NUTRITIONAL PRODUCT MARKET
Asia-Pacific is the largest market for dietary supplements and nutrition products globally. Although Japan is a large player in the nutrition product market, the two robustly-growing regional segments in the Asia Pacific nutrition products market are India and China. The Asian market is primarily driven by a greater awareness of healthcare and a cultural preference for nutritional products over pharmaceuticals.
The increase seen in disposable income in Asia allows consumers to spend more on nutritional supplements and healthy foods. According to the National Bureau of Statistics of China, the annual per capita disposable income of urban households in China increased form US$2,271 in 2008 to US$3,408 in 2012. India is also seeing a rise in disposable income as the overall annual disposable income increased for US$1,366 billion in 2010 to US$1,587 billion in 2013. Regardless of the increase in disposable income, it appears that Asian countries are willing to spend a greater percentage of their relative income on dietary supplements. For example, the typical Vietnamese consumer spends over four times as much of his relative income on vitamins and dietary supplements than Australians.
In 2012, it was believed that if nutrition product businesses were not exporting goods to Southeast Asia, they were doing it wrong. However, some believe that the trends might be shifting. Senior Research Analyst for Euromonitor International, Daniel Grimsey responded to concerns that the vitamin and dietary supplement “party” in the Asia Pacific region may be slowing down. Statistics from Euromonitor International demonstrate that the growth of the supplement market has decreased from roughly 12% in 2011 to about 8% in 2013 in the Asia Pacific region (sans Japan). Some supplements (evening primrose oil, Co Enzyme Q10, and probiotic supplements) appear to be dragging down growth, while others (protein, pediatric, and fish oils) are lifting growth up. Although there is some concern about the Asian market, Grimsey states, “There are many reasons to feel optimistic about the future [of nutrition products] in Asia.”
The percent value growth in the Asian nutrition products market appears to be stable. Although the growth peaked from 2009 to 2011 before declining in 2012, average growth rates are projected to stabilize in the future years, at similar levels to the pre-2009 boom. In fact, the Chinese and Indian middle classes appear almost as enthusiastic as Americans when if comes to daily use of nutrition products. About 75% of Americans and 65% of Chinese and Indians take vitamins/dietary supplements regularly. Approximately 45% of Japanese report taking regular vitamins/dietary supplements, matching reports from the UK and Brazil. There are many factors contributing to the popularity of nutritional products including: the aging population, pollution problems, the beauty boom, and the baby boom.
The population of individuals 65+ in Asia continues to grow from 200 million in 2000 to 300 million in 2015. The rates are projected to grow above 450 million in 2020. The aging population has provided a 14% CAGR in fish oils, 17% CAGR for calcium, and 29% CAGR in glucosamine. China, Vietnam, Philippines, Thailand, and India are all showing substantial growth in the nutritional products targeted to the aging population. Products, such as calcium chews and multifunctional products for the aging population have recently been launched and are growing in popularity. Because the pollution levels hit 20 times the safe limit in China, and the surface ozone pollution is killing crops in India, antioxidants are on the upswing. Vitamin E and C both have a 17% CAGR. Some of the other fastest-growing supplements in Asia include: sports nutrition, collagen, vitamin pops and chews for youth, and those aimed to increase brain function.
Singapore has recently been receiving attention in the nutrition products market. Singapore has become an emerging country that is playing a key role as a growing place of business, as well as a bridge to the other areas in the region. The Republic of Singapore is modernizing and growing rapidly; in 2012, the EIU’s inaugural Global City Competitive Index ranked Singapore as the 3rd most competitive city in the world, behind New York and London. Singapore has a prime location for importing and exporting to the Southeast Pacific region of Asia, even extending to India, making it a crossroad in global commerce. Singapore has been turning its attention to health and wellness in recent years—with a nutrient supplement market, reaching US$260 million in 2011. Although this number is small compared to other countries, there’s large potential for growth, making Singapore an important area when in Asia in terms of the nutrition products market.
The successful marketing of nutrition products differs region-by-region, predominately due to societal trends, standard of living, and wages affecting spending in particular areas. The Asian nutrition product market has an estimated worth of US$11 billion in 2011 and is expected to grow to US$28.5 billion by the end of 2016. It contains major players in the nutrition product industry and will likely continue this pattern. Targeting the Asian nutrition product market will likely continue to benefit businesses and manufacturers internationally.
