1. CBI - Ministry of Foreign Affairs The Natural Ingredients for Health Products market in Europe

2. European market for natural ingredients for health products CBI - Ministry of Foreign Affairs 2 Consumption Segments Imports and exports Where is the market? What’s new on the European market

3. Market segmentation for Health products Different ways of looking at the European market:  Food supplements vs. herbal medicine  Interesting EU markets  Indication areas  System CBI - Ministry of Foreign Affairs 3

4. Food supplements / Herbal medicine  Global pharmaceuctical market  Self-medication market  Herbal medicine market  Leading EU markets for health products  Food supplements growth CBI - Ministry of Foreign Affairs 4

5. Global Pharmaceutical Market CBI - Ministry of Foreign Affairs Source: IMS, 2014

6. Self-medication market CBI - Ministry of Foreign Affairs 6 Source: AESGP 2014

7. Herbal medicine market  Self medication accounting for around 11% of EU pharmaceutical market; €170 billion in 2013.  Herbal medicine accounts for up to 6% of pharmaceutical market in some European countries CBI - Ministry of Foreign Affairs 7

8. Leading EU markets for health products CBI - Ministry of Foreign Affairs 8 2 4 3 1 Source: Euromonitor, 2013 Food supplements Herbal medicine 1 2 3

9. Herbal Medicine and Food Supplements CBI - Ministry of Foreign Affairs 9 Product launches Herbal medicine Germany Austria 1 Main herbal medicine markets; Traditional ingredients Food supplements Product innovation Product launches Food supplements Italy France 1

10. Food supplement growth Highest growth in Eastern Europe!  Eastern Europe: +60%  Western Europe: +13% CBI - Ministry of Foreign Affairs 10 Source: Euromonitor, 2013

11. Top 3 categories in leading food supplement markets CBI - Ministry of Foreign Affairs 11 CountryNr. 1Nr. 2Nr. 3 ItalyDigestive health Immune system General Health GermanyGeneral Health Bone healthMemory health FranceEnergyBeautyImmune sytem UKJoint healthGeneral healthHeart health

12. Top 5 herbals in leading food supplement markets CBI - Ministry of Foreign Affairs 12 GermanyUKItaly -Ginkgo biloba -Artichoke -Olive -Grape -Soy -Ginseng -Caraway -Devil’s claw -Guarana -Fennel -Evening primrose -Ginseng -St. John’s wort -Aloe -Devil’s claw -Valerian -Echinacea -Milk thistle -Garlic -Ginkgo biloba -Aloe -Fennel -Valerian -Ginseng -Billberry -Passion flower -Lemon balm -Peppermint -Dandelion -Artichoke

13. What to use it for? – indication areas  Obesity  Stress & Anxiety  Joint health  Immune system  Energy  Digestive health  Vascular system  Cognitive disorders CBI - Ministry of Foreign Affairs 13

14. How to measure indication areas? Indicators!  Incidence of (related) health problems  Differences in EU countries  Differences in consumer groups  Development in recent years  Use of remedies  Prescription or OTC?  Natural or synthetic?  Herbal medicine or food supplement? CBI - Ministry of Foreign Affairs 14

15. Obesity Indicators:  17% of EU population is obese  High: UK/Hungary (>25%)  Low: Romania (8%)  More than half EU population is overweight  Rate of obesity doubled past 20 years  European market for anti-obesity treatments is growing CBI - Ministry of Foreign Affairs 15 Expected male obesity 2030 58% 40% 38% 35%

16. Stress & Anxiety Indicators:  Mental disorders affect more than 33% EU population  Depression: 10% of population (at one point)  Sales of antidepressants  High: Iceland, Denmark, Portugal, Sweden, Finland  Increased over 80% (2000-2010)  Work-related stress: 1 out of 4 sick days stress related, 40-54 years old  Sleep difficulties: 31% of population Western Europe CBI - Ministry of Foreign Affairs 16

17. Joint health Indicators:  Rheumatism, arthritis  2007: 22% European population long-term muscle, bone and joint problems  Osteoarthritis highest for 70-79 year olds  But: remedies more often consumed with functional foods and beverages CBI - Ministry of Foreign Affairs 17 Low incidince Rheumatoid arthritis Higher incidence arthritis

18. Immune support Indicators:  Immune health problems:  Increase allergy incidences  5-15% European population affected by influenza  Increase immunodeficiency  European market for ‘Immune and Antihypertensive health products’ to grow by 45% (2009-2016)  increasing consumer interest  innovation by manufacturers CBI - Ministry of Foreign Affairs 18

19. Energy Indicators:  Chronic fatigue syndrome  2012: 12% growth energy-boosting products (88% energy drinks)  Consumption energy drinks:  Adults: 30%  15-18 years old: 68% CBI - Ministry of Foreign Affairs 19 Markets for energy drinks 575 mill. litres 325 mill. litres 318 mill. litres Consumption energy drinks: adults 50% 45% 46% 21% 22% 15%

20. Digestive health Indicators: Symptoms (difficult to estimate prevalence)  40% of people suffered at least one digestive symptom (UK)  Irritable Bowl Syndrome: 5-25% in Europe  commonly treated with alternative therapies  Gastrointestinal diseases: among most common reasons morbidity and hospitalisation  GERD and functional constipation: affects 1 out of 6 people worldwide CBI - Ministry of Foreign Affairs 20

21. Herbal medicine systems Most common: Western Herbal Medicine Ayurvedic Traditional Chinese Medicine Aromatherapy Veterinary medicine CBI - Ministry of Foreign Affairs 21

22. Trade of MAPs vs. extracts  EU imports of MAPs  EU imports of extracts  Production of health ingredients  EU extraction industry  Suppliers of MAPs and extracts CBI - Ministry of Foreign Affairs 22

23. EU imports of MAPs, in € million CBI - Ministry of Foreign Affairs 23 1 2 3 3.8 South Africa EU28€ 659 million Top 3 Germany€ 201 million France€ 78 million Italy€ 62 million Source: Eurostat, 2015

24. EU imports of extracts, in € million CBI - Ministry of Foreign Affairs 24 1 2 3 1.7 South Africa EU28€ 546 million Top 3 Germany€ 124 million France€ 98 million Italy€ 57 million Source: Eurostat, 2015

25. EU imports of fruit/produce powders, in € million CBI - Ministry of Foreign Affairs 25 1 2 3 0.07 South Africa EU28€ 96 million Top 3 Spain€ 38 million Germany€ 9.3 million Italy€ 7.3 million Source: EU Export Helpdesk, 2015

26. Suppliers of MAPs, 2014, in value CBI - Ministry of Foreign Affairs 26 Source: Eurostat, 2014

27. Production of health ingredients EU/EFTA is a large MAPs producer  1,200 – 1,300 native species used  130 cultivated  Rest wild  (sub-)Tropical species are imported CBI - Ministry of Foreign Affairs 27 Western EuropeEastern Europe  organic  well-documented MAPs  close relationships buyers growing production, sustainable wild-collection

28. Largest EU MAPs producers Source: EUROPAM (European Herb Growers Association) CBI - Ministry of Foreign Affairs 28 European production 2005 (ha) 13,000 36,000 18,000 10,000 25,000 7,000

29. Suppliers of extracts CBI - Ministry of Foreign Affairs 29

30. EU extraction industry Concentrated, countries with strong herbal medicine tradition Germany: processes and trades largest share of MAPs in EU Poland: extraction and hub for products Eastern Europe CBI - Ministry of Foreign Affairs 30

31. Where is the market in Europe? Who buys you NIs? CBI - Ministry of Foreign Affairs 31 Salus Haus Omegapharma Neal’s Yard remedies Leading health products manufacturers in Europe? Salus: Own cultivation center Organic farming Cultivation in Chile: 600 ha Projects around the world Where are purchasing decisions taken? Direct contact with suppliers? A. Vogel Primavera Pukka Herbs Arkopharma Holland & Barrett Dr. Wilmar Schwabe

32. SMEs for health products in Europe? In most countries: industry consolidation  Italy: 700 small laboratories  UK: previously many SMEs  France: international players  Germany: large players, also in other markets CBI - Ministry of Foreign Affairs 32 Do these buy direct?

33. Leading health product manufacturers and traders in Europe? CBI - Ministry of Foreign Affairs 33 Naturex Indena Worlee Martin Bauer Or more specialised players? Regional focus? Natural? Certification? Ingredient categories? For all: Where? Who? What? How? Kräuter-Mix Pfannenschmidt EPO Nexira Fytosan

34. European organic markets CBI - Ministry of Foreign Affairs 34 Northern Europe  Developed & stable market  Sustainability: requirement from industry & consumers  Large organic market share:  High consumer purchasing power Southern Europe  Developed organic production  Developing market  High growth rates Eastern Europe  Promising market  High growth rates  Low consumer purchasing power and awareness

35. European fair trade markets CBI - Ministry of Foreign Affairs 35 Northern Europe High growth rates Sustainability: requirements from industry and consumers High consumer purchasing power Southern and Eastern Europe Low development and awareness Promising markets?

36. Information sources Food supplements:  France: www.synadiet.orgwww.synadiet.org  Italy: www.federsalus.itwww.federsalus.it Self-medication:  Association of the European Self-Medication Industry: www.aesgp.euwww.aesgp.eu Health products (food supplements, herbal medicine, ingredients):  www.nutraingredients.com www.nutraingredients.com  www.nutraceuticalsworld.com www.nutraceuticalsworld.com Trade data:  Eurostat: ec.europa.eu/eurostat (fee)  EU export helpdesk: exporthelp.europa.eu CBI - Ministry of Foreign Affairs 36

37. Questions and answers CBI - Ministry of Foreign Affairs 37