the Evolving landscape of Health Supplements

The health functional food market is currently undergoing a meaningful change, characterized by a divergence into two distinct segments. On one side, we see the rise of affordable, conveniently packaged products readily available in mass-market retail outlets. Conversely,a growing demand for personalized health solutions is fueling expansion in the pharmacy sector,emphasizing expert consultation and tailored formulations.

The Rise of Low-Cost,Multi-Channel Distribution

Driven by consumer demand for accessible and affordable options,several pharmaceutical companies are strategically expanding their distribution networks. this includes partnerships with discount retailers like Daiso, convenience store chains such as GS25, and drugstores. The trend focuses on offering smaller, more affordable packages of popular supplements, making them easily accessible to a broader consumer base.

Currently, six pharmaceutical companies, including Daewoong Pharm, Chong Geun Dang Health, Anguk Pharm, Dongguk Pharm, DXVX, and Boryeong, have established a presence in Daiso. GS25 plans to introduce similar low-cost products in approximately 3,000 stores nationwide in the latter half of the year, collaborating with major pharmaceutical firms to achieve this goal. This diversification strategy reflects a broader industry shift towards meeting consumer preferences for value and convenience.

This trend aligns with broader consumer behavior. According to a recent survey by Statista, consumers are increasingly prioritizing affordability and convenience when purchasing health and wellness products. This shift is prompting companies to adapt their strategies to remain competitive.

Pharmacies Embrace Customization and Expert Guidance

In contrast to the mass-market approach, pharmacies are carving out a niche by offering personalized health functional food services. This strategy leverages the expertise of pharmacists and the growing consumer interest in tailored health solutions.

The introduction of the customized health functional food sales system by the Ministry of Food and Drug Safety, following pilot projects initiated in 2020, has further empowered pharmacies. This system allows qualified professionals,including pharmacists,to provide personalized consultations and dispense customized supplement formulations in small quantities.

To become a certified customized health functional food manager, individuals must hold qualifications as a pharmacist, doctor, dentist, oriental doctor, nurse, nutritionist, or herbal medicine practitioner. This ensures that consumers receive informed guidance based on their individual health needs and medication history.

The Korean Pharmacy Society is actively supporting this initiative by providing online education and training resources for pharmacists through the Korea Pharmaceutical Society, Health Functional Food safety and Sanitation Education Center. These resources cover general sales education, customized dry food sales education, and specialized training for customized dry food managers.

The consumer who is looking for low-cost dryness and the consumer of the pharmacy is different.

An official of the Korean Pharmacy Society

Industry Response and Future Outlook

Kolmabi & H has already responded to this trend by developing a range of pharmacy-exclusive subdivision products. This proactive approach highlights the industry’s recognition of the growing importance of personalized health solutions.

While the trend towards low-cost, readily available supplements presents challenges for existing companies, industry experts emphasize the importance of product satisfaction and quality. Simple price competition alone may not be a sustainable strategy in the long run.

The market trend is flowing at low prices and packages, so existing dry-food sales companies are having a lot of difficulties. however, in the long run, product satisfaction should be high, so it will be difficult to survive with simple price competition.

An official of the industry