Kirin Holdings is moving to develop Southeast Asia's health food market by leveraging Australian supplement giant Blackmores. The company plans to shorten the time required to enter the market by using its local expertise in obtaining regulatory approvals, according to reports.
Kirin acquired Blackmores for A$1.88 billion and has positioned its health-related business as a growth driver. It has already been expanding products in Australia, New Zealand, Taiwan and other markets using ingredients it developed and the Blackmores brand.
The Southeast Asian market is expected to grow on the back of population growth and rising health consciousness, and the company is targeting the region next. Approximately 30% of Blackmores' sales come from Southeast Asia. Although entry requires approval in each country, the company aims to shorten the approval process by leveraging its in-house expertise.
The global supplements market is expected to expand, with the Asia-Pacific region forecast to grow the fastest. Kirin is targeting ¥500 billion in sales and ¥75 billion in operating profit from its health-related business by 2035, and recorded ¥11.1 billion in profit last year, returning to profitability.
Attention is focused on how the synergies from integrating the corporate names and the combination with local brands will shape changes in the highly competitive health food market, particularly in Thailand.