SOUTH AFRICAN

VITAMINS AND SUPPLEMENTS

INDUSTRY LANDSCAPE REPORT

COMPILED: JANUARY 2018

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REPORT OVERVIEW

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The South African Vitamins and Supplements Report (97 pages) provides a dynamic synthesis of industry research, examining the

local and global Vitamins and Supplements industry from a uniquely holistic perspective, with detailed insights into the entire value chain –

from manufacturing to retailing, market size trends, industry trends, industry drivers & challenges, competitor and pricing analysis.

For the Global Vitamins and Supplements Industry Section:

What are the current market dynamics of the Vitamins and Supplements industry?

What are the Vitamins and Supplements industry trends, drivers, and challenges?

For the South African Vitamins and Supplements Industry Section:

What are the current market dynamics (market environment, size, value, volumes) of the SA Vitamins and Supplements industry?

Who are the key manufacturing players in the SA Vitamins and Supplements industry?

What are the South African industry trends, drivers and challenges?

For the South African Retail and Pricing Analysis Section:

Who are the key retail players (retail pharmacies, in-store retail pharmacies, hospital-based pharmacies, general pharmacies and

specialists) in the SA Vitamins and Supplements industry?

What are the prices of the most frequently purchased Vitamins and Supplements across SA retail outlets?

SOME KEY QUESTIONS THE REPORT WILL HELP YOU TO ANSWER:

SCREENSHOTS FROM REPORT

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97 page report filled with detailed charts, graphs, tables and insights

44.0

54.0

0

10

20

30

40

50

60

2017 2022*

ASIA-PACIFIC VITAMINS AND DIETARY SUPPLEMENTS MARKET SIZE: 2017 & 2022* (IN US$ BILLION)

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As the largest regional market for Vitamins and Dietary

Supplements globally, Asia-Pacific generated US$44

billion in Vitamin and Dietary Supplement retail sales in

2017, which is set to increase to US$54 billion by 2022 as

illustrated by the graph below.

Source: Euromonitor Image Source: Drgulyas; Wearesocial-net; Newsmax

Within the Asia-Pacific region, China, Japan and South Korea represent the three largest markets. Among these three markets, China is the leading regional market segment while Dietary Supplements is currently the leading product market segment.

While in China, Dietary Supplements remain the largest market

segment, tonics is on a steady decline and demand for Dietary

Supplements is rising in Japan. In South Korea, consumers are

increasingly self-medicating to address health issues rather than

relying on health drinks and tonics alone, which is boosting Dietary

Supplements sales.

Growth within this market is mainly concentrated through two

channels, namely direct selling and online retail. Direct selling

continues to be the leading distribution channel in Asia Pacific

regardless of a fast growing online retailing market.

The fastest growing Vitamins and Supplements category in the

Asia-Pacific market over the forecasted period 2017-2022 is

Probiotic Supplements, followed by glucosamine, combination

Dietary Supplements, pediatric Dietary Supplements and tonics.

* Forecast

SAMPLE FROM REPORT:KEY GLOBAL MARKETS (ASIA-PACIFIC)

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Multivitamins, Combination Non-Herbal Supplements and Eye Health Supplements Continue to Dominate

Similar to global trends, Multivitamins continued to hold their place as a top Supplement among consumers in 2017 within the Vitamin market segment. In 2017 alone, this market sector accounted for almost 80% of the total value sales.

Furthermore, Combination No-Herbal Supplements and Eye Health Supplements have shown significant growth over the past 5 years registering a CAGR of 10.5% and 10.4% over the period 2012-2017.

Rise of Vitamin-infused Nutrition

New hyper-functional, healthy, virtually medicinal food and beverages like Vitamin infused waters and other fortified foods have increased in popularity among South African consumers as more and more consumers are turning to ancient remedies for their modern health issues.

These products have gained popularity for the ability to boost energy, relieve stress, anti-aging effects, increase focus or a good night’s rest as well as to reduce dietary deficiencies among others.

According to co-founder of Dirty Lemon, Zack Normandin, it is overwhelmingly accepted that herbal and natural extracts with proven efficacy can have a significant impact on attitude, appearance, and overall well-being in the medicinal community.

Source: Mordorintelligence; Brandsouthafrica; Al-burraq.com; Euromonitor; Futurelife Image Source: Cityoflondon

Social Media as Information Source and Marketing Tool

South African consumers are increasingly researching their symptoms online and choosing to self-medicate.

Social Media Platforms and other Health Blogs and pages have become increasingly popular sources of information for consumers as well as powerful marketing tools for manufacturers.

Marketing via social media and other online platforms is becoming

increasingly popular and mainstream for many manufacturers to

enhance the visibility of products and offer customers’ the

convenience of online purchasing which is boosting growth of the

Vitamins and Supplements market.

Facebook, Twitter, LinkedIn, Google+, WhatsApp, and YouTube

are the most powerful social media platforms currently.

SAMPLE FROM REPORT:SA INDUSTRY TRENDS

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Founded in 2008, Ascendis Health is a multinational,

South African-based health and care company with an

extensive portfolio of market leading brands.

Ascendis’ consumer brands segment includes nutraceuticals,

complementary medicines, sports nutrition and skin care products,

which contributes 30% to the group revenue as illustrated in their

2017 annual report.

Based on the Ascendis Integrated Annual Report June 2017,

Ascendis’ consumer brands revenue increased by 113%, from

R918 million in 2016 to R1,954 million in 2017.

Consumer Brands Earnings before Interest, Tax, Depreciation and

Amortization (EBITDA) increased by 42% to R290 million in 2017.

Ascendis Health currently has more than 10 products sitting in the

number 1 position in the South African market, and a further 15

dominating the rankings in second position.

The integration of several key businesses in 2016 and 2017

financial year has given the Vitamins and Supplements product

portfolio a significant boost.

ASCENDIS HEALTH VITAMIN BRANDS:

• Bettaway

• BioBalance

• Chela-Fer

• Chela-Mag

• Chela-Preg

• FoodState

ASCENDIS HEALTH VITAMIN BRANDS:

• HomeoForce

• JungleVites

• MenaCal 7

• OsteoFlex

• Solal

• Vitaforce

• Bolus

• Evox

• Muscle Junkie

• Nutrimax

ASCENDIS HEALTH SUPPLEMENT BRANDS:

• Scitec Nutrition

• Sporton

• SSN

• Supashape

Source: Integrated Annual Report 2017 ; Ascendis Health Image Source: Ascendis Health; Vecteezy

SAMPLE FROM REPORT:SA MANUFACTURER OVERVIEW: ASCENDIS HEALTH

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Source: Insight Survey Image Source: Clicks; Pixabay

A product price analysis conducted by Insight Survey

during January 2018 between Durbell, Dis-Chem, Clicks,

MediRite and Pick n Pay pharmacies shows that, across

a selected basket of products, Durbell offers the

cheapest option for Vitamin and Supplement products.

A contributing factor for Durbell being the cheapest retail pharmacy

at the time of the analysis was due to three of their Vitamins and

Supplements products being at a low cost.

Dis-Chem offers the second cheapest basket of selected Vitamins

and Supplements products. In terms of the biggest price difference

amongst the product price analysis, Nativa’s Lifegain Advanced

Nutritional Support Powder was the cheapest at Durbell (R329.95),

compared to Pick n Pay Pharmacy (R402.99).

Pick n Pay Pharmacy was the most expensive retail pharmacy

store for these selected products – having a total difference of

R88.28, at the time of the analysis, compared to Durbell’s total.

Product Durbell Dis-Chem Clicks MediRitePick n

Pay

Airmune

Effervescent

Tablets 10’s

R59.95 R59.95 R59.95 R69.99 R69.99

Berocca

Performance

Tropical

Effervescent 10’s

R69.95 R77.95 R79.95 R61.99 R79.99

Bioplus Tonic

200mlR59.95 R59.95 R52.00 R44.99 R63.99

Caltrate Plus 30

Chewable TabsR104.95 R109.95 R118.00 R119.99 R115.99

Centrum

Multivitamin

Tablets 30’s

R119.95 R118.95 R119.00 R129.99 R134.99

Lifegain

Advanced

Nutritional

Support Powder

1kg

R329.95 R379.95 R382.00 R399.99 R402.99

Vital Gold

Complete A-Z

Capsules 30’s

R94.95 R77.50 R104.00 R99.99 R104.99

Total R839.65 R884.20 R914.90 R926.93 R972.93

SAMPLE FROM REPORT:SA RETAIL OVERVIEW

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BRAND AND SIZE

32Gi Accelerate 900g R299.00 N/A R264.90 N/A N/A

A.Vogel Molkosan 200mlR85.50

(Special Offer)R106.95 R119.95 R115.99 N/A

Airmune 10 tab R59.95 R59.95 R59.95 R69.99 R69.99

Berocca Boost20 tab

R136.00

(Special Offer)R148.95 R149.95 R149.99 R183.97

Bestum

30 tab R116.00 R109.95 R104.95 R129.99 N/A

60 tab N/A R179.95 R169.95 N/A N/A

Betavit AFR 30 caps R71.95 N/A R79.95 R79.99 N/A

Bettaway Vitamin C 1000

30 tab R74.95 R74.95 R66.95 R74.99 N/A

60 tab R125.00 R124.95 R109.95 N/A N/A

Biogen Platinum Vitamin A 60 caps N/A R84.95 N/A N/A N/A

This pricing analysis was conducted at retail stores and supermarkets during w/c 15 January 2018

SAMPLE FROM REPORT:PRICING ANALYSIS: VITAMINS AND SUPPLEMENTS

TABLE OF CONTENTS

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1. Executive Summary (3 pages):

1.1 Global Industry Snapshot

1.2 South African Industry Snapshot

1.3 Industry Drivers and Restraints

2. Global Vitamins and Supplements Industry (17 pages):

2.1 Global Industry Overview: GLOBAL VITAMINS AND DIETARY SUPPLEMENTS MARKET SIZE: 2016 & 2022* (IN US$ BILLION) (Graph)

2.2 Global Industry Overview: Dietary Supplements

2.3 Global Market Environment

2.4 Global Key Markets: Regional Overview

2.5 Global Key Markets: Asia-Pacific: ASIA-PACIFIC VITAMINS AND DIETARY SUPPLEMENTS MARKT SIZE: 2017 & 2022* (IN US$ BILLION) (Graph)

2.6 Global Key Markets: North-America: NORTH-AMERICA VITAMINS AND DIETARY SUPPLEMENTS MARKET SIZE: 2016 & 2025* (IN US$ BILLION); TOP REASONS IN USA FOR

DIETARY SUPPLEMENT USE AMONG ADULTS IN 2016 (IN % OF RESPONDENTS) (Graphs)

2.7 Global Key Markets: Europe: RETAIL VITAMINS AND DIETARY SUPPLEMENT SALES IN EUROPE: 2017 & 2020 (IN US$ BILLION) (Graph)

2.8 Global Industry Trends: Vitamins and Dietary Supplements

2.9 Global Industry Drivers: Vitamins and Dietary Supplements

2.10 Global Industry Challenges: Vitamins and Dietary Supplements

2.11 Global Industry Trends: Sports Supplements

2.12 Global Industry Drivers: Sports Supplements

2.13 Global Industry Challenges: Sports Supplements

TABLE OF CONTENTS

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3. South African Vitamins and Supplements Industry (44 pages):

3.1 South African Vitamins and Supplements Industry Overview (20 pages)

3.1.1 South African Industry Overview

3.1.2 South African Market Environment

3.1.3 South African Market Size: VALUE OF SA VITAMIN MARKET: MULTIVITAMINS VS. SINGLE VITAMINS (2012-2017)(IN ZAR MILLION); VITAMINS SALES VALUE CAGR AND

Y-O-Y GROWTH (Graph and Tables)

3.1.4 South African Market Size: VALUE OF SA VITAMINS MARKET TYPES: SINGLE VITAMINS (2012-2017) (IN ZAR MILLION); SINGLE VITAMINS SALES VALUE CAGR AND Y-O-Y

GROWTH (2012-2017) (Graph and Tables)

3.1.5 South African Market Size: VOLUME OF SA VITAMINS MARKET TYPES: TOTAL VITAMINS, MULTIVITAMINS, SINGLE VITAMINS (Table)

3.1.6 South African Market Size: VALUE OF SA DIETARY SUPPLEMENT MARKET: HERBAL/TRADITIONAL VS. NON HERBAL/TRADITIONAL (2012-2017) (IN ZAR MILLION);

DIETARY SUPPLEMENTS SALES VALUE CAGR AND Y-O-Y GROWTH (2012-2017)(Graph and Tables)

3.1.7 South African Market Size: VALUE OF SA DIETARY SUPPLEMENT MARKET TYPES: HERBAL/TRADITIONAL DIETARY SUPPLEMENTS (2012-2017) (IN ZAR MILLION);

HERBAL/ TRADITIONAL DIETARY SUPPLEMENTS SALES VALUE CAGR AND Y-O-Y GROWTH (Graph and Tables)

3.1.8 South African Market Size: VALUE OF SA DIETARY SUPPLEMENT MARKET TYPES: NON-HERBAL/TRADITIONAL DIETARY SUPPLEMENTS (2012-2017) (IN ZAR MILLION);

NON-HERBAL/ TRADITIONAL DIETARY SUPPLEMENTS SALES VALUE CAGR AND Y-O-Y GROWTH; NON-HERBAL/ TRADITIONAL DIETARY SUPPLEMENTS VOLUMES (Graph

and Tables)

3.1.9 South African Industry Trends

3.1.10 South African Industry Drivers

3.1.11 South African Industry Challenges

TABLE OF CONTENTS

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3.2 South African Vitamins and Supplements Manufacturer Overview (24 pages)

3.2.1 Adcock Ingram: Overview: ADCOCK INGRAM REVENUE FOR THE YEAR ENDED 30 JUNE 2017 (IN ZAR BILLION) (Graph)

3.2.2 Adcock Ingram: Brands

3.2.3 Ascendis Health: Overview: ASCENDIS HEALTH REVENUE FOR THE YEAR ENDED 30 JUNE 2017 (IN ZAR BILLION) (Graph)

3.2.4 Ascendis Health: Brands

3.2.5 Bayer: Overview: BAYER’S EUROPE/MIDDLE EAST/AFRICA REGIONAL SALES FOR Q3 2017 (IN EURO BILLION) (Graph)

3.2.6 Bayer: Brands

3.2.7 Cipla: Overview: CIPLA REVENUE CONTRIBUTION BY REGION FOR THE YEAR ENDED 2016-17 (PERCENTAGE) (Graph)

3.2.8 Cipla: Brands

3.2.9 Inova Pharmaceuticals: Overview

3.2.10 Inova Pharmaceuticals: Brands

3.2.11 Nativa: Overview:

3.2.12 Nativa: Brands

3.2.13 Pfizer: Overview: PFIZER REVENUE BY DIVISION FOR THE THIRD QUARTER OF 2017 (IN US BILLION) (Graph)

3.2.14 Pfizer: Brands

3.2.15 SA Natural Products: Overview

3.2.16 SA Natural Products: Brands

3.2.17 Vital Health Foods: Overview

3.2.18 Vital Health Foods: Brands

3.2.19 SA Independent Supplement Companies: GNC; Herbex; USN; NutriTech; Biogen; 32Gi

TABLE OF CONTENTS

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4. South African Vitamins and Supplements Retail Analysis (18 pages):

4.1 SA Vitamins and Supplements Retail Overview (2 pages)

4.1.1 SA Retail Overview: NUMBER OF STORES PER PHARMACY/SUPPLEMENT SPECIALISTS: 2018; VITS & SUPPS PRODUCT PRICE ANALYSIS JANUARY 2018 (Graph & Table)

4.2 South African Retail Pharmacies (9 pages)

4.2.1 Clicks: Overview: PERCENTAGE CONTRIBUTION TO TOTAL SALES OF CLICKS PER HEALTH AND BEAUTY SALES CATEGORY (YEAR ENDED 31 AUGUST 2017)(Graph)

4.2.2 Clicks: Vitamins and Supplements

4.2.3 Dischem: Overview: DIS-CHEM CATEGORY PERCENTAGE MARKET SHARE (HALF YEAR 2018) (Graph)

4.2.4 Dischem: Vitamins and Supplements

4.2.5 Durbell: Overview

4.2.6 In-Store Retail Pharmacies: MediRite, Pick n Pay Pharmacy, Spar Pharmacy

4.2.7 Hospital-based Pharmacies: Mediclinic Pharmacy, Netcare Pharmacy

4.2.8 Independent Pharmacies: Link, Alpha Pharm

4.2.9 Independent Vitamin and Supplement Specialists: Chrome, Xtreme Nutrition, Supplement World, Wellness Warehouse, Gateway Health

TABLE OF CONTENTS

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4. South African Vitamins and Supplements Retail Analysis Continued (18 pages):

4.3 Vitamins and Supplements Pricing Analysis (7 pages) (conducted w/c 15 January 2018)

4.3.1 Vitamins and Supplements Brands: 32Gi, A.Vogel Molkosan, Airmune, Berocca Boost, Bestum, Betavit AFR, Bettaway Vitamin C 1000, Biogen Platinum

Vitamin A, Ciplaton, Bioplus Effervescent Tablets, Bioplus Tonic, Biostrath, Cal-C-Vita Plus, Caltrate 600 + D, Caltrate Plus, Centrum Multivitamin, Centrum My

Nutrients Omega 3, Ensure NG, Evox Lean Pro Diet Protein, GLUCO-GAP, Go! Focus, HomeoForce Tissue Salt, JungleVites Chewy C, Osteoeze Gold,

OsteoFlex Ultra, Pregvit MR, ProbiFlora Everyday Balance, Replace Diabetic, Spirulina By Marcos Rohrer, Supradyn Recharge, Solal Iron Plus, SSN

Thermobuild, Supashape, Turbovite G-Whiz Syrup, Turbovite Whizz-Fizz, USN Diet Fuel Ultralean, Vitaforce Ultra Vitamin C, Vital Kids Multivitamin, Vital

Multivitamin.

4.3.2 Vitamins Promotions (Clicks and Dis-Chem)

Comparative Pricing at Retail Outlets: Clicks, Dischem, Durbell, MediRite, Pick n Pay Pharmacy.

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