Page 40 - Malaysian Dietary Supplement Industry Status and Outlook Report 2019-2020 Preview

Structure of the Malaysian

Dietary Supplement Industry

Part A. Industry Value Chain

The Malaysian dietary supplements industry value chain
comprises 6 main categories of players:

• Ingredient suppliers operate in the value chain’s
upstream. Their primary economic activity is to
supply the industry with dietary supplementary
ingredients, such as vitamins, minerals, herbal and
non-herbal extracts, and other bio-active ingredients.
The lion’s share of dietary supplement ingredients in
Malaysia are imported. Locally processed
ingredients constitute a very small percentage of the
domestic market.
• Solution providers are firms situated between the
upstream and midstream segments of the value
chain, providing specialized services and solutions in
areas such as product conceptualization, formulation,
and related services (e.g. product registration).
Solution providers may also provide R&D and/or
testing services via onsite or offsite facilities.
• Dietary supplement manufacturers can be
categorized into product and component
manufacturers. Product manufacturers undertake
the complete manufacturing of ingredients,
components, processing (e.g. mixing, homogenizing,
etc.), and packaging into finished, on-the-shelf
products. Component manufacturers do not
manufacture finished, on-the-shelf products, and
they include capsule makers, bottle makers, and
ingredient manufacturers. Malaysian OEM/ODM
dietary supplement manufacturers are established in
both domestic and international markets.
• Marketers are the brand owners or (licensed
distributors representing brand owners) of dietary
supplement products. Brand owners include global
brand owners, local brand owners, and private labels.
Marketers undertake promotional activities for
dietary supplement products, support downstream
retail activities, and engage consumers in product
(On facing page) education and awareness programmes. Marketers
Figure 2.1: The Malaysian Dietary are divided along their primary mode of sales
Supplement Industry Value Chain and distribution. Established marketers in Malaysia
Categorical Breakdown. either operate predominantly through direct selling
channels (single-level or multi-level marketing) or
Source: MADSA. brick-and-mortar channels.

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