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| Vitamins take Australia | Vitamins take Australia |
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| The vitamins and supplements industry is big business in Australia, worth an estimated $1.5bn each year. With heavily produced celebrity endorsements, huge in-store displays and unprecedented sales, an overwhelming majority of Australians now count themselves as customers. The Swisse brand, a privately owned Australian venture, is the rising star, with a legion of sports personalities and Hollywood names such as Nicole Kidman and Ellen DeGeneres promoting its motto: “Live healthy, be happy.” It has grown 380% in the last four years and is expanding rapidly at home and abroad. | The vitamins and supplements industry is big business in Australia, worth an estimated $1.5bn each year. With heavily produced celebrity endorsements, huge in-store displays and unprecedented sales, an overwhelming majority of Australians now count themselves as customers. The Swisse brand, a privately owned Australian venture, is the rising star, with a legion of sports personalities and Hollywood names such as Nicole Kidman and Ellen DeGeneres promoting its motto: “Live healthy, be happy.” It has grown 380% in the last four years and is expanding rapidly at home and abroad. |
| But why are Australians embracing the vitamins and supplements industry like never before? Are they simply responding to wall-to-wall advertising by the big players, a line pushed by many in the medical fraternity, or has there been a shift in the way we think about health? Is it part of a preoccupation with healthy living or the product of the worried well? | But why are Australians embracing the vitamins and supplements industry like never before? Are they simply responding to wall-to-wall advertising by the big players, a line pushed by many in the medical fraternity, or has there been a shift in the way we think about health? Is it part of a preoccupation with healthy living or the product of the worried well? |
| A decade ago, around 50% of Australians took complementary medicines, including vitamins, minerals, traditional medicines, herbs, aromatherapy and homeopathic products, according to a study done in South Australia. Now the figure could be as high as 75%, Jon Adams, an expert in the field from the University of Technology, Sydney (UTS), estimates, although no comprehensive national reporting system exists. The industry is growing at up to 12% annually and, according to the National Institute of Complementary Medicine, almost four times as much in out of pocket expenses is spent on complementary medicine in Australia as on pharmaceuticals. | A decade ago, around 50% of Australians took complementary medicines, including vitamins, minerals, traditional medicines, herbs, aromatherapy and homeopathic products, according to a study done in South Australia. Now the figure could be as high as 75%, Jon Adams, an expert in the field from the University of Technology, Sydney (UTS), estimates, although no comprehensive national reporting system exists. The industry is growing at up to 12% annually and, according to the National Institute of Complementary Medicine, almost four times as much in out of pocket expenses is spent on complementary medicine in Australia as on pharmaceuticals. |
| According to Adams, professor of public health and director of the Australian Research Centre in Complementary and Integrative Medicine at UTS, the growing use of alternative medicines is part of the development of a “paradigm of wellness” in the community. | According to Adams, professor of public health and director of the Australian Research Centre in Complementary and Integrative Medicine at UTS, the growing use of alternative medicines is part of the development of a “paradigm of wellness” in the community. |
| “People are looking to improve their lot and are thinking more proactively and holistically about health and not just about responding to illness. It’s a message the healthcare system in general promotes, whether it’s about quitting smoking or having a good diet,” he said. | “People are looking to improve their lot and are thinking more proactively and holistically about health and not just about responding to illness. It’s a message the healthcare system in general promotes, whether it’s about quitting smoking or having a good diet,” he said. |
| Adams says vitamins and supplements have become firmly entrenched in the way people think about their health, whether or not there is convincing evidence that the products work. | Adams says vitamins and supplements have become firmly entrenched in the way people think about their health, whether or not there is convincing evidence that the products work. |
| “When you look at the data,” he said, “one of the most important things you notice is that it’s not just a middle-class phenomenon or people who are wealthy who are using complementary medicine. It’s men and women of all ages and socio-economic groups, right across the country.” | “When you look at the data,” he said, “one of the most important things you notice is that it’s not just a middle-class phenomenon or people who are wealthy who are using complementary medicine. It’s men and women of all ages and socio-economic groups, right across the country.” |
| Women represent the largest group of purchasers, according to a survey by the Roy Morgan group last year. It reported that 73% of first-time mothers-to-be had bought vitamins in the previous six months, as had 62% of expectant mothers, 44% of women in general and 31% of men. | Women represent the largest group of purchasers, according to a survey by the Roy Morgan group last year. It reported that 73% of first-time mothers-to-be had bought vitamins in the previous six months, as had 62% of expectant mothers, 44% of women in general and 31% of men. |
| “These people are not radical consumers who have decided they don’t like conventional medicine,” said Adams. “The evidence shows that the vast majority of them, here and around the world, either alternate between the two [different types of medicine], or use them concurrently.” | “These people are not radical consumers who have decided they don’t like conventional medicine,” said Adams. “The evidence shows that the vast majority of them, here and around the world, either alternate between the two [different types of medicine], or use them concurrently.” |
| According to the World Health Organisation (WHO), the industry’s growth has also been prompted by concerns about adverse side-effects of some conventional drugs. Its 2011 report on world medicine said there was a view in many industrialised countries that complementary medicine offered a gentler way of managing disease. In Australia, as in other markets, an ageing population and growing obesity figures are also contributing factors. | According to the World Health Organisation (WHO), the industry’s growth has also been prompted by concerns about adverse side-effects of some conventional drugs. Its 2011 report on world medicine said there was a view in many industrialised countries that complementary medicine offered a gentler way of managing disease. In Australia, as in other markets, an ageing population and growing obesity figures are also contributing factors. |
| The WHO estimates the international market for complementary medicine is worth $83bn and is experiencing “exponential growth”. The US, where 80% of the population is either overweight or obese, is the biggest player. China is second, worth an estimated $11bn per year (in 2011, according to Euromonitor). Other parts of Asia are also growing: Malaysia at 6% each year, South Korea 11% and Thailand 20%. They are increasingly important target markets for Australian brands wanting to expand internationally. | The WHO estimates the international market for complementary medicine is worth $83bn and is experiencing “exponential growth”. The US, where 80% of the population is either overweight or obese, is the biggest player. China is second, worth an estimated $11bn per year (in 2011, according to Euromonitor). Other parts of Asia are also growing: Malaysia at 6% each year, South Korea 11% and Thailand 20%. They are increasingly important target markets for Australian brands wanting to expand internationally. |
| Australia’s market is dominated by a few big players, including the long-time industry leader, Blackmores; PharmaCare, which owns a number of brands including Nature’s Way, and Swisse, which this year will spend around $50m (or approximately 30% of its revenue) on marketing and in-store promotions. Swisse has transformed itself from a loss-making minnow of the industry four years ago into a serious contender for top position. According to the Nielsen research group, Swisse increased its media spend in 2012 by 54% compared with the previous year. It reflects the growth in advertising in the vitamins and supplements category generally, which was up 22% in 2012, according to Nielsen. | Australia’s market is dominated by a few big players, including the long-time industry leader, Blackmores; PharmaCare, which owns a number of brands including Nature’s Way, and Swisse, which this year will spend around $50m (or approximately 30% of its revenue) on marketing and in-store promotions. Swisse has transformed itself from a loss-making minnow of the industry four years ago into a serious contender for top position. According to the Nielsen research group, Swisse increased its media spend in 2012 by 54% compared with the previous year. It reflects the growth in advertising in the vitamins and supplements category generally, which was up 22% in 2012, according to Nielsen. |
| At Swisse’s Australian headquarters, staff are treated to organic grilled salmon and salad at lunch-time, a full-time personal trainer, free fortnightly massages and a “health and happiness” day off most months. According to Swisse’s chief executive, Radek Sali, 36, looking after his employees reflects the culture of “wellness” at Swisse. In the four years he has been CEO, Swisse’s revenue has grown from $45 to $170m. | At Swisse’s Australian headquarters, staff are treated to organic grilled salmon and salad at lunch-time, a full-time personal trainer, free fortnightly massages and a “health and happiness” day off most months. According to Swisse’s chief executive, Radek Sali, 36, looking after his employees reflects the culture of “wellness” at Swisse. In the four years he has been CEO, Swisse’s revenue has grown from $45 to $170m. |
| “Last quarter sales were very close to being number one in the whole category, so things are going very well,” he said. | “Last quarter sales were very close to being number one in the whole category, so things are going very well,” he said. |
| Sali says as well as changing public perceptions about complementary medicines, much of the growth in recent years has come through Swisse’s push into the big grocery chains, Coles and Woolworths, though few will have missed its recent TV advertising blitz. He says Australians are embracing alternative medicine because it’s “risk-free” and they want to take control of their health. | Sali says as well as changing public perceptions about complementary medicines, much of the growth in recent years has come through Swisse’s push into the big grocery chains, Coles and Woolworths, though few will have missed its recent TV advertising blitz. He says Australians are embracing alternative medicine because it’s “risk-free” and they want to take control of their health. |
| “If it’s not harming anyone and it is making people feel healthier and happier, why wouldn’t we have more of that?” Sali said. | “If it’s not harming anyone and it is making people feel healthier and happier, why wouldn’t we have more of that?” Sali said. |
| It’s an approach that has come in for criticism from some in the medical community who accuse the industry of selling products for the gullible without strong evidence that they work, something the industry denies. | It’s an approach that has come in for criticism from some in the medical community who accuse the industry of selling products for the gullible without strong evidence that they work, something the industry denies. |
| Ken Harvey, adjunct professor at La Trobe University’s school of public health, says some vitamins and supplements have “dubious benefits at best”. He cites Omega 3 as an example. | Ken Harvey, adjunct professor at La Trobe University’s school of public health, says some vitamins and supplements have “dubious benefits at best”. He cites Omega 3 as an example. |
| “Basically, there is no good evidence that supplementing Omega 3 to normal children with a reasonable diet improves their brain function,” he said. | “Basically, there is no good evidence that supplementing Omega 3 to normal children with a reasonable diet improves their brain function,” he said. |
| The industry as a whole came under fire in 2010 after a review of complementary medicine products by the Department of Health and Ageing found that as many as 90% of those examined did not comply with regulations, including labelling breaches which it said might “mislead” customers. The report also said some products lacked evidence to substantiate the claims made for them. The industry as a whole is regulated by the Therapeutic Goods Administration (TGA), which checks products for safety, but, unlike the regime for prescription medicines, not whether they work. The TGA is currently conducting a review into how it regulates complementary medicine. | The industry as a whole came under fire in 2010 after a review of complementary medicine products by the Department of Health and Ageing found that as many as 90% of those examined did not comply with regulations, including labelling breaches which it said might “mislead” customers. The report also said some products lacked evidence to substantiate the claims made for them. The industry as a whole is regulated by the Therapeutic Goods Administration (TGA), which checks products for safety, but, unlike the regime for prescription medicines, not whether they work. The TGA is currently conducting a review into how it regulates complementary medicine. |
| Whatever the reasons for people are choosing to use more complementary medicines – whether it is increased advertising, the desire for “wellness”, or concerns about the side-effects of conventional medicine – Adams said their popularity was a reality that could not be ignored by anyone with a stake in the debate. | Whatever the reasons for people are choosing to use more complementary medicines – whether it is increased advertising, the desire for “wellness”, or concerns about the side-effects of conventional medicine – Adams said their popularity was a reality that could not be ignored by anyone with a stake in the debate. |
| He said: “To the people who argue to shut down complementary medicine, I’d say it is highly likely that a large proportion of people who are seeing their GP are also using complementary medicine. What we really need is better empirical evidence on who is taking what, when, how much and why, so we can make informed decisions about healthcare in our community.” | He said: “To the people who argue to shut down complementary medicine, I’d say it is highly likely that a large proportion of people who are seeing their GP are also using complementary medicine. What we really need is better empirical evidence on who is taking what, when, how much and why, so we can make informed decisions about healthcare in our community.” |
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