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News in brief
08-01-2019  |  190x
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Enjoyable forms to see major contract services growth in ’19

Demand in China driven by emerging consumer demand, but in the USA and EU growth triggered

04 January, 2019: Sirio Pharma Co. Ltd (SIRIO) – the global nutraceutical contract development, innovation and manufacturing organization (CDiMO) – forecasts considerable worldwide growth in outsourced manufacturing and development services for consumer-friendly,‘enjoyable dosage forms’ in 2019.

Sirio suggests that, although consistent growth is likely in Asia, Europe and the USA, the drivers behind these differ in each market. Demand in China is being propelled by the increasing popularity of probiotics, gummy and drinking formulations, which are not yet well established here, and an easing regulatory environment.

“In the United States, we predict the gummy segment is at the late growing stage and is entering into maturation. Therefore, as with all mature segments, we will see the private labeling market share going-up for the next few years and there will be more competition for basic products” Rui Yang, CSO of Sirio Pharma.

Another major trend across USA is the shift toward ‘low sugar’ or ‘no sugar’ products,specifically those with ‘no artificial flavors’ and ‘no sweeteners’. Therefore, major investments and partnerships across R&D in these areas are likely, as companies seek to bring more compelling products to consumers.

In China, gummies are also predicted to see increased market penetration in 2019, with many global brands exploring market entry, and domestic firms looking to meet the rising consumer demand. One factor that has limited entry in China has been the complexity of securing a regulatory (“Blue Hat”) approval for gummy forms. Consequently, branded companies are seeking experienced partners for commercial launches. Sirio is aiming to lead the market here – as the company is both an innovator and contract services provider in China – boasting 130+ health foods registrations (“Blue Hats”).

“Though the ”Blue Hat” is still the mainstay of the nutrition and health food market in China, the general trend is towards less registrations and more filings – as the latter takes less time to market. However,only basic nutrients like vitamins and minerals can currently get a license through the filling system,which theoretically shortens the process from three years down to one. Gummy supplements for example,cannot be approved as a filing dosage form and must go through the longer registration track. However – as vitamin gummies might shortly be able to use the filing system – there may in fact be a major opportunity here and we would expect quick growth as the market demand is clearly there. In parallel,we also expect to see customers working increasingly with partners that have a strong pedigree in gummy technology, regulatory approvals and product innovation to overcome these challenges.” Commented Rui Yang, CSO of SIRIO Pharma.

With rising vegetarian and flexitarian diets – mainly plant based and occasional meat – the vegetarian softgel market is likely to see sustained progress from its relatively low-base over the next 3-5 years.

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