opportunities in fast-moving consumer health
DESCRIPTION
Listen On Demand: https://www.brighttalk.com/webcast/5561/106449 - Learn about the latest innovations in FMCH. - Identify the drivers and challenges of developing and implementing FMCH technology. - Get an understanding of the key industry trends and regulatory status. n On Demand: https://www.brighttalk.com/webcast/5561/106449TRANSCRIPT
FMCH FMCH TrendsTrends
A brief industry overviewA brief industry overview
Krishna Venkataramani, Senior Research Analyst
Technical InsightsTechnical Insights
17th April 2014
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Today’s Presenter
Krishna Venkataramani, Senior Research Analyst
Frost & Sullivan
Functional Expertise� 4 years of research & consulting expertise, assisting projects that involve various types of Industry Analysis. Particular
expertise in:
- Management Strategies–Investment, R&D and technology portfolio
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- Management Strategies–Investment, R&D and technology portfolio
- Opportunity Landscaping-Application and technology potential forecasting
- Partnership Search-Competitive benchmarking of potential M&A and collaboration.
Industry Expertise
Experience base covering broad range of sectors, leveraging long-standing working relationships with leading industry participants’ Senior Executives
- Chemicals — Biomimetics, Biofuels, Cosmetics and specialty chemicals.
- High Tech Materials & Technologies—Biomaterials, polymers/composites.
- Food and Biotechnology — Nutrition and Health, Supplements & Additives, Food Packaging
- Nanotechnology – Biosensors, Bio-Electronics
- FMCG Goods
tendency to incline towards
Pharmaceuticals Becoming “Fast Moving”
Economic downturn necessitate inexpensive
products
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tendency to incline towards inexpensive products to
consume more in quantity with same money
Generics or no Generics?
FMCH Characteristics
Healthcare products which could besold quickly and at relatively low costsuch as over-the-counter drugs
Available in retail outlets and have the
Developed as a result of intersection offast moving consumer goods andhealthcare industries
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Overview
Available in retail outlets and have theability to influence specific changes topromote health and wellness of thehuman body
The FMCH market is a result of thechange in consumer behavior, from Fatto Fit
Collaborative efforts in the form of M&Aand JV could be considered as maintrends
Prevent onset of lifestyle related healthissues by promoting the choice ofconsuming a healthy products
Key Drivers Summary
Corporations teaming up to
produce innovative products
Growing interest of shoppers in
food, beverages which improve
appearance
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Fewer products for beauty
enhancement
Changing consumer behavior
appearance
Fewer participants ensure high value
Source: Frost & Sullivan.
High Cost of production with Pharmaceutical
approach
Meet healthcare regulations
Difficult to enter for new industry
participants
Key Restraints Summary
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Advertisement driven market
Source: Frost & Sullivan.
Trends
Multinationals tend to go for mergers and acquisitions in order to kill competition in FMCH segment
Market participants tend to sell of number of brands
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Market participants tend to sell of number of brands
and focus on fewer brands to gain major market
share in the FMCH domain
Market participants concentrates on bringing together oral health,
wellness or over the counter (OTC) and nutrition products under the
FMCH segment
Clusters of FMCH
Cough, cold and allergy
Digestive
Vitamins and Dietary
supplements
Sport
Traditional Lifestyle OTC
Weight Management
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FMCHClusters
Herbal and Traditional products
Analgesics
Pediatric Consumer
Health
Sport Nutrition
Medicated
Skin care
Tonics and Nutritive Drinks
Goal of FMCH Market Participants
Better High Quality, Broader
Global impact
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Image Source: Frost & Sullivan
Access to more and better channels
Better technology and quality
High Quality, Affordable FMCH
Broader product portfolio
Industry Collaborations
� Experience and capability in development, registration,
� Experience and capability in brand-building, consumer-led
� Innovation as well as mass retailing
� Acquired and maintained its position as a leading consumer and pharmacist-recognized brands
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� Benefit for both companies in terms of creating new business model for industry, generatinggreater value
� A successful collaboration is a win for both companies as well as for consumers
Image Source: Frost & Sullivan
development, registration, production and selling of medicines
� Spans the entire Pharmacy value chain
brands � Considerable marketing
through advertisements� Excellence in dominating mass
or grocery channels, high-frequency stores in developed and developing markets
Potential Global Hotspots
Asia Pacific1. Vitamin and dietary
supplements2. Herbal and Traditional
products3. Cough, Cold and Allergy4. Pediatric Consumer
Health5. Medicated Skin care
N. America1. Vitamin and
dietary supplements
2. Sport nutrition3. Cough, cold and
allergy
Europe1. Vitamin and
dietary supplements
2. Sport nutrition
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Middle East and Africa1. Vitamin and
dietary supplements
S. America1. Vitamin and
dietary supplements
2. Cough, Cold and Allergy
3. Analgesics
Image Source: Frost & Sullivan* 1,2,3 denotes the most highest, higher and high growth
Conclusion
� Markets in India and Brazil are showing highest
growth rate, though markets are small compared
to US and West Europe
� Europe projects lowest growth rate
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� Two main emerging market participants are
Pharmaceutical companies and Consumer Goods
participants
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