Orthomol had its big break in Asia’s supplement market through its successful partnership with the South Korean firm Dong-A Pharmaceutical that started in 2018.
Its iconic ready-to-drink liquid vial and capsule/tablet supplement format sparked a new wave in South Korea in recent years, with major Korean firms such as Amorepacific’s Vital Beautie, CJ Wellcare and CKD Health launching similar products. The concept was also widely showcased by Korean firms that exhibited at Vitafoods Asia in Bangkok two years ago.
Speaking to NutraIngredients, Vera Knauer, who was appointed CEO of Orthomol Holding GmbH last August, outlined the company’s key goals and priorities for its next phase of growth. Knauer, who has served as an advisor for the company since 2011, highlighted three key goals.
The first is to scale internationally, especially in Asia.
“Beyond Germany and building on the footprint of the 30 countries that we are already in, scaling internationally is one of the top priorities,” she said. “With that, the main focus will be in Asia, and also deepening our presence in Europe and the GCC region.”
In Asia, mainland China is a key priority for this year, as the company prepares for the launch of its first “blue-hat” registered product, Orthomol Immun.
In China, health foods sold in brick-and-mortar stores and domestic e-commerce channels have to be registered as a “blue-hat” product. Otherwise, they may only enter China via cross-border e-commerce, and this has been Orthomol’s route to the Chinese market so far.
“We are present in China already, and for many years, cross-border e-commerce has been our strongest foothold,“ Knauer said. “At the same time, because we have this registration, we will be focusing on the mainland and via e-distribution as well.”
In fact, the company’s founder Dr. Kristian Glagau had envisioned market entry into Mainland China as far back as two decades ago. Orthomol launched its supplement products in 1991 and introduced its liquid vial and capsule/tablet dosage format in 1997.
“Our founder has always loved and wanted to be and stay and expand in China,” Knauer added. “We’ve been at it for a while, and now we have this breakthrough where we have a German product that is registered in China.”
“Health in China is also something close to my heart and we will be investing, expanding and accelerating, building on the legacy we have and at the same time, combining science-backed products with China’s very fast-moving consumer goods market,” she said.
German brands are fast rising in China, with the country becoming the second-largest exporter of health supplements, only after the United States.
Aside from China, the company is also preparing to launch two new products in South Korea. Its other key Asian markets include Japan and Vietnam. One of its recent launches in Japan is Orthomol Beauty, with actress Ai Kato appointed as the product ambassador.
What’s unique to China and the wider Asian markets?
One of the key differences between China and the Western markets is the popularity of products related to fertility and beauty-from-within.
In most markets, Orthomol’s top-selling products are its Orthomol Immun and Orthomol Vital products.
However, in China, fertility is also a key consumer interest, which contributed to the stronger demand for its Orthomol Natal product during its early days in China.
“The first SKU that became popular in China years ago was with Orthomol Natal,” Knauer said. “It is still a very strong SKU, but now we also see Orthomol Vital and Immun becoming the top SKUs and becoming very close to Natal.”
The company has also observed a strong demand for beauty-from-within products in China.
“What we are seeing very recently is also that the beauty products for hair and skin have taken off phenomenally,” Knauer said. “Chinese consumers want to have products that work, where they can see a difference, and beauty is on top of mind.”
Aside from products, the way consumers access and understand the products also differ in Asia and Europe.
In Germany, consumers usually purchase their products via pharmacies, while in Asia, consumers tend to access the products via a variety of channels, including TV shopping, e-marketplaces and livestreaming.
Investments interest
Since 2022, Knauer has managed the company’s corporate investment vehicle, Ortho Innovations GmbH. She believes that health measurement and diagnostics represent the future and are therefore, an area of interest for the company.
“Nowadays, we have many diagnostic systems and different ways of measuring our health parameters. We need to consider this when it comes to the food and supplements that we take in,” she said. “What we are looking to invest in is closing the loop between measurements, diagnostics, and the intelligence of bringing these together.”
Watch the video to find out more.
