According to the National Agency for Drug and Food Control, the health supplement market was around US$313 million in 2008, 80% of which was imported products.
- The food supplement market in Indonesia grows 14 percent per year.
- In Indonesia, approximately 200 pharmaceutical companies produce food supplements and 30 direct sellers that sell using multi-level marketing (MLM).
- America is the main exporter for the food supplement market in Indonesia, accounting for about 70 percent.
- In 2013, Indonesia adopted the ASEAN harmonization regulation for traditional medicine health supplements (TMHS).
- The children’s vitamin market in Indonesia reached US$43.3 million in 2010.
In 2012, total sales for health food supplements was US$1.6 billion and it was expected to grow 15 percent. Average annual growth in this sectors is 14 percent.
In addition, the World Health Organization announced that Indonesia’s average spending per capita for medicine increased from US$18 to US$125. This is associated with the vast growth of the middle class from just 37.7% in 2003 to over 50% in 2020 along with its growing buying power. The Indonesian economy is growing as are other forces that support the food supplement business, such as the low quality of health in Indonesia. For example, the Indonesian Nutritionist Association published that the average height of an Indonesian teenager is currently 6.7 cm less than it should be.
ASEAN Harmonization Regulation for Traditional Medicine Health Supplements (TMHS)
Other conditions, such as increasing and its related complications are also fueling the market. At the end of May 2013, Indonesia’s food and drug agency (BPOM) announced that the country decided to adopt the terminology in the ASEAN harmonization regulation for traditional medicine health supplements (TMHS).
The TMHS regulatory framework defines healthy food supplements and properly regulates health supplements as a sector. Indonesia has an enormous market with more than 240 million people, along with the highest rate of trade growth in the ASEAN. By implementing this regulation, Indonesia will have paved the way toward eventual implementation of the ASEAN harmonized regulations for this category, which are expected in 2015. Currently, health food supplements fall under either food or drug law, so it is not always clear. A separate category for health supplements will give these products a clearly defined position.
According to Asosiasi Pengusaha Suplemen Kesehatan Indonesia (APSKI), approximately 200 pharmaceutical companies produce food supplements. Another 30 direct sellers sell using multi-level marketing (MLM), but only 40 joined in APSKI. It is difficult to work with some Indonesia producers that produce substandard quality food supplements. The effect is that some countries doubt the quality of food supplements from Indonesia. Through Indonesia’s food and drug agency, the government will more tightly control and monitor production.
Imported Food Suplement
In contrast, U.S. health food supplements have a sterling reputation in Indonesia. They accounted for about 70 percent the the market share in Indonesia. This means when the market for health food supplements in Indonesia was estimated at US$313 million in 2008, imported U.S. products accounted for US$180 million.
According to Global Trade’s data, the best sales prospects include diet and aesthetics product. Those items affect physical appearance, including weight loss; items that prevent degenerative diseases such as cardiovascular disease, hypertension, and osteoporosis; products that improve sex life and stamina; and vitamins. The imported food supplement market is concentrated in Jakarta, Bandung, Surabaya, and Medan.
In 2010, the market for children’s vitamins in Indonesia reached US$43.3 million. By 2015, the population aged 0 to 14 is estimated to be 65.31 million (34% of the Indonesian population). A number of companies have entered the Indonesian children’s vitamin market, such as GlaxoSmithKline, Tempo Scan Pacific, Merck, and Bayer.
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