Problems of production and market of dietary supplements in Russia Problems of production and market of dietary supplements in Russia. Control the quality and efficiency Pilat T.L. 2009

Violations of diets Waiver of fruits, vegetables, herbs, food plants. Preferences fast food. Monotonous diet. Eating large amounts of processed, canned and / or sublimate food. violation of the diet (breakfast, lunch, afternoon snack, dinner).  Eating without the feeling of hunger.

Vitamin deficiency among residents Russian Federation 80-90 % population Vitamin В1, В2, В6, folic acid 40-80% population Carotin 40 % population 3

Food consumption in the world kcal. per capita per day 1960 - 2 257 kcal. 1999 - 2 808 kcal. 2007 - 3 220 kcal.

Methodology for optimizing human nutrition Filling deficits caused by the regional and environmental The shortfall caused by the dangerous conditions Filling deficit emerging chronic diseases Optimization of nutrition Compensation for adverse changes in the nutritive and biological value of food Restoration of food diet Reflecting individual nutrition

Legislative regulation of dietary supplements U.S.A Dietary Supplement Health and Education Act (DSHEA) of 1994 EU Food Supplements Directive Russian Federation: SanPin 2.3.2. 1078-01, SanPin 2.3.3.1290-03

Legislative framework market Dietary Supplements Federal Law of 30.03.1999, № 52-FZ «On the sanitary-epidemiological welfare of population» Federal Law of 7.02.1992 in № 2300-1 «On Protection of Consumer Rights» Federal Law of 02.01.2000 № 29-FZ «On Quality and Food safety» Federal Law of 27.12.2002, № 184-FZ «On Technical Regulation» Federal Law of 13.03.2006, № 38-FZ «On Advertising» Federal Law of 8.08.2001, № 134-FZ «On Protection of the rights of legal persons and individual entrepreneurs in the state control (supervision)»

Legislative framework market Dietary Supplements Resolution of the Government of the Russian Federation of 21.12.2000, № 988 «About the state registration of new foods, materials and products» Resolution of the Government of the Russian Federation of 30.03. 1997 № 481 «On approval of the inventory, all of which should contain the contraindications for use in certain types of diseases» Order of the Federal Service for Supervision of Consumer Rights Protection and Human Welfare of 26.02.2006, № 36 «About the state registration of biologically active additives to food» Resolution of the Chief Medical Officer of the Russian Federation of 15.08.2003 № 146 «About sanitary-epidemiological examination of biologically active additives to food»

Standards Legislative framework market Dietary Supplements Head of Federal Service Consumer Rights Protection and Human Welfare Chief doctor of the Russian Federation Onishenko G.G. 18 /12/2008 3.2.1. Rational Nutrition Standards physiological needs for energy and nutrients for different groups of the population of the Russian Federation Guidelines МР 2.3.1.2432-08

Legislative framework market Dietary Supplements In its work, the production and turnover of dietary supplements also are guided by Concept development and production of biologically active additives to food, food products for therapeutic and preventive nutrition for the period until 2020

Overview of Food Supplements markets United States U.S. $18.1 Billion for Food Supplement sales in 2008. 75 percent of U.S. consumers claim to use Food Supplements. European Union U.S. $11.75 Billion for Food Supplement sales in 2008 for western Europe. 50 percent of western Europe consumers claim to use Food Supplements. Asia U.S. $ 8 Billion for Food Supplement sales in 2008 , only U.S. $ 6 Billion in Japan Russian Federation U.S. $ 2 Billion for Food Supplement sales in 2008 ( include MLM distribution)

Consumption of dietary supplements in developed countries and Russia in 2007 Country % of population regularly consuming dietary supplements Average life expectancy USA 90 JAPAN 75 76 EU Countries 50 67 Russian Federation 8 60 You can not deny the existence of dependence between the level of consumption of dietary supplements, and life expectancy

The per capita income and the cost of dietary supplements in 2007. Country Per capita income per month The cost of Dietary Supplements per month % of the cost of dietary supplements on a monthly income USA 4000 $ 200 $ 5 % JAPAN 5000 $ 4 % EU Countries 1350 $ 40 $ 3 % Russian Federation 400 $ 4 $ 1 % With rising incomes, population pays more attention to their health, disease prevention, healthy lifestyles

Sales volume Dietary supplement in Russia in 2007-08. Million rub Million packages Despite of significant change of a rate of national currency – in quantity indicators the market grew more quickly, than in monetary.

Dynamics of growth of world and Russian market Dietary supplement. Growth of consumption Dietary supplement in the world about 3-5 % a year. To Russia the market develops more dynamically – 10-12 % in a year.

Registered trading names Dietary supplement in territory of the Russian Federation 7800 Dietary supplements have been registered. From them: 62 % - manufactures of Russia 15 % - manufactures of the USA 6 % - manufactures of China 2,3 % - manufactures of France 2 % - manufactures of Germany

In Russia, in industry of Dietary supplement function In the field of manufacture - 186 enterprises Trade and selling - 3506 enterprises Items of a chemist's network – 34385 companies Warehouses of storage - 783

Parity of sales Dietary supplement of import manufacture depending on the country Russian import Denmark USA Netherlands Germany Canada Swiss China other countries cost volume Real volume

Parity of sales Dietary supplement of import manufacture depending on a price range in 2008. Russian Less than 50 rub From 50 up to 150 rub From 150 up to 500 rub More than 500 rub 2007 the share of a segment import Dietary supplement with by more than 500 rbl. made about 20 %, in 2008 – already third of sales volume Dietary supplement of import manufacture. The structure of sales domestic Dietary supplement has not changed

Structure of purchase Dietary supplement the Russian consumers 70 % of consumers get Dietary supplement in the chemist's organizations 15 % - at individual distributors 8 % - at offices of the companies 7 % - in specialized shops 1,5 % - in specialized departments of shops. Thus the sales volume in money terms distributes on points of sales as follows: 36 % - the chemist's organizations 6 % - other organizations of retail trade 60 % - remote trade. Last years growth of sales through the chemist's organizations on the average on 20 % year and decrease in the sales volume, carried out by means of remote trade is marked.

The major factors influencing a choice of mark “Dietary supplement” by the Russian consumers. price recommendations of the doctor consultations of the seller design of packing manufacturer information on packing convenience of packing

Consumer perception of dietary supplements Not drugs (44%), but almost medications (25%). They are non-pharmaceutical companies (58%). Consists of only natural ingredients (56%). Much safer than drugs (64%). Must be recommended by your doctor or pharmacist (61%). Suitable for treatment of minor illnesses (66%). Dietary Supplements does not heal all wounds, but is used only for prevention / rehabilitation (75%). Consumers are not aware that the dietary supplement is a supplement to the diet. Dietary Supplements should be in the diet of every person (63%).

Problems in implementing the dietary supplement: Low literacy levels of doctors, the retail organization. Lack of training programs on healthy nutrition in medical institutes, and training courses of advanced medicine. Unbalanced advertising legislation Distance selling of dietary supplements. The absence of legislation on remote sales.

Dietary Supplements market problems in Russia. No correct behavior with regard to prevention of food, including dietary supplements Mixing market medicines and preventive products in the minds of doctors. The practice leaves OTC medicines and as a consequence, the emergence of a permanent habit of using drugs without the side effects. Registration of new pharmacologically active substances as a dietary supplement in the first phase of promotion of pharmaceuticals. The use of dietary supplements as drugs (self) and the unscrupulous remote sales. Unscrupulous competitive action on the part of the pharmaceutical market.

Ensuring the quality of dietary supplement manufacturing High quality products - a critical competitive advantage. Today, the quality of ceasing to be only a factor of the image, and clearly becoming a matter of survival in the market. Basic principles of business in terms of quality: Ensuring the safety and high quality products. Targeting consumers

Quality Management System At the leading companies focused on the production of biologically implemented quality management system ISO 9001-2001, GMP and a set of activities to introduce systems of quality management and food safety, based on the principles HACCP. Functioning in the «Quality Management System» allows you to clearly monitor all stages of production and ensure its safety and high quality.

The challenges facing the participants in market Dietary Supplements The introduction of modern manufacturing practices in the production of safe and quality products. Ensuring the production of quality raw materials. The creation of the Institute of expert organizations. Develop a system of voluntary certification schemes for distance sales. Improvement of legislation in the field of advertising for a full and accurate information on the appointment, the properties and characteristics of products. Develop training courses on products for human health as the core of education for students of medical universities and high schools and food processing industries, as well as post-graduate training programs. Developing new promising dietary supplement for leveling the negative impact of regional food shortages and changes in the environment.

THANK YOU FOR YOUR ATTENTION! The presentation draws on information from the following sources: Euromonitor International Nielsen Global Dietary Supplement Survey DSM Group. Audit of the retail market Pharmexpert. Russian manufacture today and tomorrow Gullap Media. Consumer preferences Public information sources Leovit Insider company data THANK YOU FOR YOUR ATTENTION!