More than ever, Australian consumers are educated, taking charge of their health and actively looking for alternative solutions to treat and prevent illness.
More than 70% of people are regularly using complementary medicines with the market expected to reach $6 billion by 2023.
However, the industry now faces pandemic-related supply chain challenges, accelerated in many ways by Covid-19 according to Complementary Medicines Australia CEO, Carl Gibson, and Industry Development Manager, Cameron Thorpe.
This year Carl and Cameron join a group of more than 30 speakers presenting on a wide range of business topics at the 2022 Naturally Good Expo.
As part of the peak industry body representing the supply chain from manufacturers, brands to retailers, Carl and Cameron will also discuss the challenges in accessing world-class ingredients, share industry sales data, highlight chronic diseases driving growth and reflect on current innovations and trends.
Here Carl previews their upcoming presentation: The New Normal in Retail – Sales, Stock and Supply.
Chronic diseases driving growth
It is a sad fact that over 78% of Australians have a long-term health condition, with nearly half reporting at least one chronic condition.
Mental and behavioural conditions top the chronic disease lists at more than 20%, followed by back problems and arthritis.
Asthma and chronic obstructive pulmonary disease are also continuing to grow. As a result, we have seen an increase in mood, sleep and pain products.
Key customers
We’re now at a point where 7 out of 10 people regularly use complementary medicine.
Women have always been the predominant decision makers for purchases and 83% of females are more likely to have purchased a complementary medicine in the last year than men.
Interestingly, women buy more vitamin and mineral products, and men buy more Omega-3 fatty acids and fish oil.
Successfully navigating Covid-19 and the supply chain
The Covid-19 pandemic has brought both challenges and opportunities to the retail market in our sector.
What we have seen is real innovation.
One example is Chemist Warehouse: recognised as Retailer of the Year by the complementary medicines industry for their innovative three-hour delivery from ‘their house to yours.’
Another was the launch of Healthylife, part of Woolworths Group with a brand-new online retail channel.
This innovation helped meet consumer demand and orders throughout lockdowns. With the supply chain continuing to be a real challenge, the Industry Association has been working closely with the Government to ensure continuity of supply.
How pharmacies can remain competitive in this space
Innovation is key.
The lesson from Chemist Warehouse is that if your customers can’t come to you, go to them.
We’ve been hiding behind face masks for several years, and as we come out of hibernation, we need all the help we can get.
People are interested in beauty products as they enter the outside world, others are seeking out anxiety products to help them socialise, whilst for some, prioritising a good night’s sleep has become paramount.
We know consumers are more aware of their immunity and we have seen a huge growth in the probiotics category.
We expect more growth in both pre and probiotics.
Some of the odd statistics during the Covid-19 pandemic days is that sexual health products declined – so we aren’t expecting a Covid baby boom any time soon!
However, the good news is that as our hygiene improved, colds and the flu weren’t as prevalent – although this is on the rise again since restrictions were lifted.
Predictions over the next five years
While it’s always difficult to predict the future – who could have foreseen a global pandemic – we do see trends now that will make an impact in the future.
We are seeing a growth in youth obesity and know many people, especially the young, have been affected by long lockdowns and restricted socialisation.
The number of prescriptions for medicinal cannabis has grown 88% since January 2020 with those aged 18-30 seeking help for anxiety and sleep.
Carl and Cameron will be expanding on their presentation: The New Normal in Retail – Sales, Stock and Supply, at the 2022 Naturally Good Expo on Tuesday, 7 June at 11 AM at Sydney’s ICC. Head to Naturally Good for more information to register.
