Vitamins in the Netherlands

2021 DEVELOPMENTS

Continued healthy value growth as COVID-19 still lingers

COVID-19 was a boon for vitamins. In fact, vitamins registered the highest current value growth of all consumer health products in 2020 and it is expected that it will also be the front runner in 2021, though value growth will be significantly lower.

Omega Pharma maintains its lead, but sees growing competition from other players who are aggressive with new launches and promotions

Omega Pharma Nederland BV continues to lead vitamins in 2021, thanks to the success of its top Davitamon brand which has a high degree of consumer recognition and trust and a strong distribution network across various channels, including drugstores, supermarkets and pharmacies. It also has strong distribution in online retail, although competition is fiercer in e-commerce channels, with other brands also seeing robust sales.

Major players capitalise on boon in vitamins

In response to the outbreak of COVID-19 in 2020, vitamins have become increasingly popular in the Netherlands. The major players in vitamins are capitalising on the strong growth of vitamins and are active in launching new ranges.

PROSPECTS AND OPPORTUNITIES

Moderate value growth, though from an elevated level

Vitamins will register moderate constant value growth over the forecast period, though this growth will be from a higher baseline, due to the elevated value sales that have come about due to concerns around COVID-19. Early in the forecast period, single vitamins will register the higher constant value growth, as consumer look for a more targeted approach.

Private label players can win wider consumer base through building brand trust and offering bulk and economy sales of popular products

Whilst holding smaller shares, private label is active in vitamins, as noted with AS Watson (Health & Beauty Benelux)’s Kruidvat brand (plus others). There is scope for private label players to capitalise on this segment, in order to cater to a lower-income consumer base and those who may have been negatively impacted by the financial effects of COVID-19.

Increasing segmentation over forecast period

Movement towards healthy living as a larger lifestyle trend will drive value growth in vitamins. Younger consumers, especially Millennials, will view their consumption of vitamins as a component of their lifestyle decisions, and these lifestyle choices (active living, sustainability, clean labelling) pervade all purchasing decisions they make.