EZZ Life Science takes genomic approach toward dietary supplement growth
Grand View Research estimates the dietary supplements market was worth almost US$152 billion in 2021, with this expected to expand at a CAGR of 9% until 2030.
Last month, Australian life science company EZZ Life Science (ASX: EZZ) delivered yet another TGA-registered genomic dietary supplement to market, with the company’s management team confident about the imminent dynamics for supplementary health products and functional foods sector.
A market report published by Grand View Research forecasts the US$152 billion global dietary supplements market expand at a compound annual growth rate of around 9% each year until 2030.
The authors stated that increasing consumer awareness of personal health and wellbeing is expected to be a “key driving factor” for dietary supplements over the next decade.
“The working population around the globe is struggling to fulfil the dairy nutrient requirements owing to hectic work schedules and changing lifestyles. Increasing dependence on the supplements to fulfil the nutrient requirement owing to their high convenience is expected to drive the market over the forecast period,” the report said.
Analysts are adamant that countries with growing incomes and a flourishing middle class are likely to experience the most pronounced increases in demand for dietary supplements.
Moreover, demand for energy and weight-management products is proving to be particularly popular with consumers, especially younger consumers. In parallel, the consumption of sports nutrition products is also rising thereby creating further demand for products that support dietary health.
Furthermore the unprecedented outbreak of the COVID-19 pandemic has also affected North America and European countries with the dietary supplement industry in these regions benefitting from a market surge in demand for immunity-boosting supplements.
Various ASX companies are attempting to capitalise on the changing trend in how people attain health and well-being with the dietary supplement market, in particular, presenting a variety of opportunities.
TGA registered
In addition to demand and supply, another factor affecting dietary supplement consumption has been inherent product quality and market regulations.
As various products become more widely available, authorities such as the TGA are actively monitoring the market to ensure only the highest quality products are sold to consumers.
According to market researchers, stringent regulations regarding purported health benefits are creating “challenges” for dietary supplement manufacturers.
ASX-listed EZZ Life Science’s new Daily Energy & Wellbeing product was has passed the strict audit and certification of the TGA.
Used in Chinese medicine to support healthy blood circulation, the Australian Register of Therapeutic Goods-listed Daily Energy & Wellbeing product prevents dietary deficiencies while aiding glucose and carbohydrate metabolism.
“Our vision is to improve the quality of human life,” said Glenn Cross, non-executive director and chairman of EZZ Life Science.
‘‘In our journey to become a top life science company in Australia and New Zealand, our core focus has been on genomic health, but our product development pipeline will increasingly feature healthcare solutions based on genomics research,” he added.
Currently, the company offers health supplements, health food and probiotics as well as skincare products under two brands: EZZ and EAORON.
It owns the EZZ brand and is an exclusive wholesale distributor of the EAORON-branded products to pharmacies, supermarkets and specialist retailers in ANZ and Asia Pacific region.
EZZ is a consumer health brand focusing on four key areas of human health, including longevity, weight management, human papillomavirus, and helicobacter pylori.
Meanwhile, the EAORON brand is being marketed as a specialised skincare brand, developed and produced by the company’s related party Australian United Pharmaceuticals.
Genomics research
According to Mr Cross, EZZ will continue to “broaden its approach” by investing in genomics research to increasingly feature scientifically formulated products while seizing future growth prospects through ‘‘the ongoing development of technical capacity, and the expansion of in-house e-commerce capability and data-backed analytical capability’’.
EZZ Life Science management has also referred to enabling “data-driven” decision making to unlock scale efficiencies.
“Our skilled management teams will be briefed to drive long-term earnings growth and deploy best practice principles in operational execution through added capacity, employment development and more sustainable practice,’’ said Mr Cross.
“At the same time, we will market greater brand and product discovery through omnichannel strategies. The central platform to this strategy is the transformation to a fully integrated life science company with strong cross-functional support,” he added.
Mr Cross also explained to Small Caps that South East Asia is a key target market for expansion, with Singapore the first country in the region to market EZZ-branded products.
Negotiations are reportedly “underway” with potential distributors in Malaysia, Thailand, Vietnam, the Philippines and Indonesia.
As an indication of the EZZ Life Science’s commercial performance in recent months, it reported that sales from its flagship stores on Tmall Global – China’s largest cross-border B2C online marketplace – have totalled $11 million in revenue since launching in August 2020.
“We are expanding to other major e-commerce platforms in mainland China, as well as via online and off-line distribution channels in Hong Kong and Taiwan. We started selling EZZ-branded products through social-commerce channels and we are in discussions with TikTok as an alternative direct-to-consumer channel to Tmall Global and expect to have it up and running by the end of 2022,” said Mr Cross.