Australia’s Complementary Medicines Industry Audit & Trends 2020
ABOUT COMPLEMENTARY MEDICINES Complementary Complementary Medicines Medicines Australia Regulated in Australia as medicines under the Therapeutic Goods (CMA) Act 1989 , complementary medicines include vitamins, mineral and nutritional supplements, homeopathic, aromatherapy CMA is the peak industry body for the complementary products and herbal medicines. The term ‘complementary medicines industry, representing stakeholders across the value medicines’ chain, including manufacturers, raw material suppliers, also comprises traditional medicines, which includes distributors, consultants, retailers, allied health professionals, traditional Chinese medicines, Ayurvedic, Australian researchers and educators. Indigenous and Western herbal medicines. 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.
INDUSTRY AUDIT SUMMARY 7 out of 10 People Assisting in Your Health Number One Most Australians (75%) have used at One third of Australians using Australia is the largest exporter of least one form of complementary Complementary Medicines do so to manage Nutrition and Health Food to China, medicine in the last year . the symptoms of a chronic disease. with over $1 billion of exports. $5.6 billion Industry Healthy Growth Vitamin & Dietary Supplements: $3.1 billion The Complementary Medicines industry Sports Nutrition: $1.31 billion continues to outpace growth in the Herbal / Traditional Products: $0.76 billion broader economy. Weight loss: $0.43 billion CMA INDUSTRY AUDIT & TRENDS 2020 | 3
CONSUMER DEMOGRAPHICS MEN VS WOMEN CM purchases in last 12 months Women are more AVG Male Female likely to have purchased 90% 83% complementary 78% 80% 73% medicine in the last 70% 66% 12 months (83%) 58% 60% than men (73%) 51% 50% Source: CMA/YouGov Galaxy (2020) 40% 27% 30% 25% 25% 25% 24% 23% 23% 22% 18% 20% 14% 12% 11% 10% 10% 9% 10% 0% Net: Bought Vitamin Mineral Probiotics Omega-3 fatty Nutritional Herbal or Other complementary acids/fish oil supplements homeopathic complementary medicines products medicines CMA INDUSTRY AUDIT & TRENDS 2020 | 4
HEALTHY GROWTH Category Growth The Vitamins and Dietary 7,000 Supplement Category has Forecast doubled in size over 10 years 6,000 Forecasted to grow 22% CAGR 5,000 over the next 10 years. $ AUD mil 4,000 3,000 2,000 1,000 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Weight Management and Wellbeing Sports Nutrition Herbal and Traditional Products Vitamins and Dietary Supplements Source: EuroMonitor (2020) CMA INDUSTRY AUDIT & TRENDS 2020 | 5
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% CMA INDUSTRY AUDIT & TRENDS 2020 | 6
AUSTRALIA’S MANUFACTURING SECTOR Australian manufacturers are the global 92 TGA licensed manufacturing sites 1 leaders in driving industry best practice. 2,605 direct employees in the sector 2 The sector is recognised around the world for the highest quality and safety $74,127 average wage in sector 2 standards. 10.8% Profit Margin 6% annual growth rate (2015-2020) 2 Sources: (TGA, 2020) 1 (IBISWorld, 2020) 2 CMA INDUSTRY AUDIT & TRENDS 2020 | 7
PRODUCTS BY HEALTH CATEGORY AND TRENDING INGREDIENTS Products by Health Top Fastest Growing Category Ingredients Total $ AUD (m) 3,825 Position 1 Category % Share 2019 3.1% 11.3% 2018-2019 % 1 General Health 17.3 Growth Evening Probiotics 2 Joint and Bone 14.7 Primrose Oil 3 Heart Health 13.4 4 Digestive 10.6 5 Women’s Health 8.1 4.7% 5.6% 6 Energy 6.0 Co-Enzyme Q10 Calcium 7 Immunity 5.5 8 All Other 24.4 Sources: EuroMonitor (2020) CMA INDUSTRY AUDIT & TRENDS 2020 | 8
AUSTRALIA: WORLD LEADING EXPORTS Middle China & East Hong Kong Australia has created a $1.1 billion export 2.6% success story as consumer demand 71.5% continues to grow for high quality Australian complementary medicines. Oceania Vietnam 6.4% Official exports of Complementary 8.5% Medicines has risen 15% in the last year . Asia continues to drive growth with the lion’s share of exports. South Korea Other 5.8% 5.2% 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) CMA INDUSTRY AUDIT & TRENDS 2020 | 9
AUSTRALIA: THE NUMBER ONE CHOICE FOR CHINA Australia is the largest Potential size of China Market US$68b source of Nutrition and Health Food Imports to Size of Import Market 2019: China with an import $3.4b USD to reach $11b by 2024 volume of AU $1.12 Billion China represents a significant (US $730 Million) growth opportunity for the Australian industry USA is second with US$680 potentially doubling in size million and Germany is third with in 3 years US$240 million Sources: EuroMonitor (2020) CMA (2020) 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) CMA INDUSTRY AUDIT & TRENDS 2020 | 10
FIVE YEAR HEALTHCHECK 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 innovatived with new delivery formats, flavours, packaging and new ingredients and formulations. Vitamins & Dietry Sales Growth of Australian Supplements Complementary Medicines 55% 2014 2019 $3.5 billion $5.6 billion 2014/2019 Compound Annual Growth Value of Australian Exports Herbal & Traditional Products 57% 2019 2014 $1.1 billion $175 million 2014/2019 Compound Annual Growth Sources: Euromonitor (2020) Austrade (2020) CMA INDUSTRY AUDIT & TRENDS 2020 | 11
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. CMA INDUSTRY AUDIT & TRENDS 2020 | 12
cmaustralia.org.au +61 (02) 6260 4022 PO Box 450, Mawson, ACT 2607 Australia
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