australia’s · 2020-06-04 · australia’s manufacturing sector australian manufacturers are the...

Australia’s

Complementary

Medicines

Industry Audit

& Trends 2020

ABOUT COMPLEMENTARY

MEDICINES

Complementary

Medicines Australia

(CMA)

CMA is the peak industry body for the complementary

medicines industry, representing stakeholders across the value

chain, including manufacturers, raw material suppliers,

distributors, consultants, retailers, allied health professionals,

researchers and educators.

CMA promotes appropriate industry regulation and advancement

to ensure consumers have access to complementary medicines

of the highest quality.

We have been conducting annual audits of the industry for

10 years and are pleased to present our most

comprehensive audit to date.

Complementary Medicines

Regulated in Australia as medicines under the Therapeutic

Goods Act 1989, complementary medicines include vitamins,

mineral and nutritional supplements, homeopathic,

aromatherapy products and herbal medicines. The term

‘complementary medicines’

also comprises traditional medicines, which includes

traditional Chinese medicines, Ayurvedic, Australian

Indigenous and Western herbal medicines.

CMA INDUSTRY AUDIT & TRENDS 2020 |

3

INDUSTRY AUDIT

SUMMARY

Number One

Australia is the largest exporter of

Nutrition and Health Food to China,

with over $1 billion of exports.

Healthy Growth

The Complementary Medicines

industry continues to outpace growth

in the broader economy.

Assisting in Your Health

One third of Australians using

Complementary Medicines do so to

manage the symptoms of a chronic

disease.

$5.6 billion Industry

Vitamin & Dietary Supplements: $3.1billion

Sports Nutrition: $1.31 billion

Herbal / Traditional Products: $0.76billion

Weight loss: $0.43 billion

7 out of 10 People

Most Australians (75%) have used at

least one form of complementary

medicine in the last year.


4

CONSUMER

DEMOGRAPHICS

MEN VS WOMEN

Women are more

likely to have

purchased

complementary

medicine in the last

12 months (83%)

than men (73%)

Source: CMA/YouGov Galaxy (2020)

78%

58%

22%24% 25%

12%10%

73%

51%

18%

25%23%

10% 9%

83%

66%

25%23%

27%

14%11%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Net: Boughtcomplementary

medicines

Vitamin Mineral Probiotics Omega-3 fattyacids/fish oil

Nutritionalsupplements

Herbal orhomeopathic

products

Othercomplementary

medicines

CM purchases in last 12 months

AVG Male Female


5

HEALTHY

GROWTH

The Vitamins and Dietary

Supplement Category has

doubled in size over 10

years

Forecasted to grow 22%

CAGR over the next 10 years.

1,000

2,000

3,000

4,000

5,000

6,000

7,000

02008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

$ A

UD

mil

Category

Growth

Forecast

Weight Management and Wellbeing Sports Nutrition

Herbal and Traditional Products Vitamins and Dietary

Supplements

Source: EuroMonitor(2020)


6

CONSUMER PURCHASING

DECISIONS

The retail distribution of Vitamins & Dietary Supplements has long been stable with consumers preferring to purchase products from

outlets which also provide healthcare advice, with pharmacy as the largest sales channel. Growth in internet retailing is linked to strong

performance of Parapharmacies, specifically the online expansion of discount pharmacies.

Supermarkets & Grocery 15%

Specialist Retailers 17.1%

Healthfood Stores 3.5%

Pharmacy 47.4%

Online 11.8%

Direct Selling 5.2%

AUSTRALIA’S MANUFACTURING

SECTOR

Australian manufacturers are the global

leaders in driving industry best practice.

The sector is recognised around the world

for the highest quality and safety standards.

92 TGA licensed manufacturing sites1

2,605 direct employees in the sector2

$74,127 average wage in sector2

10.8% Profit Margin

6% annual growth rate (2015-2020)2

Sources:(TGA, 2020)1

(IBISWorld, 2020)2


7


8

PRODUCTS BY HEALTH

CATEGORY AND TRENDING

INGREDIENTSProducts by Health

Category

Top Fastest Growing

Ingredients

2018-2019 %

Growth

11.3%

Probiotics

5.6%

Calcium

4.7%

Co-EnzymeQ10

EveningPrimrose Oil

3.1%

Total $ AUD (m) 3,825

Position1 Category % Share 2019

1 General Health 17.3

2 Joint and Bone 14.7

3 Heart Health 13.4

4 Digestive 10.6

5 Women’s Health 8.1

6 Energy 6.0

7 Immunity 5.5

8 All Other 24.4

Sources: EuroMonitor(2020)


9

AUSTRALIA: WORLD LEADING

EXPORTS

Australia has created a $1.1 billion export

success story as consumer demand

continues to grow for high quality Australian

complementary medicines.

Official exports of Complementary

Medicines has risen 15% in the last

year.

Asia continues to drive growth with the lion’s

share of exports.

Asia is the fastest-growing region of the

world, with a growing middle class and

ageing population; this trend is expected to

continue to grow our export market.

Source:Austrade (2020)

Oceania6.4%

China &Hong Kong

71.5%

MiddleEast2.6%

South

Korea5.8%

Vietnam

8.5%

Other5.2%


10

AUSTRALIA: THE NUMBER ONE CHOICE FOR

CHINA

Australia is the largest

source of Nutrition and

Health Food Imports to

China with an import

volume of

AU $1.12 Billion (US

$730 Million)

USA is second with US$680

million and Germany is third with

US$240 million

China represents a

significant growth

opportunity for the Australian

industry potentially doubling

in size in 3 years

Size of Import Market 2019:

$3.4b USD to reach $11b by 2024

Potential size of China Market

US$68b

Australia year-on-year growth of

imports into China of Nutrition and

Health Food Imports 9%

Source: China Chamber of Commerce for Import

and Export of Medicines and Health food Products (CCCMHPIE) (2020)

Sources: EuroMonitor (2020) CMA(2020)


11

FIVE YEAR

HEALTHCHECK

Sales Growth ofAustralian

Complementary Medicines

Value of Australian Exports

2014

$3.5 billion

2019

$5.6 billion

$175 million

2014 2019

$1.1billion

The Australian Complementary medicines sector has seen a considerable acceleration in growth over the last five years; driven

by consumer demand domestically and internationally.

Australian complementary medicines are recognised around the world for their quality, safety and efficacy.

Growth has increased across many categories due to rising consumer spending and strong demand from consumers with

increasingly busy lifestyles, longer working hours and more stressful social lives, and a focus on preventative healthcare.

Industry has innovative with new delivery formats, flavours, packaging and new ingredients and formulations.

Sources: Euromonitor(2020)

Austrade (2020)

Vitamins & Dietry Supplements

55%2014/2019 Compound Annual Growth

Herbal & Traditional Products

57%2014/2019 Compound Annual Growth


12

AUDIT

REFERENCES

Austrade, 2020. Australian Complementary Medicines

Export Statistics 2016-2019, Canberra: s.n.

Australian Institute of Health and Welfare, 2019. Australian Burden

of Disease Study: impact and causes of illness and death in

Australia 2015. Australian Burden of Disease series, Issue 19.

China Chamber of Commerce for Import and Export of Medicines

and Health Food Products, 2020. China Import Data- Health

Foods, Beijing: s.n.

Euromonitor International Australia, 2019. Complementary

Medicines Market Data 2018-2019, Sydney: Euromonitor

International Australia.

Foodsource, 2019. Foodsource 2019-2020, Gold

Coast: Enthous Media.

IbisWorld, 2019. Vitamin and Supplement Manufacturing in

Australia: Market Research Report., Sydney: s.n.

Therapeutic Goods Administration, 2020. TGA Complementary

Medicines manufacturing licence registry, Canberra: Australian

Government Department of Health.

YouGov Galaxy, 2020. Complementary Medicines

Consumer Sentiment, Canberra: Complementary

Medicines Australia.

cmaustralia.org.au

+61 (02) 6260 4022

PO Box 450,

Mawson, ACT 2607

Australia

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