New formats drive vitamin growth

Euromonitor International analyst Eleni Grammenou predicted that growth would be driven by new delivery formats such as chewable sweets, chocolate containing active ingredients, soluble strips, syrups, and gels that could be applied externally.

There would also be further attempts to target specific groups by age, gender, or other characteristics, as nutrition became more personalised, she predicted. The top supplements in Europe in 2005 were: minerals (euro 447M); fish oils (euro 358M); vitamin C (euro 292M); calcium and probiotics (both euro 250M), and eye health (euro 48M).

However, US and European manufacturers had struggled to maintain margins in the wake of record oil prices, which had inflated raw materials costs, said McKinsey director Florian Budde, who has been following the market. They were also facing strong competition from Asian manufacturers, which continued to drive down prices due to lower overheads, access to cheaper labour and support from government subsidies, he said. "We are already seeing companies like DSM form joint ventures with Chinese firms.

"However, quality standards are important, as is new production technology. These are both areas where European and US suppliers could regain the initiative."

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