Horlicks, a prominent brand under Hindustan Unilever Limited (HUL), continues to lead India’s health food drinks market with an estimated 44% market share as per the latest data in 2025.
In the third quarter of FY2024-25, HUL reported a 1.9% increase in consolidated revenue, reaching ₹15,559 crore, with a 19% rise in net profit to ₹2,984 crore.
The Foods and Refreshment segment, encompassing brands like Horlicks and Boost, contributed significantly to this growth.
To enhance product accessibility, HUL expanded Horlicks Strength Plus nationwide, aiming to cater to a broader consumer base.
In response to regulatory guidelines, HUL reclassified Horlicks from a “health drink” to a “functional nutritional drink” to align with the Food Safety and Standards Authority of India’s directives.
Despite challenges such as market saturation and evolving consumer preferences, Horlicks maintains its market leadership through strategic product innovation and adaptation to regulatory changes.
Conducting a SWOT analysis—assessing its Strengths, Weaknesses, Opportunities, and Threats—provides valuable insights into Horlicks’ current market position and future prospects.
Strengths:
1. Strong Brand Equity: With over a century of history, Horlicks has established itself as a trusted name in the health food drinks market. Its long-standing presence has fostered deep-rooted consumer trust and loyalty.
2. Diverse Product Portfolio: Horlicks offers a wide range of products tailored to various consumer segments, including Junior Horlicks, Women’s Horlicks, and Mother’s Horlicks. This diversification allows the brand to cater to specific nutritional needs across different demographics.
3. Market Leadership in India: In India, Horlicks commands a significant market share in the health food drinks segment, reflecting its dominance and consumer preference in the region.
4. Association with a Global FMCG Leader: Following its acquisition by Hindustan Unilever Limited (HUL), Horlicks benefits from HUL’s extensive distribution network, marketing expertise, and financial strength, enhancing its market reach and operational capabilities.
Weaknesses:
1. Regulatory Challenges: In April 2024, HUL rebranded Horlicks from a ‘health food drink’ to a ‘functional nutritional drink’ in response to regulatory directives from the Ministry of Commerce and Industry. This reclassification required adjustments in marketing strategies and product labeling.
2. High Dependence on the Indian Market: A substantial portion of Horlicks’ revenue is derived from the Indian market. This heavy reliance makes the brand susceptible to economic fluctuations and policy changes within the country.
3. Perception Issues: Despite its nutritional benefits, Horlicks has faced criticism regarding sugar content in some variants, which could affect health-conscious consumers’ perception of the brand.
Opportunities:
1. Expansion into Emerging Markets: With increasing health awareness globally, there is potential for Horlicks to penetrate emerging markets in Asia and Africa, leveraging its brand equity to capture new consumer bases.
2. Product Innovation: Developing new variants, such as low-sugar or plant-based options, can cater to evolving consumer preferences and dietary trends, helping Horlicks stay relevant in a competitive market.
3. Digital Marketing and E-commerce: Investing in digital platforms for marketing and sales can enhance consumer engagement, especially among younger demographics, and expand Horlicks’ reach beyond traditional retail channels.
4. Health and Wellness Trends: The growing global emphasis on health and wellness presents an opportunity for Horlicks to position itself as a provider of essential nutrients, aligning with consumers’ pursuit of healthier lifestyles.
Threats:
1. Intensifying Competition: The health beverage market is becoming increasingly competitive, with new entrants and existing brands innovating rapidly, which could erode Horlicks’ market share if it does not continuously adapt.
2. Regulatory Changes: Future changes in health and safety regulations could impose additional compliance costs or necessitate reformulation of products, impacting profitability and market positioning.
3. Supply Chain Disruptions: Global events, such as pandemics or geopolitical tensions, can disrupt supply chains, affecting the availability of raw materials and the distribution of finished products.
4. Changing Consumer Preferences: A shift towards natural and organic products may reduce demand for traditional malted drinks like Horlicks unless the brand adapts to these trends.
Conclusion:
Horlicks’ enduring legacy, diverse product range, and strong market presence, particularly in India, position it favorably in the health and nutrition sector. However, to maintain and enhance its competitive edge, the brand must navigate regulatory challenges, reduce dependence on a single market, and address consumer concerns regarding product composition. By seizing opportunities in emerging markets, driving product innovation, and embracing digital transformation, Horlicks can continue to thrive and meet the evolving needs of consumers worldwide.
Anantha Nageswaran is the chief editor and writer at TheBusinessBlaze.com. He specialises in business, finance, insurance, loan investment topics. With a strong background in business-finance and a passion for demystifying complex concepts, Anantha brings a unique perspective to his writing.
