Horia Vilcu, the general manager of the Romanian branch of Czech nutritional supplement maker Walmark, says the market of these products will advance by at least 20% this year.
Last year, the nutritional supplement market was assessed at 40 million euros, approximately 25% higher year-on-year.
Vilcu believes the growth of the Romanian nutritional supplement market will be based both on the overall increase of consumption and on Romania”s upcoming integration into the European Union. “There are chances that Romania will see a genuine industry emerging on this segment. All the major domestic companies are considering, or already have considered tackling this segment,” stated Vilcu.
Walmark”s representative considers the market of nutritional supplements to be highly dynamic, but it is still way below the level of the Western one. “The European market of nutritional supplements is estimated at 19 billion euros, and the global market is heading toward 60 billion euros. On the other hand, the French market stands at 800 million euros,” Horia Vilcu also said.
The most important segments in terms of value have been the multivitamins, which surged by 27% last year, the calcium market and the segment of calcium supplements, which reached 10 million euros in 2005, up 37% from the previous year.
There is, however, a slightly descending trend, by 5-6%, in the case of products containing spirulina or other stimulating plant extracts.
“We are seeing growth on this segment, too, but yet we are feeling the overall decline of this category,” says Horia Vilcu.
The most significant growth, by 91%, was registered on the segment of prenatal supplements, “probably owing to the fact that the birth rate has exploded recently on the middle segment,” believes Vilcu. Overall, though, the value of this segment is still relatively low, at 1.1 million euros.
Another important segment of the market is that of liver-protecting products, which last year reached a value of 7 million euros.
During the first three months of this year, the company”s sales soared by 50% compared with the similar period of last year, in the context where the company plans to invest 1.5-2 million euros in promotion.
“For the first quarter of 2006, we estimate sales worth 3.3 million euros, up from 2.2 million euros in 2005. The increase is triggered by the positive trend of the market, by investments in promotion and the strengthening of already well-positioned brands,” Vilcu also says.
Walmark Romania last year derived turnover worth 9 million euros and intends to go beyond the 12m-euro mark this year, a 34% increase on 2005
Walmark entered the Romanian market in 1997 and the Romanian branch currently ranks third within the group in terms of sales value.
Walmark Romania
* Was set up in 1997
* Ranks third within the group in terms of sales value
* Derived turnover worth 9 million euros in 2005 and plans to overshoot the 12m-euro mark in 2006, 34% higher than last year
* In the first three months of this year posted 50% higher sales compared with the same time last year
* Plans to invest 1.5-2 million euros in promotion
* Q1 sales, estimated at 3.3m euros, up from 2.2m euros in 2005
ioana.david@zf.ro