Gummy Vitamins - ubmemeaensoprod.s3. · PDF fileSupplement Business Report 2016 Global Dietary...

Copyright © 2016 Sirio Pharma Co., LtdCopyright © 2017 Sirio Pharma Co., Ltd 2017/11/171

Gummy Vitamins

——An Innovative Solution for Human Nutrition

Danny Gan, PhD

Delivering Value for Health

Outline

2017/11/172

1. Global VDS Market Overview

2. Dosage Format Introduction of Gummy

3. Market and Product Trend of Gummy Vitamins

4. Innovation Makes Gummy Vitamins Different

5. Comprehensive Gummy Vitamins Offering


Global VDS Market

Overview

Part

01

Delivering Value for Health4Reference:

Nutrition Business Journal, Global

Supplement Business Report 2016

Global Dietary Supplement Market Overview

Global Supplement Industry Sales and Growth, 2004-2020e

“NBJ forecasts that the global supplement market will grow at a

CAGR of 6.1% from 2015 to 2020. Market will be boosted by strong

growth in Rest of Asia and Eastern Europe where growth is

expected to be in the 9% range annually”

(unit: Million, USD)

1

2

3

Global Supplement Industry Sales by Country or Region

Total western Europe take 15% market share of global VDS market,

while total eastern Europe account for 5% market share which

represent one of the highest growth in future.

Delivering Value for Health5Reference:

Nutrition Business Journal, Global

Supplement Business Report 2016

Global Vitamin & Mineral Market Overview

Note: size of each bubble represents the respective

sales volume in 2014

USA

China

Canada

Mexico

Australia & New

Zealand

Latin America

Rest of Asia

Japan

Western Europe

Low growth High growth

High spend per capita

Low spend per capita

East Europe & Russia

■ US leads the global supplement market with the highest per capita expenditure, while China

represents one of the highest market growth in supplement.

Delivering Value for Health 2017/11/176

■ Top trends lists below are from international market research organizations.

■ Get Real: The allure of Authenticity

■ Personalize It

■ Extraordinary

■ Aging: A changing Narrative

■ Faster Shopping

■ Identity in Flux

■ Consumers in Training

■ Post-purchase

■ Privacy and Security

■ Wellness As Status Symbol

■ In Tradition We Trust

■ Power to the Plants

■ Beauty Supplements

■ Waste Not

■ Time is of the Essence

■ The Night Shift

■ Balancing the Scales –

Health for Everyone

■ Blurring with food/drink

■ Clean Supreme

■ Disruptive Green

■ Sweeter Balance

■ Kitchen Symphony

■ Body in Tune

■ Plain Sophistication

■ Encapsulating Moments

■ Beyond Pester Power

■ Fuzzy Borders

■ Seeds of Change

2017 Food & Nutritional Product Trends

Reference:

1. Euromonitor International, ‘Top 10 Global Consumer Trends for 2017’

2. Mintel, ‘Global Food and Drink Trends 2017’

3. Mintel, ‘Category Insight: Vitamins & Dietary Supplements’

4. Innova Market insights, ‘Food and Drink Top 10 Trends for 2017’


2011 2013 2015

I would prefer to get all my daily nutritional requirements in the food I eat, rather than take additional supplements.

The percentage of customers that prefer to get nutrients in the food rater than pills and capsules is increasing every year (figure 1).

54%60%

78%

figure 1

Consumer insight for Vitamin & Mineral Supplement

Source: NMI 2015 Nature Marketing Institute7


Dosage Format

Introduction of Gummy

Part

02


Top 3 VDS Dosage Format in US

Dose FormatSales Volume

& % ShareVolume growth Value growth

Share value % change

Tablet$1,631 million, 28%

Softgel$1,212 million, 21%

Gummy Vitamin

$821 million, 14%

-0.9%

vs. YA

+0.23%

vs. YA

-1.03%

vs. YA

+1.30%

vs. YA+2.49%

vs. YA

+8.71%

vs. YA+13.02%

vs. YA+1.21%

vs. YA

-0.27%

vs. YA

Source: NMI 2015 Nature Marketing Institute9


42%

41%

29%

28%

26%

Capsule

Tablet

Gummy-type

Softgel

Chewable

US

46%

36%

32%

24%

21%

15%

Tablet

Capsule

Effervescent/Dissolving…

Lozenge

Liquid

Gummy-type

Germany

45%

38%

36%

34%

33%

Capsule

Nutritional bars

RTD Bev

Tablet

Gummy-type

Mexico

42%

27%

27%

26%

24%

16%

Softgel

Tablet

Capsule

Lozenge

Dripping pill

Gummy-type

France

42%

33%

31%

29%

27%

11%

Chewable

Capsule

Tablet

Sachet

RTD Bev

Gummy-type

China

44%

42%

41%

37%

36%

5%

Tablet

Capsule

Nutritional bars

RTD Bev

Fast dissolve tablet

Gummy-type

Brazil

Source: NMI, 2016 Supplements/OTC/Rx Consumer Trends Report

Preference of Supplement Dosage Format


In US, you can find gummy products

everywhere on shelves in the vitamin

supplement category in modern trade

US Gummy Vitamin Product


In UK, gummy products were well accepted in

the children’s health category

UK Gummy Vitamin Product


Gelatin and Pectin based Gummies

2017/11/1713

Gelatin

• Contained in the cell walls of plants,

mainly extracted from citrus fruits

and apple.

• Tender

• Melting temperature: 40℃

• Derived from collagen obtained

from animal by-products such as

pigskin, cattle bones, cattle skin

• Tough chewiness

• Melting temperature: 35℃

Pectin

Vegetable

81%

19%

Gelatin

Pectin

Source: 2013 NMI database

Global Production Volume

• Gelatin is the major gelling

agents used

• Pectin is of vegetarian source, a

potential trend


Gummy Vitamin is Happy Nutrition

2017/11/1714

Sweet, delicious

while nutritionalEasy to swallow,

no need water

More food-like,

less medicine

image

Portable and

convenient


Market and Product Trend of

Gummy Vitamins

Part

03


Research & DevelopmentGrowth Maturity Decline

Sale

s

Overview of Global Gummy Vitamin Market

2017/11/1716 Source: Innova database; 2015-2016 IRI

• 2016, the gummy retail market is $821m in total, and the overall sales growth rate is 13%;• In which gummy vitamin for children is $179m;• 2017, total sales forecast is more than $1,000M .


The Gummy Vitamin Categories Trend

2017/11/1717

1

10

100

1,000

10,000

100,000

1,000,000

Unit: thousand

2015 2016

The multivitamin is the largest category in US. In 2016, multivitamin gummies reached $531m sales. Probiotic gummy became the second largest category, $54m sales. Calcium the 3rd, $44m sales. Vitamin C $43m, Biotin $41m.

68%5%

6%21%

Multivitamin

Probiotic

Calcium

Others

65%7%

5%

23%Multivitamin

Probiotic

Calcium

Others

2015 US market reached $732M, 68% is Multivitamin category

2016 US market reached $831M, 65% is Multivitamin category

The retail sales value of VMS gummy vitamin in 2015-16 in different categories

Source: IRI 2016


Adult Gummy Generates The Big

2017/11/1718

2962.586 2674.293

529499.8633184.6

0

200000

400000

600000

800000

1000000

2015-Value Sales 2016-Value Sales

Adult 50+ Teen Kid All (age>2/4)

20% increase in value &

4% increase in share

42% decrease in value &

0.7% decline in share


0.2% increase in share;


3.4% decline in share;


0.1% decline in shareAdult is the largest and growing segment

A new and rising segmentation is teen’s group

Source: IRI 2016

Gummy Segmentation by Users’ Age

Adult

50+

Teen

Kid

All age

Gummy Market Changes by Users’ Age


Gummy Expansion for Women

2017/11/1719

543202.2 597615.3

122024.6151021.461453.03

72681.84

0

200000

400000

600000

800000

1000000

2015-Value Sales 2016-Value Sales

Men Women Not specified

(unit:$1,000)

1，Gummy market segmentation was growing stronger,

differentiated products for women & men grew more.

2，In women, age 50+ is dropping significantly.

Source: IRI 2016

Gummy Segmentation by Users’ Gender

18.3% increase in value &

0.3% increase in share

23.8% increase in value &

1.8% increase in share


2% decline in share

Men

Women

Overall

Gummy Market Changes by Users’ Gender

2015-Value

Sales in 000

USD

2016-Value

Sales in 000

USD

% Value Sales

Change YA

Women 50+ 7606.594 3444.286 -54.72%

Teen girls 7424.091 8410.525 13.29%

Women 106993.9 139166.5 30.07%

Gummy Segmentation by users’ age (Female)


Gummy Dominates the Children’s VDS Market

2017/11/17

300

211

104

38 30 23 18 8 5 4 20

50

100

150

200

250

300

350

Source: IRI 2016; Product images are from brand websites

SKUs

Market Value

56.11%16.56%

9.61%

7.52%10.20%

GUMMY

TABLET

LIQUID

DROP

Others

2016 US Children’s VDS Market Overall :

$370m2016 US Children VDS Market

•More than 56% of VDS market value is

generated by the gummy format

•The gummy vitamin is the No.1 popular format in

children’s VDS category.

20


1.07%

0.38%

0.32%

0.31%

0.27%

0.24%

0.23%

0.21%

0.19%

0.19%

1

2

3

4

5

6

7

8

9

10

CAPSULE

LIQUID

GUMMY

GUMMY

GUMMY

GUMMY

GUMMY

GUMMY

GUMMY

CAPSULE

Top-10 New Launches by Market shareDosage forms

2016 US top10 Children’s VDS Products

4.77%

4.07%

3.37%

3.21%

2.99%

2.71%

2.68%

2.68%

2.41%

2.29%

1

2

3

4

5

6

7

8

9

10

CAPSULE

GUMMY

GUMMY

GUMMY

TABLET

GUMMY

TABLET

GUMMY

TABLET

DROP

Top-10 Products by Market shareDosage forms

P

r

i

v

a

t

e

l

a

b

e

l

Source: IRI 2016;

Product images are from brand websites


US No.1 Gummy Brand - Vitafusion

2017/11/1722

Classic products

Featured Products


US Most Popular Children’s Gummy Brand

2017/11/1723

Multivitamin Vitamin C Omega3 Calcium&D3 D3 Fiber ProbioticFruit & Veggie

Classic products

High-end Product Line with New & Innovative

concept

Exclusive Product Line with Cartoon

Image

Multivitamin

•Twisting two

gummies

•33% less sugar

Multivitamin

•Clover honey

and fruit juice

Immunity (C+D+Zinc)

•Clover honey and

fruit juice

Multivitamin Multivitamin Multivitamin

Source: http://www.gummyvites.com/en/Lil-Critters

http://www.gummyvites.com/en/Lil-Critters


Innovation Makes

Gummy Vitamins Different

Part

04


Integrated R&D Force for Sirio’s Gummy

2017/11/1725

• Tasting experts to engage all

senses to taste gummies, flavors of

happiness

• Technology to mask unpleasant

odors from special ingredients

c-GMP standards

Heavy mental analysis, microbial

analysis… • Stability test(18-24 months) for appearance and

efficacy / texture analysis …

• Formulation designed based on

pharmaceutical standards

• Nutrients meet RDA guideline

You can choose an existing formula, or our R&D lab

can create custom prototypes for you.

Delivering Value for Health26

Optimization of Detection Method

Detection of biotin in gummy by HPLC before and after method optimization

Data Source: Sirio Pharma R&D Center

Before After


Optimization of Detectable Rate

0

20

40

60

80

100

120

0 6 12 24

Detectable rate (Before) %

Detectable rate (After) %

0

20

40

60

80

100

120

0 6 12 24

Detectable rate (Before) %

Detectable rate (After) %

Detectable rate of vitamin D3 in gummyDetectable rate of vitamin A in gummy

Month Month



Stability Testing Method Setup

0%

20%

40%

60%

80%

100%

120%

0 3 6 9 12 18month

Dete

cta

ble

Rate

Vitamin A

Vitamin D

Vitamin E

Vitamin B1

Vitamin B2

Vitamin B3

Vitamin B5

Vitamin B6

Vitamin B12

Vitamin C

Biotin

Folic Acid0%

20%

40%

60%

80%

100%

120%

0 1 2 3 month

Dete

cta

ble

Rate

Vitamin A

Vitamin D

Vitamin E

Vitamin B1

Vitamin B3

Vitamin B5

Vitamin B6

Vitamin B12

Vitamin C

Folic Acid

Degradation Rate of Vitamin During the Shelf Life

Degradation Rate of Vitamin Under Acceleration Conditions



Effect of different packaging materials for gummy

Effect of different process-treated packaging for gummy

Packaging materials: for sample A

and B are aluminized plastic and pure

aluminum, respectively;

Storage condition: Room

temperature for 3 months, 30

pieces/packaging.A B

A B C D E

Process-treated packaging : for sample A

- E are fulfilled with different content of

nitrogen, respectively;

Storage condition: Room temperature for

18 months, 30 pieces/PET bottle.

Packaging Study



38

35 3534

32

30.5

40

3635

34 34

30.7

0 3 6 9 12 18

Vitamin C

Batch 1303002 Batch 1303022

Tested product: Multiviatmins Gummy 025 (sugar coated)

Ingredients: Vit C 30mg, Vit A 50 μgRE , B6 1.4mg; conditions: 25℃, 60%RH;

Standard: Vit C ≥30mg; Vit B6 ≥1.4mg; Vit A ≥50μg RE

Sharing of Stability Data

2017/11/1730 Source: Sirio Pharma (internal stability data)

1.9

1.8

1.9

1.8

1.7

1.9

2.2

1.9

1.8

1.9

1.7

1.8

0 3 6 9 12 18

Vitamin B6

Batch 1303002 Batch 1303022

56 56

54 5453

51

56 5655

5455

51

0 3 6 9 12 18

Vitamin A

Batch 1303002 Batch 1303022

(month)(month)

(month)



Patents of Sirio Gummy

2017/11/17


Comprehensive

Gummy Vitamins Offering

Part

05


Bright, Happy, Unlimited Flavors, Colors

Natural: extracted directly from its natural source or mixed with other natural flavors.

Oil/Polished Sugar CoatedSurface

SugarLow

SugarSugar Free

Reducing Sugar≥10%≈ 8 Kcal per 2.5g

Gummy

Sugar (Reducing sugar

+ Sucrose) ≤5.0%≈ 3-5 Kcal per 2.5g

gummy

Sugar (Reducing sugar

+ Sucrose) ≤0.5%≈ 3-5 Kcal per 2.5g

gummy

Sirio’s Comprehensive Offering of Gummy


We can manufacture any shape depending on the customer’s needs. These are some

examples of mold shapes used for gummies.

Production Size: 2-4g (1-6.5g in Y2018) for all shapes

Panda2.5-3g

Round2-3g

Smiling

face2-3g

Square3-4g

Fish2-3g

Orange

slice2-4g

Shell2.5-3g

Strawberry2.5-3.5g

Dinosaur2-3g

Happy

bear3-4g

Sea star2-3g

Round2-3g

Koala2-4g

More molds are under the

process of development...



Immunity and Antioxidant

Circulatory and Heart Health

Cognitive and Memory

Eye Health

Digestive Health

Throat Cooling

Multivitamin/ Vitamin C/ Astaxanthin

Omega 3/ CoQ10/ Krill oil

DHA/ Phosphatidylserine

Lutein / Blueberry

Inulin/ GOS/ FOS

Eucalyptus-mint

35

Protein/ B complex / B12/ Caffeine

Prenatal multivitamin

Calcium/ D3/ Mushroom powder

Melatonin / GABA / Theanine

Garcinia cambogia / Green coffee bean

Collagen / Biotin

Sports nutrition

Weight Management

Mood and Sleep Health

Bone Health

Prenatal Health

Beauty Aids



Claims for Children’s Gummy Vitamins

Non-GMO ingredients

Natural colors and natural flavors

No preservative added

With no hydrogenated fat

Gluten free

Lactose free

Dairy free

Nut free

Soy free

Vegetarian/Vegan

Sugar free

2017/11/1736


New Products

Sirio keeps improving manufacturing and product development capabilities…

2017/11/1737

Center-filled Multi-colored Swirl-colored


New Plant for Gummy 2018

2017/11/1738


Global Dietary Supplement Market Overview

(Sirio introduction video)


For more offerings from Sirio, please visit

Booth # 41C44

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