EZZ Life Science takes a genomic approach to growing dietary supplements

Grand View Research estimates that the dietary supplement market was worth nearly US$152 billion in 2021, which is expected to grow at a CAGR of 9% through 2030.

Last month, Australian life sciences company EZZ Life Science (ASX:EZZ) brought another TGA-registered genomic dietary supplement to market, with the company’s management team confident of the momentum. impending complementary health products and the functional food sector.

A market report published by Grand View Research predicts that the global dietary supplement market, worth US$152 billion, will grow at a compound annual growth rate of approximately 9% each year through 2030.

The authors said growing consumer awareness of personal health and wellness is expected to be a “key driver” for dietary supplements over the next decade.

“Working populations around the world are struggling to meet dairy nutrient requirements due to busy work schedules and changing lifestyles. Growing reliance on supplements to meet nutrient needs owing to their high convenience is expected to drive the market over the forecast period,” the report states.

Analysts are adamant that countries with rising incomes and a thriving middle class are likely to see the most pronounced increases in demand for dietary supplements.

Additionally, the demand for energy and weight management products is proving particularly popular with consumers, especially young consumers. At the same time, the consumption of sports nutrition products is also increasing, creating additional demand for products that support dietary health.

In addition, the unprecedented outbreak of the COVID-19 pandemic has also affected North America and European countries, with the dietary supplements industry in these regions benefiting from an increase in the supplement demand market increasing immunity.

Various ASX companies are trying to capitalize on the shifting trend in how people achieve health and wellness with the dietary supplement market, in particular, presenting a variety of opportunities.

Registered TGA

Besides demand and supply, another factor affecting the consumption of dietary supplements has been the 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 that only the highest quality products are being sold to consumers.

According to market research, strict regulations regarding purported health benefits create “challenges” for supplement manufacturers.

EZZ Life Science’s new ASX-listed Daily Energy & Wellbeing product has passed strict TGA auditing and certification.

Used in Chinese medicine to promote healthy blood circulation, the Daily Energy & Wellbeing product listed on the Australian Register of Therapeutic Goods prevents dietary deficiencies while supporting glucose and carbohydrate metabolism.

“Our vision is to improve the quality of human life,” said Glenn Cross, non-executive director and president of EZZ Life Science.

“In our journey to become one of the leading life science companies in Australia and New Zealand, our primary focus has been genomic health, but our product development pipeline will increasingly include healthcare solutions. health based on genomic research,” he added.

Currently, the company offers dietary supplements, natural foods and probiotics as well as skin care products under two brands: EZZ and EAORON.

It owns the EZZ brand and is an exclusive wholesale distributor of EAORON branded products to pharmacies, supermarkets and specialty retailers in ANZ and the Asia-Pacific region.

EZZ is a consumer health brand that focuses on four key areas of human health including longevity, weight management, human papillomavirus and Helicobacter pylori.

Meanwhile, the EAORON brand is marketed as a specialist skincare brand, developed and produced by the company’s related party, Australian United Pharmaceuticals.

Genomics research

According to Cross, EZZ will continue to “broaden its approach” by investing in genomic research to deliver more and more scientifically formulated products while seizing future growth prospects through “continued development of technical capability and expansion of internal e-commerce”. and data-driven analysis capability”.

EZZ Life Science management also discussed the possibility of making “data-driven” decisions to unlock economies of scale.

“Our skilled leadership teams will be informed to drive long-term earnings growth and deploy best practice principles in operational execution through increased capacity, employment development and more sustainable practices,” said said Mr. Cross.

“At the same time, we will market greater brand and product discovery through omnichannel strategies. The central platform of this strategy is the transformation into a fully integrated life sciences company with strong cross-functional support,” he added.

Mr. Cross also explained to Lowercase Southeast Asia is a key target market for expansion, with Singapore being the first country in the region to market EZZ-branded products.

Negotiations are said to be “ongoing” with potential distributors in Malaysia, Thailand, Vietnam, the Philippines and Indonesia.

As an indication of EZZ Life Science’s business performance over the past few months, it said its flagship store sales on Tmall Global – China’s largest cross-border B2C online marketplace – have totaled $11 million in revenue since. its launch in August 2020.

“We are expanding into other major e-commerce platforms in mainland China, as well as online and offline distribution channels in Hong Kong and Taiwan. We have started selling EZZ-branded products through social commerce channels and are in talks with TikTok as an alternative direct-to-consumer channel to Tmall Global and expect it to be up and running by the end of 2022,” Mr. Cross said.

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