vitamins and dietary supplements in asia pacific: is the party over?

VITAMINS & DIETARY SUPPLEMENTS IN THE

ASIA PACIFIC REGION

IS THE PARTY OVER?

CMA NATIONAL CONFERENCE 2014 – 30TH OCT 2014

DANIEL GRIMSEY, SENIOR RESEARCH ANALYST

A SNAPSHOT OF ASIA

ASIA’S AGEING POPULATION

POLLUTION PROBLEMS

BEAUTY BOOM

BABY BOOM?

IS THE PARTY OVER?

© Euromonitor International

3 CHA CONFERENCE 2014

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% Growth of VDS in Asia Pacific

Asia Pacific Asia Pacific sans Japan

Is the Party Over?

VITAMINS AND DIETARY SUPPLEMENTS IN THE ASIA PACIFIC REGION: IS THE PARTY OVER?

http://www.euromonitor.com/




Some Supplements are Dragging Growth Down…


Evening

Primrose Oil

3% CAGR

C0 Enzyme Q10

2% CAGR

Probiotic Supplements

2% CAGR





Protein

13% CAGR

Paediatric

10% CAGR

Fish Oils

7% CAGR

Others Supplements are Lifting Growth Up




A SNAPSHOT OF ASIA


POLLUTION PROBLEMS

BEAUTY BOOM

BABY BOOM?

IS THE PARTY OVER?



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65+ Population in Asia Pacific

Asia is Ageing






The Fastest Growing Markets for Fish Oils 2008-2013


14%

CAGR!

“The average Chinese adult consumes only about one quarter of the

recommended daily intake of DHA and EPA. WHO estimates that nearly 190,000 died in China in 2010 due to

low Omega-3 intake.”

“Consumers are getting more health conscious

and starting to incorporate fish oils into their diet, as a

defence against rising cholesterol levels.”





The Fastest Growing Markets for Calcium 2008-2013


“To educate Thai consumers about the risk of osteoporosis amongst the younger Thai

population, the company invited orthopaedic surgeons as part of the campaign for free bone

mineral density check-ups in 2013.”

“Due to the lack of calcium in the diet, Chinese consumers take the intake of

calcium supplements seriously, particularly for the elderly and small

children.”

“Through the media from

newspaper to television, both

online and offline, many more Vietnamese

people have learnt its benefits.”

17% CAGR!





The Fastest Growing Markets for Glucosamine 2008-2013


29% CAGR! “As disposable incomes grew,

many people were willing to spend more to take care of their parents as a way of showing their love and

thanks.”

“Glucosamine remained the strongest performing product… as it enjoyed high awareness not only among the country's aging population, but also

among the rising number of consumers aged over 30 that frequently participated in sports and

exercise.”





Details

Category: Calcium Supplement

Launch date: May 2012

Main active ingredients: Calcium

Retail Price: Ps180/US$4

Unique selling proposition (USP) or positioning: CalChews is the first calcium

supplement that is available in chewable format. In a chewable format, it is suitable for

women on the go. It is available in chocolate and mocha caramel.

Philippines: CalChews by Pascual Laboratories Inc


Source:www.iambrigette.com





Details

Category: Calcium supplement

Launch date: July 2013

Main active ingredients: Calcium,

Magnesium, Vitamin D, Mineral and Alfalfa

Retail price: Bt1,185/US$37

Unique selling proposition (USP) or positioning: To urge young Thai

consumers to take care of bone health from a young age, Amway (Thailand) invited the

general public to try a bone mineral density (BMD) test for free at its designated

Amway shops. The company is able to provide BDM tests to 15,000 people annually.

Thailand: Nutrilite Cal Mag Pro by Amway (Thailand)


Source: http://rakmaenaka.blogspot.com



A SNAPSHOT OF ASIA


POLLUTION PROBLEMS

BEAUTY BOOM

BABY BOOM?

IS THE PARTY OVER?



Pollution is Making Headlines across the Region


• “China Pollution Levels Hit 20 Times Safe Limit” (The Guardian)

• “Everything is sort of hazy.... like some sort of Kate Bush video or something” (Karl Pilkington, An Idiot Abroad)

• “Air Pollution Behind Decline In Monsoon Rains” (The Times Of India)

• “Surface Ozone Pollution Killing Crops In India” (New Delhi Times)





The Fastest Growing Markets for Vitamin E 2008-2013


17%

CAGR!

“Vitamin E is known as an antioxidant used by Thai women to promote skin health and slow

down the ageing process.”

“Natur-E, the leading brand in vitamin E is

promoted heavily, using pop star Sherina Munaf as brand

ambassador.”





The Fastest Growing Markets for Vitamin C 2008-2013


17% CAGR!

“Boosted by a boom in vitamin C as consumers sought to boost

their immune systems.”

“Given the increasing pollution and extreme weather changes in

Indonesia, more consumers are taking vitamin C to prevent coughs,

colds and the flu.”





China: By-Health Pearl Powder Vitamin C&E by Guangzhou By-health Biological Engineering Co Ltd


Details

Category: Combination Dietary Supplements

Launch date: January 2013

Main active ingredients: Pearl Powder, Vitamin

C 1 & Vitamin E

Retail price: RMB298/US$49

Source: www.by-health.com

Unique selling proposition (USP) or positioning: Combined effects from pearl

powder with Vitamin C and natural Vitamin E imported from U.S. to enhance

immunity and promote skin health.



A SNAPSHOT OF ASIA


POLLUTION PROBLEMS

BEAUTY BOOM

BABY BOOM?

IS THE PARTY OVER?



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India Indonesia China South Korea

%

% of Population Obese 2000-2020

Obesity, A Small But Growing Problem






The Fastest Growing Markets for Weight Management 2008-2013


“Unlike other consumer healthcare categories, weight management continued to be dominated by direct selling players.”

“In South Korea, individual distributors of Herbalife products are aggressive in attracting consumers. Most distributors open shops where consumers can relax and enjoy a foot massage.”

“Consumers usually want to lose weight quickly, so they are increasingly interested in meal replacement slimming products that are low calorie and high in fibre.”

61%

CAGR!





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India Indonesia Malaysia South Korea

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Up and Away with Weight Management


Weight Management US$m 2008-2013





The Fastest Growing Markets for Sports Nutrition 2008-2013


18% CAGR!

“Sales performance of sports nutrition is gaining positive momentum in line with the growing number of gyms and fitness centres in Thailand as they become the socialising venues where Thai urban consumers spend more of their time on indoor exercise and

body training courses.”





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Thailand Indonesia China India

2008

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Sports Nutrition Showing its Muscle


Sports Nutrition US$m 2008-2013





Collagen… It’s Asia’s Little Beauty Secret


22% CAGR!

“Brand’s InnerShine Marine Collagen endorsed by model Pechaya Wattanamontri, whilst Thai

actress/model, Laila Boonyasak, promotes Scotch Collagen Aora, a white

beauty shot with a combination of collagen extracted from deep sea fish.”

“Many tonics and bottled nutritive drinks products were positioned as

beauty supplements to target the rising concern for maintaining a beautiful

appearance by the female consumers.”

“Due to their very expensive prices,

their target consumers are limited to those

on higher incomes.”





Details

Category: Weight Loss Supplements

Launch date: August 2013

Main active ingredients: Dietary Fibre

6.3g/100ml, L-Carnitine 300mg/100ml

Retail price: RMB546/ US$89

Unique selling proposition (USP) or positioning: Absorbs the necessary

nutrients whilst suppressing hunger and burning fat.

China: Gomini High Fiber Drink Grapefruit by LUMI Biotechnology (Shanghai) Co Ltd


Source: http://shop.lumilady.com/product-396.html





Singapore: RubyCollagen Essence by Cerebos Pacific Ltd


Details

Category: Tonics and Bottled Nutritive Drinks

Launch date: April 2013

Main active ingredients : Collagen 3000mg,

Astaxanthin 2mg

Retail price: S$57/US$46 per 6 x 50ml bottles

Unique selling proposition (USP) or positioning: The product is specially suited

for Asian skin to retain skin suppleness and lessen fine lines appearance . Micro-collagen

replenishes skin’s collagen supply and Astaxanthin protects skin against UV rays.

Source: Euromonitor International



A SNAPSHOT OF ASIA


POLLUTION PROBLEMS

BEAUTY BOOM

BABY BOOM?

IS THE PARTY OVER?



Fastest Growing Markets for Paediatric Vitamins and Dietary Supplements 2008-2013


“Paediatric vitamins and dietary supplements is an extremely niche market in India, which is primarily driven by the affluent urban consumer base.”

A shift away from paediatric vitamins to paediatric Traditional Chinese Medicine.

“Paediatric multivitamins in chewable gummies format, with a taste resembling confectionery, remained popular among children.”

36%

CAGR!





Baby Boom?


900,000

920,000

940,000

960,000

980,000

1,000,000

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Years

Under 15 Population in Asia Pacific





Details

Category: Paediatric vitamins and dietary

supplements

Launch date: September 2012

Main active ingredient: Sodium ascorbate

Retail price: Ps10/US$0.22 per sachet

Unique selling proposition (USP) or positioning: VitaPops is the first and only

paediatric vitamin C in the market that is like a candy that pops and fizzles in the

mouth when taken.

Philippines: VitaPops by United Laboratories Inc


Source: www.unilab.com.ph





Details

Category/subcategory: Pediatric Vitamins and

Dietary Supplements

Launch date: Mid 2013

Main active ingredients : Cod liver oil extract,

Vitamin A, Vitamin D, Calcium Hypophosphite

Retail price: Rp 50,000/US$4.10 for 350 ml

Unique selling proposition (USP) or positioning: Claims to help increase

children’s appetites, without them becoming overweight. Moreover, the product aims to

optimise children’s brain development, as well as eye health, immunity, bone and teeth.

Indonesia: Champ’s Emulsion by CCM Pharmaceuticals Sdn Bhd


Source: www.facebook.com/ChampsEmulsionID



A SNAPSHOT OF ASIA


POLLUTION PROBLEMS

BEAUTY BOOM

BABY BOOM?

IS THE PARTY OVER?



0

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% Value Growth 2005-2018

Asia Pacific sans Japan Asia Pacific

Poly. (Asia Pacific sans Japan)

Is the Party Over? Not Quite Yet






The Chinese and Indian Middle Classes are Almost as Enthusiastic as Americans


0 20 40 60 80 100

US

India

China

Japan

UK

Brazil

Germany

France

Almost Every Day

1-2 Times A Week

1-2 times a month

On average, how often do you take vitamins/dietary supplements?





There are Many Reasons to Feel Optimistic about the Future




THANK YOU FOR LISTENING

Daniel Grimsey Senior Research Analyst Euromonitor International

www.euromonitor.com

[email protected]

+61 (0)2 9581 9215


mailto:[email protected]

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