Asia Pacific is the world’s largest market for vitamins and dietary supplements generating US$44 billion in retail value sales in 2017. This presentation explores key trends and opportunities to tap into this rapidly growing industry.

1. OPPORTUNITIES FOR VITAMINS & DIETARY SUPPLEMENTS IN
ASIA PACIFIC
Bettina Kurnik, Consultant
October 2017
COMPLEMENTARY MEDICINES AUSTRALIA

2. © Euromonitor International
Euromonitor International
OPPORTUNITIES FOR VITAMINS & DIETARY SUPPLEMENTS IN ASIA PACIFIC

3. VDS MARKET OVERVIEW
KEY TRENDS IN ASIA PACIFIC
LOOKING TO THE FUTURE

4. © Euromonitor International
OPPORTUNITIES FOR VITAMINS & DIETARY SUPPLEMENTS IN ASIA PACIFIC
US$96bnRetail value of VDS in 2017
17%Expected growth by 2022
Healthy lifestyles and disease prevention
60,000
90,000
120,000
150,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
US$millionRSP,2017constant
Treatment versus Prevention
OTC * VDS+WMW+SN
US$113bnRetail value of VDS by 2022VDS, Weight Management and
Wellbeing, Sports Nutrition

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Growth in vitamins and dietary supplements over 2011-2016
OPPORTUNITIES FOR VITAMINS & DIETARY SUPPLEMENTS IN ASIA PACIFIC
CAGR 2011-2016
10+%
6-9%
4-5%
2-3%
0-1%
<0%
Not represented
Note: % retail value CAGR 2011-2016 (US$ million, fixed exchange rate).

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0%
1%
2%
3%
4%
5%
6%
0
10,000
20,000
30,000
40,000
50,000
Asia Pacific North
America
Western
Europe
Latin
America
Eastern
Europe
Australasia Middle East
and Africa
CAGR
US$million
VDS Value Sales by Region in 2017 and Forecast Growth 2017-2022
2017 - RSP 2017-2022 % CAGR
World snapshot: Asia Pacific and North America are the biggest regions
OPPORTUNITIES FOR VITAMINS & DIETARY SUPPLEMENTS IN ASIA PACIFIC
Value of sales in Asia
Pacific and North America
77%
Value sales of VDS in Asia
Pacific by 2022
US$54bn

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0% 20% 40% 60% 80% 100%
Asia Pacific: VDS Retail Value by Relevant Categories
2017
Tonics Combination DS Multivitamins
Calcium Supplements Paediatric VDS Single Vitamins
Ginseng Protein Supplements Glucosamine
Others
Asia Pacific: China, Japan and South Korea leading the region
OPPORTUNITIES FOR VITAMINS & DIETARY SUPPLEMENTS IN ASIA PACIFIC
US$44bnValue sales of VDS in 2017
0
4,000
8,000
12,000
16,000
20,000
24,000
China Japan South Korea Taiwan Thailand Indonesia India Hong Kong, China Others
US$million
Top Countries in VDS Retail Value 2017

8. VDS MARKET OVERVIEW
KEY TRENDS IN ASIA PACIFIC
LOOKING TO THE FUTURE

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9
AgeingActive Connected EngagedInformedStressed
OPPORTUNITIES FOR VITAMINS & DIETARY SUPPLEMENTS IN ASIA PACIFIC
The new consumer in consumer health

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OPPORTUNITIES FOR VITAMINS & DIETARY SUPPLEMENTS IN ASIA PACIFIC
Healthy cross-category competition from food and beverage
0
1
2
3
4
5
6
-
20
40
60
80
100
120
140
Herbal/Traditional
Products
Vitamins and Dietary
Supplements
Naturally Healthy (NH) Fortified/Functional (FF)
Asia-Pacific: Retail Value
2011 2016 2021 2016-2021 CAGR%
US$ billion

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11
OPPORTUNITIES FOR VITAMINS & DIETARY SUPPLEMENTS IN ASIA PACIFIC
Fortified/functional products dominate value sales in APAC
46%
35%
39%
35%
7%
20%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
APAC
Global
Global vs Asia Pacific Health and Wellness:
Retail Value 2016 (Packaged Food & Beverages)
Fortified/Functional Naturally Healthy Better For You Free From Organic

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Opportunities as global consumers increasingly connected
OPPORTUNITIES FOR VITAMINS & DIETARY SUPPLEMENTS IN ASIA PACIFIC
1,300m
2016
1,549m
2021
79m
2016
120m
2021
29m
2016
52m
2021
Smartphones
Activity Wearables
Smart Wearables
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2016 2018 2020 2022 2024 2026 2028 2030
Million
Internet Users by Region
Asia Pacific Middle East and Africa
Latin America Western Europe
North America Eastern Europe
Australasia
+108%

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0
5,000
10,000
15,000
20,000
25,000
2012 2013 2014 2015 2016 2017
US$millionRSP
Consumer Health E-commerce 2012- 2017
VDS Sports Nutrition OTC Weight Management and Wellbeing
More connected consumers are buying VDS online
OPPORTUNITIES FOR VITAMINS & DIETARY SUPPLEMENTS IN ASIA PACIFIC
VDS online opportunity – More startups
US$13.5bn
Online value sales of
VDS in 2012
Online value sales of
VDS in 2017
US$7bn

14. VDS MARKET OVERVIEW
KEY TRENDS IN ASIA PACIFIC
LOOKING TO THE FUTURE

15. © Euromonitor International
Asia Pacific: Projected sales and fastest growing categories
OPPORTUNITIES FOR VITAMINS & DIETARY SUPPLEMENTS IN ASIA PACIFIC
US$54bnValue sales of VDS by 2022
0 1 2 3 4 5 6 7 8
Probiotic Supplements
Glucosamine
Combination DS
Paediatric VDS
Tonics
% CAGR 2017-2022
Asia Pacific Fastest Growing VDS Categories
% Retail Value CAGR 2017-2022

16. © Euromonitor International
VDS innovation trends
OPPORTUNITIES FOR VITAMINS & DIETARY SUPPLEMENTS IN ASIA PACIFIC
Formulations Memberships Ready-To-Drink
(RTD)
Digital Packaging

17. THANK YOU FOR LISTENING
Bettina Kurnik
Consultant
bettina.kurnik@euromonitor.com
@emi_bettinak
www.linkedin.com/in/bettinakurnik/