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Australia’s Complementary Medicines Industry Audit 2019
GROWING NATURALLY
CMA INDUSTRY AUDIT 2019 | 2
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 of 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 MedicinesRegulated 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 2019 | 3
INDUSTRY AUDIT SUMMARY
Number One Australia has become the largest exporter
of Nutrition and Health Food to China.
Healthy GrowthThe Complementary Medicines industry
continues to outpace growth in the broader economy.
Assisting in Your HealthOne third of Australians using
Complementary Medicines do so to manage the symptoms of a chronic disease.
$5.2 billion IndustryVitamin & Dietary Supplements: $2.94 billion
Sports Nutrition: $1.11 billion Herbal / Traditional Products: $0.72 billion
Weight loss: $0.43 billion
7 out of 10 People Most Australians (73%) have used at least one form of complementary medicine in
the last year.
CMA INDUSTRY AUDIT 2019 | 4
CHOOSING WELLNESS OVER ILLNESS
In 2020 the Australian Government will spend over $80 Billion on Medical Care
A National Crisis 50% of all
Australians have a chronic disease
Diabetes 1 million
hospitalisations
Obesity Around 63% of Australians are
overweight or obese
Cardiovascular Almost 1 in 3 deaths
Source: Australian Institute of Health and Welfare 2018
CMA INDUSTRY AUDIT 2019 | 5
73%
56%
26% 25% 23%19%
15%
7%
68%
48%
23%28%
21%18%
15%
5%
77%
63%
28%
22%26%
19%15%
10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
CONSUMER DEMOGRAPHICSMEN VS WOMEN
Source: RoyMorgan (2019)
Women are more likely to have purchased complementary medicine in the last 12 months (77%) than men (68%)Source: CMA/YouGov Galaxy (2019)
CM purchases in last 12 months
FemaleMaleAVG
Net: Purchased complementary
medicines
Vitamins Probiotics Omega-3 fatty acids/fish oil
Nutritional supplements
Minerals Herbal or homeopathic
products
Other complementary
medicines
CMA INDUSTRY AUDIT 2019 | 6
HEALTHY GROWTH
The Vitamins and Dietary Supplement Category has doubled in size over 10 years
Forecasted to grow 22% CAGR over the next 10 years.
0
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
$ A
UD
mil
Category Growth
Forecast
Weight Management and Wellbeing Sports Nutrition
Herbal and Traditional Products Vitamins and Dietary Supplements
Source: EuroMonitor (2019)
CMA INDUSTRY AUDIT 2019 | 7
CONSUMER PURCHASING DECISIONS
Most Australians consider pharmacies to be the best outlet for buying complementary medicines (68%), with supermarkets (37%) and health food stores (32%) also popular.
Source: CMA/YouGov Galaxy (2019)
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
5,500
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
AU
D $
mil
Sales By Channel
Other Online Pharmacy & Health Food Stores
Direct Selling Supermarket
Source: EuroMonitor (2019)
CMA INDUSTRY AUDIT 2019 | 8
NATURAL HEALTH PRODUCT BUYERS
Australia’s health food stores remain one of the most trusted places for help and wellness advice.
They offer an extensive range of products and brands for every area of health and wellness.
Source: Food Source 2019
QLD 336
VIC 334
TAS 68
NT 13
SA 172
WA 238
NSW 517
CMA INDUSTRY AUDIT 2019 | 9
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.
148 TGA licensed manufacturing sites1
2852 direct employees in the sector2
$71,704 average wage in sector2
$407 million of economic value
6% annual growth rate (2014-2019)2
Sources: (TGA, 2019)1 (IBISWorld, 2019)2
CMA INDUSTRY AUDIT 2019 | 10
PRODUCTS BY HEALTH CATEGORY AND TRENDING INGREDIENTS
Products by Health Category Top 5 Fastest Growing Ingredients
2017-2018 % Growth
Glucosamine
11.6%
Probiotics
10.2%
Calcium
9.1%
Propolis
8.6%
Spirulina
9.6%
Total $ AUD (m) 2,937.8
Position1 Category % Share 2018
1 General Health 17.5
2 Joint and Bone 14.7
3 Heart Health 13.6
4 Digestive 9.9
5 Women’s Health 8.1
6 All Other 36.2
Sources: EuroMonitor (2019)
CMA INDUSTRY AUDIT 2019 | 11
AUSTRALIA: WORLD LEADING EXPORTS
Australia has created a $1 billion export success story as consumer demand continues to grow for high quality Australian complementary medicines.
Official exports of Complementary Medicines has trebled in the last year to $1 Billion.
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 (2019)
Oceania 13%
China & Hong Kong
70%
South Korea 5.2%
Vietnam 5.3%
Other 6.5%
CMA INDUSTRY AUDIT 2019 | 12
AUSTRALIA: THE NUMBER ONE CHOICE FOR CHINA
Australia has become the largest source of Nutrition and Health Food Imports with an import volume of AU $940 million (US $670 Million)
USA is second with US$620 million and Germany is third with US$280 million
Australia year-on-year growth of imports into China of Nutrition and Health Food Imports 60.8%
China represents a significant growth opportunity for the Australian industry potentially doubling in size in 3 years
Size of Import Market 2018: $3b USD to reach $11b by 2024
Potential size of China Market US$68b
Source: China Chamber of Commerce for Import and Export of Medicines and Health food Products (CCCMHPIE)
Sources: EuroMonitor (2019) CMA (2019)
#1
CMA INDUSTRY AUDIT 2019 | 13
AUDIT REFERENCES
Austrade, 2019. Australian Complementary Medicines Export Statistics 2015-2018, Canberra: s.n.
Australian Institute of Health and Welfare, 2019. Australian Burden of 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, 2019. China Import Data- Health Foods, Beijing: s.n.
Euromonitor International Australia, 2019. Complementary Medicines Market Data 2017-2018, 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, 2019. TGA Complementary Medicines manufacturing licence registry, Canberra: Australian Government Department of Health.
YouGov Galaxy, 2019. Complementary Medicines Consumer Sentiment, Canberra: Complementary Medicines Australia.
cmaustralia.org.au +61 (02) 6260 4022
PO Box 450, Mawson, ACT 2607 Australia
