James Dudley Management

James Dudley Management

Vitamins, Minerals and Supplements Shine through with Growth Opportunities in Europe

‘The growth attractiveness of the European dietary supplements market provides some real grounds for optimism in Europe’s gloomy consumer health environment’ says James Dudley in his major new study of Europe’s eight major markets for vitamins, minerals, herbal supplements and tonics.

Over 35% of European dietary supplement sales are derived from categories forecast to grow strongly over the next five years and 27% are from those showing moderate growth.

While about one fifth of the market is made up of categories likely to show low to static growth, only 14% of sales are derived from negative growth categories. Of these, not surprisingly, all are smaller categories, which have shown a declining trend for several years and include: -

  • Melissengeists
  • Garlic and Ginseng supplements
  • Fish Oils
  • Immunostimulants

James Dudley International Ltd has estimated the value of the top eight European markets as $1.65 billion in 2000. Over 70% of market turnover is derived from four categories: -

  • Minerals
  • Multivitamins
  • Tonics
  • B vitamins

The Dudley report ‘Vitamins Minerals, Herbal Supplements and Tonics in Self-Medication in Europe’, covers Europe’s eight major markets:- Belgium, France, Germany, Italy, Netherlands, Poland, Spain and the UK.

Graph 1: Vitamins, Minerals, Herbal Supplements and Tonics in Europe’s Top Eight Markets

Source © James Dudley International Ltd. Vitamins, Minerals, Herbal Supplements and Tonics in Self-Medication - EuropeWhile German market growth is expected to be virtually static over the next five years, marketers can be thankful that the worst times are now probably over for most segments of the market. Even so, melissengeists, for which sales have dropped over $ 20 million between 1996 and 2000, are expected to shed at least another $ 24 million by 2005.

Germany leads Europe’s per capita $ consumption of dietary supplements at $8.1 (based on manufacturers’ prices), followed by France at $ 6.4 and Belgium at $ 5.4

Despite the fact that the same proportion of British adults use supplements as in Germany, with half of over-50-year-olds and one third of younger adults consuming them, the UK is at the bottom of the scale with just $ 1.6 per capita. In many ways this reflects competitive pricing and the influence of private label on the market value

Table 1

Vitamins, Minerals, Herbal Supplements and Tonics

$ Per Head Consumption based on MSP Prices

European Market $ Per Head Consumption
Germany 8.1
France 6.4
Belgium 5.4
Poland 3.8
Italy 3.3
Spain 2.2
Netherlands 2.1
UK 1.6
Average Europe 4.6

Source: ©James Dudley International Ltd. Vitamins, Minerals, Herbal Supplements and Tonics in Self-Medication - Europe

Poland is now the fourth largest supplements market in Europe behind Germany, France and Italy, having doubled in sales value since 1996. The Polish market has probably peaked for the time being and is unlikely to grow by more than the European average to 2005.

Italy and Spain are likely to emerge as Europe’s fastest expanding supplements markets with both showing strong growth trends.

The UK market has entered a period of troubled times with large declines in its herbal and fish oil categories. While the future sees a mild turnaround in the market generally, the threat of resale price maintenance abolition and a rapidly growing private label sector may hamper growth.

The proposed European Union directive for dietary supplements so far covers only vitamins and minerals and excludes herbal products and fish oils.

While one disturbing aspect of the directive covering a positive list for ingredients has largely been resolved, the other area of uncertainty is whether changing the classification of products presently registered as medicines will lead to the market moving out of pharmacies and into the mass market.

The European Commission is already challenging a number of member states, including Germany, with regard to the classification of dietary supplements as medicines in their home state but marketing them as supplements in others. This is seen as an unjustified barrier to trade.

Furthermore, companies could be challenged for selling the same brands in their home markets as pharmacy only availability and in others with both pharmacy and non-pharmacy availability.

Channel management can, therefore, be expected to rise up the agenda over the next year or two, says the report

.Graph 2: Pharmacies’ $% Share of Dietary Supplements Market in the UK, Netherlands and Germany

Source: ©James Dudley International Ltd. Vitamins, Minerals, Herbal Supplements and Tonics in Self-Medication - Europe

Another threat on the horizon is de-reimbursement of minerals, especially calcium and magnesium, in a number of European markets. Doctors’ prescriptions accounted for between 40% and 50% of value sales for calcium and magnesium in 1999.

‘The market outlook is bright for the well-branded and innovative sectors of the market, where life-cycle management is active. While the more mature generic areas will stagnate under the pressure of low priced ‘me too’ and private label brands, the herbal supplements market is due for renewal with some innovative stimulus from new consumer concepts.’ says the report.

The report covers Belgium, France, Germany, Italy, Netherlands, Poland, Spain and the UK.

Details of the Report:

Title: Vitamins, Minerals, Herbal Supplements and Tonics in Self-Medication in Europe

Published: autumn 2000
: Over 260 pages with over 200 graphs, tables and figures
Price: £975 US$ 1,660
For details and table of contents visit our web-site or call, fax or e-mail:
Tel: +44 (0) 1562 747705
Fax: +44 (0) 1562 750275
e-mail: information@james-dudley.co.uk


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