Wellness Industry in India

INTRODUCTION In India, a atomic number 18a where traditional medicinal and health practices like Ayurveda and yoga ache promoted the idea of mental and physical wellbeing since quaint generation, a new concept of health is emerging. No longer limited to health, nutrition and relaxation, the new multi-dimensional exposition of health encompasses the individuals inclination for genial acceptance, exclusivity and collective welfargon. WELLNESS INDUSTRY The 2009 FICCI-Ernst & Young (EY) health Exploring the Untapped Potential report classifies the Indian health industry into two segments health go and health proceedss.Expected to grow dramatically in the next years, both(prenominal) the segments offer great opportunities to wellness providers. At the wind up of 2008, the everyplaceall industry was estimated at somewhat INR 27. 000 crore (EUR 4. 05 billion1), of which INR 11. 000 crore (EUR 1. 65 billion) represented by the operate segment and the emit by the har vests segment. WELLNESS INDUSTRY SIZE AND naval division (EUR billion) 1,65 41% wellness Products Wellness Services 2,4 59% Source Ernst & Young and FICCIAccording to the study, the wellness industry has the dominance to sustain a compound yearly emergence rate of more(prenominal)(prenominal) than 14% till 2012, with the wellness serve commercialize expected to witness an yearly growth of about 3035% till 2014. 1 The renewing rate utilized in this report is 1 INR = 0. 015 EUR. WELLNESS INDUSTRY PROJECTIONS (EUR billion) 7,00 6,00 6,00 5,00 4,05 4,00 3,00 2,19 2,00 1,00 2009 2010E 2011E 2012E Source Ernst & Young and FICCI 5,26 4,62 3,84 2,90 1,65 Wellness Industry Wellness Services Geographically, South India is oftentimes ahead in terms of wellness, with an median(a) of 34. wellness centers per 100. 000 households, comp ared with 13. 6 for the North, 12 for the West and 10. 1 in the East. AVERAGE NUMBER OF WELLNESS CENTERS IN INDIA 0 South North West East 13,6 12 10,1 So urce Ernst & Young and FICCI 5 10 15 20 25 30 35 34,4 40 The report depicts the overall wellness industry as spicy schoolly unorganized, with the organized sector limited to slight than 50 share of the industry. The industrys disorganization and fragmentation open further opportunities for internationalist wellness players to capture a large share of the securities industry.Wellness serve From massages to cardio sessions, from steam baths to ago puncture, from slimming programs to dish treatments, the wellness services segment includes all the facilities, centers and in general home(prenominal) and international players which offer Indian customers wellness solutions. modern causes in the wellness services sector Spas As per the FICCI-EY study, rejuvenation services including spas, alternative therapies, Ayurveda treatments and beauty services is expected to witness a 30 portion growth till 2014.In its 2009 report, SpaFinder Inc. counted over 2. 300 spas operating(a) in India, with over 700 to open by 2012 and generating revenues for approximately EUR 264 million annually. NUMBER OF SPAS IN INDIA (PROJECTION) 3 vitamin D 3000 2500 2000 1500 1000 500 0 2009 Source SpaFinder Inc. + 700 spas 3000 2300 2012 A distinct trend visible in the Indian wellness market is the opening of spas in the mid-price category. No longer exclusivity of 5-stars hotel guests, standalone spas with a more affordable price-value equation are choice a gap that was missing in the market2. gymnasiums Assessed at around INR 500 crore (EUR 75 million) in 2009, the lycee market in India is quickly developing. As per the FICCI-EY study, physical fitness services comprising gyms and slimming centers leave grow by more than 25 part till 2014. According to the consultancy trustworthy Deloitte and the US-based internationalistic Health, Racquet & Sportsclub intimacy, the number of stack utilise health clubs in India currently stands at 0. 23 million. Of this, experts say 40 percent are women3. wellness CLUB USERS PENETRATION RATE 2 3Wellness industry unaffected by recession, liveMint, The Wall Street Journal, Jun 14, 2009. Gym becoming social networking hub, The Economic Times, Aug 14, 2009. 0,0% US Australia fresh Zealand Singapore Hong Kong India 0,4% 5,0% 10,0% 15,0% 20,0% 17,0% 12,4% 10,8% 6,5% 3,9% Source Deloitte & International Health, Racquet & Sportclub Association The however low penetration rate, combined with the supremacy of the fitness reality show Biggest Loser Jeetega, which have gym equipment of the Italian manufacturer Technogym SpA,suggests there is still plenty of room for new centers to open in India.Hotels and restaurant A further trend, emerging as a consequence of the significant number of modus vivendi diseases which affects the country India accounts for 60% of international cardiac illnesses and has over 50 million diabetics is the emergence of hotels as health destinations, offering special menus and fitness program s4. Many restaurants are also starting to propose their health-conscious customers special menus. main international and national players of the wellness services sectorOverall, more than 15 international players in the wellness product and service space have entered India in the novel past and are aggressively expanding in the country. rightful(prenominal) to name one, the US-based largest international gym chain in the world, Golds Gym has opened 48 gyms since its arrival in India in 2002. This increasing rival from multinationals has compelled national players including Reliance, Dabur, Manipal Group of Companies, Dr. Batras, Kaya Health Clinic to strengthen and f number up their market expansion strategies.To support the growth, by and by Talwalkars one of the leading gym chains in India, with over 100 branches across 50 cities in the country, and over 100. 000 members and Birla peaceful Spa, also the healthcare and beauty treatment provider Goodwill Hospitals, the dru g sell chain Apollo Pharmacy, the diagnostics chain Super Religare Laboratories and the midriff care firm VasanEyecare are homework to go public in the next 12 months5. 4 Wellness on the menu, liveMint, The Wall Street Journal, Jul 29, 2011. 5After Birla Pacific Spa and Talwalkars niche beauty and wellness companies planning for IPO, The Economic Times, Aug 25, 2011.While substandard facilities and a lack of serve staff still characterize the domestic wellness scene, this unsatisfying picture opens further opportunities to international players, which will bring to India their sets of standards of procedures and training programs. Wellness products Including various types of limited foods (e. g. , fat free, low calories, energetic, reinforcing), oils, supplements, integrators, and personal care products, wellness products are gaining more and more space in Indians purchase basket.No longer limited to preventive or supportive nutrition, the wellness product portfolio reflects a fluff of indulgence, invigoration and narcissism6. Health and wellness foods market Tata strategical Management Group (TSMG) has estimated theIndian health and wellness foods market being worth INR 10. 150 crore(EUR1. 52 billion) in 2009, with the potential of rising at a increase annual growth rate of 32. 5 percent to INR 55. 000crore (EUR 8. 24 billion) by 2015. 6 Impulse and life style Products Define the FMCG Future in India, Roosevelt Dsouza, administrator Director, The Nielsen Company, March 4, 2011.HEALTH AND WELLNESS FOODS PROJECTION (EUR billion) 9,00 8,00 7,00 6,00 5,00 4,00 3,00 2,00 1,00 2009 2010E 2011E 2012E 2013E 2014E 2015E Source TSMG 8,24 + 32. 5% 4,69 3,54 2,67 1,52 2,01 6,21 To capture the growing demand, food brands are in a race to launch new products. Himalaya Internationals natural fruit yoghurt, Parle Productss sunbaked chips, Amuls range of functional products (including energy drinks, probiotic ice-creams, probiotic lassi and curd, high calcium milk a nd reduced salt butter), Frito postures trans-fat and MSG free products, ITC Foods low cholesterol products, gut beneficial foods are just few examples7.Sugar-free products With diabetes increasing at an alarming rate the number of people with diabetes was over 45 million in 2010 and is expected to rise to 69. 9 million by 2015 , obesity, hypertension and other lifestyle-related disorders, sugar-free product variants are gaining more space on the sell shelves. While Indians have begun to show a appetite to sugar-free products, sugar substitutes (often referred to as sweeteners) do not observe the same welcome.In fact, sweeteners are not yet considered a low-calorie sugar substitute, but a product for people suffering of lifestyle diseases8. Nutraceuticals market Within the wellness products segment, the nutraceuticals market merger of the words nutrition and pharmaceutic indicating functional foods, beverages and dietary supplements which provide health and checkup benefits i s expected to grow exponentially. The 2009 FICCI-EY Nutraceuticals Critical supplement for construction a healthy India estimated the market to be around INR 44 billion (representing one 7 8Insights on Indian market, NutriConnect, 2009. Sweet equilibrium, Progressive Grocer, December 2010. percent of the global INR 5. 148 billion nutraceutical market), growing by an annual 18 percent since 2006, much faster than the global 7 percentaverage. INDIAS NUTRACEUTICAL GLOBAL MARKET region AND SEGMENTATION Rest of EU 6% Switzerland 3% Italy 3% UK 2% France 6% Germany 5% lacquer 22% 14% Others 9% US 36% Functional foods Rest of Asia 7% Functional beverages India 1% Dietary supplements Source Ernst & Young and FICCI 2% 54% Source Frost & Sullivan, Cygnus Growth drivers are ? ? the increasing affluence of working population with changing lifestyles the reduced affordability of sickness related expenditures (with the Out-ofpocket expenditure constituting 64 percent of healthcare expenditur es in India against the global average of 18 percent and the average cost of in-patient treatment doubled in the decade 1995-20059) the increasing sensation and media penetration Andthe increased accessibility to such roducts, repayable to the emergence of new distribution channels. ? ? Moreover, due to their high prices compared to conventional foods, the lack of credibility of their benefits among costumers, and the not-yet-implemented regulatory framework, the possible market for nutraceutical products is estimated to be two to four times the existing market size. CONCLUSIONSIn India, a new multi-dimensional exposition of wellness is emerging, encompassing the individuals desire for social acceptance, exclusivity and collective welfare. Be it in the services or product sector, the wellness industry in India is showing bright opportunities to wellness providers, especially international players. 9 WHO statistical information system, 2008.