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Is pharmacy market for D3 oversaturated?
Supplements with D3+K2 still twice the price of D3 only equivalents

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Keep an eye on vitamin D3 category.

It is not news that Vitamin D3 has become the most sold supplement in many developed countries. Some people could ask question why is this the case ? Vitamin D3 seems to be good for everything, and …. nothing. Many people associate it with beneficial effect on immunity, however most supplementations are pursued due to one’s actual or presumed deficiency. In was back in between year 2009 and 2011, when a series of published research papers identified both: prevailing D3 deficiency in various populations and its risks for them. Doctors didn’t need more to start pushing authorities and public for more attention on D3 supplementation. Gradually, what previously was a magnesium supplements market, eventually became a vitamin D market.  

Saturated market.

Vitamin D3 is a mature market. Salesare huge, market shares are established. Each new player faces the burden ofentry costs including TV advertising expenses and those of celebrity PR. Innovation is rare. Some put their bets on liposomes, trying to break throughwith absorption message, others push for natural, “more safe” vitamin D, finally some brands chase the vegan part of the market. All of these measures hardly ever hit the mainstream market, which is currently dominated by 2000 IUsoftgel capsules and glass bottle drops or sprays.  

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Vitamin K1 and its “5 minutes”.

One of the most successful expansions of D3 category was a combination with vitamin K1. The latter was prescribed to the new-borns and the supplementations was recommended until 3 months old. As a result, a products combining D3 and K1 were a perfect match for every conscious mother and they very rarely were leaving the hospitals without it. Unfortunately forthose on the supply side, in 2016 the recommendations for the K1 supplementation ceased. The initial dose administrated in the hospital was deemed sufficient. That move forcibly ended the “5 minutes” of vitamin D3 and K1 supplements.

Vitamin K2: the ultimate D3 companion.

Many consumers who remember D3+K1 combination are more likely to opt for D3+K2 product. Such products makes sense as D3 and K2 share the role inbone health and more general in calcium metabolism. According to the latest studies, they may both play role in boosting immunity as well as temper thebody’s inflammations. Like D3, vitamin K2 is anomnipotent vitamin activating currently known 17 proteins in our body, however in contrast to D3, its deficiency is not widely recognised. Researchers are adding more and more evidence that in postmenopausal women andelderly men, bone density decreases with age and vascular calcification is aggravated, which combined can be characterised as vitamin K2deficiency.  

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D3+K2 combination products still costs twice as much as their D3 equivalents

As K2 deficiency recognition slowly directs towards what we all know about D3 deficiency and customers are increasingly considering the switch to D3+K2 products replacing their D3 supplementation regime. This process is still challenged by serious price differences of the two alternatives. In Germany one dose of 2000 IU of D3 costs around €0.06 whereas combination with100mcg of vitamin K2 costs €0.13. Some situation is in Poland, where leading brand sells one dose of 2000 IU for 0.26 PLN (€0.50) and the combination for 0.48 PLN (€0.10). In USA, Walgreens offers leading brands for$0.15 per dose and $0.32 for the combination. This is relatively high, prices reach European levels only if one increases pack size to 200 pills or more.

The Pharmaquinone revolution.

Most trusted global D3+K2 brands stay loyal to European vitamin producers including DSM, Basf and others. They can’t afford the risk of importing vitamin raw materials from China or India due to quality and logistic concerns. Last year during Vitafoods fairs a new brand of vitamin K2 was launched for European and US markets. Pharmaquinone is the fruit of 13 years of development and production of synthetic vitamin K2. The Polish producer applied for a global patent protection for their ground-breaking synthesis method, which yields what is called a “single peak” vitamin K2. In contrast to all other suppliers, this process produces no other peaks on a HPLC/UPLC chromatograph, providing a truly pure active substance. The economy of the new technology allows for at least 20% saving in vitamin K2 costs, closing the gap between Chinese niche players. Such information should be crucial for any vitamin D3 brand owner having or planning an expansion into vitamin K2 combinations. With market being heavily saturated, such acompetitive edge will be a decisive factor for a commercial success in pharmacies and drugstores.

Author:

Piotr Jandziak, CEO at Pharmaquinone.com