SOUTH AFRICAN

DIGESTIVE HEALTH (PROBIOTICS)

INDUSTRY LANDSCAPE REPORT

COMPILED: SEPTEMBER 2018

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REPORT OVERVIEW

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The South African Digestive Health (Probiotics) Industry Landscape Report (96 pages) provides a dynamic synthesis of industry

research, examining the local and global Probiotics industry from a uniquely holistic perspective, with detailed insights into the entire

value chain – from manufacturing to retail trends and pricing analysis.

For the Global Probiotics Industry Section:

What are the current segmentation and market dynamics (market size, market value, market environment, key regional markets)

of the Global Probiotics industry?

What are the Global Probiotics industry trends, drivers, and challenges?

For the South African Probiotics Industry Section:

What are the current market dynamics (market size, market value, market volumes - 2012-2017 Actual, 2018-2022 Forecasts) of

the South African Probiotics industry?

Who are the key manufacturing players in the South African Probiotics industry?

What are the South African industry trends, drivers, and challenges?

For the South African Retail and Pricing Analysis Section:

Who are the key retail players (pharmacies, in-store retail pharmacies, hospital-based pharmacies, and other retail outlets) in the

South African Probiotics industry?

What are the prices of Prebiotics, Probiotics, and Digestive Enzyme brands across South African retail outlets?

SOME KEY QUESTIONS THE REPORT WILL HELP YOU TO ANSWER:

SCREENSHOTS FROM REPORT

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96 page report filled with detailed charts, graphs, tables and insights

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Asia-Pacific North America Europe

TOP 3 LARGEST GLOBAL PROBIOTICS MARKETS: 2018 (IN US$ BILLION)

1. Asia-Pacific

❑ The Asia-Pacific market is the largest regional Probiotic market

globally, with a market size of US$24.4 billion in 2018, with a

CAGR of 7.0% expected to take the market to US$34.4 billion in

2023. The region accounted for 38% of market share in 2017.

❑ The size and growth of the region’s Probiotics market is largely

due to the adoption of Probiotic-based food and beverage

products amongst consumers in the region. The Bacteria-derived

Probiotic product segment is predicted to continue to dominate

due to yeast strains that are still being researched and tested..

❑ Within the Asia-Pacific market, Japan accounted for the largest

share with 45% of the regional Asia-Pacific Probiotics market,

while China is expected to grow at a CAGR of approximately of

13.2% between 2018 and 2023.

2. North America

❑ North America is the second largest regional Probiotic market, with a market value US$16.7 billion in 2018. The market is set to grow at a CAGR of 5.4% to reach US$21.8 billion by 2023

❑ Consumption of processed foods, poor dietary habits and large intake of antibiotics as well as dairy is expected to increase demand in this region

Source: GlobeNewsWire; GMInsights; MordorIntelligence; MarketDataForecast; MDF2; MDF3 Image Source: Pixabay; Ibdrelief

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3. Europe

❑ Europe is the third largest regional Probiotic market globally, with a

market value of US$11.9 billion in 2018. The market is expected to

grow at a CAGR of 5.7% to reach US$15.6 billion by 2023. The use of

Probiotics in pharmaceuticals, foods, beverages, and dietary

supplements is governed by The European Society for Clinical Nutrition

and Metabolism (ESPEN). The largest European Probiotic market is

Germany, which is predicted to reach US$800 million in market size by

2024. This growth is largely driven by the health benefits associated

with Probiotics, as well as a preference for Probiotic based personal

care products.

The Top 3 largest Probiotic regional markets are

indicated in the graph below:

SAMPLE FROM REPORT:GLOBAL KEY MARKETS: PROBIOTICS

❑ There are some vegetarian, dairy- and/or gluten-free Probiotic

Supplement products available in the South African market. For

example, Metagenics UltraFlora Children’s supplement is gluten- and

dairy-free, while Xymogen claims their Probiomax DF product is a four-

strain Probiotic that is vegetarian, dairy- and gluten-free.

❑ Garden of Life claims their Primal Defense Kids Probiotic Formula is

gluten-, preservative and additive-free, while Solgar Vegan Digestive

Enzymes are free of gluten, wheat, yeast, dairy and soy.

SAMPLE FROM REPORT:SA INDUSTRY TRENDS

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Source: Cipla: Healthline; FaithfultoNature1; FaithfultoNature2; Solgar Image Source: PrimalDefense; Probiomax; Gut; Solgar; Pixabay

Gluten-Free Probiotics

❑ It is becoming more important for manufacturers of Probiotic

Supplements and Digestive Remedies to consider the unique

dietary preferences of consumers and develop products that are

able to cater for these needs.

❑ Consumers’ dietary preferences are becoming more complex and

many choose to avoid, or simply cannot consume, certain types of

food. Consumers who suffer from celiac disease or gluten

intolerance, for example, should avoid eating gluten products.

❑ Gluten intolerance and Irritable Bowel Syndrome (IBS) are often

related. Interestingly, research has indicated that the use of

Probiotics is highly beneficial for individuals who suffer from IBS. A

good quality, daily probiotic has the ability to decrease the

symptoms of IBS as the microorganisms that are found in

probiotics play a key role in maintaining a healthy gut flora

balance.

❑ However, consumers who suffer from gluten-related disorders

must use a Probiotic that is gluten-free. According to Professor

Leon Dicks from the Department of Microbiology at Stellenbosch

University, it is imperative that individuals who suffer from gluten-

related disorders ensure that the Probiotic they take is gluten-free

so as not to worsen their symptoms.

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ADCOCK INGRAM PROBIOTIC PRODUCTS/BRANDS:

• ProbiFlora Everyday Flora

Balance

• ProbiFlora Infant Drops

• ProbiFlora Infant Everyday

Flora Balance

• ProbiFlora Junior

Everyday Flora Balance

• Unique Formulations*

Source: Adcock 1; Adcock2; Clicks; Bestum; Lp299v; Probiflora; Euromonitor; HT Image Source: Adcock Ingram; Clicks Inteflora 250; Bestum; Lp299v; Probiflora

• Bestum

• Inteflora 250

• Lp299v

• ProbiFlora Classic Bowel

Support

• ProbiFlora Colon Ease

• ProbiFlora Intensive Rescue

• ProbiFlora Rx

Founded in 1890 as E.J. Adcock Pharmacy, Adcock

Ingram has become one of the leading pharmaceutical

manufacturers in South Africa.

❑ The company is a leading manufacturer, supplier and distributor to

the private and public healthcare sector markets in South Africa.

❑ Adcock Ingram has three manufacturing facilities across South

Africa. Each facility is individually dedicated to liquids, tablets and

capsules, and critical care products.

❑ Adcock Ingram has also invested in capital expansion projects in

three of their manufacturing facilities based in Gauteng, amounting

to R1.5 billion. This expansion project was launched to keep in

alignment with governmental compliance regulations.

❑ Adcock Ingram’s Probiotic brands fall under the scope of their

Consumer and Over-the-Counter (OTC) divisions. The Consumer

division focuses on a range of products from cough and cold

preparations to vitamins, energy supplements, digestive well-

being, as well as feminine hygiene.

❑ During 2007, Adcock Ingram acquired Dr Reddy’s Laboratories’

OTC product- Inteflora 250. Inteflora 250 and ProbiFlora are the

division’s best performing Probiotic brands.

❑ According to Euromonitor, Adcock Ingrams’ Digestive Enzyme

product Unique Formulations, which was the leading brand in

terms of Digestive Enzymes in 2017, has been discontinued.

SAMPLE FROM REPORT:ADCOCK INGRAM: OVERVIEW

*Note: Unique Formulations has been discontinued

22.7%

15.8%44.2%

9.6%

DIS-CHEM CATEGORY MARKET SHARE: 2018 (IN PERCENTAGE)

Dispensary

Personal Care and Beauty

Healthcare and Nutrition

Baby Care

SAMPLE FROM REPORT:DIS-CHEM: OVERVIEW

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Source: Dis-Chem Group; Dis-Chem Integrated Report 2018 Image Source: ReVite; Thepointmall; Icon Finder1; Icon Finder2; Icon Finder 3; JPSkincare

Founded in 1978, Dis-Chem is SA’s second-largest retail

pharmacy chain, which has witnessed growth in turnover

of 13.3% from R17.3 billion in 2017 to R19.6 billion in

2018.

❑ Dis-Chem’s retail business unit comprises of their network of retail

pharmacy stores, e-commerce website, wellness clinics, and Dis-

Chem Direct.

❑ Dis-Chem’s gross profit was recorded at R4.8 billion in 2018,

compared to R4.2 billion in 2017. The retail division achieved R4.4

billion gross profit in 2018, compared to R3.8 billion in 2017.

❑ The Retail division of Dis-Chem had a strong trading performance,

with turnover up 15.0% and like-for-like turnover growth improving

to 6.6%.

❑ The Healthcare and Nutrition business unit contributed 20% to

overall retail turnover in 2018.

❑ Capital expenditure of R374 million consisted of R296 million in

expansionary expenditure and R78 million of replacement

expenditure.

❑ As illustrated in the adjacent graph, the Healthcare and Nutrition

business unit recorded the highest percentage market share with

44.2%, followed by Dispensary (22.7%), Personal Care and

Beauty (15.8%), and Baby Care (9.6%).

Dis-Chem Stores:

2018: 135 SA Stores

SAMPLE FROM REPORT: PROBIOTIC PRICING ANALYSIS

11This pricing analysis was conducted at retail stores and supermarkets during w/c 27 August 2018

BRAND AND SIZE

ActivoVite Pro 4 Probiotic

Multivitamin30 capsules R145.00 (Special) R139.95 R89.95 (Special) R110.00 R147.99

Daily Flora Capsules 60 capsules N/A R384.95 N/A N/A N/A

Daily Flora Powder 50 gram powder N/A R454.95 N/A N/A N/A

Bestum Complete Guard with Probiotics

30 tablets R112.00 R111.95 R109.95 R113.00 R119.99

60 tablets R185.00 R149.95 (Special) R179.85 R160.00 R182.99

Biogen Platinum Pre-and Probiotic 9 Strain

30 capsules N/A R139.95 N/A N/A N/A

60 vegetarian capsules

N/A R209.95 N/A N/A N/A

1. Executive Summary (3 pages):

1.1 Global Industry Snapshot

1.2 South African Industry Snapshot

1.3 Industry Drivers & Restraints

TABLE OF CONTENTS

2. Global Probiotics Industry (16 pages):

2.1 Global Industry Overview: Probiotics

2.2 Global Industry Overview: Prebiotics

2.3 Global Market Environment: Probiotics

2.4 Global Market Environment: Prebiotics

2.5 Global Industry Overview & Market Environment: Digestive Enzymes

2.6 Global Key Markets: Regional Overview

2.7 Global Key Markets: Probiotics: TOP 3 LARGEST GLOBAL PROBIOTICS MARKETS: 2018 (IN US$ BILLION) (Graph)

2.8 Global Key Markets: Prebiotics

2.9 Global Key Markets: Digestive Enzymes

2.10 Global Industry Trends

2.11 Global Industry Drivers

2.12 Global Industry Challenges

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3. South African Probiotics Industry (40 pages):

3.1 South African Probiotics Industry Overview (24 pages)

3.1.1 South African Industry Overview

3.1.2 South African Market Environment

3.1.3 South African Industry Market: South African Probiotics Definitions

3.1.4 South African Industry Market Size: Probiotic Supplements Industry (2012-2017): VALUE OF PROBIOTIC SUPPLEMENTS: 2012-2017 (IN ZAR MILLION); SA

PROBIOTIC SUPPLEMENTS MARKET CAGR AND TOTAL GROWTH (IN PERCENTAGE) (Graph and Table)

3.1.5 South African Industry Market Size: Digestive Enzymes Industry (2012-2017): VALUE OF DIGESTIVE ENZYMES: 2012-2017 (IN ZAR MILLION); SA DIGESTIVE

ENZYMES MARKET CAGR AND TOTAL GROWTH (IN PERCENTAGE) (Graph and Table)

3.1.6 South African Industry Market Size: Dietary Supplements Market (2012-2017: By Category): VALUE OF SA DIETARY SUPPLEMENTS MARKET BY CATEGORY:

2012-2017 (IN ZAR MILLION) (Graph)

3.1.7 South African Industry Market Size: Digestive Remedies Market (2012-2017: By Category): VALUE OF SA DIGESTIVE REMEDIES MARKET BY CATEGORY: 2012-

2017 (IN ZAR MILLION) (Graph)

3.1.8 South African Industry Market Size: Probiotic Supplements Industry (Forecast: 2018-2022*): VALUE OF SA PROBIOTIC SUPPLEMENTS: 2017 & 2022* (IN ZAR

MILLION); SA DIETARY SUPPLEMENTS MARKET VALUE (IN ZAR MILLION) (Graph and Table)

3.1.9 South African Industry Market Size: Digestive Enzymes Industry (Forecast: 2018-2022*): VALUE OF SA DIGESTIVE ENZYMES MARKET: 2017 & 2022* (IN ZAR

MILLION); SA DIGESTIVE REMEDIES MARKET VALUE (IN ZAR MILLION) (Graph and Table)

3.1.10 South African Industry Market Size: Digestive Supplement Volumes (2012-2022*): DIGESTIVE SUPPLEMENT VOLUMES (2012-2022*) (IN ‘000 UNITS) (Table)

3.1.11 South African Market Environment: Top Digestive Supplement Companies: TOP PROBIOTIC SUPPLEMENT COMPANIES IN SOUTH AFRICA: 2017 (REVENUE SHARE

IN ZAR MILLION); TOP DIGESTIVE SUPPLEMENT COMPANIES: 2012 VS 2017 (REVENUE SHARE IN PERCENTAGE AND ZAR MILLION) (Graph and Table)

TABLE OF CONTENTS

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3. South African Probiotics Industry Continued (40 pages):

3.1 South African Probiotics Industry Overview Continued (24 pages)

3.1.12 South African Market Environment: Top Digestive Supplement Companies (Per Category): TOP 1 DIGESTIVE SUPPLEMENT COMPANIES (PER CATEGORY) IN 2017

(MARKET SHARE IN PERCENTAGE AND ZAR MILLION) (Table)

3.1.13 South African Market Environment: Top Digestive Supplement Brands: TOP PROBIOTIC SUPPLEMENT BRANDS IN SOUTH AFRICA: 2017 (REVENUE SHARE IN ZAR

MILLION); TOP DIGESTIVE SUPPLEMENT BRANDS: 2012 VS 2017 (REVENUE SHARE IN PERCENTAGE AND ZAR MILLION) (Graph and Table)

3.1.14 South African Market Environment: Top Digestive Supplement Brands (Per Category): TOP DIGESTIVE SUPPLEMENT BRANDS IN 2017 (REVENUE SHARE IN

PERCENTAGE AND ZAR MILLION) (Table)

3.1.15 South African Market Environment: Vitamins and Dietary Supplement Distribution Channels: CHANNEL DISTRIBUTION FOR VITAMINS AND DIETARY SUPPLEMENT

PRODUCTS: 2017; CHANNEL DISTRIBUTION (2012 AND 2017) BY OUTLET TYPE (REVENUE SHARE IN PERCENTAGE AND ZAR MILLION) (Graph and Table)

3.1.16 South African Market Environment: Digestive Remedies Distribution Channels: CHANNEL DISTRIBUTION FOR DIGESTIVE REMEDY PRODUCTS: 2017; CHANNEL

DISTRIBUTION (2012 AND 2017) BY OUTLET TYPE (REVENUE SHARE IN PERCENTAGE AND ZAR MILLION) (Graph and Table)

3.1.17 South African Industry Trends

3.1.18 South African Industry Drivers

3.1.19 South African Industry Challenges

TABLE OF CONTENTS

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3. South African Probiotics Industry Continued (40 pages):

3.2 South African Probiotics Manufacturing Overview (16 pages)

3.2.1 Adcock Ingram: Overview: ADCOCK INGRAM REVENUE FOR SIX MONTHS ENDED 31 DECEMBER 2017 (IN ZAR BILLION) (Graph)

3.2.2 Adcock Ingram: Probiotic Brands

3.2.3 Amipro:Overview

3.2.4 Amipro: Probiotic Brands

3.2.5 Ascendis Health: Overview: ASCENDIS HEALTH GROUP REVENUE FOR THE SIX MONTHS ENDED 31 DECEMBER: 2016 VS 2017 (IN ZAR BILLION) (Graph)

3.2.6 Ascendis Health: Probiotic Brands

3.2.7 Cipla: Overview: CIPLA REVENUE CONTRIBUTION BY REGION FOR THE YEAR ENDED 2017-18 (IN INR CRORE)

3.2.8 Cipla: Probiotic Brands

3.2.9 Lamar International: Overview & Probiotic Brands

3.2.10 Nativa: Overview & Probiotic Brands

3.2.11 SA Natural Products (A.Vogel): Overview & Prebiotic Brand

3.2.12 Sanofi: Overview & Probiotic Brands

3.2.13 South African Probiotic Manufacturers: Other: OTHER SA PROBIOTIC MANUFACTURERS DESCRIPTION (Table)

TABLE OF CONTENTS

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4. South African Probiotics Retail Analysis (22 pages):

4.1 South African Probiotics Retail Overview (2 pages)

4.1.1 South African Retail Overview: NUMBER OF STORES PER PHARMACY: 2018; PROBIOTIC PRODUCT PRICE ANALYSIS AUGUST 2018 (Graph and Table)

4.2 South African Pharmacies (8 pages)

4.2.1 Clicks: Overview: CLICKS GROUP REVENUE BY DIVISION FOR SIX MONTHS ENDED 28 FEBRUARY 2018 (IN ZAR BILLION) (Graph)

4.2.2 Clicks: Probiotic Brands/Products

4.2.3 Dis-Chem: Overview: DIS-CHEM CATEGORY MARKET SHARE: 2018 (IN PERCENTAGE) (Graph)

4.2.4 Dis-Chem: Probiotic Brands/Products

4.2.5 Medicare: Overview

4.2.6 Other SA Retailers

TABLE OF CONTENTS

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4. South African Probiotics Retail Analysis Continued (22 pages):

4.3 South African Probiotics Pricing Analysis (12 pages)

4.3.1 Prebiotic Pricing Analysis – A.Vogel Molkosan Prebiotic Food Supplement; GNC Prebiotic GOS Caplets – Comparative pricing at Clicks, Dis-Chem, Medicare,

MediRite Pharmacy, Pick n Pay Pharmacy

4.3.2 Probiotic Pricing Analysis – ActivoVite Pro 4 Probiotic Multivitamin; Daily Flora Capsules; Daily Flora Powder; Bestum Complete Guard with Probiotics;

Biogen Platinum Pre- and Probiotic 9 Strain; Clicks 9-Strain Probiotic; Clicks Probiotic-4 Paediatric Drops; Clicks Saccharomyces Boulardii Supplement;

Creche Guard Baby L-Reuteri Probiotic Drops; Creche Guard Baby Skin Probiotic Spray; Creche Guard Probiotic Multivitamin Spray (Baby); Entiro

Probiotic; GastroChoice Probiotic; GNC Probiotic; GNC Probiotic Complex (Vegetarian); GNC Probiotic Complex Daily Need Dietary Supplement;

HydraChoice Probiotics with Oral Hydration Tropical Fruit Flavour; Interflora 250 Probiotic Antidiarrhoeal; Lp299v; MediRite 9 Strain Flora; Nature’s Choice

Ultimate Probiotic; Pro-B2 Infants; Pro-B5 Probiotics; Pro-B6 Junior; ProbiFlora Adult 2 Strain Probiotic; ProbiFlora Adult 4 Strain Probiotic; ProbiFlora Adult

Intensive Rescue 9 Strain Probiotic; ProbiFlora Junior Supplement; ProbiFlora Infant Probiotic Drops Regular; ProbiFlora Rx; Reuterina Acute Intestinal

Health Probiotic; Reuterina Daily; Reuterina Femme Women’s Health Probiotic; Reuterina Immune Health Probiotic Drops; Reuterina Junior Immune Health

Probiotic Strawberry; Reuterina Oral Health Probiotic; Reuterina Vit D3 Daily Immune Health Probiotic Drops; Solal Probiotic Maximum Potency; Trubiotic;

Viralmed ProBio; Vita-Aid Probiotic 9 Strains Capsules; Vivomixx VSL N3 Probiotic; Wellvita Probiotic 4 Strain; Wellvita Probiotic 9 Strain – Comparative

pricing at Clicks, Dis-Chem, Medicare, MediRite Pharmacy, Pick n Pay Pharmacy

4.3.3 Digestive Enzyme Pricing Analysis– Biogen Platinum Digestive Enzyme; CNT Labs Digesti-Cleanse Gold Digestive Support; Creche Guard Baby Skin

Digest Eeze Drops; Dis-Chem Gold Digestive Enzymes; Foodstate Digestive Enzymes; GNC Natural Brand Super Digestive Enzyme; Kolorex Digestive

Care; Digestizyme; Nativa Complex Digestive Capsule; NRF Digestive Enzyme; Solal Health Prescriptions Co-Enzyme Q10– Comparative pricing at Clicks, Dis-

Chem, Medicare, MediRite Pharmacy, Pick n Pay Pharmacy

TABLE OF CONTENTS

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