Vitamins & Supplements Market Assessment 2006
Key Note Publications Ltd, November 2006, Pages: 180
The vitamins, minerals and supplements (VMS) market grew by only 0.9% in value in the 12 months ending August 2006. This followed stronger growth in calendar years 2003 and 2004. Prior to that, in 2000/2001 and 2001/2002, the market declined.
It is likely that the market has been held back by the periodic publication of research studies which have concluded that many of those people taking VMS products do so unnecessarily. However, it is agreed that certain groups of people do benefit from their consumption — notably older persons. These persons represent a growing share of the UK's total population, and thus products targeted at age-related ailments should show relatively strong growth now and in the future.
Multivitamins and fish oils continue to represent the largest segments of the market, followed by single vitamins and then, until recently, by plant oils and minerals. However, the recent growth of glucosamine products has elevated these to fourth position. Important smaller VMS product segments are garlic, ginkgo, St John's wort and ginseng.
The VMS market has been under some threat since 2002 from the EU's Food Supplements Directive (FSD), which charges the European Commission with setting maximum levels for all ingredients used in VMS formulations, and organising manufacturers to gain safety approvals for all VMS products put up for retail sale. It is also charged with approving labelling and any health warnings. This initiative has proved to be a substantial undertaking; although it was originally scheduled for completion in 2005, it remains partly unfinished.
Chemists and drugstores still account for the largest share of sales of VMS products, although — despite retaining the same share in 2005/2006 as in 2004/2005 — in general, they have been slowly losing share to grocery multiples for several years. From 2001, this situation was aided by the removal of resale price maintenance (RPM) on over-the-counter (OTC) medicines. Health-food shops still account for a large share of sales, with a small balance sold through direct channels such as mail order and the Internet.
Seven Seas is by far the largest manufacturer of branded VMS products, with a wide range covering most segments. Bayer, which has acquired Roche's retail VMS business, is in second place regarding brands, specialising in vitamin products. Many other smaller suppliers of brands specialise in particular segments of the market. However, a large and increasing market share is held by retailers' own-label items, notably those of Holland & Barrett and Boots.
The VMS market is forecast to grow only slowly over the next 5 years (to 2010/2011).
1. Introduction
BACKGROUND 3
DEFINITION 3
SOURCES AND BENEFITS OF VITAMINS, MINERALS AND SUPPLEMENTS 4
Table 1: Vitamins, Minerals and Supplements — Sources and
Health Benefits 4
2. Strategic Overview
MARKET DYNAMICS
AND SEGMENTATION 11
Issues Driving or Affecting
the Market 11
The EU Food Supplements
Directive 11
Demographic Trends: Age
Profiles and Life Expectancy 13
Table 2: The UK Population
by Age Group (% and million),
1971, 1981, 1991, 2001,
2004, 2011, 2021 and 2031 13
Table 3: Average Life
Expectancy in the UK by Sex
(years), 1900, 1971, 1976, 1981,
1986, 1991, 1996, 2001, 2003
and 2021 14
Figure 1: Average Life Expectancy
in the UK by Sex (years),
1900, 1971, 1976, 1981, 1986,
1991, 1996, 2001, 2003
and 2021 15
Differing Opinions on the
Need for Consumption of
Vitamins, Minerals and
Supplements 15
Normal Daily Intakes of
Vitamins and Minerals 17
Table 4: Normal Daily Intake
per Person of Vitamins and
Minerals (micrograms,
milligrams, grams and %
of RNI), 2004/2005 17
Table 5: Recommended Daily Allowances for Vitamins
and Minerals by Selected
Age Groups and Sex
(micrograms and milligrams) 19
The Total Market 20
Table 6: The Total Vitamins,
Minerals and Supplements
Market in Great Britain
by Value at Current Prices
(£m at rsp and %), 2000-2004
and 2004/2005-2005/2006 21
Figure 2: The Total Vitamins,
Minerals and Supplements
Market in Great Britain
by Value at Current Prices
(£m at rsp), 2000-2004 and
2004/2005-2005/2006 22
Market Sectors 22
Table 7: The Total Vitamins,
Minerals and Supplements
Market in Great Britain
by Sector by Value at Current
Prices (£m at rsp and %),
2004/2005 and 2005/2006 23
DISTRIBUTION 23
COMPETITIVE STRUCTURE 24
Key Trends 24
Major Manufacturers’
and Retailers’ Shares 24
Table 8: Major Manufacturers’
and Own-Label Shares of the Vitamins, Minerals and
Supplements Market in
Great Britain by Value
at Current Prices (%),
2004/2005 and 2005/2006 25
ADVERTISING 26
THE CONSUMER 26
MARKET FORECASTS 26
Table 9: The Forecast Vitamins, Minerals and Supplements
Market in Great Britain
by Value at Current Prices
(£m at rsp),
2006/2007-2010/2011 27
3. Multivitamins
BACKGROUND
AND MARKET SIZE 29
Table 10: The Multivitamins
Sector in Great Britain by Value
at Current Prices
(£m at rsp and %),
2004/2005 and 2005/2006 29
CONSUMER TRENDS 30
ADVERTISING 30
4. Single Vitamins
BACKGROUND AND
MARKET SIZE 33
Table 11: The Single Vitamins
Sector in Great Britain
by Value at Current Prices
(£m at rsp and %), 2004/2005
and 2005/2006 33
CONSUMER TRENDS 34
ADVERTISING 34
5. Fish Oils
BACKGROUND AND
MARKET SIZE 35
Table 12: The Fish Oils Sector
in Great Britain
by Value at Current Prices
(£m at rsp and %),
2004/2005 and 2005/2006 35
CONSUMER TRENDS 36
ADVERTISING 36
6. Evening Primrose
and Starflower Oils
BACKGROUND AND
MARKET SIZE 37
Table 13: The Evening Primrose
and Starflower Oils Sector
in Great Britain by Value
at Current Prices
(£m at rsp and %),
2004/2005 and 2005/2006 37
CONSUMER TRENDS 38
ADVERTISING 38
7. Minerals and
Other Supplements
BACKGROUND AND
MARKET SIZE 39
Minerals 39
Table 14: The Minerals Sector
in Great Britain by Value
at Current Prices
(£m at rsp and %),
2004/2005 and 2005/2006 39
Glucosamine 39
Table 15: The Glucosamine
Sector in Great Britain
by Value at Current Prices
(£m at rsp and %),
2004/2005 and 2005/2006 40
Garlic 40
Table 16: The Garlic Sector
in Great Britain by Value
at Current Prices
(£m at rsp and %),
2004/2005 and 2005/2006 41
Ginkgo 41
Table 17: The Ginkgo Sector
in Great Britain by Value
at Current Prices
(£m at rsp and %),
2004/2005 and 2005/2006 41
Ginseng 42
Table 18: The Ginseng Sector
in Great Britain by Value
at Current Prices
(£m at rsp and %),
2004/2005 and 2005/2006 42
St John’s Wort 42
Table 19: The St John’s Wort
Sector in Great Britain
by Value at Current Prices
(£m at rsp and %),
2004/2005 and 2005/2006 43
Other Supplements 43
Table 20: The ‘Other
Supplements’ Sector in
Great Britain by Value
at Current Prices
(£m at rsp and %),
2004/2005 and 2005/2006 44
CONSUMER TRENDS 44
Glucosamine 44
Garlic, Ginkgo and Ginseng 44
ADVERTISING 45
Minerals 45
Glucosamine 45
Garlic 45
Ginkgo 45
Ginseng 45
St John’s Wort 45
Other Supplements 46
8. Advertising
and Promotion
MAIN MEDIA ADVERTISING EXPENDITURE 47
Table 21: Main Media
Advertising Expenditure
on Vitamins, Minerals and Supplements by Brand (£000),
Years Ending June 2004-2006 47
9. Distribution
MARKET SHARES
BY OUTLET TYPE 51
Table 22: The Vitamins,
Minerals and Supplements
Market in Great Britain
by Retail Outlet Type
by Value (%), 2004/2005
and 2005/2006 52
Figure 3: The Vitamins, Minerals
and Supplements Market
in Great Britain by Retail
Outlet Type by Value
(%), 2005/2006 53
10. An International Perspective
WESTERN EUROPE
AND SCANDINAVIA 55
Belgium 55
Finland 55
Germany 55
Italy 55
The Netherlands 56
Republic of Ireland 56
Sweden 56
11. PEST Analysis
POLITICAL FACTORS 57
ECONOMIC FACTORS 57
SOCIAL AND
DEMOGRAPHIC FACTORS 57
TECHNOLOGICAL FACTORS 58
12. Consumer Dynamics
PRODUCT PENETRATION
AND LEVELS OF USAGE 59
Table 23: Use of Vitamins or Supplements by Sex, Age
and Social Grade by Frequency
(% of adults), 2005/2006 59
Table 24: Regular Use of
Vitamins or Supplements
by Type of Product by Sex,
Age and Social Grade
(% of adults), 2005/2006 61
PURCHASING AND
CONSUMPTION HABITS 62
Overview 62
Table 25: Agreement With
Statements Regarding Vitamins, Minerals and Supplements
(% of respondents),
August 2006 63
Level of Use of Vitamins
and Supplements 64
Taking Vitamins or
Supplements Regularly
(at Least Once a Week) 64
Table 26: “I Take Vitamins or Supplements Regularly —
at Least Once a Week”
(% of all respondents),
August 2006 64
Taking Vitamins or
Supplements Occasionally
(at Least Once a Month) 67
Table 27: “I Take Vitamins or Supplements Occasionally —
at Least Once a Month”
(% of all respondents),
August 2006 68
Types of Vitamins
and Supplements Taken 71
Multivitamins 71
Table 28: “I Regularly or
Occasionally Take
Multivitamin Products”
(% of respondents who take
vitamins or supplements),
August 2006 71
Single Vitamins 74
Table 29: “I Regularly or
Occasionally Take
Single Vitamins” (% of
respondents who take
vitamins or supplements),
August 2006 75
Cod Liver Oil or Other Fish Oils 78
Table 30: “I Regularly or
Occasionally Take Cod Liver
or Other Fish Oils” (% of
respondents who take
vitamins or supplements),
August 2006 78
Evening Primrose and
Starflower Oils 81
Table 31: “I Regularly or
Occasionally Take Evening
Primrose or Starflower Oils”
(% of respondents who take
vitamins or supplements),
August 2006 82
Garlic, Ginkgo and Ginseng 85
Table 32: “I Regularly or
Occasionally Take Garlic,
Ginkgo or Ginseng” (% of respondents who take
vitamins or supplements),
August 2006 85
Glucosamine 88
Table 33: “I Regularly or
Occasionally Take Glucosamine Products” (% of respondents
who take vitamins or
supplements), August 2006 88
Purchasing Habits
by Type of Outlet 91
Purchasing Vitamins
and Supplements Mainly
From Chemist Shops 91
Table 34: “I Buy Vitamins or Supplements Mainly
From Chemist Shops”
(% of respondents who take
vitamins or supplements),
August 2006 91
Purchasing Vitamins
and Supplements Mainly
From Health-Food Shops 94
Table 35: “I Buy Vitamins or Supplements Mainly From
Health-Food Shops” (% of respondents who take
vitamins or supplements),
August 2006 95
Purchasing Vitamins and
Supplements Mainly From
Grocery Multiples 98
Table 36: “I Buy Vitamins or Supplements Mainly From
Grocery Multiples” (% of
respondents who take
vitamins or supplements),
August 2006 98
Purchasing Vitamins and
Supplements Mainly Via
Mail Order or the Internet 101
Table 37: “I Buy Vitamins or Supplements Mainly Via
Mail Order or the Internet”
(% of respondents who
take vitamins or
supplements), August 2006 101
Concerns About Safety
and Dosage Levels 104
Concerns About the Safety
of Taking Vitamins
or Supplements 104
Table 38: “I Am Concerned
About Whether It Is Safe
to Take Some Vitamin or
Supplement Products”
(% of all respondents),
August 2006 105
Concerns About the
Maximum Dosage Levels
for Some Vitamins
and Supplements 108
Table 39: “I Am Concerned
About Maximum Dosage
Levels For Some Vitamins or Supplements” (% of all
respondents), August 2006 108
13. Company Profiles
MANUFACTURERS’
BRANDS 111
Bayer Consumer Care
— Bayer PLC 111
Corporate Strategy 111
Brands and Market Share 111
Advertising 112
Profitability 112
Table 40: Financial Results
for Bayer PLC (£000 and %),
Years Ending
31st December 2003-2005 112
Boehringer Ingelheim Ltd 112
Corporate Strategy 112
Brands and Market Share 113
Advertising 113
Profitability 113
Table 41: Financial Results
for Boehringer Ingelheim Ltd
(£000 and %), Years Ending
31st December 2003-2005 113
Chefaro UK Ltd 114
Corporate Strategy 114
Brands and Market Share 114
Advertising 114
Profitability 115
Table 42: Financial Results
for Chefaro UK Ltd
(£000 and %), Years Ending
31st December 2003-2005 115
Efamol Ltd 115
Corporate Strategy 115
Brands and Market Share 116
Advertising 116
Profitability 116
Ernest Jackson & Co Ltd 116
Corporate Strategy 116
Brands and Market Share 116
Advertising 116
Profitability 117
Health Perception (UK) Ltd 117
Corporate Strategy 117
Brands and Market Share 117
Advertising 117
Profitability 118
Table 43: Financial Results
for Health Perception (UK) Ltd
(£000 and %), Years Ending
31st December 2002
and 2003, and 65 Weeks
Ending 31st March 2005 118
Lichtwer Pharma AG 118
Corporate Strategy 118
Brands and Market Share 118
Advertising 119
Profitability 119
Seven Seas Ltd 119
Corporate Strategy 119
Brands and Market Share 120
Advertising 120
Profitability 121
Table 44: Financial Results
for Seven Seas Ltd
(£000 and %), Years Ending
31st December 2002-2004 121
Vitabiotics Ltd 121
Corporate Strategy 121
Brands and Market Share 121
Advertising 122
Profitability 122
Table 45: Financial Results
for Vitabiotics Ltd
(£000 and %), Years Ending
31st December 2003-2005 123
Wassen International Ltd 123
Corporate Strategy 123
Brands and Market Share 123
Advertising 124
Profitability 124
Table 46: Financial Results
for Wassen International Ltd
(£000 and %), Years Ending
30th June 2003-2005 125
Wyeth Consumer Healthcare 125
Corporate Strategy 125
Brands and Market Share 125
Advertising 126
Profitability 126
Table 47: Financial Results
for Whitehall Laboratories Ltd
(£000 and %), Years Ending
31st December 2002-2004 126
Other Manufacturers 127
BHM Health Group Ltd 127
Profitability 127
DCC Nutraceuticals Ltd 127
Profitability 127
Nature’s Aid Ltd 128
Profitability 128
Potter’s Herbal Medicines —
Potter’s (Herbal Supplies) Ltd 128
Profitability 128
Quest Vitamins Ltd 128
Profitability 128
RETAILERS’ OWN LABELS 129
Alliance Boots PLC 129
Corporate Strategy 129
Own-Label Products
and Market Share 129
Profitability 130
Table 48: Financial Results
for Boots Group PLC
(£000 and %), Years Ending
31st March 2004-2006 130
Holland & Barrett Europe 131
Corporate Strategy 131
Own-Label Products
and Market Share 131
Profitability 131
Table 49: Financial Results
for Holland & Barrett
Retail Ltd (£000 and %),
Years Ending
30th September 2003-2005 132
Superdrug Stores PLC 132
Corporate Strategy 132
Own-Label Products
and Market Share 132
Profitability 133
Table 50: Financial Results
for Superdrug Stores PLC
(£000 and %), Years Ending
27th December 2003 and
25th December 2004,
and 53 Weeks Ending
31st December 2005 133
Tesco Stores Ltd 133
Corporate Strategy 133
Own-Label Products
and Market Share 133
Profitability 134
Table 51: Financial Results
for Tesco Stores Ltd
(£000 and %), Year Ending
22nd February 2003, 53 Weeks
Ending 28th February 2004
and Year Ending
26th February 2005 134
Other Retailers’ Own Labels 134
MAIL ORDER AND
THE INTERNET 135
14. The Future
FUTURE TRENDS 137
FORECASTS 137
Table 52: The Forecast Vitamins, Minerals and Supplements
Market in Great Britain
by Sector by Value at Current
Prices (£m at rsp),
2006/2007-2010/2011 138
Figure 4: The Forecast Vitamins, Minerals and Supplements
Market in Great Britain
by Value at Current Prices
(£m at rsp),
2006/2007-2010/2011 139
15. Consumer Confidence
METHODOLOGY 141
KEY FINDINGS
THIS QUARTER 141
THE WILLINGNESS
TO BORROW 142
Confidence Rebounds 142
Table A: The Average Amount Consumers Are Willing to
Borrow in Order to Purchase Expensive Items at Current
and Constant November 2004
Prices (£ and £bn),
August 2005-2006 142
Fewer Adults Wish to Borrow 144
Table B: The Number of
Adults Willing to Borrow in
Order to Purchase Expensive
Items (000 and %),
August 2005-2006 144
SPENDING FROM SAVINGS 145
Strong Recovery in
Spending from Savings 145
Table C: The Average Amount Consumers Are Willing to
Spend from Savings in Order
to Purchase Expensive Items at Current and Constant
November 2004 Prices
(£ and £bn),
August 2005-2006 146
Savings Grow in
Relative Importance 146
Table D: The Average
Amounts Adults Are Confident Spending to Purchase
Expensive Items (£ and %),
August 2005-2006 147
16. Further Sources
Associations 149
Government Sources 150
General Sources 150
Other Sources 151
Bisnode Sources 153
Understanding TGI Data
Number, Profile, Penetration 157
Social Grade 158
Standard Region 158
Bayer PLC
Boehringer Ingelheim Ltd
Chefaro UK Ltd
Efamol Ltd
Ernest Jackson & Co Ltd
Lichtwer Pharma AG
Seven Seas Ltd
Vitabiotics Ltd
Wassen International Ltd
Wyeth Consumer Healthcare
BHM Health Group Ltd
DCC Nutraceuticals Ltd
Nature’s Aid Ltd
Potter’s (Herbal Supplies) Ltd
Quest Vitamins Ltd
Alliance Boots PLC
Boots Group PLC
Holland & Barrett Europe
Superdrug Stores PLC
Tesco Stores Ltd
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