1. 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

2. 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.

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

4. Food consumption in the world
kcal. per capita per day
kcal.
kcal.
kcal.

5. 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

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

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

8. Legislative framework market Dietary Supplements
Resolution of the Government of the Russian Federation of , № 988 «About the state registration of new foods, materials and products»
Resolution of the Government of the Russian Federation of № 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 , № 36 «About the state registration of biologically active additives to food»
Resolution of the Chief Medical Officer of the Russian Federation of № 146 «About sanitary-epidemiological examination of biologically active additives to food»

9. 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
Rational Nutrition
Standards
physiological needs for energy and nutrients for different groups of the population of the Russian Federation
Guidelines МР

10. 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

11. 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)

12. 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

13. 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

14. 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.

15. 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 – % in a year.

16. 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

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

18. 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

19. 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

20. 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.

21. 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

22. 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%).

23. 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.

24. 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.

25. 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

26. Quality Management System
At the leading companies focused on the production of biologically implemented quality management system ISO , 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.

27. 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.

28. 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!