Yet, is Germany the future for US supplement companies?
I'm raising that question because the other day I got asked whether Germany may be an interesting market for probiotics.
See for yourself.
We do know that numbers or statistics are usually wrong.
Yet let's have a look at the following ones to obtain a general overview of:
USA | Germany & Austria |
ca. 80% of the population consume 3-4 supplements on a monthly basis | ca. 33% of the population consume 1-2 supplements on a monthly basis |
they typically spend $56-$80 per month, i.e. more than $600 per year | they typically spend $22-$30 per month, i.e. about $250 per year |
You may argue that neither Germany nor Austria is looking bright.
You may argue that those markets are too conservative in their spendings.
In reality, the question is whether the glass is half full or half empty.
If 80% of the population is already spending significant amounts then growth rates may slow down as the market is becoming more saturated.
If you're not even half way and supplement adoption is around 1/3 of the population, then you could assume that the market has got the potential to double in the next couple of years (Germany usually follows the USA).
So how could this happen?
The introduction of new, innovative supplements tailored to specific health needs can drive market growth.
Products such as probiotics, personalized vitamins (keywords: longevity, epigenetics, nutrigenomics, etc.), and plant-based supplements have shown growing interest and major advances in research.
Given the lower current usage rates and the factors mentioned, there is a considerable opportunity for growth in the German and Austrian dietary supplement market.
In our point of view, companies investing in education, marketing, and product innovation, while adhering to regulatory standards (it's a bit more tricky in Europe), can further develop this market (first mover advantage) and thus potentially capture a larger piece of the pie as health and wellness trends continue to evolve.
What's your perspective? How much do you pay for supplements on a monthly basis?
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