Herbal/Traditional Products in Sweden

PROSPECTS

Well-informed consumers willing to pay more for natural products that they perceive to offer greater specific value

Herbal/traditional products recorded a stable performance in 2019, supported by the willingness of well-informed consumers to purchase consumer health products with a natural positioning that tend to carry a marginally higher unit price, for which they are ready to pay if they perceive them to offer higher specific value. Herbal/traditional products hold a higher presence in sleep aids, cough, cold and allergy (hay fever) remedies, vitamins and dietary supplements and digestive remedies.

Strong growth for niche of dermatologicals but sleep aids retains highest share of herbal/traditional products

The niche of herbal/traditional dermatologicals continued to be a strong performer as some consumers looked to treat skin irritations with products that they perceive to be kinder to their skin. However, the share of these products compared to popular standard brands such as Hydrokortison CCS remains marginal.

Some producers turn to specialised channels to promote greater awareness of their brands

Some producers of herbal/traditional dietary supplements choose the specific strategy of only placing their products in health-focused stores such as Life to place a greater focus on their target audience. This strategy is also being applied online for websites that only have a health-specific focus such as specialists sites including Gymgrossisten (with the tagline “For athletes, by athletes”) and Bodystore, which carry a wide offer of dietary supplements.

COMPETITIVE LANDSCAPE

Medicated confectionery brands lead but lose share in fragmented landscape

With herbal/traditional cough, cold and allergy (hay fever) remedies holding the largest value share within herbal/traditional products, the category continued to be dominated by medicated confectionery brands in 2019, led by Läkerol (Cloetta Sverige) and Fisherman’s Friend (Conaxess Trade Sweden). These products have always benefited from their wide availability in grocery retailers in addition to their appeal amongst consumers who often treat them as regular confectionery.

KSM66 continues to move up the rankings

Medicine Garden AB under herbal/traditional dietary supplements recorded one of the most dynamic performances in 2019, as its brand KSM66 continued to move up the rankings and record impressive current value growth. This brand is based on ashwagandha as an active ingredient which is known for its ability to combat tiredness and help reduce stress and anxiety.

Bio-Biloba bucks declining trend due to strong brand loyalty

Despite a general decline in demand for gingko biloba, one brand is bucking the trend and continuing to record positive growth in addition to gaining further value share from its smaller competitors to dominate the category. Bio-Biloba from Pharma Nord AB is a highly-priced dietary supplement for which consumers are willing to pay as they trust in the brand and Pharma Nord to offer them a good-quality product.

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