NUTRITIONAL PRODUCT MARKET
Europeans are showing increased interest in leading healthy lifestyles, driving the purchases of nutrition products. In fact, Europe is the second-largest market for dietary supplement products in the world. Although Western Europe is the largest market for dietary supplements in Europe, Eastern Europe is considered to have higher future growth potential with growth projected to increase from EU€2 billion in 2013 to EU€3.2 billion in 2018.
In contrast, Western Europe is only projected to move from EU€5 billion in 2013 to EU€5.65 billion in 2018. The nutritional products market in Europe is primarily driven by the rise of the aging population, the growth of healthcare costs, and the increase in lifestyle-related diseases.
Russia, followed by Poland, is the leading nutritional product market in Eastern Europe. Despite Russia’s political unrest, their nutrition supplement market is booming. The market had jumped from EU€550 million in 2008 to EU€1.6 billion in 2013, and is expected to nearly double in value to EU€2.0 billion in 2018. This gives Russia about two thirds of the entire eastern European market, making it the second biggest market in all of Europe. Insufficient amounts of vitamins B, C, D, iron, calcium, selenium, and iodine in most regions of Russia create a stable demand for vitamins and dietary supplements. A staggering two-thirds of the overall population does not get enough vitamins and minerals in their food, creating a necessity for supplementation. Russian’s increased awareness of the importance of taking vitamins and dietary supplements on a regular basis will continue to support the nutritional product market in the country.
The 2013 evaluation by Euromonitor International ranked Italy as the biggest nutritional products market in Europe at EU€1.2 billion, followed by Russia (EU€1.16 billion); Germany (EU€935 million); France (EU€611 million); United Kingdom (EU€538 million); Poland (EU€393 million); Norway (EU€273 million); Sweden (EU€220 million); and Finland (EU€209 million). Eastern European countries—such as Poland, Turkey, the Ukraine, Romania, and Belarus—are reporting robust growth, which can be attributed to the recent economic growth seen in the region. Whereas some mature markets, such as Germany and Denmark, are either flat-lining or showing modest declines.
Western European countries eat a more balanced diet; therefore, these nations are starting to rely less on nutritional products for their nutrients. In the early 2010s, the market for nutritional products was not highly-regulated and heterogeneous between European countries. In order to restore the trust of consumers, the European Union took steps to harmonize the regulation of nutritional supplements, health foods, and herbal supplements by forming the European Food Safety Authority (EFSA). More than a year after the new regulations were set in place by the EFSA, marketers feared the worst for sales of nutritional products. Although there was some confusion and delays associated with the new settlements, the general impact for consumers was rather favorable, regaining trust in dietary supplements. Mainstream manufacturers have had the easiest time conforming to the new regulations, but small and medium players find the new claims quite restrictive.
Europe will likely remain a top regional player in the nutritional product market. Future growth in the market will likely be attributed to the rising age of the population and the resultant cases of bone-health issues, high healthcare costs, increase in chronic diseases, and increased focus on health.
