The already growing vitamins, minerals, and supplements (VMS) category has enjoyed significant boost from changing health priority amid the Covid-19 pandemic. During the pandemic, monthly VMS spending has increased by 10-15%, while 20% of non-consumers have said that they would start consuming VMS. Such increase was concentrated on immune boosters such as vitamin C and vitamin D on the onset of the pandemic, which saw a growth of up to 16 times in March 2020. In the US, vitamin C makes up only 12% of the VMS market, but contributed to 26% of the market growth.  

The same growth was seen in Indonesia. According to a survey in July 2020, 84% of consumers in the 25-34 age group and 83% of consumers in the 35-44 age group said that their VMS consumption has increased amid the pandemic. Indonesian VMS start-up You reported that their multivitamin sales almost tripled.

Such growth in VMS consumption began well before COVID-19, pushed by growing interest in health and wellness. Between 2014 and 2018, the VMS global market saw a consistent annual growth of around 6.3%. This trend is further boosted by the pandemic and particularly prevalent among young people. While 11% of Americans claim higher VMS purchase, this number jumped to around 15% among GenZ and millennials. 

The increasing interest in VMS along with supply chain problems due to pandemic-related lockdowns resulted in an interesting few months for the VMS sector. Following an oversupply in 2019, rising demand and production halt sent prices skyrocketing. Entering 2021, supply and demand have begun to stabilize. 

However, VMS popularity is here to stay, even as we get out of the pandemic. The global immune health supplements market was projected at $19 billion in 2020. Further annual growth is expected at 7.7% toward an estimated market value of $43.5 billion by 2031. While the largest growth will continue to be seen in North America, East Asia, and Europe, developing nations such as India, Brazil, and Indonesia will see significant growth as well.

In Indonesia, growing health awareness will be a major driver. Even before the pandemic, health expenditure in Indonesia has been steadily increasing from $27 per capita in 2004 to $112 per capita in 2018. Covid-19 has further increased this awareness. A 2020 survey shows that 54% of consumers are planning to continue to consume vitamins and supplements after the pandemic. The Indonesian Vitamin D market in particular is expected to grow by 7% from $1.1 billion in 2020 to $1.6 billion in 2025 following a growing awareness on Vitamin D deficiency and osteoporosis prevalence. 

This trend means ample opportunity for pharmaceutical industry players. The pandemic however, also highlighted the unpreparedness of Indonesia’s pharmaceutical sector. Early on in the pandemic in May 2020, operational capacity of Indonesian pharmaceutical firms was cut to 55-60% due to supply chain disruption. This came as no surprise as Indonesia imports around 90% of raw ingredients with a majority coming from China. 

Learning from this experience, the Indonesian government is seeking to cut the country’s reliance on imported raw materials by cutting import by 35% by 2022. The Indonesian Coordinating Board (BKPM) is also trying to make it easier to set up pharmaceutical business in the country through streamlined licensing and fiscal incentives. 

All of these are good news for the national pharmaceutical industry. The Indonesian pharmaceutical market is valued at US$6 billion and expected to reach $10.11 billion in 2021. Moving forward, the national pharmaceutical industry is projected to grow by 12-13% per year.