If the going is good, why does Danone India’s Protinex, the leader in its category, want to give itself a makeover, its first in 65 years?
India is the world’s fastest-growing health foods market, as per a report released last year by investment banking services firm, Avendus Capital. The report predicts that the health conscious consumer base in the country will rise from 108 million in 2020 to 176 million in 2026. Further, health foods account for only 11% of India’s packaged food and beverage market, compared with 31% in the US, thereby indicating huge headroom for growth.
There you have it: That’s the untapped growth opportunity that Protinex is eyeing, says Sriram Padmanabhan, marketing director for Danone India. Nielsen data shows the adult nutrition market is currently estimated to be `1,000 crore. The brand’s efforts are largely in growing the category, and in doing so, Protinex expects to double its revenues by 2025.
Protinex is the current market leader in India with a 26% share, which is why Padmanabhan says it is only fitting that the brand takes the lead on educating consumers about protein consumption. “Protein is an important macronutrient, yet over 70% Indians are not consuming enough of it, which is why our endeavour is to drive relevance for protein and our offerings,” he says.
Noting that Protinex is a substantial and growing part of the Danone business, Padmanabhan says the revamp was necessary to create a stronger proposition for today’s consumers. “In the last couple of years, and especially on the back of Covid, the conversations around health and wellness moved from curative to preventative. Most consumers viewed Protinex as something to be consumed only in the case of an illness or recovery. The rebranding was an effort to change that perception and focus on its immunity building qualities. We want to position it as a daily use product,” he states. Another way in which the firm is driving up consumption and penetration is by widening the offerings under Protinex. Aside from its original flavour, Protinex is also available in chocolate and vanilla variants. It also has a variant for diabetics, and one for pregnant and lactating women.
Creating differentiation
Protinex does not only compete with other brands in this space such as Horlicks Protein and Ensure but also a host of new-age brands that are popular among fitness enthusiasts and gym buffs. Therefore for protein supplement companies, highlighting product benefits such as enhanced muscle growth and weight management could help create a USP, observes Nikhil Sethi, partner at KPMG in India. “There is lack of knowledge in terms of the right dosage due to which many consumers are sceptical about making buying decisions. Further, pricing and affordability may significantly impact consumer preferences. The relatively high cost of protein supplements compared with other protein sources may discourage some consumers from purchasing them,” remarks Sethi. A 250 gram pack of Protinex costs `399, which puts it in a similar price brackets as other health supplement products.
To equip consumers with the right knowledge on protein consumption, the brand launched an annual initiative called ‘Protinex Protein Abhiyaan’ back in 2017. “Last year, through this programme, we were able to reach about 20 million people. Since this initiative is about enabling a behavioural shift, we saw almost 1,00,000 people making a promise to incorporate more protein in their diets in 2022. The task this year is in how to scale this number up further,” says Padmanabhan.
Since Protinex consumption is largely in the metros and tier-I markets, these will be the key markets for the brand.
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