future demographics of apac consumers: purchasing vitamins and dietary supplements
TRANSCRIPT
THE VERY BEST OF HEALTH: FUTURE DEMOGRAPHICS OF APAC CONSUMERS CMA ANNUAL CONFERENCE, 2015
EMILY COX, RESEARCH ANALYST
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THE VERY BEST OF HEALTH: FUTURE DEMOGRAPHICS OF APAC CONSUMERS
CONSUMER HEALTH GLOBAL OVERVIEW
SNAPSHOT OF AUSTRALIA
ASIA PACIFIC PERFORMANCE
DEMOGRAPHIC DEVELOPMENTS
FUTURE PROSPECTS
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Consumer Health
US$210.8 billion
OTC Healthcare
US$98.2 billion
VDS
US$88.3 billion
Weight Management
US$13.7 billion
Sports Nutrition
US$10.6 billion
US$210.8 billion retail sales globally in 2015
Consumer Health 2015 Global Overview THE VERY BEST OF HEALTH: FUTURE DEMOGRAPHICS OF APAC CONSUMERS
3.7% value
CAGR in vitamins and dietary supplements (VDS) from 2010-2015
42% of consumer
health revenue comes from VDS sales
CONSUMER HEALTH GLOBAL OVERVIEW
SNAPSHOT OF AUSTRALIA
ASIA PACIFIC PERFORMANCE
DEMOGRAPHIC DEVELOPMENTS
FUTURE PROSPECTS
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37%
41%
15%
7%
Consumer Health: Category Breakdown 2015
VDS
OTC
Sports Nutrition
WeightManagement
A$2.1 billion VDS market
8% CAGR from 2010-
2015
Surging Asian
demand
Perceived high-quality,
efficacy
Dominated by local players
Snapshot of Consumer Health in Australia: 2015 THE VERY BEST OF HEALTH: FUTURE DEMOGRAPHICS OF APAC CONSUMERS
CONSUMER HEALTH GLOBAL OVERVIEW
SNAPSHOT OF AUSTRALIA
ASIA PACIFIC PERFORMANCE
DEMOGRAPHIC DEVELOPMENTS
FUTURE PROSPECTS
© Euromonitor International
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Asia-Pacific vs the Rest of the World THE VERY BEST OF HEALTH: FUTURE DEMOGRAPHICS OF APAC CONSUMERS
• 45% of global vitamins and dietary supplements revenue comes from Asia-Pacific
Asia Pacific Australasia
Eastern Europe
Latin America
Middle East
and Africa
North America
Western Europe -2.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0
20
10
-20
15
% C
AG
R
Vitamins and Dietary Supplements Market Value in 2015 (US$ billion)
Vitamins and Dietary Supplements 2010-2015 % CAGR (US$)
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APAC: Forces Driving Growth THE VERY BEST OF HEALTH: FUTURE DEMOGRAPHICS OF APAC CONSUMERS
Expansion of the retailing environment
Consumer health
solutions based on the environment
and hectic lifestyles
Convenient health
solutions
Health needs of the young
vs the old
The beauty of a healthy
body
CONSUMER HEALTH GLOBAL OVERVIEW
SNAPSHOT OF AUSTRALIA
ASIA PACIFIC PERFORMANCE
DEMOGRAPHIC DEVELOPMENTS
FUTURE PROSPECTS
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The Ageing Population Fuels Growth in VDS THE VERY BEST OF HEALTH: FUTURE DEMOGRAPHICS OF APAC CONSUMERS
Minerals 5.6%
Multivitamins 4.2%
Tonics and bottled nutritive drinks 2.1%
Single vitamins 3.2%
Combination dietary supplements 10.5%
Herbal/traditional dietary supplements 6.5%
Supplement nutrition drinks 9.6%
Fish oils/omega fatty acids 3.9%
Fastest ageing
rates (65+ years)
2010-2020:
China 69%
Singapore 64%
Malaysia 60.6%
Philippines 54.4%
Hong Kong 49.7%
Categories Influenced by the Needs of Ageing Consumers 2010-2015 % CAGR
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0
50000
100000
150000
200000
250000
Population aged 65+: Size
2010
2015
2020
Population Aged 65+ Rapidly Increasing THE VERY BEST OF HEALTH: FUTURE DEMOGRAPHICS OF APAC CONSUMERS
0%5%
10%15%20%25%30%
Population aged 65+: Percentage
2010
2015
2020
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Family
Future
Image
The Importance of Middle Class Consumers THE VERY BEST OF HEALTH: FUTURE DEMOGRAPHICS OF APAC CONSUMERS
Middle Class Potential
Median Income
+
Medium Income Gain
+
Middle Class Size
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The Middle Class in APAC THE VERY BEST OF HEALTH: FUTURE DEMOGRAPHICS OF APAC CONSUMERS
CONSUMER HEALTH GLOBAL OVERVIEW
SNAPSHOT OF AUSTRALIA
ASIA PACIFIC PERFORMANCE
DEMOGRAPHIC DEVELOPMENTS
FUTURE PROSPECTS
© Euromonitor International
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Asian Exports, Australian Examples: Swisse Wellness/Blackmores THE VERY BEST OF HEALTH: FUTURE DEMOGRAPHICS OF APAC CONSUMERS
Swisse Wellness
Leading VDS player in Australia
Expansion plans in the American, European, Latin American and Asian markets
Sold to Hong Kong-listed company Biostime for A$1.67 billion in 2015
Blackmores
Leading Australian-owned VDS company operating in Asia-Pacific
Expansion in Malaysia, Thailand, Hong Kong, Singapore, Taiwan, Korea, China, Macau and Cambodia
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Changing Regulations in Asia Pacific THE VERY BEST OF HEALTH: FUTURE DEMOGRAPHICS OF APAC CONSUMERS
China
• Food Safety Laws implemented in 2015
• Increased regulations for manufacturers
Japan
• New food labelling system launched in 2015
• Deregulation of food labelling
ASEAN
• Push to harmonise regulations surrounding VDS
• Labelling, manufacturing standards and ingredients
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China: World’s largest middle class
India: Robust income gains
Indonesia: Increasing purchasing power
The Philippines: Stable economic growth
Emerging Markets with the Strongest Middle Class Potential THE VERY BEST OF HEALTH: FUTURE DEMOGRAPHICS OF APAC CONSUMERS
China
Philippines Indonesia
India
0
20
40
60
80
100
120
8,000 10,000 12,000 14,000 16,000 18,000 20,000 22,000
Med
ian
inco
me
real
gro
wth
O
ver
the
20
15
-20
30
per
iod
, %
Median income in 2030, US$ per household
Top 4 Emerging Markets with the Best Middle Class Potential: 2015-2030
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Final outlook for APAC THE VERY BEST OF HEALTH: FUTURE DEMOGRAPHICS OF APAC CONSUMERS
Ageing population
Rising middle class
Urbanisation
Demand for branded, international offerings
Free trade agreement
Australia’s reputation overseas
Authenticity of Australian brands
Lack of extensive Traditional Chinese Medicine
0%
10
%2
0%
03
00
60
09
00
1,2
00
1,5
00
CA
GR
20
15
-20
20
US
$ m
illio
n
VDS Absolute Retail Value Growth and % CAGR 2015-2020 (US$)
Absolute Retail Value Growth (US$ mil) 2015-2020% CAGR 2015-2020
7,578 US$
Regulation
THANK YOU FOR LISTENING
Emily Cox
Research Analyst
Euromonitor International
www.euromonitor.com
+61 (0)2 9581 9213