Analysis from Frost and Sullivan, Strategic Analysis of the Nutraceuticals Market in Southeast Asia, reveals that revenue in this industry totalled US$2,304.7 million in 2005
Although a major proportion of the population in Indonesia, the Philippines and Vietnam consider nutraceutical products to be luxury items, the market is growing on account of the apparent health benefits conferred by these products.
Introduced in the 1990s, nutraceuticals were successful in the United States and Europe.
Southeast Asia, with its large population, shows significant potential for manufacturers in this space.
"The focus of nutraceutical manufacturers in Southeast Asia is on weight management and products targeted at enhancing physical appearance such as healthy skin and hair," explains Frost and Sullivan research analyst Li Pheng Ooi.
"The emphasis placed on looking slim is driving the growth of the nutraceuticals market for weight-loss products in Thailand, Vietnam and Singapore." Nutraceutical ingredients targeted at weight loss such as conjugated linoleic acid (CLA) and green tea extracts experienced high growth rates in 2005.
In addition, the manifold health benefits offered by these products such as a sense of wellbeing, better performance in daily activities, preventive healthcare and improved physical appearance guarantee strong market growth.
Despite the apparent multiple advantages that these nutraceutical products offer, consumers are wary due to their high cost.
Lower income groups in Indonesia, Vietnam and the Philippines still consider these products a luxury.
"In addition, health claims on nutraceutical products are not allowed in Malaysia, Thailand and Singapore".
"Moreover, the registration process is long and can take up to two years, thus significantly increasing the difficulty of launching a product," notes Ooi.
"Manufacturers and distributors also face the added difficulty of communicating the health benefits of these products to consumers and experience reduced revenues as a result." To promote revenue generation across various income groups, manufacturers need to educate consumers on their benefits as well as create brand awareness and acceptance through extensive advertising and marketing.
Strategic Analysis of the Nutraceuticals Market in Southeast Asia is part of the Food and Beverage subscription, and it evaluates this market by examining dietary supplements and functional foods segments between 2002 and 2012.
It includes discussions on market forecasts, industry challenges as well as market drivers and restraints.
This research service segments the market by countries that include Malaysia, Singapore, Thailand, the Philippines, Indonesia and Vietnam.
In addition, this study also offers strategic recommendations to manufacturers that aid better business decision making.
