Romanian dietary supplement market expected to return to growth between 2010 and 2013

The changes in the lifestyles of Romanians, with healthier diets and bio (health) products becoming more common, have boosted the dietary supplement market in recent years. However, in 2009, mainly as a result of the economic difficulties which the country experienced after the financial meltdown, the growth of the dietary supplement market slowed significantly, increasing by only 1% in final prices in comparison with the previous year, according to PMR’s latest report: Dietary supplements market in Romania 2010. Development forecasts for 2010-2013. This fell considerably short of the expectations of a number of players on the market and of the annual rates of growth of 20-30% registered between 2004 and 2007. In all, sales via the major distribution channels, pharmacies and bio/health food stores, exceeded €90m in 2009. Including sales over the internet and at supermarkets, the total revenues of the industry came to €100m.

Internationally the dietary supplement market is on the rise, and Romania continues to follow this pattern. On average, dietary supplements worth approximately €4.7 are consumed per capita every year in Romania, whereas in countries such as France and Germany, the figure is €20-25. This shows the potential of the dietary supplement market in Romania.

This market in Romania has also been boosted by an increase in the prices of these products over the past three years, according to representatives of dietary supplement vendors in Romania interviewed by PMR Publications.

The market in question is expected to continue to grow, by 10-16% between 2010 and 2012, and to return to a rate of growth of approximately 30% in 2013, when consumption of dietary supplements is expected to exceed €8 per capita per annum.

Consolidation on the market is also expected to continue, as the economic crisis is likely to take its toll of smaller players in 2010. The larger companies are expected to defend their market shares, at least in the short term.

According to a survey carried out specifically for the purposes of the report among companies present on the Romanian dietary supplement market, over half of the respondents (57%) were positive about the current situation on the dietary supplement market in Romania, but 18% were negative. One-quarter assessed the situation as neither good nor bad.

 

 

The reason most frequently given for positive or very positive opinions of the market situation is the high degree of diversity of these products on the Romanian market (about one-third of responses among those who assess the situation positively). One in five respondents also cite the robust sales of these products, and one in nine – the increase in awareness of dietary supplements among Romanians or the positive reception of dietary supplements among the public (in addition to the fact that they are trendy).

 

 

The assessment of the work of the IBA (a Romanian institution which should be notified of the launch of a dietary supplement on the market) in terms of its responsibilities for dietary supplement trade in Romania is excellent. As many as 85% of companies assess the work of the institution positively. By way of comparison, in Poland fewer than one-quarter regard the work of the equivalent institution as good or comparatively good[1]. Only one respondent expressed distaste for the work of the IBA. It is worthy of note, however, that the institution carries out explanatory proceedings[2] extremely rarely, whereas in Poland it is almost obligatory for such a procedure to be carried out, particularly in the case of more complicated products.

Monika Stefanczyk

Head Pharmaceutical Market Analyst

PMR Publications