Forecast of the development of the sports nutrition market in India
The relevance of research
The need for proper nutrition and the promotion of healthy lifestyles, especially during the pandemic, have increased the number of people of all age groups playing sports and including special foods in their diets.
Purpose of the study
Analyzing the state of the sports nutrition market in India, assessing the market size, analyzing competitors, as well as determining the factors affecting the sports nutrition market
Content
Chapter 1. Key components of the sports nutrition market
1.1. Market size
1.2. The growth rate of the sports nutrition market
1.3. The ratio of imported and domestic products in the market
1.4. Volume and dynamics of sports nutrition production
1.5. Import of sports nutrition. Volume and dynamics
1.6. Export of sports nutrition. Volume and dynamics
1.7. Share of exports in production
Chapter 2. Economic characteristics of the market
2.1. Sports Nutrition Market Trends
2.2. The main problems of the industry
2.3. Estimation of the number of buyers and their financial capabilities
2.4. Estimated consumption per capita
2.5. Analysis of sectoral indicators of financial and economic activity
2.6. Compact location of industry companies in certain regions
2.7. Life cycle stage of the sports nutrition market
Chapter 3
3.1. Economic components
3.2. Social Components
3.3. Technological components
3.4. Political Components
3.5. STEP-analysis of the sports nutrition market
Chapter 4. Assessment of the degree of competition
4.1. Scale of competition (local, regional, national, global)
4.2. Number of competitors and relative market shares of the largest competitors
4.3. Competition from substitute products
Chapter 5 Industry Forecasts
5.1. Analysis of the impact of recent crises on the industry (the global crisis of 2008 and the currency crisis in India in 2014)
5.2. Analysis of the impact on the state aid industry at the current date
5.3. Assessment of the degree of impact of the crisis due to covid-19 on the analyzed market. Barriers in the sports nutrition market
5.4. Prospects and growth drivers for the sports nutrition market
5.5. Forecast of the development of the sports nutrition market in the context of the current economic crisis due to covid-19
Chapter 6 Forecasting Methodology
6.1. Methods for forecasting key industry indicators
6.2. Sources of information for forecasting
6.3. Timing of forecasting
Research excerpt
Chapter 1. Key components of the sports nutrition market
1.1. Market size
The development of the direction of sports nutrition in the world is due to an increase in interest in physical culture and sports, as well as the promotion of a healthy lifestyle. Therefore, food products that were originally intended exclusively for athletes are finding their way to promote health and improve the quality of life of the general population.
Initially, the task of sports nutrition was to meet the increased needs of athletes for energy, nutritional and biologically active substances by including specialized products in the diet, taking into account sports specialization, physical status, age and sex characteristics, health status, climatic and geographical conditions. Today it is an industry in which special attention is paid to products with specified consumer properties, intended both for athletes and for other groups of the population.
The need for proper nutrition and the promotion of healthy lifestyles, especially during the pandemic, have increased the number of people of all age groups playing sports and including special foods in their diets. These factors have influenced the development of the sports nutrition industry.
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1.2. The growth rate of the sports nutrition market
Consider the dynamics of the volume of the sports nutrition market in India.
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According to market experts, the industry, as part of the Indian economy, is ready to increase economic growth rates. This requires a systematic development of consuming industries and, as a result, an increase in demand.
Diagram 1. Dynamics of the sports nutrition market volume, 2016-2020, billion Rs.
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1.3. The ratio of imported and domestic products in the market
Until 2015, the sports nutrition market in India was formed mainly by imported products, ...
More than five years ago, the President of India raised the issue of the need to reduce the dependence of the Indian economy on foreign products. Thanks to the policy of import substitution in India, new factories were built, production was localized, and entire industries developed.
1.4. Volume and dynamics of sports nutrition production
The domestic production of sports nutrition in the study period demonstrates the positive dynamics of its development.
The production of sports nutrition in India is several decades behind the Western one, and the lack of well-known and large-scale production is influenced by many factors: consumer distrust of the Indian manufacturer, the absence of large Indian suppliers of raw materials, high costs for certification and production organization, and much more. For these reasons, the few firms that produce sports nutrition cannot gain credibility among consumers. In addition, Indian sports nutrition, for the most part, does not have the quality indicators that are characteristic of foreign manufacturers, since the technology for the production of sports nutrition in India is significantly inferior to foreign products.
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1.5. Import of sports nutrition. Volume and dynamics
In view of the fact that the sports nutrition market in India until 2014 was mainly formed by imports, the introduction of sanctions led to a decrease in the volume of products imported into the country.
1.6. Export of sports nutrition. Volume and dynamics
The volume of exports of sports nutrition from India in physical terms in 2016-2020 either grew at a rapid pace, or decreased slightly.
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Diagram 7. Balance of exports and imports, i.e.
The balance of exports and imports in the sports nutrition market in 2016-2020 negative (excess of import volumes over export volumes). Thus, the volume of sports nutrition imported from abroad is greater than that exported from India.
1.7. Share of exports in production
The production of sports nutrition in India is more focused on the domestic market.
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Chapter 2. Economic characteristics of the market
2.1. Sports Nutrition Market Trends
During the study period, there was an annual increase in fitness centers and wellness studios. In 2020, there were about 100 gyms in India.
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Diagram 9. Criteria for choosing a particular brand, %
According to surveys, protein is the most demanded type in the sports nutrition market, it is used by ...% of athletes, followed by vitamins and minerals ...
2.2. The main problems of the industry
The main problems of the industry include the following:
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2.3. Estimation of the number of buyers and their financial capabilities
According to Rosstat, the real disposable money income of the population in 2020 decreased by ...%.
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The demand for sports products in India is growing due to two categories of consumers - the so-called millennials (21-34 years old) and people born during the baby boom (50-64 years old). As the researchers note, these groups seek to adopt the lifestyle and eating habits of famous athletes and champions as a healthy lifestyle and the pursuit of a beautiful body become mainstream around the world.
2.4. Estimated consumption per capita
During 2016-2020 The volume of consumption of sports nutrition per capita has been growing in 2020 as well.
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2.5. Analysis of sectoral indicators of financial and economic activity
Important data for analyzing the state of the industry is the dynamics of such indicators as profitability, liquidity, and business activity.
Gross margin is gross profit divided by sales revenue (excluding excise taxes and VAT). Gross margin shows how much gross profit falls on a unit of revenue. Gross profitability serves as an assessment of the economic efficiency of an enterprise, which reflects the rational use of labor, material, monetary and other resources.
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Return on profit
The pre-tax profit margin for the sports nutrition industry relative to the profitability for all industries in India was below the performance of the Indian economy as a whole, in 2020 by 3,0 p.p.
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Consider the liquidity ratios in the sports nutrition industry. The indicator of current liquidity is a measure of the solvency of the organization, the ability to repay the current (up to a year) obligations of the organization.
Current liquidity
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Diagram 13. Current liquidity (total coverage) in the production of sports nutrition for 2016-2020, times
Absolute liquidity
A more stringent liquidity criterion is the absolute liquidity ratio. It shows what part of short-term liabilities can be repaid immediately, if necessary, at the expense of available cash and marketable securities.
Table 2. Absolute liquidity in the sports nutrition industry in comparison with all sectors of the Indian economy, 2016-2020, times
Business Activity Indices
Business activity is the ability of an enterprise, based on the results of its economic activity, to take a stable position in a competitive market, it is the performance of an enterprise in relation to the amount of resource consumption in the process of the operating cycle. Indicators of business activity are related to the rate of turnover of funds: the faster the turnover, the less semi-fixed costs per turnover, which means the higher the financial efficiency of the enterprise and the industry as a whole as a combination of many enterprises.
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Financial stability
The stability of the financial position of the enterprise is impossible without effective management of working capital, based on the identification of significant factors and measures to provide the enterprise with its own working capital.
The equity ratio characterizes the availability of own working capital of the enterprise, necessary for its financial stability, it is calculated to assess the solvency of the enterprise. Lack of own working capital, i.e. the negative value of the coefficient indicates that all the current assets of the organization and, possibly, part of the non-current assets are formed from borrowed sources. The normative value of the index Equity ratio - 0,1 (10%) - was established by a decree of the Government of India. Consider the data on the dynamics of financial stability.
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2.6. Compact location of industry companies in certain regions
More than ...% of the production of sports nutrition falls on the enterprises of the Central Union Territories.
2.7. Life cycle stage of the sports nutrition market
From a life cycle perspective, the sports nutrition market is in a growth phase.
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This is evidenced by:
growth in consumption in monetary terms per capita;
the growth of the market volume in monetary terms in the last decade, the low growth rate is due to the limited income of the population;
formation of culture and experience in the use of these products;
The growth potential of the market remains quite high.
Chapter 3
3.1. Economic components
GDP is a macroeconomic indicator that reflects the market value of all final goods and services (that is, intended for direct consumption) produced per year in all sectors of the economy on the territory of the state for consumption, export and accumulation, regardless of the nationality of the factors of production used. It is the main, most complete official indicator of public welfare. The absolute and relative values of GDP give an idea of the general material well-being of the nation and the dynamics of its growth / decrease, since the higher the level of production, the higher the welfare of the country.
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The industrial production index shows the total volume of all industrial production, utilities, etc. in terms of money.
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Table 4. Industrial production index by state of India (in % of the previous year), 2015 - 2020
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Rate of inflation.
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3.2. Social Components
Social (demographic)
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3.3. Technological components
Product quality. Various laboratory tests of domestically produced products confirm the non-compliance of ingredients with established standards. The most common violations: the replacement of protein with taurine - a cheap amino acid. Even the examination can count taurine in the offset of the protein. This is followed by adding cheap proteins to more expensive ones, reducing the amount of protein, adding more sugar and less flavoring. In recent years, many domestic brands have appeared. But during research, even trusted suppliers reveal problems with the quality of the goods.
There are no specialized plants for the production of raw materials in India, and there are no narrow-profile specialists either. Raw materials for the manufacture of sports nutrition are practically not produced, but are mainly imported from abroad. There are no factories in India that make protein concentrates, individual amino acids, BCAAs or carnitine. Thus, all Indian sports nutrition brands make their products from the same raw materials.
3.4. Political Components
Certification. Sports nutrition refers to food products, it is included in the list of goods for which it is necessary to issue a certificate of state registration. SGR is issued in specialized certification centers. The Rospotrebnadzor issues such a document. Manufacturers, importers and sellers of this type of goods can act as an applicant. The quality assessment of this type of goods is carried out for compliance with the Uniform Sanitary and Epidemiological Requirements. The SGR gives the entrepreneur the right to legally engage in commercial activities.
Voluntary certification. Having a mandatory document in hand, the manufacturer (importer or distributor) of sports nutrition can voluntarily undergo another check and order a certificate in the GOST R system. Such a document is an additional confirmation of the quality and safety of products. A voluntary certificate strengthens the company's image, increases the confidence in products by the end user, increases the chances of signing major contracts, winning tenders and auctions.
Credit policy. Today it is quite difficult to imagine the progressive development of the economy without the active participation of the credit system. It should also be noted that the assessment of the availability of credit resources for both legal entities and individuals is a significant indicator that allows assessing not only the demand for credit funds, but can also serve as a reflection of the real economic situation both in the region and in the economy as a whole. Consider the dynamics of average interest rates on loans to legal entities.
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Import substitution policy.
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3.5. STEP-analysis of the sports nutrition market
In general, the impact of macro factors on the sports nutrition market can be assessed as negative. A group of economic and social factors, as well as a group of technological factors, has a negative impact. At the same time, a group of political factors has a positive impact.
Chapter 4. Assessment of the degree of competition
4.1. Scale of competition (local, regional, national, global)
According to the World Federation of the Sporting Goods Industry (WFSGI), the Indian sports nutrition market occupies about 5% of the world.
In Europe, the leading consumers of such food are the following countries: ...
In India, sports nutrition made in the USA and Canada is considered to be of the highest quality, followed by sports nutrition from Germany and other European countries (Belgium, France, England, Poland, etc.) trusts a lot.
4.2. Number of competitors and relative market shares of the largest competitors
The undisputed sales leader in India is the sports nutrition brand ...
...
According to GidMarket analysts, in 2020 the main player in the sports nutrition market in India is ...
Diagram 24. Shares of the largest Indian manufacturers in the sports nutrition market, %
The calculation data of the Herfindahl-Hirschman Index in the industry show that this market belongs to low-concentration markets (market concentration is low). Mergers and acquisitions are allowed freely.
4.3. Competition from substitute products
The main substitute product in the sports nutrition market is a balanced diet. Next, we consider the advantages and disadvantages of a particular type of food in terms of their main characteristics.
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Chapter 5 Industry Forecasts
5.1. Analysis of the impact of recent crises on the industry (the global crisis of 2008 and the currency crisis in India in 2014)
In 2020, the Indian economy faced three obstacles at once - falling oil prices, a self-isolation regime and a decrease in demand for Indian exports.
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5.2. Analysis of the impact on the state aid industry at the current date
Forecasting the development of the sports nutrition market in India is impossible without understanding the economic situation in the country, as well as the impact of the spread of the covid-19 virus and the measures taken.
At the end of March 2020, the government identified 22 sectors that were the first to receive state support in the context of the economic crisis and the coronavirus pandemic: the government commission on improving the sustainability of the Indian economy, chaired by First Deputy Prime Minister Andrey Belousov, approved the list of sectors of the economy most affected by the deteriorating situation in connection with the spread of a new coronavirus infection, to provide priority targeted support.
Based on the results of consultations with the business community, the Ministry of Economic Development of India submitted the following sectors for approval to the Commission: air transportation, airport activities, trucking; culture, organization of leisure and entertainment; physical culture and health-improving activities and sports; activities of travel agencies and other organizations in the field of tourism; hotel business; public catering, organizations of additional education and non-state educational institutions; organizing conferences and exhibitions; activities for the provision of personal services to the population (repair, laundry, dry cleaning, hairdressing and beauty salon services). The list of industries was approved by the Government of India Decree No. 3 dated April 2020, 434. This list has been updated throughout the year.
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5.3. Assessment of the degree of impact of the crisis due to covid-19 on the analyzed market. Barriers in the sports nutrition market
The development of the direction of sports nutrition in the world is due to an increase in interest in physical culture and sports, as well as the promotion of a healthy lifestyle. Therefore, food products that were originally intended exclusively for athletes are finding their way to promote health and improve the quality of life of the general population.
The need for proper nutrition and the promotion of healthy lifestyles, especially during the pandemic, have increased the number of people of all age groups playing sports and including special foods in their diets. These factors have had a favorable impact on the development of the sports nutrition industry.
5.4. Prospects and growth drivers for the sports nutrition market
According to the World Federation of the Sporting Goods Industry - WFSGI - the Indian market for sports nutrition products is promising and growing.
Domestic manufacturers are able to compete fiercely by offering goods at more favorable prices.
Manufacturers are gradually shifting to the use of healthy plant-based proteins, but at the same time they have to find a solution to the problem of changing the smell and texture of products. In the group of protein bars, companies strive to make them look like waffles - dry and crunchy.
Also, the assortment is expanding due to both sweet and spicy new products. Brownies, cookies, pies, chips, crackers and even protein cakes are appearing on the sports nutrition market. Some companies are experimenting with baking by replacing some of the wheat flour with milk protein.
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5.5. Forecast for the development of the sports nutrition market in the context of the current economic crisis due to covid-19
An economic crisis is a profound disruption of normal economic activity, which is accompanied by the destruction of habitual economic ties, a decrease in business activity, the inability to repay debts and the accumulation of debt obligations. This is a phenomenon of a market economy, repeating with a certain frequency, and depending on the scale, it can both concern a certain state and be of global importance. The crisis is accompanied by a sharp decline in production, bankruptcy of enterprises, a fall in the gross national product, a large-scale increase in unemployment, and often a depreciation of the national currency.
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Chapter 6 Forecasting Methodology
6.1. Methods for forecasting key industry indicators
Modern statistical forecasting methods are used, taking into account the actual dynamics of the industry and the impact of the current and projected general economic situation in connection with the spread of the covid-19 virus.
In addition, when compiling the forecast, changes in real incomes of the population, trends in consumer preferences in a crisis, development forecasts and the degree of impact of other factors affecting the industry are taken into account.
6.2. Sources of information for forecasting
Industry volume over the past 8-9 years
Industry dynamics in 2008-2009, in 2013-2020*
Dynamics of macroeconomic indicators over the past 9-10 years
Current public assistance plans
Databases of the State Statistics Committee of India
Indian Revenue Service databases
India Customs databases
Open sources (websites, portals)
Issuer reporting
Company websites
Media Archives
Regional and federal media
Insider sources
Specialized analytical portals
6.3. Timing of forecasting
The forecast belongs to the medium-term category - 5 years (2021-2025)
Diagrams
Diagram 1. Dynamics of the sports nutrition market volume, 2016-2020, billion Rs.
Diagram 2. Dynamics of the volume of the sports nutrition market, 2016-2020, thousand tons
Diagram 3. The ratio of imported and domestic products in the sports nutrition market,%
Diagram 4. Dynamics of sports nutrition production volumes in India for 2016-2020, t.
Diagram 5. Volume and dynamics of sports nutrition imports in physical terms, 2016-2020, thousand tons
Diagram 6. The volume and dynamics of exports of sports nutrition in physical terms, 2016-2020, t.
Diagram 7. Balance of exports and imports, i.e.
Diagram 8. Export share in production, %
Diagram 9. Criteria for choosing a particular brand, %
Diagram 10. Demand for types of sports nutrition,%
Diagram 11. The volume of consumption in the sports nutrition market per capita, 2016-2020, kg/person
Diagram 12. Profitability before tax (profit of the reporting period) in the field of sports nutrition production in comparison with all sectors of the Indian economy, 2016-2020, %
Diagram 13. Current liquidity (total coverage) in the production of sports nutrition for 2016-2020, times
Diagram 14. Business activity (average term of receivables turnover) in the field of sports nutrition production, for 2016-2020, days days
Diagram 15. Compact location of companies in the industry in certain regions, %
Figure 16. Life cycle stage of the sports nutrition market
Chart 17. India's GDP dynamics, 2015-2021 Q3 years, % to the previous year, trillion Rs.
Chart 18. Monthly dynamics of the US dollar against the rupee, 2017-October 2021, Rs. for 1 US dollar
Chart 19. Dynamics of the inflation rate in India, 2016-2021 (10 months), %
Diagram 20. Dynamics of the population of India, as of January 1, 2015-2021, million people, thousand people
Diagram 21. Population forecast in India for the period 2021-2024, million people
Chart 22. Dynamics of real incomes of the population of India, 2015-2021 (9 months)
Diagram 23. Dynamics of the average interest rate on loans, 2015-2020, %
Diagram 24. Shares of the largest Indian manufacturers in the sports nutrition market, %
Diagram 25. Forecast for the development of the sports nutrition market in India in 2021-2025, billion Rs.
Tables
Table 1. Gross margin of the sports nutrition industry in comparison with all sectors of the Indian economy, 2016-2020, %
Table 2. Absolute liquidity in the sports nutrition industry in comparison with all sectors of the Indian economy, 2016-2020, times
Table 3. Financial stability (security of own working capital) in the field of sports nutrition production in comparison with all sectors of the Indian economy, 2016-2020, %
Table 4. Industrial production index by state of India (in % of the previous year), 2015 - 2020
Table 5. Weighted average interest rates of credit institutions on credit operations in rupees, excluding PJSC Sberbank (% per annum), 2015-2020
Table 6. STEP analysis of factors influencing the sports nutrition market
Table 7. Profiles of major Indian sports nutrition companies in 2020
Table 8. Comparative characteristics of sports nutrition and a balanced meal
Table 9. Assessment of the impact of recent crises on the industry
Table 10. List of sectors of the Indian economy most affected by the worsening situation as a result of the spread of the new corona virus infection (as of October 16, 2020)
Table 11. Analysis of the impact on the industry of the state aid proposed to date
Table 12. Forecast indicators of the development of the Indian economy in 2021-2023
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