The food suppliment supply chain: a growing market

The food suppliment supply chain: a growing market

The food supplements market is constantly growing in Europe. In Italy, the food supplements market grows even more than the European average and produces 3.3 billion euros, about 20.6% of the whole European revenue of the sector (data Euromonitor). Within the food supplements market, the distribution chain plays a role of primary importance, with very precise rules and the growing demand to observe the GDP standards.

THE SUPPLEMENT FOODS MARKET DATA

According to FederSalus data, in 2018 Italy was once again the main market in Europe by size (over 20% of the entire European market) and growth: +23 followed by Germany (13%), France (9%) and Great Britain (8%). This growth is mainly caused by the growing interest of consumers in this type of product, as a possible and reliable cure for health and well-being. The Italian food integrators industry, stimulated by an increasingly demanding and conscious demand from consumers, pharmacists and doctors, is dynamic and oriented towards continuous innovation with an increase in investments both in research and development and in systems and technology for the production, distribution and conservation. Therefore the food supplements consumption increases and with it the need for producers to invest in continuous innovation in production and distribution. The distribution process, in particular, is very delicate and is affected by the right practices dictated by GDP.

PRODUCTION CHAIN TRENDS

The main production model of integrators is that of production for third parties (contract manufacturing) by high quality companies.

In addition, over 73% of respondent companies producing food supplements are made in Italy and then directed to numerous distribution channels in Europe and other continents, particularly China.

Italian companies also target international markets with 22% of companies exporting over a quarter of turnover.

Trends in the distribution chain

Also on the front of the distribution of the integrators, wide use is made of third parties, equipped with certifications and technologies suitable for storing and transporting the products at a controlled temperature.
The movements of products from a production site to retailers are guaranteed by vans capable of maintaining the temperature between 15 and 25 degrees. The same applies to warehouses, which must have the same temperature. The ideal partners are able to certify compliance with the required temperatures at any time.

This collaboration between producers against third parties and logistics partners specialized in the supply chain of natural products and integrators guarantees the high quality standards recognized to these products in Italy and around the world.

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