FMCG Players Eye Massive Market Opportunity in Rs 2.5-Lakh-Crore GLP-1 Sector

India's FMCG Sector Sees Huge Opportunity in GLP-1 Drugs Market

The Indian fast-moving consumer goods (FMCG) sector is witnessing a significant shift in consumer preferences, driven by the growing demand for weight management and diabetes management products. An estimated Rs 2.5-lakh-crore market opportunity is emerging as consumers increasingly turn to GLP-1 drugs to manage their health.

Amul Eyes Growing Protein Market

Amul, the country's largest dairy and packaged foods maker, is positioning itself to capitalize on this trend. The company plans to double its capacity to produce protein-enriched products, such as protein shakes, kulfi, and wheat flour. Amul's managing director, Jayen Mehta, believes that the introduction of GLP-1 medication has come at the right time, as the company has been increasing its focus on protein-enriched offerings.

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Consulting firm Kearney's partner, Rajat Tuli, attributes the growing demand for healthier products to increasing awareness about lifestyle diseases and changing consumption patterns. Tuli notes that the healthier snacks market is growing at a robust 15-20 percent and is valued at Rs 1 lakh crore, with a potential growth to Rs 2.5 lakh crore by 2030.

Marico Positions Itself for Shift in Consumer Preferences

Marico, the maker of Parachute hair oil and Saffola oats, is also positioning itself to capture the shift in consumer preferences. Marico's managing director and CEO, Saugata Gupta, notes that nearly 80 percent of the company's food and wellness portfolio is GLP-1 friendly. The company has acquired Plix and Cosmix to cater to the growing demand for nutraceuticals and science-led products.

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Beverage Makers See Growth in Low-Calorie Products

Beverage makers are also seeing increasing growth in the low-calorie product range. According to Worldpanel by Numerator's data, zero-sugar beverages currently reach about 1.7 percent of category-consuming households, but the segment is witnessing rapid adoption, with a CAGR of 113 percent over the last three years. Varun Beverages, the PepsiCo bottler, has seen its consolidated sales mix of low-sugar and no-sugar products increase to 63 percent in the March quarter.

The expiry of the Indian patent on semaglutide in March has led to the entry of cheaper GLP-1 generic alternatives from domestic firms. GLP-1 drugs are believed to alter a person's relationship with food, slowing down gastric emptying and making individuals feel satiated after smaller portions. As a result, food and beverage companies are revisiting their products to cater to the growing demand for healthier options.