Wellness and beauty were tightly interlocked before the Covid-19 pandemic, but the global health crisis has magnified and accelerated the boom in sales of supplements and ingestibles. The beauty-from-within category is now one of the fastest-growing categories, driven by collagen powders and tablets, mineral-rich supplements, probiotics, prebiotics and gut health solutions.
Retailers at all price points from department stores through e-commerce giants, pharmacies and lifestyle chains have doubled down on the opportunity to target the multi-billion dollar global market. Increased customer knowledge and recognition of the close relationship between supplements and topical skincare has fast-tracked the trend worldwide, as consumers look to ingredients such as collagen to add smoothness and elasticity to the skin, biotin for stronger nails and natural sleep aids to maintain a more youthful appearance.
The global market for nearly every sub-category of ingestibles and beauty supplements is immense and is still a long way from reaching its peak. Grand View Research predicts that the worldwide nutraceutical market will hit US$722.49 billion by 2027 and demand for medical and ingestible collagen is on track to reach US$22.6 billion over the next five years. The marine collagen sector is expected to grow at a faster rate – 7 per cent – than the overall market, reveals the researcher.
30 YEARS OF HIGH QUALITY POTENCY / TRUSTED SOURCE
With so many new brands and competitors, in Australia and overseas, eager to grab a share of the well-being bonanza, consumers need to know that their choices offer value for money, more positive benefits and come from a trusted source. Australian NaturalCare (ANC) is Australia’s leading direct supplier of vitamins online and we have a strong reputation for high quality natural potency built up over more than 30 years, says Mark Mackenzie, General Manager of Australian NaturalCare. We began as a small startup in Byron Bay, the wellness capital of Australia, in 1989, producing diet quality supplements, he adds.
“Our entrepreneurial founder, Barry Schadel, was a leading pioneer in promoting the concept that great supplements are the key to optimal health. Our first products included ginseng, royal jelly and fish oils and we gained a significant following through our direct-to-consumer model. Because we have attracted such a dedicated following through continued product innovation and taking care of our customers we have a large core of long-term and regular purchasers.”
SERVICE SECOND TO NONE / 100% MADE IN AUSTRALIA
Personalisation has become one of the hottest buzzwords in health and beauty but ANC was an early adopter of the trend. Our slogan is ‘Live Well. Every Day’ and we have long approached consumers on an individual basis, says Mackenzie. “Our customer service is second to none. We have a team of professional naturopaths, who offer one-on-one advice. Many have been with us for 10, 15 or 20 years and know many customers by name. Because of these close relationships with our customers, who are among the most well-informed and educated in Australia, we can not only fulfill their needs better but also use the constant feedback to innovate our product range and keep ahead of trends.”
An increasing number of Australians were already seeking out Made in Australia products before the Covid-19 pandemic, but the crisis has super-charged demand. Our R&D team scours the world for new studies, high quality evidence and clinical trials to facilitate new product development, says Mackenzie. “But we are proud to be one of the very few supplement companies that continues to manufacture 100 per cent of our range of vitamins, supplements and natural living products in Australia. Not only does our Made in Australia strategy guarantee that our products are of the highest quality, it also supports local manufacturing and creates more jobs. All of our supplements and vitamins are TGA approved and adhere to the Australian Code of Good Manufacturing Practice.”
ANC’s focus on the highest level of nutritional potency has attracted hundreds of thousands of regular customers, but the company’s potential to attract new customers has been spring-boarded by a brand re-fresh. Younger customers, in particular, value transparency and ANC’s sustainability efforts include following Friend of the Sea guidelines for the eco-labelling of its fish products.
SIGNIFICANT OPPORTUNITIES FOR COLLAGEN / BEST IN MARKETPLACE
Even though the global collagen market is already a multi-billion dollar business, the sector is poised to grow at 8 per cent per year to 2024, reports Frost & Sullivan. Market penetration remains lower than more mature health ingredients such as probiotics and omega-3 in leading markets such as the US, Europe and the Asia/Pacific region. According to the leading US business consulting firm, this means significant opportunities remain for manufacturers, retailers and investors.
Earlier this year, ANC debuted new products and packaging together with the international launch of its Marine Collagen Plus Mineral and Marine Collagen Ultra range. “We worked hard for well over a year on the new collagen products, which are scientifically proven to improve skin elasticity, strengthen the nails and increase hair growth,” says Mackenzie. “Our new supplements are free from gluten, added sugar, dairy, preservatives and artificial colours. A major point of difference is that they are formulated with a minimum of three grams of hydrolysed Type 1 marine collagen. Type 1 collagen is the most abundant type found in the skin and helps to increase skin elasticity by up to 15 per cent after four weeks of use. Available in original, citrus lime, and cranberry flavours, we believe our new collagen products are the best in the marketplace and we are taking this message to the world.”
OVERSEAS FOCUS / NEW ROADMAP FOR LOCAL UPLIFT
The three major markets driving the global supplements market are the US, Japan and China. Natural products backed by strong scientific evidence are crucial to success in the Chinese and Asian health and beauty sector. According to Alibaba’s Tmall, sales of ingestibles and beauty supplements doubled from 2017 to 2019 and continue to grow strongly says the Chinese online giant. We have targeted the Chinese market since 2018, says Mackenzie. “We have a Tmall store and are also present on JD.com, Xiaohongshu (Litte Red Book) and Pinduoduo. We are also targeting fast-growing markets in Southeast Asia such as Vietnam and are interested in the pharmacy sector in Australia and overseas.”
Both Mackenzie and Jerome Fu, Global Marketing and E-Commerce Manager for Australian NaturalCare, have extensive experience in FMCG to guide further growth. Prior to joining ANC in late 2020, Mackenzie held senior management roles at Melrose Health, Lion, Goodman Fielder and Unilever and has in-depth knowledge of key Asian markets, notably China, Taiwan, Hong Kong and Macau. Fu was the General Manager of Lotus, a major hypermarket chain in China with more than 100 stores across the country. He has also worked for leading Fortune 500 companies, including Procter & Gamble and Nestlé. But the Australian domestic market remains top-of-mind, says Fu.
“We were very proud to be nominated as a finalist in the 2021 Australian Service Excellence Awards. We have also refreshed, launched and streamlined other SKUs this year, including Marine Collagen Chews, Healthy Greens Powder, Healthy Gut Powder and Healthy Reds, a vital combination of superfoods. Sleep and stress have become a major focus for consumers during the pandemic and our solutions included A Good Night’s Sleep, featuring California poppy, Peaceful Sleep and Everyday Stress Relief B Complex.”
In today’s competitive market, consumers perception of how a brand and its products contribute to their well-being not only maximises sales but also shows that it continues to evolve. After 30 years, Australian NaturalCare is even more vital in the lives of wellness-focused customers of all ages.
