Image Source: Gazeta
July 26, 2018
GCMMF better known as Amul and Nestlé had a strong hold on the Indian baby milks market, but things are changing as other multinationals are now planning to enter the Indian infant formula market.
These two leaders retained a combined share of over 83 per cent of value sales in 2017, but this is a fall of 7 per cent drop from their peak share in 2014 and the reason are the new entrants. The most significant of these is Nutricia (Danone), which acquired local company Wockhardt in 2011. Danone has also begun marketing some of its international brands and now manufactures a number of these locally, as well as those it acquired from Wockhardt.
For the time being, Raptakos Brett which is another local player, has lost significant share and has now been demoted to fourth place, having been overtaken by two multinationals – Mead Johnson and Abbott India.
Abbott India has increased its share considerably over recent years, mainly in more affluent urban areas. In 2012, Abbott established its first nutrition research & development centre in India, aiming to develop affordable science-based nutrition products specifically for the Indian market. In 2014, it opened a plant in Gujarat that now manufactures the Similac brand locally.
GlobalData forecasts that the market for baby milks will increase by 35% in volume terms between 2017 and 2021, and the battle for market share is likely to intensify as manufacturers seek to establish their formulae as the brand of choice for India’s increasingly affluent families.