India The Pediatric

Milk Formula Market

July 2011

Dairymark
A division of Shainwright Consulting and Research Group Pty Ltd
PO Box 3274
Norwood, SA 5067
AUSTRALIA
Email: info@dairymark.com
Website: www.dairymark.com

India The Pediatric Milk Formula Market

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Dairymark
A division of Shainwright Consulting and Research Group Pty Ltd
PO Box 3274
Norwood, SA 5067
AUSTRALIA
Email: info@dairymark.com
Website: www.dairymark.com

India The Pediatric Milk Formula Market July 2011

Dairymark, a division of Shainwright Consulting & Research Group Pty Ltd, PO Box 3274, Norwood SA 5067, Australia

Visit our website at www.dairymark.com

About Dairymark
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Soy versus dairy protein a review of health and physico-chemical properties

Review of key indicators of dairy farm performance in Australia
Bangladesh dairy market study
An overview of global dairy supply & demand
A longitudinal dairy pricing study
A strategic review of dairy industry patent activity
A strategic review of dairy R&D activity
A strategic review of trends in whey permeate utilization
A study of the Australasian dairy industry
Strategic research identifying trends and opportunities in Asian feed markets for dairy
ingredients

In addition, the company has published an expanding portfolio of multi-client reports, including:

Milk ingredients a strategic review of opportunities and applications in the oral care
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Colostrum a strategic review of opportunities and applications
Global ice cream industry strategic market, international trade & production review
Dairy ingredients a strategic review of opportunities and applications in the cream
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Dairymark
A division of Shainwright Consulting and Research Group Pty Ltd
PO Box 3274
Norwood, SA 5067
AUSTRALIA
Email: info@dairymark.com
Website: www.dairymark.com
Telephone +61-8-8339 8185
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India The Pediatric Milk Formula Market July 2011

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Dairymark, a division of Shainwright Consulting & Research Group Pty Ltd, PO Box 3274, Norwood SA 5067, Australia

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Table of Contents
1. Executive Summary.................................................................................................................... 1
1.1. Backdrop to the report ......................................................................................................... 1
1.2. Key findings from the report ................................................................................................. 2
2. The Global Dairy Industry in Transition A Strategic Precursor to the Report.......................... 5
2.1. The nature of the transition .................................................................................................. 5
2.2. Global milk production ......................................................................................................... 6
2.3. Growth in dairy consumption ............................................................................................... 9
2.4. A Tetra Pak perspective Indian consumption to grow fast ............................................. 12
3. The Global Pediatric Milk Formula Market ............................................................................... 13
3.1. Size and growth trends projections to 2015.................................................................... 13
3.2. Key global market drivers .................................................................................................. 14
3.3. Country comparisons ......................................................................................................... 15
3.4. M& A activities in the global child nutrition business ......................................................... 17
3.4.1. Pfizer divestment ......................................................................................................... 17
3.4.2. Mead Johnson ............................................................................................................. 17
3.4.3. Wockhardt/Abbott deal aborted in India ...................................................................... 17
4. The Indian Pediatric Milk Formula Market - Volume and Category Analysis ........................... 19
4.1. Volume trends and growth forecasts ................................................................................. 19
4.2. The structure of the market ................................................................................................ 20
4.3. Soy versus dairy special formula shares ........................................................................ 22
5. The Indian Pediatric Milk Formula Market Competitor Analysis............................................ 24
5.1. Company volumes & market share trends......................................................................... 24
5.2. Brand value & market share trends ................................................................................... 25
6. The Indian Pediatric Milk Formula Market Distribution Channel Analysis ............................. 28
6.1. Introduction to Indias retail sector ..................................................................................... 28
6.2. Food and grocery retailing in India .................................................................................... 28
6.3. Pediatric milk formula market channel trends in India .................................................... 30
7. Nestl India Supply Chain & Dairy Product Procurement ..................................................... 33
7.1. Nestl an overview.......................................................................................................... 33
7.2. Nestl in India .................................................................................................................... 33
7.3. Establishment of an R&D Centre ....................................................................................... 34
7.4. Nestl supply chain ............................................................................................................ 34
7.5. Nestl milk & dairy procurement ........................................................................................ 35
7.5.1. Fresh milk procurement............................................................................................... 35
7.5.2. Purchase of dairy ingredients ...................................................................................... 35
India The Pediatric Milk Formula Market July 2011

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7.6. Nestl India annual milk & dairy procurement (volumes, values) ................................... 36
7.7. Nestl India plant capacities, utilisation and sales volume ............................................. 37
8. Abbott India An Appetite to Expand ...................................................................................... 39
8.1. Background to Abbott Nutrition .......................................................................................... 39
8.2. Abbott Nutrition global supply chain .................................................................................. 39
8.3. Abbott in India .................................................................................................................... 41

India The Pediatric Milk Formula Market July 2011

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List of Figures
Figure 1: Recent trends in milk production global and top producers (000 mt) .......................... 5
Figure 2: 2005-2014 Global Dairy Consumption Forecast ............................................................. 6
Figure 3: The Contraction in Growth in Global Milk Supply ........................................................... 7
Figure 4: Shares of Global Milk Production .................................................................................... 7
Figure 5: Growth in Global Milk Production by Region 2005-2010 ............................................. 8
Figure 6: Recent Trends in Growth in Milk Production Asias Leading Milk Producing Nations . 8
Figure 7: Growth Trends Key Asian Dairy Companies................................................................ 9
Figure 8: Forecast Growth in Dairy Consumption to 2019 ............................................................. 9
Figure 9: Top 25 Destinations Global Dairy Trade .................................................................... 10
Figure 10: Per Capita Consumption of Dairy Key Asian Markets ............................................. 10
Figure 11: Potential Growth in Dairy Imports by the Developing World over the Next Decade ... 11
Figure 12: Global pediatric milk formula market size & growth trends (2005-2015, 000 mt) ... 14
Figure 13: Recent trends and future growth in the pediatric milk formula market key markets
(2005-2014) ................................................................................................................................... 15
Figure 14: Comparative per capita consumption of pediatric milk formula India vs. indicator
markets (2009)............................................................................................................................... 16
Figure 15: Recent trends in per capita consumption of pediatric milk formula key markets
(2009-2009) ................................................................................................................................... 16
Figure 16: Pfizer Nutrition Business sales trends and growth forecasts (2010-2020) .............. 17
Figure 17: Recent trends and projections India pediatric formula market (2005-2015) ............ 19
Figure 18: Recent trends and projections India market for alternatives to pediatric milk formula
(2005-2015) ................................................................................................................................... 20
Figure 19: Split between various categories Indian pediatric milk formula market (% volume
share, 2010)................................................................................................................................... 21
Figure 20: Recent volume trends and projections categories in Indian pediatric milk formula
(2005-2015) ................................................................................................................................... 21
Figure 21: Recent volume trends and projections graphical depiction for categories in Indian
pediatric milk formula (2005-2015) ................................................................................................ 22
Figure 22: Trends in dairy versus soy special formula (2005-2015) ......................................... 22
Figure 23: Market share of major players Indian pediatric milk formula market (%, 2005-2009)
....................................................................................................................................................... 24
Figure 24: Volume and market shares top six players Indian pediatric milk formula market
(2010) ............................................................................................................................................ 25
Figure 25: Baby food brand share trends retail value (% share, 2006-2009) ........................... 26
Figure 26: Growth and structure of the Indian retail market trends 2004-2009 (US$ billions) .. 28
Figure 27: Evolution of Indias food retailing system .................................................................... 29
Figure 28: Overview of Kirana stores and hawkers in India ......................................................... 29
Figure 29: Types of organised retailers ........................................................................................ 30
Figure 30: Profile of selected Indian retail stores ......................................................................... 30
Figure 31: Trends in pediatric infant formula sales Kirana Stores vs. Specialty Stores (mt,
2005-2010) .................................................................................................................................... 31
Figure 32: Volume share by channel pediatric milk formula sales (%) ..................................... 31
....................................................................................................................................................... 31
Figure 33: Trends in pediatric milk formula sales key retail channels (mt) ............................... 31
Figure 34: Nestls Perspective of a Complex Supply Chain ....................................................... 35
Figure 35: Annual dairy ingredient procurement Nestl India (mt, 2005-2009) ........................ 36
Figure 36: Value of Nestl India milk and dairy procurement (2009, 2010) ................................. 37
Figure 37: Nestl India per tonne procurement cost of milk & dairy materials (2009, 2010) .... 37
Figure 38: Nestl India plant capacities, utilisation and sales volume (2010) ........................... 38
Figure 39: Abbott Nutrition global manufacturing plant locations .............................................. 40
India The Pediatric Milk Formula Market July 2011

Dairymark, a division of Shainwright Consulting & Research Group Pty Ltd, PO Box 3274, Norwood SA 5067, Australia

Visit our website at www.dairymark.com