The dietary supplement and vitamin market in Israel and worldwide has experienced significant growth in recent years with an increasing number of consumers of all ages. In this article we will look at the reasons for this growth, current consumption trends, the pros and cons of supplements, and ask whether they are really necessary or just a psychological phenomenon that acts mainly on the brain and not so much on the body.
What’s good in Europe is good in Europe
Over the past decade, the consumption of dietary supplements and vitamins has skyrocketed worldwide, mainly in the United States, Europe and Asia. In the United States, more than 70% of the adult population takes dietary supplements regularly, while in Europe, per capita consumption is lower, but the market is growing at about 5% per year. Dietary supplements help address nutritional deficiencies caused by an unbalanced diet, a stressful lifestyle, chronic diseases and physical aging.
In Israel, dietary supplements are not subsidized as dietary supplements due to the economic cost, lack of consistency in demand, and scientific doubts regarding their effectiveness. Importing additives is complicated and expensive, making it difficult to lower prices for consumers. Strict regulations and the associated costs prevent many companies from initiating the import process and selling their products at a discount to the general public.
Health organizations are fighting against products high in fat, sugar and sodium, as well as smoking, but they have yet to incorporate dietary supplements into medicines and subsidize them, so the high price discourages many from taking them. The high cost of living is reflected not only in basic food items, but also in vitamin supplements.
The attempt to lower prices is similar to the reformulation of cosmetics and food products from abroad. Despite the slogan “What’s good for Europe is good for Israel,” in reality the process of importing additives is complicated and expensive. Rigid bureaucracy and high costs prevent many companies from starting the process, making it difficult to discount products for consumers.
Despite the health benefits of vitamins, the Israeli Ministry of Health does not treat them as a general health food.
There are several reasons for this:
Economic costs: Introducing vitamins and dietary supplements into healthcare imposes significant costs on the healthcare system.Lack of uniformity of needs: Not everyone needs supplements, and everyone has different nutritional needs.Scientific questions: Some supplements have not been scientifically proven to be effective for the general population.
Price differences and strict regulations are major challenges in the vitamin and supplement market, making it difficult for consumers to afford them.
The global vitamin and supplement market generates $140 billion in sales per year. In the United States, the market size is estimated at about $40 billion per year, while in Europe the annual per capita consumption is about 70 euros. In Israel, the market is growing and generates annual sales of 1 billion shekels, with an average monthly consumption per consumer of about 150 shekels. According to a survey by the company SATISTA, Italians lead the consumption in Europe, while Russian consumers rank last. In Israel, per capita consumption is low compared to Europe, but the market is developing with great growth potential.
The factors driving the market growth in recent years include:
Awareness of health and quality of life: People are aware of the need to maintain their health through proper nutrition and replenishing deficiencies.Ageing population: A growing elderly population demands solutions to prevent disease and nutritional deficiencies.Medical Support: In cases of nutritional deficiencies and various medical conditions, doctors may recommend nutritional supplements.Raising awareness of sports and health: Athletes and fitness enthusiasts use supplements to improve performance and recovery.Corona crisis: Strengthens the immune system and compensates for nutritional deficiencies.
Popular Types and Common Brands of Vitamins
There are several vitamins and supplements that are particularly popular in Israel and around the world. Vitamins such as Vitamin D, Vitamin C, Vitamin B12 and Omega 3 are the most popular due to their numerous health benefits. They are primarily sought after by the elderly, pregnant women and consumers who avoid animal products. In Israel, brands such as Solgar, Altman and Nutrilite dominate. Globally, brands such as Centrum, Nature’s Bounty and GNC lead the market.
The Israeli market has a wide variety of brands and consumption channels, including independent pharmacies, health insurance pharmacies, pharmacy chains such as Be and Super-Pharm, and dedicated sales sites. The market is almost evenly divided into three segments, with the online market showing rapid growth and attractive price competition for consumers.
(Credit: MAARIV)
On-site price difference
We surveyed Israeli pharmaceutical chains and sales sites and found a price difference of more than 130% for the same products. The ones that surprised us with their fair prices were the chains that are not included in the three cheapest marketing chains, such as Tiv Taam and Shufersal, which offer a particularly attractive range. Browsing vitamin company websites can save you a lot of money.
(Credit: MAARIV)
Consumption patterns and purchasing barriers
This sector is categorized according to consumer characteristics.
Younger, more savvy consumers: Conduct detailed searches on the web to identify opportunities and trustworthy sites.Older consumers: Lack of trust in online purchases leads to a preference for purchasing in a brick-and-mortar store, which is more familiar to them.
A major obstacle when buying medical products is the lack of control and reliability of products on unfamiliar websites and stores, with consumers preferring to buy from well-known, reputable chains, even if it means a higher price.
“As natural foods and supplements have become part of the shopping basket and daily consumption, our strategy has been to locate within large specialty department stores and staffed with knowledgeable and understanding service representatives to enable consumers to shop all in one place,” said Yosi Shall, vice president of Tiv Term and Eden Teva Markets. “We are also focused on being price competitive in this segment and strive to offer the most profitable basket to our customers in this area.”
Online sales channels are growing not only in the domestic market but also on international sites such as IHERB, a popular dietary supplement purchasing platform for Israeli consumers, which offers a wide range of products at affordable prices compared to prices in Israel.
Purchasing nutritional supplements from abroad is becoming increasingly popular due to low prices and a wide variety. It is important to check the product’s quality, compliance with strict standards in the country of origin, and user reviews. Large websites offer attractive advertisements and discounted prices, but stricter standards by the Ministry of Health are intended to ensure that the products being sold are trustworthy and safe to use.
(Credit: INGIMAGE)
The pros and cons of taking vitamins and supplements
advantage:
Filling nutritional deficiencies: It helps prevent deficiencies of vitamins and minerals that are essential for the normal functioning of the body.
Improved physical and cognitive function: Contributes to improved overall health, including brain function and physical performance.
Immune System Support: It strengthens the immune system and helps prevent illness.
Demerit:
Risk of overdose and side effects: Excessive consumption may be harmful or have adverse effects on your health.
High cost: High-quality supplements are expensive and not always subsidized.
Poor product quality control: Especially when buying online, there is a risk of purchasing a product that does not meet your strict standards.
The Israeli and global dietary supplements and vitamins market is on a growing trend due to the increasing awareness of health and quality of life. However, the need for supplements, their advantages and disadvantages, and price differences in the market must be carefully considered. Increasing awareness and oversight can have a positive impact on public health and reduce financial expenditure.
Lack of oversight and regulation by the state and the Ministry of Health leads to large price differences between store chains and websites, sometimes exceeding 100% of the product price. Household expenditure in this area is not negligible, and when doctors and nutritionists recommend taking vitamins, the relevant authorities, such as the Ministry of Health and the Ministry of Finance, must work on regulations that benefit all Israelis and help maintain their health and reduce morbidity.
It is processed through the Pricez system, CHP, ZAP and advertising of chains and stores in the network, based on price updates of marketing chains published on the Ministry of Economy’s website.
