Consumer Health Companies Target Gen Z with Chewable Products

Gen Z’s growing preference for trendy and convenient over-the-counter (OTC) healthcare products is driving a notable expansion in India’s consumer healthcare market. This shift towards formats like gummies, chewables, and effervescent powders is coupled with an increasing awareness of health among consumers. Major companies such as Haleon India, Dabur, and Rasna are investing heavily in innovation to meet these emerging trends, despite facing sluggish demand in some areas. Their strategies focus on long-term growth, with a keen eye on the evolving needs of diverse consumer cohorts.

Innovative Formats Gain Popularity

The Indian consumer healthcare market, valued at over โ‚น40,000 crore, is witnessing a surge in the popularity of innovative product formats. Gummies, effervescent tablets, and chewables are becoming increasingly favored, particularly among younger consumers who prioritize convenience and taste. This trend aligns with global consumer preferences, where the appeal of visually attractive and easy-to-consume products is paramount. Companies are responding by launching direct-to-consumer brands that cater to this demand, thus unlocking new growth opportunities in the sector.

Haleon India, formerly known as GlaxoSmithKline Consumer Healthcare, has reported impressive revenue growth, outperforming other Asia-Pacific markets, including China. The company’s strategy focuses on making healthcare more accessible in India by offering smaller, affordable packs of its popular brands. This approach aims to address the high costs that often deter consumers from seeking healthcare solutions.

Dabur’s Strategic Refresh

Dabur India is also adapting to the changing landscape by revamping its ‘Vision’ strategy. The company aims to achieve a sustainable double-digit compound annual growth rate (CAGR) by fiscal year 2028. CEO Mohit Malhotra emphasized that premiumization and contemporization across various categories are central to this strategy. Dabur plans to expand its offerings in the healthcare sector by introducing new formats such as gummies and effervescent powders, while also enhancing the relevance of its traditional products.

The company recognizes the importance of innovation in maintaining its competitive edge. By refreshing its product lines and focusing on contemporary formats, Dabur aims to attract health-conscious consumers who are increasingly looking for effective and appealing healthcare solutions.

Rasna’s Entry into Non-Carbonated Beverages

In a strategic move to cater to health-conscious consumers, Rasna, a well-known mass-market beverage brand, has acquired the ready-to-drink (RTD) brand Jumpin from Hershey’s India. This acquisition is part of Rasna’s plan to tap into the rapidly growing non-carbonated RTD market in India. The new product will feature a vitamin-fortified fruit juice beverage with low sugar content, aligning with the preferences of health-aware consumers, particularly from the Gen Z demographic.

Piruz Khambatta, the group chairman of Rasna, highlighted the company’s commitment to innovation and its goal of providing healthier beverage options. This acquisition reflects a broader trend in the market, where the demand for convenient, on-the-go products is expanding, presenting significant growth potential for companies willing to adapt to consumer preferences.

Long-Term Investment in Innovation

Despite facing challenges such as sluggish demand in certain segments, companies in India’s consumer healthcare market are committed to investing in innovation. This investment is seen as crucial for long-term success, as the returns on such initiatives often take time to materialize. Firms like Haleon India, Dabur, and Rasna are not only focusing on product development but also on understanding and responding to the evolving needs of their consumers.

The emphasis on innovative, convenient formats is reshaping the landscape of consumer healthcare in India. As companies continue to explore new avenues for growth, the focus on health awareness and consumer preferences will likely drive further advancements in the sector. The ongoing investments in innovation signal a robust future for India’s consumer healthcare market, as it adapts to the demands of a new generation of health-conscious consumers.


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