Page 50 - Malaysian Dietary Supplement Industry Status and Outlook Report 2019-2020 Preview

• Men's Health. Products focus specifically on men’s
health, including sexual health.
• Women's Health. Products focus specifically on
women’s health, including sexual health.
• Glucose Control. Products focus on glucose control,
such as for diabetes sufferers.
• Healthy Ageing. Products for the elderly, focussing
on promoting general health, mental health, and
emotional wellbeing.
• Skin/Beauty. Products focus on promoting healthier
and/or younger skin.

Competition in the above market segments are intense and
diversified, with multiple local and international brands
competing alongside the market leaders.

Price Positioning
Pricing analysis conducted in Q1 2019 indicated that the
average cost-per-unit of vitamin and mineral supplement
products ranged between RMn.nn -RMn.nn, with the highest
being multi-vitamin and multi-mineral products. The
average cost-per-unit of non-vitamin and mineral
supplement products ranged between RMn.nn -RMn.nn, with
the highest being probiotic products.

At RMn.nn, the average cost-per-unit of non-vitamin and
mineral supplement products is approximately 2.1 times
higher than the average cost-per-unit of vitamin and mineral
supplement products (RMn.nn). The higher cost-per-unit
position is also reflected in the average SKU retail price,
where non-vitamin and mineral supplement products
(RMnnn) are approximately 1.8 times higher than vitamin
and mineral supplement products (RMnnn).

The pricing dynamics of dietary supplement products are
dependent on a combination of factors. The cost of
ingredients is one such factor, although it is typically not the
major cost component. Another factor is the cost of
marketing and distribution. Non-vitamin and mineral
supplements, particularly for first-time products being
introduced to the market, require significantly more
consumer education and outreach investments compared to
vitamin and mineral supplements. Marketers would also
need to invest quite significantly into branding in order to
separate themselves from a highly competitive market.

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