Opportunities for Vitamins and Dietary Supplements in Asia Pacific

1. OPPORTUNITIES FOR VITAMINS & DIETARY SUPPLEMENTS IN ASIA PACIFIC Bettina Kurnik, Consultant October 2017 COMPLEMENTARY MEDICINES AUSTRALIA

2. © Euromonitor International Euromonitor International OPPORTUNITIES FOR VITAMINS & DIETARY SUPPLEMENTS IN ASIA PACIFIC

3. VDS MARKET OVERVIEW KEY TRENDS IN ASIA PACIFIC LOOKING TO THE FUTURE

4. © Euromonitor International OPPORTUNITIES FOR VITAMINS & DIETARY SUPPLEMENTS IN ASIA PACIFIC US$96bnRetail value of VDS in 2017 17%Expected growth by 2022 Healthy lifestyles and disease prevention 60,000 90,000 120,000 150,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 US$millionRSP,2017constant Treatment versus Prevention OTC * VDS+WMW+SN US$113bnRetail value of VDS by 2022VDS, Weight Management and Wellbeing, Sports Nutrition

5. © Euromonitor International Growth in vitamins and dietary supplements over 2011-2016 OPPORTUNITIES FOR VITAMINS & DIETARY SUPPLEMENTS IN ASIA PACIFIC CAGR 2011-2016 10+% 6-9% 4-5% 2-3% 0-1% <0% Not represented Note: % retail value CAGR 2011-2016 (US$ million, fixed exchange rate).

6. © Euromonitor International 0% 1% 2% 3% 4% 5% 6% 0 10,000 20,000 30,000 40,000 50,000 Asia Pacific North America Western Europe Latin America Eastern Europe Australasia Middle East and Africa CAGR US$million VDS Value Sales by Region in 2017 and Forecast Growth 2017-2022 2017 - RSP 2017-2022 % CAGR World snapshot: Asia Pacific and North America are the biggest regions OPPORTUNITIES FOR VITAMINS & DIETARY SUPPLEMENTS IN ASIA PACIFIC Value of sales in Asia Pacific and North America 77% Value sales of VDS in Asia Pacific by 2022 US$54bn

7. © Euromonitor International 0% 20% 40% 60% 80% 100% Asia Pacific: VDS Retail Value by Relevant Categories 2017 Tonics Combination DS Multivitamins Calcium Supplements Paediatric VDS Single Vitamins Ginseng Protein Supplements Glucosamine Others Asia Pacific: China, Japan and South Korea leading the region OPPORTUNITIES FOR VITAMINS & DIETARY SUPPLEMENTS IN ASIA PACIFIC US$44bnValue sales of VDS in 2017 0 4,000 8,000 12,000 16,000 20,000 24,000 China Japan South Korea Taiwan Thailand Indonesia India Hong Kong, China Others US$million Top Countries in VDS Retail Value 2017

9. © Euromonitor International 9 AgeingActive Connected EngagedInformedStressed OPPORTUNITIES FOR VITAMINS & DIETARY SUPPLEMENTS IN ASIA PACIFIC The new consumer in consumer health

10. © Euromonitor International 10 OPPORTUNITIES FOR VITAMINS & DIETARY SUPPLEMENTS IN ASIA PACIFIC Healthy cross-category competition from food and beverage 0 1 2 3 4 5 6 - 20 40 60 80 100 120 140 Herbal/Traditional Products Vitamins and Dietary Supplements Naturally Healthy (NH) Fortified/Functional (FF) Asia-Pacific: Retail Value 2011 2016 2021 2016-2021 CAGR% US$ billion

11. © Euromonitor International 11 OPPORTUNITIES FOR VITAMINS & DIETARY SUPPLEMENTS IN ASIA PACIFIC Fortified/functional products dominate value sales in APAC 46% 35% 39% 35% 7% 20% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% APAC Global Global vs Asia Pacific Health and Wellness: Retail Value 2016 (Packaged Food & Beverages) Fortified/Functional Naturally Healthy Better For You Free From Organic

12. © Euromonitor International Opportunities as global consumers increasingly connected OPPORTUNITIES FOR VITAMINS & DIETARY SUPPLEMENTS IN ASIA PACIFIC 1,300m 2016 1,549m 2021 79m 2016 120m 2021 29m 2016 52m 2021 Smartphones Activity Wearables Smart Wearables 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 2016 2018 2020 2022 2024 2026 2028 2030 Million Internet Users by Region Asia Pacific Middle East and Africa Latin America Western Europe North America Eastern Europe Australasia +108%

13. © Euromonitor International 0 5,000 10,000 15,000 20,000 25,000 2012 2013 2014 2015 2016 2017 US$millionRSP Consumer Health E-commerce 2012- 2017 VDS Sports Nutrition OTC Weight Management and Wellbeing More connected consumers are buying VDS online OPPORTUNITIES FOR VITAMINS & DIETARY SUPPLEMENTS IN ASIA PACIFIC VDS online opportunity – More startups US$13.5bn Online value sales of VDS in 2012 Online value sales of VDS in 2017 US$7bn

15. © Euromonitor International Asia Pacific: Projected sales and fastest growing categories OPPORTUNITIES FOR VITAMINS & DIETARY SUPPLEMENTS IN ASIA PACIFIC US$54bnValue sales of VDS by 2022 0 1 2 3 4 5 6 7 8 Probiotic Supplements Glucosamine Combination DS Paediatric VDS Tonics % CAGR 2017-2022 Asia Pacific Fastest Growing VDS Categories % Retail Value CAGR 2017-2022

16. © Euromonitor International VDS innovation trends OPPORTUNITIES FOR VITAMINS & DIETARY SUPPLEMENTS IN ASIA PACIFIC Formulations Memberships Ready-To-Drink (RTD) Digital Packaging

17. THANK YOU FOR LISTENING Bettina Kurnik Consultant bettina.kurnik@euromonitor.com @emi_bettinak www.linkedin.com/in/bettinakurnik/