The food supplements market - Italy (2023)

1.2 A well-focused global market with good growth prospects

The global market for dietary supplements has been estimated at $***.* billion in ****.

The most optimistic forecasts predict a CAGR (***) of *.*% between **** and **** with the market expected to generate about $***.* billion globally by ****.

Size of the global market for dietary supplements World, ****-*****, in billions of dollars Source: ****

Growing awareness of the importance of nutrition to health is contributing to the growth of the industry. Changing eating habits, along with a growing desire for efficiency, is driving demand for supplements

The European market is worth $**.* billion in ****. Although the compound annual growth rate (***) is projected to be lower in Europe than in the rest of the world, *.*% between **** and ****, over the next * years the market could reach a value of $**.* billion.

Breakdown of the European dietary supplement market by product Europe, ****, in % of market value Source: ****

Specifically regarding vitamins, the most consumed were Vitamin D, C and magnesium:

Vitamin consumption by type Europe, ****, percent Source: ****

1.3 The Italian market, a European leader

Western Europe is the third largest region within the dietary supplement market, after Asia and North America. However, the largest share lies exclusively in the hands of three players: Italy boasts the largest dietary supplement market in Europe, more than a quarter of its total, with expectations of close to * billion in sales by ****[***].

Breakdown of the European dietary supplements market, by market share Europe, ****, in % Source: ****

The Italian dietary supplement market is worth about €*.** billion in ****, +**.*% compared to **** and +*.*% compared to ****. A compound annual growth rate (***) of *.*% is expected between **** and ****, thanks to which the market value could touch €* billion in value in ****.

Value of dietary supplements Italy, ****-**** in billion € Source: ****

The main market areas by sales in **** were the probiotics category with *** million euros in sales, followed by minerals and vitamins, *** and *** million euros in sales, respectively. The largest annual growth was in cough products, immune function supplements, and antireflux and antacid products, +**%, +**%, and +**.*%, respectively.

Consumption value by category Italy, ****, million euros

1.4 Imports and exports

Using the UN Comtrade database, it is complicated to study dietary supplements as a whole because this segment includes a wide variety of products classified under different customs codes. However, it is possible to analyze a part of it and observe, for example, the trade in vitamins and provitamins that make up a large proportion of dietary supplements. In the database, trade in these products is grouped and registered under the following code:

****: Provitamins and vitamins, natural or reproduced by synthesis, including natural concentrates, and derivatives thereof used primarily as vitamins, whether or not mixed together or in any solution

The chart outlines the recent history of Italian trade regarding these goods.

Imports and exports registered under code **** Italy, ****-****, in millions of dollars and %. Source: ****

As we can observe, Italy is a net importer of these goods. We can also see a growth in terms of imports since **** with a peak in **** at $*** million, despite the COVID-** pandemic.

Italy imports **.*% of the products registered under **** from the Netherlands. This is followed by China (***).

Main countries of origin of Italian imports of goods registered under code **** World, ****, in % Source: ****

In terms of exports, the Netherlands is confirmed as the main ...

1.5 Impact of Russian-Ukrainian conflict

The outbreak of the Russian-Ukrainian conflict in February **** led to, among other things, a general increase in the producer price index. This increase also affected the dietary supplements sector. Through analysis of the producer price index for the other food products sector (***), within which dietary supplements fall, an increase of ** points can be seen between January **** and July ****. This means that producer prices have increased by **% over ** months. Compared to ****, then, the increase stands at **.*%.

Producer price index other food products Italy, ****-****, base ****=*** Istat

As for the consumer price index, the available data covers the entire food sector. However, a similar trend is assumed between the general and dietary supplement sectors.

Between January **** and August ****, the consumer price index for food items went up by **.* points. This means that over an **-month period, prices for food goods increased by nearly **%. Compared to ****, the increase is close to ** percentage points.

Consumer price index food goods Italy, ****-****, base ****=*** Istat

1.6

2.1 Overview of demand

Dietary supplements are substances recommended to accompany one's diet, so they are not specifically identified with either food or medicine. Demand for these product categories is therefore related to personal understanding or available information (***) of the associated effects and one's weight in a balanced diet.

The main factors positively influencing the historical upward trend in the industry are the aging population and the trend toward the use of preventive medicine.

New demographics: an aging population

The largest age group in Italy is the so-called "over **s," who define about **.*% of the entire population. In addition, **% of the population is over ** years old. These numbers denote an aging population trend that is affecting the Italian territory.

Breakdown of the population, by age group Italy, ****, in % Source: ****

The aforementioned trend affects the dietary supplement market, as the largest consumers are precisely those over ** years of age [***].

The graph below represents the proportion of searches for a given keyword in a region and for a specific time period, compared to when the rate of use of that keyword was highest (***). Thus, a value of ** means that the keyword was used less often in the region concerned, and a value of * means that there is ...

2.2 Lifestyle and new habits change consumption

Increased stress levels

Dietary supplement intake is closely related to perceived and actual health and well-being. Therefore, the progressively higher proportion of stressed Italians may play an important role in shifting demand. The number of males who reported being stressed is extremely high, * out of **, according to research conducted by ASSOSALUTE (***).

Similarly, among the most consumed dietary supplements are those to strengthen the immune system, stabilize mood and improve sleep quality [***].

Increased physical activity

According to Istat data, **.*%, **.* million people, of Italians practice sports continuously, **.*%, *.* million, occasionally, and **.*%, **.* million, practice only some physical activity.

PEOPLE * YEARS AND OLDER WHO IN THEIR FREE TIME PRACTICE SPORTS, SOME PHYSICAL ACTIVITY OR ARE SEDENTARY Italy, ****,percent Source: ****

In the Italian scenario, according to Federsalus The typical consumer of dietary supplements is very focused on sports and nutrition. In addition, the most consumed product categories are vitamins and minerals, which are the most used energizers.

Nutritional and wellness concerns

Italians' approach to health Italy, ****, in % Source: ****

As shown in the graph, awareness of one's physical and mental well-being is a topic of great interest for the Italian population. Evidence of continued interest can be found in Istat data on Italians' priorities - health takes the ...

2.3 The consumption habits of Italians

**% of the Italian adult population (***) use food and dietary supplements[***]. The reasons for their use can be divided into * major categories:

Prevention (***) Wellness (***) Toning, strengthening and energy (***) Specific care (***)

Use of dietary supplements, by reason Italy, ****, in % Source: ****

In Italy, nearly two-thirds of consumers of dietary supplements consider them safe, while seven in ** consider them effective.

Perceived safety and efficacy of dietary supplements Italy, ****, in % Source: ****

2.4 Why to use dietary supplements

Regarding the reasons for the purchase and use of dietary supplements, nearly * out of * Italians say that supplements are excellent allies of health; the same proportion claims that supplements are a stimulus for dietary improvement and increased physical activity. Finally, * out of * Italians consider dietary supplements functional for maintaining mental and physical well-being.

Reasons for buying and using dietary supplements Italy, ****, in % Source: ****

A similar trend to that outlined above appears when Italians reveal through which channels they have heard about or sought information about dietary supplements.

Response to the question, "Through which channels/sources have you heard about/searched for information about dietary supplements?" Italy, ****, in % Source: ****

N.B The total exceeds ***% because the same person may obtain information through multiple sources

2.5 New trends in demand

The growth of the sports segment

The sports nutrition supplement market is a segment of the dietary supplement market, but also a segment of the sports nutrition market. The latter has particularly developed in recent years, driven by the democratization of dietary supplements, which were previously consumed mainly by professional athletes.

Thus, by ****, the global sports nutrition market, of which dietary supplements are a segment, is worth $**.* billion. Between **** and ****, it is projected to grow at a compound annual rate of *.*%.(***)

Natural dietary supplements

People's growing concern for their health is particularly manifested in a craze for natural products, which are considered better for people and the environment. This trend in many Western countries is likely to favor natural products, such as herbal products.

The dietary supplement market is not immune to trends in the food industry. Thus, demand for natural, vegan, organic or "clean label" supplements is showing a strong growth trajectory due to growing consumer interest in natural products and those made with fewer chemical ingredients.

3.1 Market organization and dynamics

Until the beginning of the **st century, the dietary supplement market had a well-defined structure. The largest share was in the hands of a few international players - e.g. Pfizer, Bayer, Sanofi - although a considerable part was held by Italian manufacturers - e.g. Aboca, Alfasigma. Recently, radical transformations in market outlook have led to industry fragmentation.

Two aspects are undoubtedly noteworthy in the changing market environment [***]:

Gradual loss of patent protection for basic drugs Development of the free-selling market in pharmacies

In Western Europe, the five largest players together reach a value of about **%. A similar situation is observed in Italy, with the largest companies grabbing a considerably small portion of the market. Although the dominance of sales by international companies remains, the presence of numerous smaller players influences the competitive landscape.

The two main forces that have shifted the established hierarchy are:

E-commerce Proliferation of channels

Both the rise of the Internet and the emergence of additional different channels to produce and distribute dietary supplements have contributed to the dissolution of the market.

3.2 Made-in-Italy production

CDMO (***) is a business organizational model, which enables the management of production, development and manufacturing activities of medical products on behalf of third parties.

Thus, we distinguish:

Companies authorized to distribute pharmaceutical products-usually multinational pharmaceutical companies, which outsource functions to CDMO companies. Companies that follow CDMOs to produce and manufacture pharmaceutical products, acting as agents on behalf of the former.

Data for **** on CDMOs confirm Italy's leading position in Europe, with a production value of *.* billion euros, or **% of the European total. The sector recorded ** billion in total production, including **.* billion in exports, *.* billion invested in production and R&D, **,*** employees, of whom women account for **% of the total. Quality employment has grown by *% in * years, especially among young people (***)

Outsourcing is a choice that seems to be strongly influenced by the internationally associated perception that Italian companies in the R Federsalus ]. An emblematic example is E-Pharma (***) whose contribution has revolutionized the concept of contract manufacturing. In this case, one can speak of a "contract innovator." The company, among many other pharmaceutical products, produces Bayer's famous aspirin.

3.3 Distribution

Despite the increasing proliferation of distribution channels, leadership seems to remain in the hands of health and beauty specialty retailers-for example, pharmacies. The latter continue to account for an extremely large market share of about **.*%[***].

Supplement market breakdown Italy, ****, percent Source: ****

business to Business

Production and manufacturing take place in another company, which at a later stage, once the product is complete, sells it to retailers.

By itself, pharmacy accounts for **.*% of the total value of Italian sales. Behind it, the parapharmacy with values that stand at ***.* million euros (***) Finally, the large-scale retail channel, linked to the corners and shelves of super and hypermarkets, which registers a growth of +**.*% and a turnover of more than ***.* million euros, equal to +**.*%

Breakdown of the main distribution channels for dietary supplements Italy, ****, in % Source: ****

E-Commerce

Online distribution is also pervading the world of pharmaceuticals. For reasons of price comparison, greater assortment or convenience, a progressive number of companies are relying on the channel and as a result an increasing number of customers are buying online.

The online channel in **** recorded the highest growth rate compared to the previous year with a turnover of more than EUR ***.* million (***), and also at the level of sales ...

3.4 The dominance of pharmacies

As we saw above, pharmacies hold the absolute majority in terms of distribution in this market, both in terms of value and volume.

However, it is interesting to look at a deeper and more detailed breakdown of this market by segment (***) Pharmacies hold a majority share in terms of value for distribution of all but two segments:

Energizing foods for sports Meal replacements (***)

Breakdown of distribution of dietary supplements, by distribution channel Italy, ****, in % Source: ****

The number of pharmacies in Italy in **** is **,***, an increase of *.*% compared to ****. The growth is constant and homogeneous during the entire period considered with the exception of ****, when compared to **** there was a decrease of *.*%.

Number of private pharmacies in Italy and employees in the sector Italy, ****-****, units Source: ****

Between **** and ****, the number of employees in private pharmacies increased by *.*%. During the entire period, the growth is constant with an average annual increase of *.*%, and unlike the number of enterprises, there is no decline in ****.

Employees of private pharmacies in Italy Italy, ****-****, units Istat

4.1 A number of product categories

One variable that can be considered when segmenting the dietary supplement market is product function.

According to Unife there are five categories that can be identified by product function:

Sports Health and wellness Diet Anti-aging Beauty care

A further distinction available concerns the ingredients contained in dietary supplements. Among the most popular and consumed categories are:

Vitamin and/or mineral supplements Amino acid supplements Protein supplements Probiotic supplements Fatty acid supplements

Source: ****

Within the "Health and Wellness" category, a distinction can be made between the most popular products through different distribution channels. In fact, through pharmacies and large retailers the leading categories are minerals and probiotics, while through direct sales multivitamins seem to be the most in demand.

The chart provides an overview of the different segments sold in Italy in ****, vitamins, gastro-intestinal products and probiotics once again confirm their dominance.

Market share of dietary supplements Cough Italy, ****, in % Source: ****

4.2 Supply trends

Personalized nutrition

More and more companies are moving away from the concept of "one size fits all" to improve the customer experience through highly personalized offerings. In the health sector the trend is widely visible, with many existing companies as well as innovative startups addressing this need. [***].

Some newcomers:

US-based Habit performs tests on consumers' physiological responses to food to tailor their diet and supplement intake, then sells this information to companies. U.S.-based Persona runs lifestyle questionnaires on consumers to personalize their consumption of dietary supplements. Italian startup Allelica (***) performs genomic testing to personalize a customer's diet and nutrition.

AI application

Recently, the healthcare industry has been progressively leveraging the benefits of artificial intelligence, from product development to data management. Particularly in the dietary supplement industry, the convenience, effectiveness, and reliability of AI are expected to bring benefits. Currently, the use of AI in product formulation and manufacturing has been relevant in the United States and Europe. BASF has announced its first AI-based dietary supplement ingredient. [***]

4.3 Prices

Per capita spending on dietary supplements among Italians in **** reached about ** euros-the number places Italy in first place. In fact, spending is almost double the average spending in Western European countries [***].

Below are the prices of some of the products on the Italian market:

4.4 Research is at the heart of the offering

The role of innovation To stand out, many companies launch their own research programs to innovate and create new products. Thus, research involves not only ingredients, but also formulations and containers. Innovation in natural, organic and vegan products is particularly on the rise. Innovations in the dietary supplement market include the following examples: Innovation related to format: instead oftraditional pills, Frunutta offers supplements that dissolve instantly under the tongue, thus eliminating many of the ingredients that traditional supplements rely on, such as sugars, coatings, artificial colors, preservatives, and hydrogenated oils [***] Innovation related to purpose through company Health [***] Innovation related to ingredients :Quality of Life's VitaPQQ program aims to slow the aging process and reduce age-related fatigue by improving short-term memory and concentration. The supplement contains the first new vitamin discovered since ****, PQQ (***), which nourishes the mitochondria that generate energy for our cells. VitaPQQ features a patented form of PQQ called MicroPQQ and is free of magnesium stearate and common allergens. Personalized nutrition is based on knowing the characteristics of each person, not only the physiological ones, but also the molecular changes that may occur throughout life. Therefore, it involves making a personalized recommendation for one or another dietary supplement based on ...

5.1 Three levels of legislation

There are three different levels of legislative procedures to follow:

EU regulations Italian legislation Ministry of Health

There are EU regulations for vitamins, minerals and substances used as their sources. In addition, rules regarding the use of substances potentially harmful to consumers' health are also harmonized at the EU level.

According to the EU Food Law Regulation (***) No ***/**** , food supplements are considered food. The responsibility for ensuring the safety of these products lies with the food business operator who places the product on the market.

Relevant EU legislation in the field of food supplements is Directive ****/**/E C, which establishes harmonized lists of vitamins and mineral substances used in the manufacture of food supplements and labeling requirements for these products

Italian legislation comes into force for all those aspects not harmonized at EU level. Food supplements are defined by the relevant legislation (***) as: "foodstuffs intended to supplement the normal diet and which constitute a concentrated source of nutrients, such as vitamins and minerals, or other substances with a nutritional or physiological effect, in particular, but not exclusively, amino acids, essential fatty acids, fiber and extracts of plant origin, whether single or multi-compound, in pre-dosed forms." These include:

Vitamins and minerals (***) Probiotics ...

5.2

6.1 Segmentation

• Alfasigma
• Gruppo Menarini
• Aboca
• Bonomelli
• NAMED
• Pharmanutra
• Equilibra
• Giuliani Pharma
• Enervit
• Esi
• Sanofi
• Chiesi Farmaceutici