The global economy is shifting, and staying competitive for any manufacturer means identifying trends. The international health products market is thriving, and while it may seem prudent to launch products in the largest markets, there are faster growing markets that may be more enticing.
For nutrition product suppliers, staying competitive in the global market requires vigilance on such emerging trends. In the past, the global nutrition and supplements market was a single and large unit. Global brands had standard products offered to all markets in the world. However this is not the case today, with new promising markets opening up new opportunities, including Eastern Europe, Asia and the Middle East.
The global health products industry has an estimated annual value of $240 billion which can be broken down into four categories: functional foods ($88b), supplements ($72b), natural personal care ($22b) and natural organic foods ($58b). Among these four groups, the fastest growing category is natural personal care, with a 13% annual growth rate. Also, within nutraceuticals we saw a double digit growth in fish oils and probiotic supplements globally.
The largest nutrition markets in the world are the United States ($23b), Western Europe ($14b) and Japan ($12b). Arguably, they are also the most difficult markets to enter due to the high competition and market saturation. The emerging growth markets for health products are elsewhere, however, with growth rates of 17% for Eastern Europe (Y/Y), Asia 12%, Latin America 12% and the Middle East 12%. Forecasts are showing that the global dietary supplement market will be driven by the rise of the spending class in Asia Pacific by 2020, and with promising growth in Latin America and the Middle East.
Within each emerging market there are unique factors that can explain growth, and which can also be leveraged by specific product categories if planned strategically. For example, the aging population in Hong Kong brings growing concern for health and wellness in the general population, and which likely explains why Hong Kong is one of the largest markets for eye and heart health products worldwide. Another example is Singapore, where advertisement and coverage in the media is advancing consumer awareness, as well as the country’s economic growth and an increase in family disposable income.
NHP Consulting offers international business development services for the nutraceutical, cosmetic and food industry. My experience in growing foreign markets within the nutrition industry is unique, and I take a highly consultative approach in exploring new markets, developing an international business plan, and helping in the execution. Call or email me today to learn more about how we can help your company expand its reach into the global economy.