac granules, etc.
Zydus Wellness, established in 1988, as a wholly-owned subsidiary of Zydus Lifesciences also falls in FMCG category, and has seven leading brands in its portfolio, namely Complan, Glucon-D, Sugar Free, Nycil, Everyuth, I’m lite and Nutralite.
Emami is another leading FMCG company that has a Domestic Consumer Care Division. Emami initiated Project Khoj as a market reach expansion strategy that focuses on enhancing rural distribution coverage. It is also leveraging digital and geo-coded initiatives to gain insights into buying patterns and consumer behavior. Impact of the project can be observed from the fact that before the project, Emami covered 32,000 villages, but within two years, the company added 20,000 villages, reaching a total of 52,000 in FY2022-23. Emami’s Domestic Consumer Care Division boasts an extensive retail reach that covers approximately 9.4 lakh retailers through a robust multi-layer network of direct distributors, super stockiest, sub-distributors, and wholesalers. Emami launched over 20 new products and integrated ‘Dermicool’ brand that it acquired from Reckitt Benckiser Healthcare in March 2022 for Rs. 432 crore.
Regarding their approach towards Wellness segment, pharmaceutical companies are dedicated to offering a diverse range of wellness products, and their product line includes vitamins, dietary supplements, OTC products, herbal and traditional remedies, and contraceptives. These companies heavily rely on scientific credibility to promote their products. Their retail presence gets enhanced through extensive pharmacy networks and a growing presence of e-pharmacy platforms. Pharmaceutical companies engage with healthcare professionals and prescribers to ensure their products remain visible and credible in the medical community. In contrast to this, FMCG majors are focusing on integrating wellness into their existing product portfolios, placing a strong emphasis on natural and traditional health solutions. FMCG companies are developing fortified foods, herbal supplements, and home remedies by leveraging their brand’s legacy in personal care and food products to meet increasing consumer demand for health-oriented options.
Dr. Anil Kumar Angrish, Associate Professor, Department of Pharmaceutical Management, NIPER S.A.S. Nagar (Mohali), Punjab
Shubham Sahu , MBA (Pharm.), Department of Pharmaceutical Management, NIPER S.A.S. Nagar (Mohali), Punjab
Disclaimer: Views are personal and do not represent the views of the Institute.
