industry audit 2021 business as unusual

INDUSTRY AUDIT 2021

AUSTRALIA’S COMPLEMENTARY MEDICINES

BUSINESS ASUNUSUAL

ABOUT COMPLEMENTARY MEDICINES

COMPLEMENTARY MEDICINES AUSTRALIA (CMA)

CMA is the peak industry body for the complementary

medicines industry; representing stakeholders across the value

chain, including manufacturers, raw material suppliers,

distributors, consultants, retailers, allied health professionals,

researchers and educators.

CMA promotes appropriate industry regulation and

advancement to ensure consumers have access to

complementary medicines of the highest quality.

CMA has been conducting annual audits of the industry for over

10 years and are pleased to present our most comprehensive

audit to date.

Regulated in Australia as medicines under the Therapeutic

Goods Act 1989, complementary medicines include vitamins,

mineral and nutritional supplements, homeopathic,

aromatherapy products and herbal medicines.

The term ‘complementary medicines’ also comprises traditional

medicines, which includes traditional Chinese medicines,

Ayurvedic, Australian Indigenous and Western herbal

medicines.

COMPLEMENTARY MEDICINES

CMA INDUSTRY AUDIT & TRENDS 2021 | 1

2021 INDUSTRY AUDIT SNAPSHOT

Category Breakdown

VDS: $3.1 Billion

Sports: $1.4 Billion

Herbal: $0.75 Billion

Weight Loss: $0.44 Billion

Regularly use a

complementary

medicine

1.5% Growth

Industry Revenue$5.69 Billion

Industry Growth

Key Points

7 out of 10 People

Export Revenues

COVID has been a Disruptor

Changes to Sales Channels

Shopping patten changes

Industry growth 1.5%

Exports down 14.15%

$1 Billion

14%


COVID-19: BUSINESS AS UN-USUAL

With lock-downs and social distancing, COVID-19 has affected every Australian. We continue to work together to adapt to

a new normal.

Our industry pivoted to help meet the challenges of the COVID-19 global pandemic. Some manufacturers re-tooled to

provide hospital grade sanitisers, hand wash and other personal protective equipment.

Consumers adapted to the change in environment too. With a greater focus on personal hygiene, the cold and flu season

last year was relatively benign. This led to a drop in demand for cold and flu products. However, this was offset with a rise

in immunity and wellbeing products such as pre & probiotics, Echinacea, Vitamin C & D and other single vitamins.


NATURAL GROWTHThe Vitamins and Dietary Supplement Category has

Weight Management and Wellbeing Sports Nutrition

Herbal and Traditional Products Vitamins and Dietary Supplements

CATEGORY GROWTH

0

1000

2000

3000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

4000

$ A

UD

mil

5000

6000

7000

Source: EuroMonitor (2021)

DOUBLED IN SIZE OVER 10 YEARS

2020 GROWTHSTEADIED TO 1.5% WITH THE IMPACT OF COVID-19


COVID-19 has had an impact on the

retail distribution of Vitamins &

Dietary Supplements in Australia.

Lock downs have resulted in an

increase in online purchasing

decisions. Social distancing has also

changed consumers behaviours with

less foot traffic in traditional retail

outlets, with consumers choosing to

spend less time in store. The Direct

Selling channel has also adapted

and after an initial dip in sales, now

holds steady.

Historically, consumers preferred to

purchase products from outlets

which also provide healthcare

advice. However the long term

impacts of changes to consumer

purchasing decisions to the sales

channels is unknown.

CONSUMER PURCHASING DECISIONS

19.7%

Supermarkets& Grocery

SpecialistRetailers

HealthfoodStores

Pharmacy Online Direct Selling

12.8%

3%

48%

11.6%

4.9%


CONSUMER DEMOGRAPHICS

CM PURCHASES IN LAST 12 MONTHS

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

73%

68%

77%

56%

48%

63%

26%23%

28%25%

28%

22%23%

21%

26%

19% 18% 19%15% 15% 15%

Net: Bought complementary

medicines

Vitamin Mineral Probiotics Omega-3 fatty acids / fish oil

Nutritional supplements

Minerals Herbal or homeopathic

product

7%5%

10%

Other complementary

medicines

Average Male Female

MEN WOMENWomen are more

likely to have purchasedcomplementary medicine

in the last12 months

than men73%

83%


WHICH OF THE FOLLOWING TYPES OF

DIETARY VITAMINSOR SUPPLEMENTS DO YOU TYPICALLY TAKE?

CONSUMER CHOICE BY HEALTH CATEGORY

40%

34%

34%

31%

25%

24%

22%

19%

14%

14%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Vitamin D

Multivitamins

Vitamin C

Fish oil

Iron

Vitamin B

Calcium

Probiotics

Vitamin E

Omegas


TOP PRIORITIES IN INNOVATIONNUTRA INGREDIENT SURVEY 2020

COVID HEAVILY INFLUENCED

INNOVATION IN 2020

BEYOND IMMUNITY, WHAT OTHER HEALTH POSITIONING ARE

BIG WINNERS IN 2020No 1 Health category was immunity

72% Stress management

55% Sleep support

51% Probiotics supplementation

48% Plant based products

Source: Nutraingriedents, 2020

Stress Management

Sleep Support

Probiotics

Plant Based Products

Very Important Not Important

Cognitive Products

Prebiotics

48% 24% 14% 8% 4% 1%

27% 28% 23% 13% 6% 2%

22% 29% 25% 17% 4% 2%

22% 26% 21% 19% 8% 3%

20% 22% 27% 17% 8% 5%

12% 25% 25% 26% 9% 3%

6 5 4 3 2 1


14% Echinacea

7%

4%

6%

Single Vitamin

Vitamin C

Probiotics

YEAR ON YEAR

FASTESTGROWING INGREDIENTS


EXPORT MARKETS FOR AUSSIE COMPLEMENTARY MEDICINES

Cambodia India

Malaysia Thailand

Singapore United Kingdom

First Time Exports to New Countries

Ireland Brazil

Russia Iran

Israel

Future Target Markets

South Korea

China &Hong Kong

Oceania

Vietnam

5.2%

70%

8.7%

6%

Other

10.8%


Australian manufacturers are the global leaders in Research & Development, innovation and driving industry best practice.

The sector is recognised globally for the highest quality and safety standards, delivering consumers the worlds best quality complementary medicines.

AUSTRALIA’S MANUFACTURING SECTOR

TGA licensed finished product manufacturing

sites for complementary

medicines1

76

Direct employees

in the sector2

Average wage in

sector2

2,863

Profit Margin2

11%

Annual growth

rate (2016-2021)2

2.7%

$71,428

Sources: (TGA, 2021)1

(IBISWorld, 2021)2


TOP TRENDING CATEGORIES

Australia remains the largest source of Nutrition and Health Food Imports to China with an import volume of

USA remains the second largest with

AUSTRALIA: THE NUMBER ONE CHOICE FOR

CHINA

AU $ 1.19 Billion(US $926 Million)

US $919 Million.

SIZE OF CHINA IMPORT MARKET 2020 US $4.8 BILLION

UP 23.9% YEAR ON YEAR.

Immunity

Anti-aging

Sport &energy

Weight loss

Eye Health

Sleep

Stress and Emotion

Management

Source: China Chamber of Commerce for Import and Export of Medicines and Health Food Products (CCCMHPIE) (2021)


REFERENCES

Austrade, 2021. Australian Complementary Medicines Export Statistics 2018-2020, Canberra: s.n.

Australian Institute of Health and Welfare, 2019. Australian Burden of Disease Study: impact and causes of illness

and death in Australia 2015. Australian Burden of Disease series, Issue 19.

China Chamber of Commerce for Import and Export of Medicines and Health Food Products, 2021. China Import

Data- Health Foods, Beijing: s.n.

Euromonitor International Australia, 2020. Complementary Medicines Market Data 2019-2020 Sydney: Euromonitor

International Australia..

Euromonitor International Australia, 2021. Consumer Health Report 2021 Sydney: Euromonitor International Australia..

IbisWorld, 2021. Vitamin and Supplement Manufacturing in Australia: Market Research Report., Sydney: s.n.

IbisWorld, 2020. Vitamin and Supplement Stores in Australia: Market Research Report., Sydney: s.n.

IbisWorld, 2020. Alternative Health Therapies in Australia: Market Research Report., Sydney: s.n.

Nutraingriedents, State of the North America Supplements, Health & Nutrition sector 2020

Therapeutic Goods Administration, 2021. TGA Complementary Medicines manufacturing licence registry, Canberra:

Australian Government Department of Health.

YouGov Galaxy, 2020. Complementary Medicines Consumer Sentiment, Canberra: Complementary Medicines

Australia.


cmaustralia.org.au

+61 (02) 6260 4022

PO Box 450, Mawson, ACT 2607 Australia

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