natural products asia resource, issue 2

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issue 2 Natural Products Your natural, organic, health and nutrition industry newsletter Natural Products Asia Resource is an informative newsletter reaching over 50,000 professionals around the world in the nutraceutical, nutritional, dietary supplement, cosmetic, wellness and food industries, published by Natural Products Expo Asia. Written by Ewa Hudson, Head of Health & Wellness Research, Euromonitor International Asia Resource wellness markets: N ewly emerging health & Vietnam March 2010 Market Research Is Vietnam still too poorly developed for health and wellness products to find an appreciable audience? Well, it is coming along just nicely, says Euromonitor International in its latest installment on up-and coming health and wellness markets. Vietnam – an unlikely health and wellness contender At first glance, Vietnam may seem an unlikely choice for being featured as a blossoming health and wellness mar- ket. After all, the country is one of the least developed economies in the Asia- Pacific region, with a consumer market constrained by low incomes and a high level of poverty, especially in rural ar- eas. Euromonitor International Coun- tries and Consumers data shows, for example, that in 2008 disposable in- come per Vietnamese household stood at US$3,213, compared to US$6,417 in the Philippines, US$5,643 in China and US$5,065 in Indonesia. Just over one fifth of the Vietnamese population still live on less than US$1 a day. Despite such modest statistics, there are definite signs that the Vietnamese health and wellness consumer base is starting to build momentum. Dou- ble-digit annual growth rates were re- corded over the past few years in many food, beverage and OTC categories, including functional gum, functional yoghurt, green tea, soy beverages and fruit snacks. At present, the health and wellness market remains restricted to Vietnam’s southeast region, which accounts for over one quarter of consumer spending and is home to the country’s two big- gest cities – Ho Chi Minh and Hanoi. Health and wellness-positioned prod- ucts are mainly purchased by urban consumers, who have an income level of 3-4 times higher than the national average. Everybody loves functional gum Functional chewing gum tends to do very well in virtually all markets be- cause consumers are attracted by the extra health benefits these prod- www.NaturalProductsAsia.com

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Natural Products Asia Resource is an informative newsletter reaching over 50,000 professionals around the world in the nutraceutical, nutritional, dietary supplement, cosmetic, wellness and food industries, published by Natural Products Expo Asia.

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Page 1: Natural Products Asia Resource, Issue 2

issue 2

Natural ProductsYour natural, organic, health and nutrition industry newsletter

Natural Products Asia Resource is an informative newsletter reaching over 50,000 professionals around the world in the nutraceutical, nutritional, dietary supplement, cosmetic, wellness and food industries, published by Natural Products Expo Asia.

Written by Ewa Hudson,Head of Health & Wellness Research, Euromonitor International

Asia Resource

wellness markets:

Newly emerging health&Vietnam

March 2010

Market Research

Is Vietnam still too poorly developed for health and wellness products to find an appreciable audience?

Well, it is coming along just nicely, says Euromonitor International in its latest installment on up-and coming health and wellness markets.

Vietnam – an unlikely health and wellness contenderAt first glance, Vietnam may seem an unlikely choice for being featured as a blossoming health and wellness mar-ket. After all, the country is one of the least developed economies in the Asia-Pacific region, with a consumer market constrained by low incomes and a high level of poverty, especially in rural ar-eas. Euromonitor International Coun-tries and Consumers data shows, for example, that in 2008 disposable in-

come per Vietnamese household stood at US$3,213, compared to US$6,417 in the Philippines, US$5,643 in China and US$5,065 in Indonesia. Just over one fifth of the Vietnamese population still live on less than US$1 a day.

Despite such modest statistics, there are definite signs that the Vietnamese health and wellness consumer base is starting to build momentum. Dou-ble-digit annual growth rates were re-corded over the past few years in many food, beverage and OTC categories, including functional gum, functional yoghurt, green tea, soy beverages and fruit snacks.

At present, the health and wellness market remains restricted to Vietnam’s southeast region, which accounts for over one quarter of consumer spending

and is home to the country’s two big-gest cities – Ho Chi Minh and Hanoi. Health and wellness-positioned prod-ucts are mainly purchased by urban consumers, who have an income level of 3-4 times higher than the national average.

Everybody loves functional gumFunctional chewing gum tends to do very well in virtually all markets be-cause consumers are attracted bythe extra health benefits these prod-

www.NaturalProductsAsia.com

Page 2: Natural Products Asia Resource, Issue 2

Market Research

ucts can offer beyond basic breath freshening, such as dental caries pre-vention and teeth whitening, and for a very small premium. Simply put, gum is an instant winner thanks to its af-fordability.

Value sales of functional gum rose by 156% to VND584 billion (US$35 mil-lion) between 2004 and 2009, account-ing for one third of all gum sales. This is quite a large percentage, which ex-ceeds even that of some highly devel-oped markets. In the US, for example, functional gum claims less than 10% of value sales.

Gum is not a traditional Vietnamese product, and the market is entirely dominated by foreign companies Mars Inc, Lotte Group, Perfetti Van Melle Group and Wrigley Jr Co. Domestic operators do not yet have much experi-ence in developing gum lines.

Curiously, it was not just the wide-spread availability of gum at most retail outlets which aided category growth, but the scarcity of low-value bills and coins in circulation. So, instead of handing customers their change, many shopkeepers resorted to handing their clientele small packs of gum instead.

Wrigley, in particular, is known to have benefited from this. Therefore, it would seem prudent for makers of in-novative gum products to offer them in small formats, containing just one or two pieces.

Packaged soy beverages enjoy rampant growthAs is the case in many Asian markets, naturally healthy soy beverages have a longstanding tradition in Vietnam. However, because they are predomi-nantly sold fresh and unpackaged, they are not covered in Euromonitor Interna-tional’s packaged food research. How-ever, consumers have recently started to switch from fresh soy milk sold in wet markets and by street vendors to pack-aged alternatives. Value sales rocketed from VND82 billion (US$5 million) to VND242 billion (US$14 million) over the 2004-2009 review period. Most of this was accounted for by soy milk, but other soy drinks managed to accrue a small sales base of VND1 billion.

The prospects for soy beverages are very positive. Euromonitor Interna-tional predicts that value sales will soar by a further 242% by 2014. Value-added products with added vitamins and min-erals should be very popular indeed.

Vietnam is waiting for spoon-able probiotic yoghurtYoghurt in Vietnam is still fairly niche, with demand limited to urban areas and higher-income consumers. The cat-egory posted excellent value growth of 88% over the 2004-2009 review period, accruing total value sales of VND1,977 billion (US$117 million). Almost 60% of this is accounted for by spoonable yoghurt, which tends to appeal slight-ly more than drinking yoghurt to the Vietnamese palate in terms of taste and texture.

2007 marked the entry of functional drinking yoghurt in Vietnam, courtesy of Yakult and also the Probi brand from local company Vinamilk. Sales are still miniscule (VND5.3 billion/US$0.3 mil-lion in 2009), but clocking up a mas-sive increase from sales of just VND200 million in its first year. Considering this outstanding performance, the Vietnamese market is more than ready for probiotic yoghurt of the spoonable kind.

A current hurdle impeding yoghurt sales is the absence of chillers in most smaller retail outlets – a serious hin-drance in a tropical country like Viet-nam.

Fruit snacks begin to gather an audienceOver 2004-2009, healthy fruit snacks was the strongest growing category in the sweet and savoury snacks sector, increasing its value sales by 189%, al-beit from a small sales base, to reach VND87 billion (US$5 million) in 2009.

www.NaturalProductsAsia.com2

Market Sizes - Historic / Forecast - Retail Value RSP - VND bn - Value at Current Prices

Sources: 1. Packaged Food: Euromonitor from trade sources/national statisticsNote: 2009 data is provisional and based on part-year estimates.Date Exported (GMT): 26/02/2010 3:26:37 AM©2010 Euromonitor International

Page 3: Natural Products Asia Resource, Issue 2

Market Research

Carbonates lose out to health-ier drinksFor those wanting a dose of unambigu-ous confirmation of just how much in-fluence the health and wellness trend already wields in Vietnam, the off-trade soft drinks sector is the place to look. Volume sales of carbonates, which are regarded as being the unhealthiest of all soft drinks by Vietnamese consum-ers, have been on a downward spiral for an entire decade. Peaking in 1998 at 91 million liters, the category tumbled to just 68 million liters in 2008.

the nutritional goodness a beverage can deliver, including the antioxidant epi-gallocatechin gallate naturally found in tea, as well as vitamins C and E.

Other healthy soft drinks categories which made notable volume gains were bottled water, rising to 154 million liters in 2008 from 82 million liters in 2003, and Asian specialty drinks with an 82% increase to 83 million liters.

Interestingly enough (and very much in line with the health and wellness trend!), although overall cola carbon-ates declined, low-calorie colas regis-tered a 30% volume gain over the re-view period. The category is still quite immature, accounting for 5% of cola carbonate sales (by volume) in 2008.

VDS sector – commendable growth, but in need of devel-opmentVitamin and dietary supplement (VDS) sales increased by 48% in value between 2003-2008 to VND835 billion (US$51 million). Multivitamins, which accounted for 35% of this, was the most dynamic, with sales rising by 75%.

Although VDS sector growth is fairly strong, these products are frequently priced much higher than other OTC products and are therefore considered “luxury items”. The proliferation of fake products is also stopping the cat-egory from fulfilling its potential. Up

Euromonitor International is the world’s leading provider of global business intelli-gence and strategic market analysts. They have more than 30 years experience of pub-lishing market reports, business reference books, online databases and bespoke con-sulting projects. Their research offers insight into industries, countries and consumers. They deliver quality information solutions to support strategic business planning. Eu-romonitor International is headquartered in London, with regional offices in Chicago, Singapore, Shanghai, Vilnius, Dubai, Cape Town and Santiago and has a network of over 600 analysts worldwide.

Demand for “healthy” drinks, on the other hand, is booming in Vietnam. Off-trade volume sales of fruit/vegeta-ble juice doubled over the 2003-2008 review period to over 34 million liters. RTD tea has done even better – volume sales shot up by 477% over the same pe-riod to 29 million liters. Indeed, for the first time in 2008, RTD tea surpassed cola carbonate sales, which declined to a pitiful 23 million liters that year. RTD tea, and specifically still green tea bev-erages, are perceived to encompass all

to now, there is no appreciable market for (single) vitamin A, eye health, glu-cosamine, probiotics and many other more advanced supplements.

Health and wellness growth rides on the back of Vietnam’s retail revolutionNeedless to say, availability is key, and the distribution of health and well-ness products is strongly dependent on the modernization of Vietnam’s retail environment. Fortunately, this is happening at a phenomenal pace. Over the 2003-2008 review period, hypermarket retail value sales rose by 163% to VND1,955 billion (US$120 mil-lion) and supermarket sales by 134% to VND7,245 billion (US$445 million). Vietnam’s joining of the WTO in 2007 finally opened the market up to for-eign retailers, and since January 2009 foreign players have been allowed to set up wholly-owned businesses in the country. This bodes well for the continued proliferation of health and wellness-oriented products, for which Vietnamese consumers are certainly developing an appetite.

www.NaturalProductsAsia.com

Ewa Hudson manages the research program for the global health and wellness industry at Euromonitor International. In her cur-rent post, Ewa Hudson has direct respon-sibility over the content and quality of Eu-romonitor’s health and wellness research, which provides strategic analysis and other in-depth coverage of the global market in more than 32 countries worldwide. She is also responsible for working with the inter-national client base of Euromonitor’s online Health and Wellness Foods and Beverages-Passport. She earned a master’s degree in economics from the University of Poznan, Poland, and has also studied postgraduate marketing at the University of Westminster in London.

3

Market Sizes - Historic/ Forecast - Off-trade Volume - mn litres

Sources: 1. Soft Drinks: Euromonitor from trade sources/national statisticsDate Exported (GMT): 26/02/2010 3:23:07 AM©2010 Euromonitor International

Page 4: Natural Products Asia Resource, Issue 2

Business Strategies

Written by Albert Leung, Hong Kong Cosmetic Technical Resources Centre

China Cosmetic Market - an attractive marketChina’s cosmetics market has demon-strated impressive growth over the past few years. China is today the second largest cosmetics market in Asia. Ac-cording to the National Bureau of Sta-tistics (NBS), China’s cosmetics retail value grew by 26.3% year-on-year (yoy) to reach 48.83 billion yuan in 2007. In-creasing spending power of Chinese consumers and growing participation of women in the workforce have un-derpinned the strong growth of the cosmetics market. Enhancing exposure to western culture also gives a boost to cosmetics sales in China.

Despite the recent slowdown, China will continue to be one of the fastest-growing cosmetics markets. Hit hard by the financial turmoil, cosmetics sales in many developed economies are expected to show flat or even negative growth in 2009; meanwhile, indus-try experts are confident that China’s cosmetics market will maintain its double-digit growth in coming years with government’s continuous efforts to boost domestic consumption.

China is a booming goldmine for cos-metics companies all over the world. Lured by the rosy prospects, both for-eign and domestic cosmetics compa-nies have made major commitments in this thriving market. Table A and B demonstrate the brand portfolio of major foreign and domestic cosmet-ics groups in China. As shall be seen, foreign cosmetics groups have a more extensive brand portfolio than their domestic counterparts in general.

According to the report released by the Hong Kong Trade and Develop-ment Council (HKTDC) in Octo-ber 2008, Shanghai, Beijing, Jiangsu, Guangdong, Zhejiang and Shandong together accounted for over 55% of the national sales in cosmetics. This means that most lower-tier cities have not yet been explored and developed by any cosmetic players. Therefore, mar-ket research company RNCOS believe that China Cosmetic Market is far away from the saturation level and still offer investment potential for new interna-tional players.

Full of Political BarrierAny companies, which import cosmet-ics to China, should in first place apply “Import Cosmetic Hygiene Permit” for their cosmetic products. These com-panies can be foreign cosmetic manu-facturers, trading firms (for overseas I/E business), cosmetic brand owners. There companies can be located all over the world.

From 2008 September, the permit should be issued by the State Food and Drugs Administration (SFDA), which before the products can be lawfully distributed in Chinese market, will be responsible for the acceptance of the application for hygiene permit of all imported cosmetics, Chinese-made special cosmetics and new ingredi-ents of cosmetics. Each permit has its unique permit number. The permit number should be shown on the label-ing of all imported cosmetics & Chi-nese-made special cosmetics. Besides, China Customs has the authority to request importers to show the hygiene permit during importation process.

China Cosmetic Market -

Albert K.P. Leung• Executive, Hong Kong Cosmetic Technical Resources Centre• Executive, CMA Testing and Certification Laboratories• Honorary Secretary, Hong Kong Society of Cosmetic Chemists• Part-Time Tutor, Cosmetic Science Course, Institute of Professional Education And Knowledge• Columnist of Sister Beauty Pro Magazine

an attractive market, but full of political barrier

www.NaturalProductsAsia.com4

Page 5: Natural Products Asia Resource, Issue 2

Business Strategies

The general registration process can be simplified and summarized into four steps:1. to prepare sample of imported cosmetics2. to apply cosmetic safety and quality report by submitting sample to inspection institution3. to prepare other legal documents 4. to apply SFDA for registration and to obtain approved permit.

After the submission of application, inspection institution will inspect the quality and performance of products including all the documents submit-

Hong Kong Cosmetic Technical Resources Centre (CTR) is a joint-venture established by CMA Testing and Certification Labo-ratories (CMA Testing) and International Cosmetic (Asia Pacific) Joint Development Centre (ICJDC) in 2006.

CTR is a distinctive and unique platform with a group of expertise from various au-thoritative entities covering technical sup-port, quality control, professional training, product development, production technol-ogy, market trend, regulations and license application for cosmetic industry.

ted. It would take around 4 months for non-special cosmetics and 8-9 months for special cosmetics (Step 2). Besides, SFDA would spend about 2 more months for product evaluation, regis-tration and obtaining approved permit (Step 4). Pre-marketing registration system would undoubtedly increase the blocks and barriers for importing cosmetic to China. From another point of view, cos-metic players would be in a controlled and regular business environment with relatively few competitors after they overcome pre-marketing registration process.

www.NaturalProductsAsia.com5

L’Oréal

P&G

Shiseido

Unilever

Shanghai Jahwa Co Ltd

Arche Cosmetics Co., Ltd

Jiangsu Longliqi Group Co Ltd

Sichuan Cortry Industrial Co Ltd

Zhuhai Sunrana Cosmetics Co. Ltd

Nice Group

Guangzhou Decolor Cosmetics Co Ltd

Bawang International

Foshan Shunde Modern Health Care Products Co Ltd

Shanghai Huayin Commodity Co Ltd

Shanghai Savol Health & Cosmetics Co Ltd

Guangzhou Houdy Cosmetics Co Ltd

Nanjing Jianong Chemical Co Ltd

Longliqi

Cortry

Sunrana

Century Conditioner

Decolor

Bawang

Xian Dai

Bee & Flower

Savol

Houdy

TJOY

Leenchie

Beiersdorf

C-Bons Hair Care

Kanebo

Kao

Kosé

Johnson & Johnson

Estee Lauder

Table A: Foreign cosmetics groups and their major brands in China

Table B: Domestic cosmetics groups and their major brands in China

Brands

Brands

Company Name

Company Name

L’Oréal Paris Garnier Maybelline New York

L’Oréal Professional KérastaseLancôme

Biotherm Helena Rubinstein HRshu uemura

Giorgio ArmaniLa Roche-PosayMininurse

Yue SaiVichyMatrix

The Body Shop

Head & Shoulders Rejoice

SK-II Pantene

OlayVidal Sasson

Clairol Herbal EssencesIllumeWella

Shiseido Revital UV WhiteAnessaAupres

Vaseline Lux

Maxam Chinfié

BNS

Supreme Urara Elixir MelanreduceAsplir

Whitia Selfit UNOPure & MildShiseido Eudermine

ZaAqua LabelBeAquairAupres

PerfectKuyuraSuper MildTesseraHand Cream

HandasuiTsubakiIPSA

Dove Hazeline Pond’s Clear Rexona

Clean & Clear

NIVEA

Slek

Impress

Bioré

KoséBeauté de Kosé

Neutrogena Dabao

Estee Lauder Aramis

Clinique M.A.C.

La MerBobbi Brown

Tommy HilfigerDonna Karan Cosmetics

Sdew Hairsong Maestro

Lunasol Aqua Freeplus

Sofina Asience Sifoné

PrédiaSekkisei

AvenirRecipe-O

Junkisei

Herborist Soft Sense

GfLiushen

Cocool

Yuzhibao YaFei Dragon Beauty

Ariar Cathy Effi Mero

Page 6: Natural Products Asia Resource, Issue 2

Retail Excellence

“Joint pain be gone in 7 days,” “no more eye dryness in 1 hour,” “…can heal all the illness and discomfort in your body…” Health claims like these go on and on and together with the bombardment of advertisements and celebrities en-dorsements, the health consciousness of Hong Kong people has increased extensively in recent years. A sur-vey conducted by University of Hong Kong and Hong Kong Health Food Association in 2008 pointed out that 34.8% of adults being interviewed have consumed health supplement products within the past six months. It is estimated that 2 million Hong Kong people have consumed health supplement products in past 6 months with market size being estimated as HK$10 billion. Although the numbers seem encouraging, the truth tells you otherwise.

The same study goes on and indicates that the health supplements users do not know the exact benefits of the products they are consuming; it is only from friends or relatives’ word of mouth that they started taking these health foods. It demonstrates that Hong Kong people are lacking of the general knowledge on health supple-ments, which was probably due to the insufficient education on the subject from government.

Retailing Health Food in Hong KongWritten by Calvin Chan, CATALO Group

Success in

With low health awareness, lack of government support and an extremely competitive yet small market like Hong Kong, does that mean health food in-dustry is not going to soar? Not really, you just have to be “R.I.G.H.T.”

R – RelevantNo matter how good or state-of-the-art your products are, if customers do not find them relevant, or in other words, answering their needs, they are literally in vain. Therefore, we have to constantly talk to customers and get to know what they exactly need. If bud-get allows, research or focus groups would be an excellent way to collect consumer insights, yet, day-to-day

conversations with existing or target customers also serve the purpose.

I – InnovationOne has to constantly stay connected, if not ahead, of the market trend in or-der to maintain your competitive edge. Get involved in professional organiza-tions, periodically participate in world-class exhibitions and trade shows, or even subscribe and read recognizable journals and publications also equip you with the knowledge. Government rules and regulations on health supple-ment products can be quite innovative and unique sometimes, therefore, one must also be constantly in-touch with related departments for safety, security

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Page 7: Natural Products Asia Resource, Issue 2

Retail Excellence

codes and import restrictions. Ensure your due diligence is thorough.

G – General EducationRome is not built in one day; the same applies in converting the mentality of mass public. At CATALO, we regu-larly issue newsletter and e-newsletter with unbiased health information that benefit not only our customers, but hopefully, the yet-to-be-CATALO-customers. Much effort is also spent on organizing health related seminar, and most importantly, maintaining Dietitian Hotline to answer customers’ enquiries regarding our products and even general health related questions. We believe every bit adds up. Calvin Chan is the Executive Director of

CATALO Group, he oversees the group’s on-going business and development in the Asia Pacific realm, he travels between offices in United States, Hong Kong and China, with over 10 years experience in the industry. He is one of the Council Mem-bers of the Hong Kong Health Food Asso-ciation and leads the Public Affairs Com-mittee. He also serves in the committee of the Chinese Manufacturers’ Association of Hong Kong and the Quality Tourism Services Association.

H – Handling CostBeing a big spender and sprinkling all the advertising budget, imposing cut-throat discount promotions are simply a no-brainer in business, it is how well you handle the budgeting and costing that marks true business intelligence.

T – TrainingAt the end of the day, how successful a retail business is lies significantly with-in the customer experience, and what it boils down to is the kind of service your frontline staffs provide. Hence, at CATALO, we ensure that training on health knowledge, supplement func-tions, and servicing skills are periodi-cally given to our frontline staffs.

Although there is no guaranteed winning formula, the essence of “R.I.G.H.T.” is doing heartful business which puts customer first, and by do-ing so, success in retailing health food in Hong Kong could be within reach.

The scope of business of CATALO Group includes product development and manu-facturing in the United States and retailing and marketing of the same branded natu-ral health foods outside of U.S.. CATALO markets over 180 products in Asia and op-erates more than 20 retail stores and coun-ters and has more than 800 distribution points in Hong Kong. The Group is aggres-sively expanding its business in the Greater China region with its first retail shop open-ing in Guangzhou by mid of 2010.

CATALO has been awarded with numerous awards and recognitions including “Hong Kong Top Brand”, “Best of the Best Natural Health Products Store Award”, “Best Qual-ity Natural Health Product Brand” and “The Best Natural Health Products Award” etc.. All of these awards and recognitions have once again reassured the leading po-sition of CATALO in the market.

www.NaturalProductsAsia.com7

Page 8: Natural Products Asia Resource, Issue 2

Trends & Insight

There is a legal definition of “health food” in Taiwan. Health Food Control Act states: Health food shall denote food with health care effects, having been labeled or advertised with such effects. The Act also states: Health care effect shall mean an effect that has been scientifically proven to be capable of improving people’s health and decreasing the harms and risks of diseases. Legal Health Food shall be registered in Department of Health. By January this year, there are only 180 products been approved. Yet lots of consumers don’t care the rigid def-inition. They are still mixing all pos-sible terms, such as functional food, supplement food or even healthy food, as long as they believe these food give benefit to health, no mat-ter it is registered or not, no matter it has scientific evidence or not. So “nutraceuticals” used in this article is in broad sense like health food.

Gradually growing market According to ‘Industry & Technol-ogy Intelligence Services(ITIS) Proj-ect sponsored by Ministry of Eco-nomic Affairs, estimation of Taiwan market value of nutraceuticals in-dustry was roughly NT$ 67.7 billion (US$1=NT$32) in 2008. The produc-tion value of the Taiwan nutraceu-ticals industry was roughly NT$ 46.1 billion. Production value increased 5.3% from the same period of the previous year, primarily owing to the increase in algae, lactic acid bacteria, Antrodia cinnamomea, grain, oats, and functional beverages.

Mostly imported from the United States During the past years, Taiwan’s nutra-ceuticals’s import value was greater than export value. In 2008, nutraceu-ticals imports to Taiwan were NT$ 50 billion. In terms of volume, only 16% of nutraceuticals were in tablet and capsular form, the remaining was in the semi-finished products. In terms of value, 63% of nutraceuticals came from United States. The major import-ing countries were US, Japan and Sin-gapore.

Mainly exported to Southeast Asia Because of geographical proximity, and with similar food culture, domestic manufacturers of nutraceuticals main-ly exported to Southeast Asia. How-ever, the export to North American had also been increasing. The number of exporting firms showed significant growth in 2008 compared to 2006, in more than two fold. Major export items

are mushrooms (Ganoderma lucidum), algae (green algae, cyanobacteria), collagen, and fermentation products. The ingredients in these products were successfully developed in Taiwan. In-dustry players use their own unique geographical environment and fer-mentation technology to develop their own formula.

Product overview (1) New products focus on cardio-vascular effects In the recent years, the new products and ingredients mainly include the im-mune function, cardiovascular func-tion, eye health function, liver func-tion, boosting energy function, and beauty. Among them, new products still focus on cardiovascular health.

(2) Health-enhanced foods have be-come mainstream Taiwan food Consumption Report revealed that consumers gave more concern with the self-related cardio-

in TaiwanWritten by Lu-Hung Chen, Ph.D., Shu-Fang Chen,

Food Industry Research and Development Institute, Taiwan

Nutraceuticals Market

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Page 9: Natural Products Asia Resource, Issue 2

Trends & Insight

vascular, liver, kidney, obesity and dia-betes, in particular, cholesterol, sugar, and calories for the past three years. Health-enhanced foods have become hot sellers. This trend has attracted manufacturers to heavily promote health foods, especially beverages. Traditional beverages are declining while health beverages are increas-ing, resulting in stable total beverage sales. To meet the needs of an aging society, more and more products are being produced in Taiwan to guard against and alleviate the chronic and other diseases. Some such products are specifically designed to alleviate ill-nesses resulting from unhealthy daily habits. These products include adding indigestible maltodextrin to food to control blood fat and protect the in-testinal tract. The tea beverage market is also influenced by this trend, with initiatives such as adding dietary fiber and inulin to tea to provide dietary and intestinal tract protection benefits, or adding oat and inulin to soybean milk to reduce blood fat. “Health-enhanced food” trend thus has created potential for new products in the food and bev-erage market. Consumer Behavior Economy slowdown doesn’t affect the consumer health-care spending. The overall economic was highly uncertain, consumer spending become more and more conservative. An average

of household spending was slightly down to NT$705,413 in 2008. Although that is higher than the average spend-ing, when compared with disposable household income, the percentage of average spending over disposable household income has decreased over the years. Among all the different ex-penditures, medical/personal care expenditure is the only spending that has been increasing over the years. In 2008 it reaches NT$ 100,000 for the first time.

ProspectIn Taiwan, approximately 3 million are suffering related metabolic symptoms, and these numbers will increased fur-ther with population aging. With peo-ple becoming increasingly concerned with health management, domestic manufacturers already possess numer-ous nutraceuticals treating metabolic syndrome. That means preventing metabolic syndrome’s products will still be hot selling items.

Get into ASEAN plus China market opportunity In 2010, global concern of ASEAN plus one (Mainland China) market dynam-ics is budding. The total population of ASEAN and Mainland China is up to 1.9 billion, accounting for a quarter of the world’s total population. This is the world’s largest free trade area population. China has begun to fo-

cus on the health needs. According to the China Health Care Association survey, the market value of the China nutraceuticals industry was roughly RMB 80 billion. In addition, the 10 ASEAN countries, economic growth had also led to increased demand for health food. Among them, particularly Indonesia, Thailand, Philippines, Ma-laysia and Singapore, have a high gross national product. Euromonitor data even estimated that the market value of the five countries was roughly US$ 1,400 billion. To grasp this opportuni-ty, manufacturers have begun to create various products catering specifically to this market.

The Food Industry Research and Develop-ment Institute (FIRDI) is a non-profit legal entity established in 1965. Its main mission is to help accelerate transformation and upgrading of Taiwan food industry through research, training, technical service value-adding and innovation. It also serves as an Agricultural Microorganisms Bank and the core facility of Cell Bank. Its BCRC has been a member of World Federation for Culture Collections (WFCC) since 1984 and is the first bioresource center certified with ISO quality system (ISO 9001:2000).

www.NaturalProductsAsia.com9

http://www.healthytimesonline.com/hk/

Page 10: Natural Products Asia Resource, Issue 2

Market Research

Biological Farmers of Australia (BFA), Australia’s largest representative group for the organic food and farming indus-try, says that the recent massive growth predictions for the organic industry re-flect data and trends identified in on-going market research commissioned by Industry.

Organics is being increasingly tipped as the industry of opportunities in Aus-tralia, echoing similar positive reports in the US, Europe and other countries. In survey findings released over the past week by independent global industry researcher IBISWorld, organic farming was tipped to be a front-runner in the areas of revenue and employment in Australia.

In its report on the “top 10” growth in-dustries, IBISWorld states that organic farming revenue is poised for a growth spurt, to increase 14.8% in 2010, raising the value to $430 million. This places organic farming in the top two growth industries in Australia for the coming year. In the next five years revenue is expected to grow at an average rate of 13.4% per year reaching approximately $760 million in 2014.

IBISWorld General Manager (Austra-lia), Mr Robert Bryant, says that; “While on average organic goods remain more expensive than non-organic produce, higher disposable incomes, coupled with increasing awareness of environ-mental sustainability and an increase in the range of organic produce avail-able, will see continued growth in this industry.

“Growth will mainly be driven by in-creases in production, and an increase in consumer demand,” Mr Bryant said. “Not only does Organic Farming of-fer higher returns for farmers, but re-cent studies suggest it is more resilient

and adaptable to changing conditions wrought by climate change - encourag-ing some farmers to switch from con-ventional to organic farming.”

In a separate IBISWorld report, organic farming, as an employer, is forecast to strengthen from 6.2% in 2012-13 to a phenomenal 11.2% in 2013-14.

In terms of job prospects, Mr Bryant noted opportunities would relate to increased primary production, creat-ing demand for farmers, farm-hands, skilled and unskilled labourers, and itinerant workers such as pickers.

“While many of the jobs created will fall into the category of unskilled la-bour, there will also be opportunities created for ecologists, biodynamic farming specialists, and researchers,” Mr Bryant added.

That organic production is on the crest of a wave comes as no surprise to Holly

Vyner, General Manager of the Biologi-cal Farmers of Australia.

“We have been watching steady growth in organics for some time now,” she says. “BFA commissioned research in 2008 reported retail sales overshooting the half billion mark (AU $0.6 billion) and an 80% growth in farm gate sales over four years despite widespread drought.

“This year will see the publication of the 2010 Australian Organic Market Report, independently researched by University of New England on behalf of BFA, building upon 2008 data. This next report will be an important yard-stick for measuring organic industry growth over the past two years, and will provide industry members and potential new entrants with an essen-tial guide to trends and opportunities in various sectors within the organic industry.”

Ms Vyner adds that organic farmers are, on average, younger than non-organic farmers, which augurs well for future organic farming growth.

The rise and rise of organic production has an impact beyond the farm gate, according to BFA Director and Stan-dards Convenor Dr Andrew Monk.

“In the marketplace, supply chain ca-pacity is increasing to cope with the expanded demand for and supply of or-ganics,” he says. “The growing number of larger retailers that are now seeking out and stocking increased ranges of organic produce, should assist to grow consumer demand as organic becomes more available and consumers become better educated on the value of organ-ics. In tandem with this has been the growth in popularity of organic farmers market stalls and smaller, local retail.”

Written by Jan Nary, Biological Farmers of Australia (BFA)

Massive Growth Spurt Predictedfor Organics in Australia

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Market Research

Dr Monk says that biological farming is a long-term farming system and that BFA is working to assist in the develop-ment of this broader sector, which will in turn continue to assist in the matu-ration of the organic food and farming industry.

“There will be a challenge in develop-ing and nurturing the skills necessary for wide-scale food production and value adding under organic param-eters,” he says. “The recent incredible

Jan Nary is one of the PR team at the BFA. As Senior Publicist Jan helps spread the organic word by writing for various pub-lications, liaising with media and working on special projects. Before joining BFA she freelanced as a publicist / journalist for sev-enteen years, prior to which she presented the morning program on ABC Radio in Brisbane. She worked with the Australian Consumers’ Association (publishers of CHOICE magazine) for fifteen years, ini-tially as the head of the Information Re-sources Department then for nine years as ACA’s national public and media spokes-person. She also served on Standards As-sociation of Australia committees.

The Biological Farmers of Australia (BFA), is the voice of Australian organics and for 20 years has played an integral role in grow-ing and developing the organic industry to where it is today. A member-owned body representing over 3000 certified organic businesses and members, the BFA’s mission is to promote organics, educating farmers through to consumers about the benefits of organic food and farming, as well as to

growth and success of courses such as the certified organic program at Al-bury, Riverina Institute of TAFE tells us that those skills can be taught but require a significant change in mindset to non-organic farming education and practices. Properly administered, the organic process – agriculture in par-ticular - requires unique sets of skills which can’t be learnt overnight. Now is the time to start.”

Resources; Ibis World: www.ibisworld.com.au/pressrelease/press-release.aspx?prid=212Ibis World: Opting for Organic; IBISWorld Industry report X0013 – Organic FarmingAustralian Organic Market Report 2008: www.bfa.com.au/index.asp?Sec_ID=259 Australian Certified Organic Magazine, Spring 2009; Organic Training; Tradition in the Soil

actively develop standards, networks and trade. The democratic structure of the group allows industry members to have ownership of and be involved with stan-dards development and the future direction of the industry.

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Page 12: Natural Products Asia Resource, Issue 2

Product Development

Written by Ram Chaudhari, Ph.D., FACN, CNS, Fortitech

Nearly eclipsed in the public eye by health conditions with more visibility, bone and joint conditions are in fact the leading cause of long-term pain and physical disability worldwide. The range of musculoskeletal condi-tions includes, back pain, osteoporo-sis, rheumatoid arthritis, osteoarthritis and bodily injuries. All together, they place an enormous burden on soci-ety, including the personal suffering of those afflicted, as well as the cost of lost productivity, lost wages, and treat-ment. Osteoporosis is a bone disorder primarily seen in the elderly, especially in women. This chronic disease re-sults in loss of bone mineral from the skeleton, which weakens the bone and leads to an increased risk of bone frac-ture. Osteoarthritis is a joint disease that mostly affects cartilage, which is a slippery tissue that covers the ends of bones in a joint. Cartilage acts as a shock absorber and allows the bones to glide over each other. When the carti-lage breaks down and wears away, the bones under the cartilage rub together. This rubbing of bone on bone causes pain, swelling, and loss of motion of the joint. Osteoarthritis is the most com-mon joint disease and, although it can occur in younger people following joint injuries, like osteoporosis, osteoarthri-tis is most often seen in the elderly.

Osteoarthritis is a localized disease af-fecting only bone joints, and in addi-tion to aging, obesity is an important risk factor for the development of os-teoarthritis. Another common form of arthritis is called rheumatoid arthritis.

Rheumatoid arthritis also affects the joints, but it is a systemic disease, possi-bly caused by an autoimmune reaction or genetic factors. Rheumatoid arthri-tis can manifest itself in non-joint-related symptoms, including general fatigue and flu-like symptoms, and oc-curs most frequently (70% of the cases) in women, aged 30-50 years. However, when it occurs in men, it tends to be more severe; and children can be af-fected as well. Important to all of these chronic diseases are early diagnosis and effective treatment to reduce excess bone loss and joint disability. In this regard, a number of essential nutrients and other functional ingredients have been shown to be important in manag-ing these conditions.

Global PerspectiveAging and obesity are important fac-tors contributing to bone and joint

disorders. Given the rising numbers of older and obese people in both eco-nomically developed and less devel-oped countries, bone and joint health is a global concern. The burden of bone and joint disease is so weighty, that governments, NGO’s, patient advo-cacy groups and health organizations around the world started a collabora-tive initiative dedicating 2000-2012 as the Bone and Joint Decade (BJD).

According to the BJD, 50% of chronic disease in the elderly is represented by joint diseases and 40% of women over the age of 50 are expected to suffer a minimum of one osteoporotic fracture within their lifetime. According to the World Health Organization (WHO), osteoporosis ranks second to cardio-vascular disease in terms of its global healthcare burden.

Strategic Nutrition for& Joint HealthBone

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Page 13: Natural Products Asia Resource, Issue 2

Product Development

Worldwide, the US has the most de-veloped bone and joint health market, which is expected to approach $4 bil-lion by 2013. The functional ingredi-ents market that supports bone and joint health is also a billion dollar in-dustry in China and Japan. In Japan, 10 million patients have osteoarthritis, with over 30% of Japanese aged 70 plus, suffering from osteoarthritis, which continues to advance with age. Aging populations worldwide and the long-term consequences of obesity mean an increasing incidence of bone and joint conditions for many years to come.

associated symptoms). By age 40, al-most everyone has some osteoarthritic changes in weight-bearing joints (e.g., hip and knee joints) and, by age 75, virtually everyone has changes in at least one joint. Since osteoarthritis is a chronic degenerative disease, this information suggests that even young adults need to consider protecting their joints against chronic wear-and-tear by optimizing their nutrient in-takes.

Consumer PreferencesConsumers are increasingly seeking supplements and functional foods and beverages that promote wellness and have scientific validation. Consumer preference is now turning to foods — up 29%— and beverages — up 11% — fortified with joint-health ingredients, according to Nielsen data. Promi-nent competitive factors in the bone and joint health ingredients market include price, quality, distribution ef-ficiency, ability to provide a point of differentiation through novel ingre-dient combinations, and value-added services that include assistance in product formulation and regulatory support. Similar analysis abroad shows heightened interest in health promot-ing foods across much of Europe, in particular.

Strategic Ingredients for Bone and Joint HealthWhile calcium was, for years, the most often referenced antidote for bone weakness, in recent years, Vitamin D has come to the fore for its own role in promoting musculoskeletal health, as well as for its significant supporting role to calcium in bone health. While products may boast about added calci-um on packaging, it needs to be better recognized that calcium works in com-bination with Vitamin D to promote optimal bone health. A significant

Fortitech Asia Pacific based in Malaysia, is part of the global network of manufactur-ing and distribution companies of Fortitech, Inc., essentially founded and pioneered the nutrient premix industry. Consistently lead-ing the way in the field of fortification, For-titech has helped manufacturers introduce or improve over 30,000 products offering health and wellness benefits to consumers worldwide and has the expertise to fortify virtually any product application, with any nutrient, anywhere in the world.

portion of people worldwide currently do not get an adequate dose of Vitamin D through exposure to sunlight and do not take in enough through diet to compensate. Additionally, other nu-trients may be minimal or absent from day to day diets that may also play a role in achieving optimal musculosk-eletal health. Hence, the need exists for a more sweeping nutrient strategy for promoting both healthy bones and joints. In particular, more consumer attention needs to be focused on joint health, and there is a great need to develop new products that target this condition. These products need to provide novel ingredient combina-tions that promote the maintenance of healthy bones and joints. Below we consider some important ingredients that have been shown to be efficacious in promoting bone and joint health in people.

To read the remainder of this article and to learn about other nutrients that can address bone and joint health, please visit http://bit.ly/c5V660

Target MarketsHistorically, women and adults age 60 plus have been the focus of bone and joint products. The market is growing, as a rising number of men and younger adults are being diagnosed with osteo-porosis or are at high risk due to low bone mass. A body of information exists supporting that most people around the world do not get enough calcium or vitamin D, and recent re-search indicates that there is a high percentage of vitamin D deficiency in children under 11. The wide spectrum of deficient populations, in turn, in-creases the necessity for product inno-vation and demographic appropriate product development.

In some people, evidence of osteoar-thritic changes may exist by the second or third decade of life (usually without

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Page 14: Natural Products Asia Resource, Issue 2

Legislative Issue

Use of Nutrition and Health Claims on Food LabelsNutrition and health claims on food labels can be a useful public health tool, for the promotion of nutrition awareness. Such information is also beneficial to food industry, enabling manufacturers to highlight the nutri-tional quality of their products. Recog-nising this, there has been increased interest and efforts of by authorities to improve regulatory control of regula-tions concerning nutrition labeling and health claims, to ensure that such information are is accurate and appro-priate.

This article provides an overview of the regulatory status of nutrition and health claims for nutrients and bioac-tive compounds in selected countries in the Asian region. More complete coverage of this topic can be found in the AFIC Brief ‘Nutrients and Bioac-tives : Nutrition and Health Claims Regulations in Asia’ which is available on the AFIC website”

Definition of Nutrition and Health ClaimsThe following is a summary of the def-inition of nutrition and health claims according to Codex Alimentarius, an international food standards setting organization.

Nutrition claim means any representa-tion which states, suggests or implies that a food has particular nutritional properties. There are two types of nu-trition claims, namely (a) nutrient con-tent claim (eg high in vitamin C; free of cholesterol) and (b) comparative claim (eg more protein, less sodium).

Health claim means any representation that states, suggests or implies that a

Source: Asian Food Information Centre

Nutrients and Bioactives : Nutrition and Health Claims Regulation in Asia

relationship exists between a food or a constituent of that food and health. These include: (a) nutrient function claim, (b) other function claim and (c) reduction of disease risk claim.

Nutrient function claims describes the physiological role of the nutrient in growth, development and normal functions of the body, eg:

• Calcium aids in the development of strong bones and teeth• Iron is a factor in red blood cell formation

Other function claims describes spe-cific beneficial effects of the consump-tion of a food constituent (or bioactive compound) in improving or modify-ing a physiological function. In recent years, there has been considerable in-terest in role of bioactive components or functional ingredients in promoting health. An example of such another function claim is: plant sterols help in lowering blood cholesterol.

Reduction of disease risk claims relates to the consumption of a food or food constituent (such as bioactives) to the reduced risk of developing a disease or

health related condition. An example of such a claim is: soy protein reduces risk to of developing heart disease.

Nutrition and Health Claims in AsiaThis review provides a summary of the regulatory status of nutrition and health claims in several Southeast Asian countries (Indonesia, Malaysia, Philippines, Singapore and Thailand) and China and Japan. Particular atten-tion shall be is given to “other function claims” related to other food compo-nents or bioactive components in food. Most of the information for this review has been obtained through a series of workshops organized by International Life Sciences Institute (ILSI) Southeast Asia Region from 2002-2008. Updates were also obtained from websites of regulatory agencies. Tables 1A – 1D summarizes the permit-ted nutrition claims, nutrient function claims, other function claims and dis-ease risk reduction claims in the coun-tries reviewed.

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Legislative Issue

ConclusionsThere is continuing interest in nutri-tion and health claims among the food industry in the region. The food indus-try would like to have a clear regulatory framework for application of nutrition and health claims. It also seeks a rea-sonable lag time between application and final approval of a claim. Smaller companies also lack expertise to sub-mit such applications.

The regulatory agencies are monitor-ing closely these developments. The authorities are concerned with effec-tive communication of such nutrition information to consumers and the po-tential misunderstanding and misuse of claims and the simplistic interpreta-tion of claims. There is increasing em-phasis on the need for scientific sub-stantiation before health claims are permitted to be made. The authorities are looking into putting in place clear regulatory systems to facilitate making of nutrition and health claims by the food industry.

As different countries work internally to set up systems that work for them, there is a danger that differing regula-tions can cause confusion for consum-ers and food companies and inhibit free trade of food products from one country to another. It would seem that the need to keep consumers well informed on product benefits based on sound science should have more similarities than differences among countries and hopefully the Codex sys-tem will help provide guidance in that direction. Getting it right will help consumers by providing an incentive to companies to market products that improve nutrition and health.

‘The Asian Food Information Centre(AFIC) mission is to effectively communicate sound, science-based information on food safety, health and nutrition to media and other key audiences in the Asia region. For other inter-esting articles, please visit www.afic.org.’

Indonesia

Indonesia

Indonesia

IndonesiaYes, nutrient content claim, comparative claim; criteria for claim based on Nutrient Reference Value (NRV) Indonesia

Yes, nutrient content claim, comparative claim; format and crite-ria generally similar to Codex

Yes, nutrient content claim, comparative claim; format generally similar to Codex; criteria based on Recommended Energy and Nutrient Intake (RENI) Philippines

Yes, nutrient content claim, comparative claim; criteria for claim based on Recommended Dietary Allowance (RDA) not NRV

Yes, nutrient content claim, comparative claim; format generally similar to Codex; criteria based on Thai Recommended Dietary Intake (RDI) rather than NRV

Yes, nutrient content claim, comparative claim; format and crite-ria generally similar to Codex

Yes, nutrient content claim only; format generally similar to Co-dex; but different criteria used

Yes, in new regulations to be enforced; dietary fibre (psyllium, inulin, oat), prebiotic, probiotic, plant sterol and stanol esters25 claims have been allowed for other food components (eg inulin, FOS, GOS, GOS+lcFOS mixture, oligofructose-inulin mixture, lutein, polydextrose, resistant dextrin, resistant starch, sialic acid, sterol, sterol ester, beta-glucan, soy protein)Yes, according to Codex; no positive list7 claimshave been allowed for probiotics, prebiotics (eg inulin, oligofructose, GOS+lcFOS mixtureRegulations being drafted, similar to CodexNot permittedFOSHU (797 products approved as at end August 2008) and Qualified FOSHU for food components such as specific dietary fibers and non-digestible oligosaccharides, bifidobacteria, guar gum, chitosan, tea polyphenol, lactotripeptide, L-arabiose, pala-tinose, maltitose, erythrytol, isoflavone, medicum chain fatty acid

Yes, in new regulations to be enforced; folate, calcium, dietary fibre psyllium, inulin, oat), plant sterol and stanol esters, soy protein, soy isoflavone Not permittedYes, according to Codex; no positive listYes, only 5 nutrient specific diet-related health claims permit-ted for calcium and vitamin D; diet low in sodium; diet low in saturated fat and trans fat; diet rich in whole grains, fruits and vegetablesRegulations being drafted, similar to CodexNot permittedOnly calcium and osteoporosis and folate and neural tube de-fect, as part of the FOSHU system

Yes, in new regulations to be enforced; 4 macro-nutrients (pro-tein, fat, linoleic acid, carbohydrates), 8 vitamins, 3 minerals

23 claims have been allowed for protein, 9 vitamins, 5 minerals

Yes, according to Codex; no positive list

26 claims have been allowed for 3 macro nutrients (protein, lac-tose, dietary fibre), 7 vitamins, 5 minerals

29 claims for protein, dietary fibre, 13 vitamins, 14 minerals

60 claims have been allowed for 8 macronutrients (energy, fat, protein, saturated fat, cholesterol, carbohydrate, sugar, dietary fibre), 6 minerals, 11 vitamins

17 claims have been allowed for 12 vitamins, 5 minerals

Country

Country

Country

Country

Nutrition claim

Other Function Claim

Disease Risk-Reduction Claim

Nutrient Function Claim

Japan

Japan

Japan

Japan

Thailand

Thailand

Thailand

Thailand

Philippines

Philippines

Philippines

Philippines

Malaysia

Malaysia

Malaysia

Malaysia

Singapore

Singapore

Singapore

Singapore

China

China

China

China

Specific examples of permitted other function claims and disease risk-reduction claims per-mitted for Malaysia, Singapore and Japan are given in a complete write up of this subject on the AFIC website (www.afic.org).

Table 1A : Status of Nutrition Claims

Table 1B. Status of Nutrient Function Claims

Table 1C : Status of Other Function Claims

Table 1D : Status of Disease Risk-Reduction Claims

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Page 16: Natural Products Asia Resource, Issue 2

Advertorial

Smarter and Healthier KidsBy Homart Pharmaceuticals Pty Ltd (©2010 Homart).

All parents want their children to grow smart and healthy, so the children are well-prepared and well-equipped to succeed in this challenging world. Parents invest on children huge amount of money and time for this: quality educations and trainings, latest books and computers, and also the best nutritional food and supplements. Omega-3 is one of the most important nutrients essential for the healthy growth and function-ing of the young body and mind. Due to polluted food sources, unbalanced modern diets, and busy life styles, medical researches found Omega-3 health supplements to be a safe, convenient, and affordable alternative to increase the cognitive, learning, concentration, psychological, visual, behaviour, immune and physical abilities of children.

Omega-3 (DHA, EPA):Omega-3 is a type of natural polyunsaturated fatty acid (PUFA) contains high levels of Docosahexaenoic Acid (DHA) and Eicosapentaenoic Acid (EPA). Human brain and eyes contain a large amount of Omega-3 fatty acids. These essential fatty acids are necessary for the development of the central nervous system in children, before and after they are born [1]. They are also essential for normal mental and visual developments and functions.

Higher IQ and EQ with Lower Stress and AnxietyA lack of DHA in brain is correlated with loss of struc-tural and functional integrity in the brain, while maintaining DHA levels enhance cognition, learning and memory [2][3][4]. Recent medical researches have found that Omega-3 supplementation is also associ-ated with an improvement of attentional and physi-ological functions, particularly those involving com-plex cortical processing. Omega-3 fatty acids may also improve cognitive development and memory-related learning, increase neuroplasticity of nerve mem-branes, and promote signals transmission and activi-ties between brain cells [2][5]. Furthermore Omega-3 supplementation also increases the mood and vigour, and reduces anger and anxiety. Omega-3, by improving cognitive func-tions, also reduces depression [3][5], helps modulate behaviour [2], and helps children to better cope with stress and anxiety with reduced angers [6][7]. In a double blind research experiment by Hamazaki,

Itomura, Sawazaki, and Nagao [7], they found hostility and anger levels (measured by psychological tests) in students not taking any Omega-3 supplement (control group) increase by 58% whereas it was reduced by 14% in the students taking DHA supple-ment. They also tested the stress level in the two groups in a similar double blind experiment and found those students taking DHA supplement reduce stress level by 31%, whereas it stayed at the same level in the control group.

Better Vision and Eye-Hand CoordinationDHA is also essential for the development of normal visual acuity in new borns . Thus, any marginal deficit in omega 3 LC-PUFA levels might impair retinai function[8][9][10][11].Maternal fish oil supplementation during pregnancy is safe for the fetus and infant, and may have potentially beneficial effects on the child's eye and hand coordination [12]. Dietary DHA is also needed by children for the optimum functional matu-ration of the retina and visual cortex, with visual acuity improved by extra DHA [4].

Healthier ChildrenVarious other developmental problems including attention-deficit/hyperactivity disorder (ADHD) are also linked to biological deficiencies in polyunsatu-rated fatty acids. There is evidence that the symptoms may be reduced with PUFA supplementation such as Omega-3. An experiment by University of South Australia [13] found that even children with ADHD-related problems with inattention, hyperactivity, and impulsivity might be improved by treatment with polyunsaturated fatty acids (PUFA) supplements.

Another good reason to make fish oil a regular part of our diet is found by a research [14] showing fish oil may prevent schizophrenia symptoms developing in young people at risk of the disorder. Left untreated, 28% of children who suffer from brief hallucinations or delusions go on to develop a psychotic disorder compared to only 5% who take fish oil regularly. 28% of children who suffer from brief hallucinations or delusions go on to develop a psychotic disorder com-pared to only 5% who take fish oil regularly.

Children as young as fetus and infant can benefit from Omage-3 supplementation from their pregnant mother, breast-feeding mother, and infant formulas.

Page 17: Natural Products Asia Resource, Issue 2

Advertorial

Omega-3 is required for the healthy development of the fetus and placenta and the central nervous system, and cognitive and visual functions in infants [4][11][15]. Perinatal supplementation of Omeg-3 also prevents the development of hypertension in adult life, whereas a deficiency in the perinatal period results in raised blood pressure later in life [16].

Great, Where Do I Get Omega-3 for My Kids (and Even for Me)?Fish is the richest source of omega-3 in the human diet. However many governments have found that dangerous levels of heavy metals such as mercury, pesticides and other harmful chemicals flushed to the oceans and rivers being accumulated in aquatic food chain and fish. Consuming fish means taking in all those harmful substances into your and your children’s bodies. According to Food Authority of NSW government in Australia and other medical researches [1][17], a very high intake of mercury has been linked to disorders such as developmental delay and neurological problems, so eating fish is an impor-

tant concern for women planning pregnancy, preg-nant women, breastfeeding women and children under six. Australian government and scientists recommend those groups of people to eat only certain types of fish with low mercury and also not too frequently per week [1][17]. Swedish government and other European countries as well as USA have also issue similar health guidelines about eating fish to their people.

In comparison, fish oil supplements manufactured by reputable companies in highly regulated countries such as Australia are subjected to stringent testing and manufacturing processes to ensure there is no any harmful mercury, pesticides, and chemicals in the supplements.

Furthermore, our modern diets and busy life-styles often does not allow us and our children to eat suffi-cient fish per week, let along eating the correct fish types with low mercury and recording and controlling the number of times that you and your family eats fish as recommended by those governments. Therefore supplementation with fish oil capsules is often advised to provide the necessary Omega-3 that is so essential for our children’s brain, eyes, and health [18].

It was never an easy task to drag your children to drink those awful-tasting fish oil liquid by the spoonful, or to take the medicine-looking unattractive capsules. But new and innovative fish oil supplements specially formulated for growing children have been recently launched in the market. They have fun animal shapes, sweet chewable capsule shell similar to jelly beans, great fruity taste inside the fish oil capsules, and yet still come with the full health benefits of the fish oil in each capsule. You may still worry about your kids taking those new kids’ fish oil supplements, but it would be a happy worry about not enough tasty capsules instead of forcing them to take any.

[1] Food Authority New South Wales Government, Australia “Fish and mercury FAQs “, 2008, (http://www.foodauthority.nsw.gov.au/consumers/life-events- and-food/pregnancy/fish-and-mercury-faqs/).[2] Youdim, Martin, Joseph. “Essential fatty acids and the brain: possible health implications.”, Int J Dev Neurosci 2000;18:383-99.[3] Colin, Reggers, et al. "Lipids, depression and suicide.", 2003, Encephale 29(1): 49-58. [4] Uauy, Dangour. “Nutrition in brain development and aging: role of essential fatty acids.”, May 2006, Nutritional Review; 64(5 Pt 2):S24-33; discussion S72-91. [5] Fontani, Corradeschi, Felici, Alfatti, Migliorini, Lodi. “Cognitive and physiological effects of Omega-3 polyunsaturated fatty acid supplementation in healthy subjects”, 2005, European Journal of Clinical Investigation, vol 35, num 11, pages 691-699.[6] Maes, Christophe, Bosmans et al. “In humans, serum polyunsaturated fatty acid levels predict the response of proinflam matory cytokines to psychological stress.” Biol Psychiatry 2000;47:910-20[7] Hamazaki, Itomura, Sawazaki, Nagao. “Anti-stress effects of DHA.”, 2000, BioFactors, vol 13, num 1-4, page 41-45.[8] Cho, Hung , Willett, et al “Prospective study of dietary fat and the risk of age-related macular degeneration”, Clin Nutr 200 1J3209-18. [9] SanGiovanni, Parra-Cabrera, Colditz, Berkey, Dwyer. “Meta- analysis of dietary essential fatty acids and long-chain polyunsatu rated fatty acids as they relate to visual resolution acuity in healthy preterm infants.”, 2000, Pediatrics, Jun;105(6):1292-1298[10] Hoffman, Garfield, Morale, Bosworth, Castaneda, Wheaton, Theuer, Birch. “VISUAL AND NEURAL DEVELOPMENT OF

BREAST-FED INFANTS RECEIVING DOCOSAHEXAENOIC ACID (DHA)-ENRICHED BABY FOOD: A RANDOMIZED CLINICAL TRIAL”, 2004, IOVS, vol 45.[11] Bistrian. "Clinical aspects of essential fatty acid metabolism: Jonathan Rhoads Lecture." (2003) JPEN J Parenter Enteral Nutr 27(3): 168-75. [12] Dunstan, Simmer, Dixon, Prescott. “Cognitive assessment of children at age 2(1/2) years after maternal fish oil supplementation in pregnancy: a randomised controlled trial.”, 2008, Archives of disease in childhood. Fetal and neonatal edition, vol 93, num 1, page F45-50.[13] Sinn, Bryan. “Effect of supplementation with polyunsaturated fatty acids and micronutrients on learning and behavior problems associated with child ADHD”, (2007) Journal of Developmental & Behavioural Pediatrics 28 82-91.[14] “Feed the Kids Fish” 2008 Choice Magazine, page 6.[15] Helland, Saarem, Saugstad, Drevon. “Fatty acid composition in maternal milk and plasma during supplementation with cod liver oil.” Eur J Clin Nutr 1998;52:839-845.[16] EFA Sciences LLC “Long-chain polyunsaturated fatty acids interact with nitric oxide, superoxide anion, and transforming growth factor-beta to prevent human essential hypertension.”, 2004, Eur J Clin Nutr. Feb;58(2):195-203.[17] Corbett and Poon “Toxic levels of mercury in Chinese infants eating fish congee”, 2008, The Medical Journal of Australia, 188 (1): 59-60. [18] Kolanowski, W. “Omega-3 LC PUFA contents and oxidative stability of encapsulated fish oil dietary supplements”, 2010, International Journal of Food Properties

Page 18: Natural Products Asia Resource, Issue 2

Advertorial

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Homart Pharmaceuticals Pty Ltd (澳大利亞活曼特藥業公司)Established in 1992 in Sydney, Australia, Homart specialises in develop-ing, manufacturing, and marketing of Australian health supplements and skin care products. This year Homart is proudly participating in the World Expo 2010 as the Exclusive Australian Health Supplements in the Australian National Pavilion. Our products will be showcased in the Australian National Pavilion. Homart has successfully marketed over 100 products in Australia, and exported them to China, Hong Kong, Macao, Korea, Taiwan, Singapore, and USA. We continue to develop and manufacture products in our quality GMP licensed factory in Sydney, Australia. Homart also provides contract manufacturing service. Homart is a proud member of Australian Complementary Health Council and Australian Made Association. Our products are guaranteed by our AU$10,000,000 global product liability insurance. Please visit our websites for more information: www.homart.com.au and www.homartcn.com

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Homart Pharmaceuticals Pty. Ltd.

Page 19: Natural Products Asia Resource, Issue 2

What: Do you have a story, article or research about dietary supplement, natural personal care products, ingredient, functional foods & beverages, eco-living products, or a related topic in Asia that you’ve written and would like to share with readers of Natural Products Asia Resource? If so, we’d love to hear from you.

in Natural ProductsPromote your news release

Asia Resource!

How: Please email your article to Natural Products Asia Resource at [email protected]. Please also include images when submitting an article. Articles should run in the range of 700 – 1,000 words, though we will sometimes publish longer or shorter pieces. Your submission will be reviewed and we will contact the authors of all articles that we accept for publication.

We accept articles from individuals, nonprofit organizations, clubs, schools, agencies and business associations such as chambers of commerce. But items deemed too commercial may not be published.

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Page 20: Natural Products Asia Resource, Issue 2

Create Opportunities to Build Connections

Organized by:

To exhibit, please contact:Mr. Angus Chow

New Hope Natural MediaTel: +852.2975.9051Fax: +852.2857.6144

Email: [email protected]

Natural Products Expo Asia is the premier platform to meet this emerging market needs providing measurable results and market exposure throughout the Asia Pacific region.

Each summer, thousands of industry’s most important execu-tives and buyers assemble at Natu-ral Products Expo Asia in Hong Kong, the gateway to China and South East Asia, to investigate the latest products, industry trends and practices to grow their healthy business.

Date: 26-28 August, 2010Venue: Hall 1, Hong Kong Convention & Exhibition Centre

Tap Opportunities in Asia&Natural Products Expo Asia 2010

www.NaturalProductsAsia.com