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Most of the younger generation in Malaysia consume nutraceutical products on a regular basis. In general, young Malaysians are more educated and aware of the importance of maintaining their health compared to their elders. They place more emphasis on being healthy by making specific food choices, therefore they look for food products that incorporate nutritional ingredients, which provide specific health benefits. This factor is expected to drive the growth of the nutraceuticals market in Malaysia from 2006-2012.
An increasing number of Malaysians are suffering from chronic diseases such as high blood pressure, osteoporosis, cancer and diabetes. In addition to taking the prescribed medication given by doctors, an increasing number are consuming nutraceutical products to help improve their medical condition. For example, consumers suffering from osteoporosis are taking calcium supplements while those suffering from cancer are taking spirulina. The impact of this factor on the growth of this market is expected to gradually increase, becoming more significant in the long term.
In terms of nutraceutical products, Malaysia is not a trend setter. If a certain product has done well especially in countries such as the USA, Australia and Japan, it is also likely to do well in Malaysia. However, a product that has not been launched elsewhere is not likely to get any attention in Malaysia without significant promotional and marketing investments.
There is no specific regulation or standards for functional foods or nutraceuticals in Malaysia. However, the control of the 'functional' claims of these foods is regulated under the nutrition-labelling and claims provision of the Food Regulations of 1985. Health claims are not allowed in Malaysia. A committee was set up in 2001 to classify foods and drugs. Foods are regulated by the Food Quality Control Unit while the Drug Control Authority regulates drugs.
All herbal, health and dietary supplements and traditional medicines are classified as non-poison, over-the-counter (OTC) or traditional products in Malaysia and are regulated by the National Pharmaceutical Control Bureau (NPCB) under the Ministry of Health. The terms ‘herbal’, ‘health’ and ‘dietary supplements’ are not legally defined, but are generally accepted to mean products that are used to supplement the diet. These products are ingested orally and can be in the form of pills, capsules, powders or liquids.
The Drug Control Authority of the NPCB is the executive body that is responsible for the safety, quality and efficacy of pharmaceutical, health and personal care products in Malaysia. All manufacturers, importers and wholesalers of all herbal, health and dietary supplements and traditional medicines are required to register with the Drug Control Authority.
Nutraceutical manufacturers in Malaysia use two main distribution channels, depending on the type of product.
For health supplements in pill, tablet and liquid forms, pharmacies and multi-level marketing (MLM) companies are the main distribution channels followed by health food stores. MLM companies (or direct-selling firms) are driving the growth of the nutraceuticals products in Malaysia through effective word-of-mouth promotion. There are around 520 licensed direct-selling companies in Malaysia. Examples of companies selling nutraceutical products are Amway, Cosway, Elken and Zhulian.
The health benefits and advantages of consuming nutraceuticals are conveyed on an individual basis to consumers by these companies. As a result of this one-on-one marketing approach, consumers feel more confident about purchasing these products.
For products such as cod liver oil and essence of chicken, and functional foods (eg. yoghurt drinks), hypermarkets, supermarkets and grocery stores are the main distribution channels.
The distribution channels are expected to remain the same in the short-term, although in the medium and long-term of this study period, supermarkets and hypermarkets are expected to increase their market share at the expense of pharmacies.
The Internet is not likely to experience major growth as a distribution channel during the forecast period, although it may be used as a valuable tool to complement other distribution channels. For example, MLM companies use the Internet to promote and sell their products. Consumers in Malaysia still prefer to physically see the product before buying them.
Ministry of Health – www.moh.gov.my/MohPortal/index.jsp?lang=en
Malaysian Dietary Supplement Association (MADSA)
Tel: (+603) 7965 2700
Fax: (+603) 7965 2727
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