cbi - ministry of foreign affairs translating industry trends for health products to natural...
TRANSCRIPT
CBI - Ministry of Foreign Affairs
Translating industry trends for health products to natural ingredients
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Objectives
Learn how to recognise industry trends
Learn to determine results of these trends
Learn how to translate trends into opportunities and threats and O&T into action
CBI - Ministry of Foreign Affairs
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Industry trends
Regulatory developments
Economic developments
Market developments
CBI - Ministry of Foreign Affairs
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Regulatory developments
Harmonisation of EU herbal medicine regulations
In some countries (UK): stricter requirements than before
In many countries: redeveloping products as food supplements or medical devices more innovation but also competition and substitution
Everywhere: Industry consolidation
CBI - Ministry of Foreign Affairs
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Regulatory developments (2)
Novel Food legislation
Barrier to introduce novel food (ingredients), including for food supplements!
Result: restricts innovation
Future: possible changes legislation to make imports of new food products easier
Result: (if changes are adopted) more options to innovate
CBI - Ministry of Foreign Affairs
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Regulatory developments (3)
Strict claim legislation food products and supplements (nutrition and health claims)
Delay in accepting health claims botanicals: Uncertainty!
Currently: 80% health claims rejected
Result: companies need to develop new strategies for applications
Result: careful in claims made for food supplements
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Economic developments
Industry consolidation, result from:
Economic uncertainty
Regulatory changes: identify and document all ingredients along the supply chain
Larger players: more market power
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Economic developments (2)
Industry shift:
Production from West to East:
West: focus on high-value – low labour input - organic
Extraction outside of EU: processing increasingly at source
WHO regulation have leveled playing field
Exporters: less willing to export raw materials
Governments limit export products without value addition
Some EU companies have large vested interests in extraction facilities
Others are open to DC suppliers of extracts, but new responsibilities – Safety in all its aspects
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Economic developments (3)
Respond to risks:
Fast-changing sector – low margins
Decrease stocks
Changing raw material prices
Supply security
Going to the source – ensuring traceability
Towards sustainability of supplies – but also in pricing?
Natural resource management and use
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Economic developments (4)
Shift in Pharmacological research and development to outside Europe
In Europe:
Rising R&D costs
Regulatory requirements
Complex research areas
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Market developments
Diversification product range
Supply different segments
Active at different levels value chain
Demand specifications of ingredients to comply across segments
Growth of direct sourcing, increasing demand for:
Transparency
Supply security
Storytelling
Value addition opportunities for DC suppliers
CBI - Ministry of Foreign Affairs
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Market developments (2)
Increasing MAPs and extracts industries in Eastern Europe
Market opportunities DC suppliers
OR competitors for DC suppliers (temperate species)
Increased world demand European (German/Swiss) herbal medicine and supplements
Export to USA, Russia, Japan, China etc.
Some EU manufacturers and traders less dependent on EU market developments – global players
Growth of developing (Asian) markets
Strong pricing competition due to global market sharing
Alternatives and better bargaining position for suppliers
CBI - Ministry of Foreign Affairs