|
|
 |
|
Viewing report
|
|
|
|
Vitamins and Supplements Market Assessments 2005
Key Note Publications Ltd, April 2005
After a decline in market value in 2001 and a static situation in 2002, the total market for vitamins, minerals and supplements (VMS) again showed the strong growth in 2003 and 2004 that it previously showed in the first half of the 1990s. The respective 6.2% and 11.5% growths of 2003 and 2004 reflected renewed confidence, after the doubts caused in the late 1990s and early 2000s by articles questioning the value of taking VMS products. This report predicts that there will now be a gradual 'catching up' process in the market in terms of value.
The previously perceived stagnation in the market has been one reason for a number of VMS products' manufacturers changing hands. Roche has sold its vitamins and fine chemicals businesses to DSM, and the Peter Black Healthcare business has been sold three ways — with the branded VMS products being acquired by Chefaro. The Efamol brand and Wassen International have been acquired by UK management teams.
A further reason for these activities has been the likely changes resulting from the impending EU Food Supplements Directive (FSD), which will affect the VMS market in terms of products that are allowed to be sold, formulations and maximum daily dosages. Although the Directive is currently being challenged by the UK, implementation is set for August 2005. The sale of Roche's vitamins business has been, importantly, laid at the door of declining profitability in the market, owing to growing sales of low-priced Chinese products.
An additional factor affecting the market for manufacturers of VMS brands has been the substantial growth shown in the share of sales held by retailers' own-label products, with Holland & Barrett, Boots and Tesco holding particularly large shares relative to those of other players in the market. This has also resulted in the significant growth in recent years of sales through grocery multiples and health-food stores, at the expense of established chemist and drugstore outlets. The 2001 abolition of resale price maintenance (RPM) on over-the-counter (OTC) medicines was a major precursor to this development.
Much of the growth in the market over the review period (2000 to 2004) is accounted for by multivitamins. Since the launch in 1996 of the Centrum multivitamin/multimineral product by Wyeth, followed by several competing brands, this sector is seen as the most 'modern' one in the VMS market, with sizeable consumer penetration within the whole 20 to 44 age group. The largest penetration for VMS products is shown regarding cod liver oils, and the fish oils sector (largely consisting of cod liver oil) staged a strong sales recovery in 2004. Here, as with many VMS products, penetration grows as age rises (being more significant among those aged 45 and over) and is much higher among women than men for cod liver oil capsules.
Sales of glucosamine products and plant oils also grew strongly in 2004, although the markets for single vitamins, mineral products and garlic remained static or declined. Seven Seas remains the largest manufacturer of VMS products in the branded sector in terms of value, although it has been overtaken by the Holland & Barrett retailer brand in terms of total market share (i.e. including both branded and own-label products). It is also strongly contested by Boots' own brand.
|
|
|
|
