The market for food supplements - Belgium

1.2 A growing global market

PrecedenceResearch estimates the size of the global market at nearly $*** billion in ****. Their forecast on a CAGR of *.*% per year between **** and **** with the market expected to generate around $*** billion globally in ****, an increase of ***% in * years.

x of the global dietary supplements market World, ****-*****, in billion dollars Source: ****

The global market is largely dominated by two countries, the United States and China, which shared **% of the market share in ****.Western Europe, meanwhile, accounts for **% of the market. The global market is therefore predominantly concentrated in these three regions, with all other countries accounting for only **% of the market. Global market segmentation by region World, ****, in % Source: Synadiet while Italy is the largest European market along with France and Germany (***), it is the Eastern European countries that are experiencing the strongest growth. These countries, which are less advanced in their development phase, are naturally experiencing a greater increase in demand for these products, particularly for plants and physiotherapy. In Europe, the most popular types of products are vitamins and minerals, which make up **% of dietary supplement sales. The success of dietary supplements for athletes, such as amino acids, proteins and ginseng, is also apparent since they represent **% of sales. Finally, ...

1.3 The domestic market

According to Euromonitor, the market size for dietary supplements in Belgium is estimated to reach €***.* million in ****, up *.*% from ****. In ****, the market size was estimated at €*** million and €*** million in ****.[***]

Data provided by Prodcom Eurostat under code **.**.** (***) indicates thatin ****, the Belgian production of food supplements amounted to ***.** million euros[***]

There is a very strong increase in the production of food supplements in Belgium for the years **** and **** compared to previous years (***), which shows that the market is booming.

Domestic production by value Belgium, ****-****, in millions of euros Source: ****

NB: there is no data before **** for code **.**.** on Eurostat.

1.4 Foreign trade

We consider for this part the customs code closest to the category "food supplements" which is the following: ****** "Other food preparations". It should be noted that the scope of the customs code considered is close to our object of study but is not strictly identical because broader. The code also contains various syrups (***). [***]

For this scope of data, we see thatin ****, Belgian imports amounted to ***.* million euros, while exports reached ***.* million euros . Looking at the coverage rate over the period (***), we thus notice that over the period ****-****, Belgium is in surplus every year on the ****** sector, with a coverage rate oscillating between ***% and ***%.[***]

Source: ****

Foreign trade Belgium, ****-****, in millions of euros Source: ****

2.1 Profile of Belgian consumers

Despite the small absolute size of the Belgian market among the European markets, the annual expenditure per capita on food supplements is relatively high: indeed, Belgium ranks *th in Europe, with an average expenditure of **.* euros per year per capita on food supplements. This is less than the main European market in absolute size, Italy, with its **.* euros per year and per capita; but it is however much more than other large European markets such as France (***). [***]

Annual consumption per capita Europe, ****, in €/capita Source: ****

nB: These figures are from ****, we do not have more recent data, but this graph represents the current situation, the Belgians being large consumers of food supplements compared to other European countries.

Number of consumers

According to AB-REOC (***). [***]

Consumption habits among Belgians taking dietary supplements Belgium, ****, in % Source: ****

Young adults (***) and seniors are the main Belgian consumers

The consumption of food supplements follows different patterns according to the age of the consumer. It can be seen that :

The people who currently consume the least food supplements are the youngest (***) and the **-** years. Contrary to what one might think, the first consumers of food supplements in Belgium in proportion are not the oldest (***).

Consumption of supplements ...

2.2 Demand by type of supplement

like the European market, the Belgian market is dominated by vitamins and minerals, which together account for almost half of the national market in value (***)[***]. Conversely, protein and dietary fiber supplements are less popular.

Distribution of the Belgian market by type of supplement Belgium, ****, in % Source: ****

2.3 A demand driven by the growing attention to health and well-being

The demand for food supplements is strongly motivated by a growing concern of Belgians for their well-being and health.

The main concerns of consumers of food supplements Belgium, ****, in % Source: ****

Thus, the wellness and health concerns of Belgian food supplement consumers are varied. Other reasons for consuming food supplements do not appear in this graph: allergies, digestive problems, hair loss, respiratory problems, muscle problems or hearing problems.

Consumption of food supplements according to health status Belgium, ****, in % Source: ****

Thus, we can see that the consumption of food supplements in Belgium depends on health status .People considered to be in poor health are more likely to use them and to have used them inthe past, even if the difference is slight: **% of people in poor health currently use them against **% of people in good health. However, **% of healthy people have never used it.

2.4 A demand driven by the aging population

As previously mentioned, senior citizens are among the population categories that consume the most food supplements. Thus, the ageing of the Belgian population is a direct factor in the growth of the demand for food supplements.

The National Institute of Statistics estimates that the aging of the population will intensify until ****. The country will then have one person over ** years old for every *.* people between ** and ** years old, compared to four in ****. The number of people over ** years of age continues to increase, both in absolute numbers and as a share of the total population. Thus, in ****, this age group will represent **.*% of the total population, compared to **.*% in ****.[***]

Population over ** years old Belgium, ****-****, in millions and % Source: ****

2.5 Demand by geography and socio-professional category

Demand by geography:

Consumption of supplements by geography   Source: ****

we can see that it is in the Brussels region that dietary supplements are the most consumed (***)

Expenditure on food supplements according to geography Belgium, ****, in € Source : AB-REOC among those who consume, in terms ofbudget, there are differences but no clear trend between the different regions .

Nevertheless, we note that :

Whether Walloons, Brussels or Flemish, the majority (***) spend less than €*** per year on food supplements. The Walloons seem to be the ones who spend the least. Flanders has the biggest budgets (***) in terms of food supplements.

The demand according to the socio-professional category: Consumption of food supplements according to socio-professional category Belgium, ****, in % Source: ****

The consumption of food supplements is correlated with socio-economic status, and isconomic status, the most privileged (***) are the most likely to have never have never used them.

3.1 Value Chain

The dietary supplements industry includes several stages and several actors, as illustrated below.

Source: ****

In the first stage, ingredient suppliers produce raw materials, i.e. nutrients, but also flavors or dyes that will compose the food supplements.

From these ingredients, the producers manufacture the food supplements. There are two types of producers: the processors who supply supplements to several companies that will market them and the manufacturers who directly market the supplements they produce.

The products placed on the market are then distributed through several channels and consumed by the population.

3.2 Production and distribution

According to the Federal Association for the Safety of the Food Chain (***), there are about *** manufacturers of food supplements in Belgium. [***]

The production process of a food supplement is a strictly regulated process at the European level, which has to comply with numerous safety standards (***). Numerous federations and associations regularly carry out controls on the production chain, and in ****, the FASFC declared that **% of the supplements examined strictly met the requirements.

Pharmacies remain the main distribution channel

In ****, the distribution of dietary supplements in Belgium remained highly concentrated on pharmacies and parapharmacies, which accounted for more than **.*% of the market in value (***). [***]

Distribution by channel Belgium, ****, in % of the market in value Source: Euromonitor  

One of the densest pharmacy networks in Europe

Belgium has *,*** pharmacies, or * pharmacy for approximately *,*** inhabitants, which constitutes a particularly dense network in Europe. [***] Pharmacies and parapharmacies remain the main distribution channel for dietary supplements, driven by the quality of the relationship and the reassuring aspect of the advice given by a pharmacist for this product which is on the borderline between food and medicine.

The rise of internet sales

The broader food sector has been undergoing a major transformation for several years, with an underlying trend ...

3.3 The main brands on the market

In ****, the dietary supplements market in Belgium is dominated by Procter & Gamble with **.*% of the market share (***). This shows that the Belgian dietary supplements market is evolving and still open to new entrants.

Nevertheless, it can be observed that the market remains quite fragmented in terms of market share, with only one player at more than **% (***) and a large majority below *% or *%.

Market share of food supplements Belgium, ****, in % of the market by value Source : Euromonitor  

4.1 The different types of food supplements

Vitamins

Among the most requested vitamins, we can mention vitamin A for visual health and immunity; B vitamins (***) for metabolic functions, vitamin C for vitality and natural defenses, or vitamin D for bone strengthening. [***]

Within the vitamin segment, vitamin D represents **% of the market, followed by multi-vitamin supplements (***). Vitamin B and C-based supplements are less present, with *% and **% respectively. [***]

Distribution of vitamin-based supplements Belgium, ****, in % Source: ****

Minerals

Among the main minerals present in food supplements, we can mention the following: calcium, to fortify bones and proper functioning of the nervous system; Magnesium, for bones and teeth, blood circulation and energy production; Iron, for oxygen transport by red blood cells; or Zinc, for its antioxidant properties. [***]

The supply of mineral-based supplements in Belgium is a little more fragmented than for vitamin supplements. Thus, magnesium dominates this category with only **% of the shares, followed by calcium (***). [***]

Distribution of mineral-based supplements Belgium, ****, in % Source: ****

Authorized quantities in supplements in Belgium

Source: ****

* one RE microgram is one microgram of Retinol-Equivalent = * micrograms of beta-carotene = ** micrograms of other carotenoids

** one a -TE is * alpha-tocopherol equivalent or * mg of D-alpha-tocopherol or *.* mg of beta-tocopherol

Plants and plant extracts

Plants are often preferred in the preparation of ...

4.2 A wide range of prices that reflects the diversity of the offer

Consumer price index for foodstuffs

The first way to look at the price of food supplements is to look at the price of foodstuffs in general, of which supplements are a part. The data provided by the Belgian National Institute of Statistics show that the consumer price index of foodstuffs is *** in January **** (***). Overall, food prices have increased by an average of **.*% over the period ****-****, with a very strong increase in ****. [ This is also the case for food supplements with regard to current prices, with a strong increase in ****.

Copy of Consumer Price Index for Foodstuffs Belgium, ****-****, base *** ****M* Source: ****

Nevertheless, the wide variety of food supplements on offer makes it difficult to give an overview of the prices charged on the market*** for more targeted slimming or tanning treatments, for example.

As an indication, we can however give the following prices, raised on various Internet sites and pharmacies on line in February ****:

Source: ****

4.3 Towards naturalness and personalization

Towards more naturalness

New brands of organic and / or natural food supplements have risen to prominence: for example, we can cite the laboratory Bio-Life, which has a very wide range of all types of food supplements. The brand guarantees a high bioavailability of the ingredients contained in its products, as well as biodegradable packaging. Among the products in the range, we find organic plant extracts (***) Bio-Life products are distributed in pharmacies and in specialized channels[***]

Personalization of food supplement programs

Personalization is one of the major trends in food for several years now, and dietary supplements are no exception. New brands such as Epycure or Cuure are now offering personalized food supplement subscriptions, delivered in boxes.

5.1 The European framework on the food supplements market

The European Union has established a series of regulations, through Directive ****/**/EC of the European Parliament, whose objective is to protect the health of consumers and to ensure the transparency of information provided on food supplements. This directive defines food supplements as foodstuffs whose purpose is to supplement the daily diet, constituting a source of nutrients with a nutritional effect and marketed in dose form.

Among the main provisions of this directive are the following:

Annex I lists the vitamins and minerals that may be added to food supplements Annex II lists the sources from which Annex I substances may be produced Labelling and marketing requirements

This initial directive has since been amended by new legislation, to refine the list of authorized products. For example, in ****, Regulation ****/**** added organic silicon to the list of authorized products, after a scientific study concluded that this element does not pose a health risk. The marketing of food supplements containing unlisted substances is completely prohibited.

In total, there are about ** laws applicable to food supplements, which can be either European or national regulations. The European legislative framework is taken up and adapted at national level by a series of royal decrees on nutrients, plants and ...

5.2 Labelling of food supplements

As food supplements are part of the food category, they must also comply with specific labeling standards. Thus, the label must, among other things, include the following information:

The name "food supplement" The reference intake A warning about exceeding the recommended daily intake A statement that the supplements cannot replace a varied diet The content of the nutrients present in the supplements per recommended daily portion If applicable, the name of the plants in the language of the region and the scientific name

In the labelling but also in the advertising, it is forbidden to attribute properties of prevention or cure of a disease, to evoke similar properties, or to mention that a balanced and varied diet is not a sufficient source of nutrients.

[***]

5.3 The marketing of food supplements

Any marketing of a food supplement must be preceded by a notification to the public authorities. The company must prepare a notification application file, which must include the following elements

Information on the ingredients Nutritional analysis Product labeling

Source: ****

6.1 Segmentation

• Laboratoires Trenker
• Pranarôm (Inula Groupe)
• Procter & Gamble
• Galephar
• Metagenics Europe
• Herbalgem (Inula groupe)