Thailand’s ageing society expected to affect supplements market
THOUGH THE dietary supplement market is expected to expand significantly in the next 10 to 15 years, the changing demands in Thailand’s ageing society will shrink it at an average of 8 per cent per year, a study conducted by SCB Economic Intelligence Centre (SCB EIC) shows.
Prospects for the dietary supplements market in Thailand do look good from 2015 to 2030, growing at an average of 7 per cent per year, thanks to rising incomes, health and wellness trends and modern retail channels. However, EIC reckons that from 2030, the market will begin to shrink as the population ages.
The survey reveals that consumers aged over 50 tend not to believe in the effectiveness of supplements and many who have tried them don’t notice any benefits and choose other ways to take care of their health, such as exercise or improved dietary habits.
Meanwhile, demanding more products derived from natural extract and more personalised products are a significantly growing trend and if businesses do not change their strategy, the EIC expects the value of the market to shrink by 8 per cent on average over the next 15 years.
In order to meet these challenges, the EIC recommends three strategies:
l Creating supplements designed specifically for the elderly: Based on United Nations data, the elderly (over 65) will account for 20 per cent Thailand’s total population, and demand for dietary supplements will change accordingly.
l Research and develop natural dietary supplements to ride the “Back to Nature” trend: EIC learned that from 2011 to 2015, the natural supplements market had grown by as much as 13 per cent year, compared to just 7-8 per cent for synthetic supplements. This difference in growth clearly shows that Thai consumers prefer natural supplements, as they are safer and have fewer side effects.
l Offer personalised supplements: By analysing the customer’s physical data or DNA information, supplement makers can produce tailor-made supplements for each person’s specific needs. These personalised supplements can be marketed on websites or applications.
WellPath, an American start-up, has pioneered such online personalised stores. By registering on their website and filling in necessary information such as weight, height, blood group, age, gender, routine activity and health targets, customers will receive online analysis of their health conditions from nutrition experts.
A one-month package of personalised supplements from WellPath costs US$49.95 (Bt1,750), or just about 10 per cent more than regular multivitamins available in the market.
Also selling online helps cut down on administrative costs, including the cost of running actual stores or managing supply chains, which are the major expenses for a business. Plus, efficient exploitation of innovation and technology can also help boost brand competitiveness, the study shows.
