Pharmacy Daily | Aussie CMs’ growth “a success story”

A SURGE in international and local demand has led to complementary medicines becoming a huge success story for Australia, according to peak body Complementary Medicines Australia.

During the organisation's recent Innovation Day, CEO John O'Doherty told Pharmacy Daily, "we are a huge success story, as the TGA has the most rigorous standard of research in the world which goes into our products, and it is a key reason they are in such high demand".

"The TGA has also introduced the AUST L(A) pathway, which is a great opportunity for the sector as it allows manufacturers to make a higher level of therapeutic claims, which have been assessed by the TGA prior to market entry."

With three-quarters of Australian households using CMs, pharmacists can inform customers that the AUST L or AUST (L)A numbers on labels mean that the product is "backed up by science for safety and efficacy", said O'Doherty.

Industry data backs this with the sale of complementary medicines products in Australia now valued at $5.5 billion, representing a steady 1.4% annual growth.

A notable trend that has emerged is that one of Australia's key export markets, China, is demonstrating that vitamins and supplements, which were once seen as a discretionary product, are now considered a critical investment in one's own health.

"Overseas consumers are very savvy, and they understand they can have confidence in Australian products backed by the TGA's strictest regulatory standards," added O'Doherty.

AUSTRADE data shows that prior to the onset of the COVID-19 pandemic, the CM export market achieved phenomenal growth - going from generating $175 million to over $1 billion in revenue in just five years.

The size of the global CM market was US$61.2 billion (A$92.7 billion) in 2020 and is projected to double to US$128.64 billion (A$194.85 billion) by 2028.

Another frontier of medicine that O'Doherty sees as an opportunity for Australia comes off the back of evidence presented on pre- and postbiotics, particularly as a larger number of strains have yet to be fully explored.

"We really are only scratching at the surface as scientists have looked at a tiny proportion of the bacterial strains to check for both demand and evidence as to what can be done to improve health," commented O'Doherty.

O'Doherty also noted the burgeoning opportunity for contract manufacturing, where overseas companies want to make their products in Australia.

"Overseas companies have recognised that Australian manufacturing is of such high quality that they come seeking out contract manufacturers here.

"They aren't going to cheaper markets, they will happily pay more to get their products made on the other side of the world, and it is this reverse manufacturing opportunity that will be great for us," concluded O'Doherty. JG