New Australian supplements data part 1: China set to be first billion dollar export market in 2024
Australian supplements and complementary medicines exports to China have boomed in recent years, rising from accounting for just 1% of Chinese sector imports in 2014 to 14.7% today. It is now valued at US$993m and represents 75% of the US$1.2bn Australian export total, with the second largest market, Vietnam, registering US$72m and 6%.
And according to the latest Industry Snapshot from trade body Complementary Medicines Australia (CMA), exports to China are tipped to top US$1bn throughout 2024, with $540m of goods being shipped in the first half of this year alone.
The Chinese complementary medicines market has grown from $61bn in 2018, to $72.6 billion in 2022, and is forecast to reach $94bn in 2027.
The report states: “Similar to Australia, the growth of the complementary medicines market in China is significantly influenced by its ageing population, which is driving demand for products that support cardiovascular health and bone health, such as high-EPA fish oil, krill oil, CoQ10 and calcium.
“The COVID-19 pandemic fuelled demand for complementary medicines, with Chinese consumers seeking products to support immune health, such as Vitamin C, Zinc and probiotics.
“Australian companies have responded to these trends by developing products specifically tailored to the Chinese market. This includes offering supplements that address the unique health concerns of China’s ageing population and their demand for immunity-boosting ingredients. In China, e-commerce has played a significant role in the distribution of consumer health products, including complementary medicines, with its market share reaching 42% in 2023 when it overtook offline retail sales for the first time.”
Target markets
Meanwhile, CMA has identified seven target markets that have the potential to drive future growth for Australian complementary medicines exports – Indonesia, Thailand, Vietnam, Singapore, Malaysia, India and the United Arab Emirates.
It is hopeful of increasing exports to Thailand from $4.26bn to $6.93bn in the next fives years; to India from $4.99bn to $7.9bn; to India from $3.66bn to 5.49bn; to Vietnam from $2.77bn to 4.16bn; to Malaysia from $2.09bn to $2.78bn; to Singapore from $1.06bn to $1.34bn; and to UAE from 0.21bn to 0.28bn.
In terms of categories driving export growth, the reported noted that products for mood and relaxation were surging, while women’s health remains popular globally, growing by 14% in North America, 10% in Asia Pacific, and 9% in Western Europe in 2023.
“Mental health was the second most popular category for new supplement launches globally (after immune health) over the last five years, representing around a quarter of new products. Younger consumers, in particular, are focussing more on mental health, with approximately 30% of Millennial and Gen Z seeking a healthier lifestyle to support better mental wellbeing (in contrast to 27% of Generation X and 23% of Baby Boomers).”
“[2023 also] saw massive demand for tailored solutions addressing a wide range of conditions across women’s lifespans, including sexual wellness, menstruation, maternal and reproductive health, menopause and healthy ageing products. The beauty from within trend is driving sales of VDS across the world. While Asia Pacific still dominates gross sales across the beauty category, sales of beauty supplements grew 24% in North America between 2018 and 2023, as consumers sought products addressing a narrower range of beauty concerns, such as hair, nail, skin and gut health.”
Looking ahead, exports are expected to be a key driver of future growth for the Australian sector.
“Having already achieved significant export growth in recent years, the industry aims to further expand its presence in international markets. The Asia Pacific region, with its large and growing middle class, represents a particularly promising export opportunity. Australia’s reputation for producing high-quality, safe products gives it a competitive advantage to capitalise on increasing global demand for natural health products,” noted the report.
CMA CEO John O’Doherty added: “We see tremendous opportunities for further growth and innovation. The global market is projected to reach $418 billion by 2027, and our industry is well positioned to capitalise on this growth. The Australian market is expected to grow 5.7% (CAGR) between now and 2029. At CMA, we remain dedicated to advocating for our members, fostering innovation, and upholding the highest standards of quality and safety. As we navigate the evolving landscape of health and wellness, I am confident that our industry will continue to thrive and make a positive impact on global health.”
