In 2005, the nutraceutical market in Singapore was valued at $112.2 million. By 2012, the market is likely to be worth $190 million.
The market in Singapore is highly competitive. In addition, the penetration rate of specific nutraceutical products (particularly dietary supplements) is nearing saturation due to the country's small population. Growth throughout the forecast period is expected to depend on Singaporeans consuming more nutraceutical products rather than on an increase in the rate of penetration of such products.
Singaporeans are experiencing longer life expectancies due to an increase in health consciousness and the availability of better healthcare facilities. However, cases of obesity, diabetes, high blood pressure and cardiovascular diseases are also on the rise as Singaporeans are increasingly adopting Western diets by eating foods that have high saturated oil, salt and sugar content.
As a result of the growing trend towards self-medication and consumer awareness levels about the health benefits associated with nutraceutical products, there is likely to be an increase in consumption of such products in Singapore.
Specific products that address weight management and anti-aging concerns as well as those that boost the immune system, enhance bone health and alleviate symptoms of certain diseases have the highest market potential.
The Health Sciences Authority (HSA) of Singapore published the Health Supplements Guidelines in November 2005 to help the understanding and application of the laws and regulations related to the control of health supplements.
In June 2005, the HSA proposed to table a bill in the parliament to enact the Health Products Act. Although health supplements are not defined in the legislation, it covers the following products (as defined in the Medicines Act and its subsidiary legislation and are presented in the forms of capsules, soft gels, tablets, liquids, syrups or any other forms approved by the Licensing Authority):
- Vitamins, minerals and amino acids (natural and synthetic)
- Naturally-sourced substances, including non-human, animal and botanical materials in the forms of concentrates, isolates and extracts
The importation, manufacture and sale of health supplements are not subject to pre-market approvals and licensing. The dealers and sellers are responsible for the safety and the quality of health supplements. The health claims made has to be consistent with the definition of health supplements and adequately supported by scientific evidence.
Examples of misleading claims include statements that the products can 'enhance intelligence', are 'anti-stress' or that they provide 'height growth'.
Nutritional health claims such as to 'nourish the body' and 'relieve general tiredness' as well as functional health claims such as providing the 'general maintenance of healthy functions' are allowed, provided that the manufacturers have strong scientific evidence to support them.
The existing distribution channels for nutraceutical products in Singapore include:
- Pharmacies
- Health food stores
- Traditional Chinese medicine shops
- Multi-level marketing (MLM) companies
- Supermarkets
- Hypermarkets
In 2005, around 60 per cent of nutraceutical products were sold to consumers through pharmacies and about 25 per cent through health food stores. The remaining 15 per cent was distributed by supermarkets, hypermarkets, MLM companies and Chinese medicine shops. Supermarkets, hypermarkets and MLM companies are expected to increase their market share.
For dietary supplements, the major distribution channel for manufacturers in Singapore is the pharmacy. In 2005, Guardian and NTUC Healthcare Pharmacy were the two major pharmacy chains and are expected to maintain their market shares.
Health food stores are also a key distribution channel for nutraceutical products in Singapore. The leading health food stores are operated by Nature's Farm and General Nutrition Centers (GNC).
The Internet is not likely to become a major distribution channel as the Singapore market is small and Singaporeans prefer to shop for the products in person. However, the Internet serves as a valuable tool to complement existing businesses.