Dietary Supplements in South Africa

PROSPECTS

Social media and access to information through health blogs impact sales of dietary supplements

Dietary supplements, which are primarily purchased by mid- and high-income groups, continue to perform well in 2018, with slightly higher growth than in the previous year. Consumers are increasingly researching their symptoms online and choosing to self-medicate.

Probiotic supplements remains the most dynamic category

Probiotic supplements has continued to record dynamic growth in 2018, with the category benefiting from both increased media attention but also the intensifying health and wellness trend. New product launches at different price points are helping to further drive growth, appealing to those in higher income brackets, who tend to be more aware about the benefits of probiotics and who are better informed about product availability.

Internet retailing on the rise

Chemists/pharmacies, drugstores/parapharmacies and supermarkets continue to account for most sales of vitamins and dietary supplements but the most dynamic channel in 2018 remains internet retailing. Although growing from a low base the channel is benefiting from its offer of convenience and a wide range of options and promotional offers, as well as widespread online marketing.

COMPETITIVE LANDSCAPE

Adcock Ingram continues to lead a highly fragmented category

Dietary supplements remains a highly fragmented category in 2018, characterised by many small players. Local company Adcock Ingram is the only manufacturer with a double-digit value share.

Mergers and acquisitions fairly frequent in this category

The tough economic climate and tightening regulatory requirements are making it harder for smaller players to remain in the marketplace. Falling disposable incomes and a struggling retail environment are impacting demand for dietary supplements, with manufacturers thus having to become more price-competitive in order to maintain their share of sales.

Private label benefits from low prices and improved perception

Although not as significant as in vitamins, private label continues to increase its value share in dietary supplements in 2018. Players such as Clicks and Dis-Chem saw a significant increase in their respective value shares over the review period and both retailers have continued to record double-digit growth in 2018 in current value terms.

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