Complementary Medicines Industry Audit & Trends 2020 ABOUT - - PowerPoint PPT Presentation

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

• f 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: $3.1 billion Sports Nutrition: $1.31 billion Herbal / Traditional Products: $0.76 billion 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 .

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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: Bought complementary medicines Vitamin Mineral Probiotics Omega-3 fatty acids/fish oil Nutritional supplements Herbal or homeopathic products Other complementary medicines

CM purchases in last 12 months

AVG Male Female

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HEALTHY GROWTH

The Vitamins and Dietary Supplement Category has doubled in size over 10 years Forecasted to grow 22% CAGR

• ver the next 10 years.

1,000 2,000 3,000 4,000 5,000 6,000 7,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

$ AUD mil

Category Growth Forecast

Weight Management and Wellbeing Sports Nutrition Herbal and Traditional Products Vitamins and Dietary Supplements

Source: EuroMonitor (2020)

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CONSUMER PURCHASING DECISIONS

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

• utlets 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 CMA INDUSTRY AUDIT & TRENDS 2020 | 7

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PRODUCTS BY HEALTH CATEGORY AND TRENDING INGREDIENTS

Products by Health Category Top Fastest Growing Ingredients

2018-2019 % Growth 11.3% Probiotics 5.6% Calcium 4.7% Co-Enzyme Q10 Evening Primrose 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)

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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)

Oceania 6.4% China & Hong Kong 71.5% Middle East 2.6% South Korea 5.8% Vietnam 8.5% Other 5.2%

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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)

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FIVE YEAR HEALTHCHECK

Sales Growth of Australian Complementary Medicines Value of Australian Exports 2014

$3.5 billion

2019

$5.6 billion $175 million

2014 2019

$1.1 billion 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.

Sources: Euromonitor (2020) Austrade (2020)

Vitamins & Dietry Supplements

55%

2014/2019 Compound Annual Growth

Herbal & Traditional Products

57%

2014/2019 Compound Annual Growth

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AUDIT REFERENCES

Austrade, 2020. Australian Complementary Medicines Export Statistics 2016-2019, Canberra: s.n. Australian Institute of Health and Welfare, 2019. Australian Burden

• f 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