CBI - Ministry of Foreign Affairs The Natural Ingredients for Health Products market in Europe.

CBI - Ministry of Foreign Affairs

The Natural Ingredients for Health Products market in Europe

2

European market for natural ingredients for health products


• Consumption• Segments• Imports and exports• Where is the market?

What’s new on the European market

3

Market segmentation for Health products

Different ways of looking at the European market:

Food supplements vs. herbal medicine

Interesting EU markets

Indication areas

System


4

Food supplements / Herbal medicine

Global pharmaceuctical market

Self-medication market

Herbal medicine market

Leading EU markets for health products

Food supplements growth


Global Pharmaceutical Market


Europe24%

Asia/ Australia29%Latin America

7%

Africa & Middle East4%

North America37%

2013

Europe19%

Asia/ Australia36%

Latin America7%

Africa & Middle East4%

North America38%

2018

Source: IMS, 2014

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Self-medication market


Cough and Cold27%

Analgenics24%Digestives

19%

Skin treatment15%

Vitamins and Minerals

14%

Source: AESGP 2014

7

Herbal medicine market

Self medication accounting for around 11% of EU pharmaceutical market; €170 billion in 2013.

Herbal medicine accounts for up to 6% of pharmaceutical market in some European countries

German

y

France Ita

ly

Poland UK

Spain

00.5

11.5

22.5

21.7

0.890.60000000000000

10.25 0.217


8

Leading EU markets for health products


2

4

3

1

Source: Euromonitor, 2013

Food supplements

Herbal medicine1

2

3

9

Herbal Medicine and Food Supplements


Product launchesHerbal medicineGermanyAustria

1

Main herbal medicine markets;Traditional ingredients

Food supplementsProduct innovation

Product launchesFood supplementsItalyFrance

1

10

Food supplement growth

Highest growth in Eastern Europe!

Eastern Europe: +60%

Western Europe: +13%


Source: Euromonitor, 2013

2013 20180

1

2

3

4

5

6

7

8

9

10

Eastern EuropeWestern Europe

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Top 3 categories in leading food supplement markets


Country Nr. 1 Nr. 2 Nr. 3

Italy Digestive health

Immune system

General Health

Germany General Health

Bone health Memory health

France Energy Beauty Immune sytem

UK Joint health General health Heart health

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Top 5 herbals in leading food supplement markets


Germany UK Italy

- Ginkgo biloba- Artichoke- Olive- Grape- Soy- Ginseng - Caraway- Devil’s claw- Guarana- Fennel

- Evening primrose- Ginseng- St. John’s wort- Aloe- Devil’s claw- Valerian- Echinacea - Milk thistle- Garlic - Ginkgo biloba

- Aloe- Fennel- Valerian- Ginseng- Billberry- Passion flower- Lemon balm- Peppermint - Dandelion- Artichoke

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What to use it for? – indication areas

Obesity

Stress & Anxiety

Joint health

Immune system

Energy

Digestive health

Vascular system

Cognitive disorders


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How to measure indication areas?

Indicators!

Incidence of (related) health problems

Differences in EU countries

Differences in consumer groups

Development in recent years

Use of remedies

Prescription or OTC?

Natural or synthetic?

Herbal medicine or food supplement?


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Obesity

Indicators:

17% of EU population is obese

High: UK/Hungary (>25%)

Low: Romania (8%)

More than half EU population is overweight

Rate of obesity doubled past 20 years

European market for anti-obesity treatments is growing


Expected male obesity 2030

58%

40%

38%

35%

16

Stress & Anxiety

Indicators:

Mental disorders affect more than 33% EU population

Depression: 10% of population (at one point)

Sales of antidepressants

High: Iceland, Denmark, Portugal, Sweden, Finland

Increased over 80% (2000-2010)

Work-related stress: 1 out of 4 sick days stress related, 40-54 years old

Sleep difficulties: 31% of population Western Europe


17

Joint health

Indicators:

Rheumatism, arthritis

2007: 22% European population long-term muscle, bone and joint problems

Osteoarthritis highest for 70-79 year olds

But: remedies more often consumed with functional foods and beverages


Low incidince Rheumatoid arthritis

Higher incidence arthritis

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Immune support

Indicators:

Immune health problems:

Increase allergy incidences

5-15% European population affected by influenza

Increase immunodeficiency

European market for ‘Immune and Antihypertensive health products’ to grow by 45% (2009-2016)

increasing consumer interest

innovation by manufacturers


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Energy

Indicators:

Chronic fatigue syndrome

2012: 12% growth energy-boosting products (88% energy drinks)

Consumption energy drinks:

Adults: 30%

15-18 years old: 68%


Markets for energy drinks

575 mill. litres

325 mill. litres

318 mill. litres

Consumption energy drinks: adults

50%

45%

45%

46%

21%

22%

15%

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Digestive health

Indicators:

Symptoms (difficult to estimate prevalence)

40% of people suffered at least one digestive symptom (UK)

Irritable Bowl Syndrome: 5-25% in Europe

commonly treated with alternative therapies

Gastrointestinal diseases: among most common reasons morbidity and hospitalisation

GERD and functional constipation: affects 1 out of 6 people worldwide


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Herbal medicine systems

Most common:

Western Herbal Medicine

Ayurvedic

Traditional Chinese Medicine

Aromatherapy

Veterinary medicine


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Trade of MAPs vs. extracts

EU imports of MAPs

EU imports of extracts

Production of health ingredients

EU extraction industry

Suppliers of MAPs and extracts


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EU imports of MAPs, in € million


12

3

3.8 South Africa

EU28 € 659 million

Top 3

Germany € 201 million

France € 78 million

Italy € 62 million

Source: Eurostat, 2015

24

EU imports of extracts, in € million


1

2

3

1.7 South Africa

EU28 € 546 million

Top 3

Germany € 124 million

France € 98 million

Italy € 57 million


25

EU imports of fruit/produce powders, in € million


1

2

3

0.07 South Africa

EU28 € 96 million

Top 3

Spain € 38 million

Germany € 9.3 million

Italy € 7.3 million

Source: EU Export Helpdesk, 2015

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Suppliers of MAPs, 2014, in value


China8%

India6%

Egypt4%Turkey

3%Morocco

3%Kenya

2%Chile2%

Albania2%

Brazil1%Other DC

suppliers13%

Non-DC suppliers57%


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Production of health ingredients

EU/EFTA is a large MAPs producer

1,200 – 1,300 native species used

130 cultivated

Rest wild

(sub-)Tropical species are imported


Western Europe Eastern Europe

organic well-documented MAPs close relationships buyers

• growing production, • sustainable wild-collection

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Largest EU MAPs producers

Source: EUROPAM (European Herb Growers Association)


European production 2005 (ha)

13,000

36,000

18,000

10,000

25,0007,000

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Suppliers of extracts


30

EU extraction industry

Concentrated, countries with strong herbal medicine tradition

Germany: processes and trades largest share of MAPs in EU

Poland: extraction and hub for products Eastern Europe


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Where is the market in Europe? Who buys you NIs?


Salus Haus

Omegapharma

Neal’s Yard remedies

Leading health products manufacturers in Europe?

• Salus: Own cultivation center• Organic farming• Cultivation in Chile: 600 ha• Projects around the world• Where are purchasing decisions

taken?• Direct contact with suppliers?

A. Vogel

Primavera

Pukka Herbs

Arkopharma

Holland & Barrett

Dr. Wilmar Schwabe

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SMEs for health products in Europe?

In most countries: industry consolidation

Italy: 700 small laboratories

UK: previously many SMEs

France: international players

Germany: large players, also in other markets


Do these buy direct?

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Leading health product manufacturers and traders in Europe?


Naturex

Indena

Worlee

Martin Bauer

Or more specialised players?• Regional focus?• Natural?• Certification?• Ingredient

categories?

For all:• Where?• Who?• What?• How?

Kräuter-MixPfannenschmidt

EPO

Nexira

Fytosan

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European organic markets


Northern Europe

Developed & stable market Sustainability: requirement

from industry & consumers Large organic market share: High consumer purchasing

power

Southern Europe Developed organic production Developing market High growth rates

Eastern Europe

Promising market High growth rates Low consumer

purchasing power and awareness

35

European fair trade markets


Northern Europe

High growth rates

Sustainability: requirements from industry and consumers

High consumer purchasing power

Southern and Eastern Europe

Low development and awarenessPromising markets?

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Information sources

Food supplements:

France: www.synadiet.org

Italy: www.federsalus.it

Self-medication:

Association of the European Self-Medication Industry: www.aesgp.eu

Health products (food supplements, herbal medicine, ingredients):

www.nutraingredients.com

www.nutraceuticalsworld.com

Trade data:

Eurostat: ec.europa.eu/eurostat (fee)

EU export helpdesk: exporthelp.europa.eu


http://www.synadiet.org/

http://www.federsalus.it/

http://www.aesgp.eu/

http://www.nutraingredients.com/

http://www.nutraceuticalsworld.com/

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Questions and answers


CBI - Ministry of Foreign Affairs The Natural Ingredients for Health Products market in Europe.

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