Supplements that come in the combination of a liquid vial and tablets are becoming a common scene in South Korea.
Amorepacific’s Vital Beautie, CJ Wellcare, CKD Health, and Samjin Pharmaceutical are some of the Korean brands that have launched health functional foods in this format over the past few months.
The trendsetter, however, is none of the Korean companies but German food supplement firm Orthomol.
Working with Dong-A Pharmaceutical, the duo has made waves across South Korea’s health functional foods sector – sales have grown from approximately 20,000 packs per year back in 2018 to between 150,000 and 200,000 packs per month this day.
The brand started off in the duty-free shops, but Dong-A Pharmaceutical subsequently introduced it into leading health and beauty retailer Olive Young and home shopping channels across South Korea. In home TV shopping for example, the company has seen instances where 15,000 packs were sold in an hour's program.
Even airlines such as Asiana and Busan Airlines have also jumped on the bandwagon.
South Korea has now become Orthomol’s second largest market, only behind its domestic market.
Also present in other European countries such as Spain, Poland, and Asian markets including Japan and China, Orthomol started in 1991 and introduced its liquid vial and tablet products as early as 1997.
Speaking to NutraIngredients-Asia in this episode of Behind the Big Story, Andreas Singer, senior international area manager at Orthomol said that aside from Dong-A Pharmaceutical’s expertise in product distribution, there are three other key factors driving the brand’s success in South Korea.
One of it is Korean consumers’ interest in novel products.
Two of its products, Orthomol Immun and Orthomol Vital, are available in the South Korean market in seven-day, 14-day, and 30-day packs.
Both products come in the form of a ready-to-drink liquid vial and either two tablets or capsules packed on top of the liquid vial.
“In South Korea, people like to take and try new products and new forms of administration...This is also the reason why there are many me-too products launched after Orthomol entered the Korean market.”
The liquid vial and tablets / capsules design was designed out of practicality, including taste and stability reasons.
Omega-3 is one such example which needs to be incorporated into capsules due to taste and stability considerations.
“You can imagine that omega-3 is not in a very nice taste when you put it in the liquid, so there came the idea of having a separate capsule on top of the vial, with the omega-3 capsules, so this is due to taste and stability reasons,” Singer explained.
Orthomol Vital, a product for supporting energy levels, for instance, comprises of capsules containing fish oil and d-tocopherol EPA and DHA oils. Its drink vial, on the other hand, is made of vitamins and minerals.
dsm-firmenich concurred, with the company introducing “candy capsules” in South Korea last year, based on how Korean companies have prioritised novel formats and unique consumer experience after witnessing Orthomol's success.
Another reason could be due to celebrity and key opinion leaders’ recognition of the products.
The brand had its big break back in mid 2010s, when a make-up artist of A-list actress Kim Tae Hee spoke about Orthomol on a TV show.
“We were in a very lucky position because in the beginning it was not us who were looking for the customers, but it was the customers itself and from celebrities in Korea who presented the products."
The story was basically about how Kim’s make-up artist said that she would take Orthomol Vital whenever she was feeling fatigue, which brought immense amount of attention to the brand.
The third reason, he believes, is because German-made products are held in high regard in South Korea.
“This is not only the case in Korea, but also in other Asian countries, Middle Eastern and Eastern European countries, where the value is very high for products that are coming directly from Germany," he said.
This is also why all products are printed with the words ‘made in Germany’ and has a German flag on the product label.
Me-too products a huge challenge but Orthomol's sales still climbing
NutraIngredients-Asia understands that there are many more similar products slated to enter the Korean market, with product approval applications pending KFDA’s approval in the hundreds.
Asked the company’s view of the market competition, Singer acknowledged that the influx of me-too products would pose as a challenge, but the brand was still growing in sales nonetheless.
“It’s a huge challenge for us and also for Dong-A to see how the me-too products which are coming now to the market will affect our sales.
“However, to the contrary, our sales are still increasing, although there were 10 similar products being launched last year,” he said.
He believes that a reason could be because the me-too products do not have similar indications as Orthomol Immun and Orthomol Vital. The two products are positioned for immune health and energy support respectively.
New product plans for South Korea
Orthomol is set to expand its product range in South Korea – either by introducing its existing products from Germany and / or by developing new products specifically for the Korean market with Dong-A Pharmaceutical.
“Korea at this moment, is our most successful export country…We are of course interested in bringing more of our products into the market.
“We have more than 35 products in the German market already, and only two at the moment in Korea, so there is a huge number of products which we can still try to bring to the Korean market,” said Singer.
Some of the plans include introducing its sports nutrition products from its Germany range to South Korea and creating new products using popular ingredients seen in the Korean market.
Watch the video to find out more.
