opportunities in fast-moving consumer health

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FMCH FMCH Trends Trends A brief industry overview A brief industry overview Krishna Venkataramani, Senior Research Analyst Technical Insights Technical Insights 17 th April 2014 © 2012 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.

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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/5561/106449

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Page 1: Opportunities in Fast-Moving Consumer Health

FMCH FMCH TrendsTrends

A brief industry overviewA brief industry overview

Krishna Venkataramani, Senior Research Analyst

Technical InsightsTechnical Insights

17th April 2014

© 2012 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of

Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.

Page 2: Opportunities in Fast-Moving Consumer Health

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

Page 3: Opportunities in Fast-Moving Consumer Health

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?

Page 4: Opportunities in Fast-Moving Consumer Health

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

Page 5: Opportunities in Fast-Moving Consumer Health

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.

Page 6: Opportunities in Fast-Moving Consumer Health

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.

Page 7: Opportunities in Fast-Moving Consumer Health

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

Page 8: Opportunities in Fast-Moving Consumer Health

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

Page 9: Opportunities in Fast-Moving Consumer Health

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

Page 10: Opportunities in Fast-Moving Consumer Health

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

Page 11: Opportunities in Fast-Moving Consumer Health

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

Page 12: Opportunities in Fast-Moving Consumer Health

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

Page 13: Opportunities in Fast-Moving Consumer Health

Next Steps

Develop Your Visionary and Innovative SkillsGrowth Partnership Service Share your growth thought leadership and ideas or

join our GIL Global Community

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Join our GIL Community NewsletterKeep abreast of innovative growth opportunities

Phone: 1-877-GOFROST (463-7678) Email: [email protected]

Page 14: Opportunities in Fast-Moving Consumer Health

Your Feedback is Important to Us

Growth Forecasts?

Competitive Structure?

What would you like to see from Frost & Sullivan?

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Emerging Trends?

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Other?

Please inform us by “Rating” this presentation.

Page 15: Opportunities in Fast-Moving Consumer Health

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Page 16: Opportunities in Fast-Moving Consumer Health

For Additional Information

Angie Montoya

Global Webinar Marketing Coordinator

Marketing

+1-210-247-2435

[email protected]

Krishna Venakataramani

Senior Research Analyst

Technical Insights

+48 22 4816287

[email protected]

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Ankit Shukla

Practice Director

Technical Insights

+44 (0) 1865-398-687

[email protected]

Bernard Weber

Sales Director

Technical Insights

+44 207 343 8352

[email protected]