Dietary Supplements in South Africa

PROSPECTS

Consumers’ confidence in selecting dietary supplements boosted by online research

Dietary supplements, which are primarily purchased by mid- and high-income groups, continued to perform well in 2019 in current value terms, although growth slowed slightly due to an increase in price promotions and a growing focus on costs among consumers. Sales are however benefiting from consumers increasingly researching symptoms online and choosing to self-medicate or to take a more proactive approach to their health.

Probiotic supplements benefit from being viewed as boosting digestive and immune health

Dietary supplements remains fairly fragmented in terms of positioning. Digestive and immune system however remain the two most significant types of positioning in 2019, and together accounted for around half of overall value sales, with these being key considerations for many consumers.

Tighter regulations boost sales across wide range of distribution channels

Chemists/pharmacies, drugstores/parapharmacies and supermarkets continue to account for most sales of vitamins and dietary supplements but the most dynamic channel in 2019 remained 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

Fragmentation increases due to impact of internet retailing and online research

Dietary supplements remains a highly fragmented category with many small and specialist players. Ingelheim Pharmaceuticals is the only manufacturer with a double-digit value share, although this company lost share in 2019 as competition intensified further in dietary supplements.

Mergers and acquisitions shake up shares

There were two significant new partnerships that impacted shares in dietary supplements at the end of the review period. In August 2019, GlaxoSmithKline announced a global joint venture with Pfizer across consumer health, with the new entity becoming GSK Consumer Healthcare.

Private label benefit from growing consumer trust and focus on cost

Although not as significant as in vitamins, private label continues to increase its value share in dietary supplements and is proving particularly strong in a number of areas, including evening primrose oil, fish oils/omega fatty acids, calcium supplements and garlic. 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 2019 in current value terms.

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