Shocking Increases in Vitamin Prices – Is Inflation to Blame?
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We all know how important it is to keep up with our vitamins and other supplements for good health - but it’s becoming increasingly costly.
Business owners are warning of a spike in costs for vitamins, thanks to inflationary pressures which seem to be driving prices up with no end in sight.
According to reports, two factors are behind the soaring prices: high production costs, and the combined expenses related to the (already) rising costs of raw materials used in manufacturing the supplements.
For instance, fish oil exported from South America has seen a twofold increase in price since 2020.
During this time, disruptions in supply chains for the production of supplements hampered the growth of the vitamins and mineral supplement market. COVID-19 restrictions, including social distancing and remote working, and the closure of industries and other commercial activities, also led to further interruptions.
As a result, the entire supply chain from production to international trade was impacted.
Alastair Symington, Chief Executive of Blackmores, said the price of raw materials for its products had risen between 15 and 20 per cent over the past six months.
Additionally, the upsurge in costs prompted the pharmaceutical company to increase the prices of some of its products over the past few months, particularly goods related to eye care, immunity, and energy.
Blackmores’ products increased in price between 5 to 6 per cent in Australia and New Zealand, and between 7 and 8 per cent in international markets.
Mr Symington explained that the company would consider further hikes in the coming months to offset continued inflationary pressures.
‘It’s something that we’re looking at ... but it is not something that we would take unilaterally across our range, it would be selective,’ he told reporters.
However, some products could see further price hikes of more than 5 per cent if the cost of materials remains high. This is because global supply chains are still stabilising, and commonly used ingredients in manufacturing vitamins and health supplements (such as fish oil) have spiked in price over the past year. This puts more pressure on supplement makers.
Aside from this, Mr Symington claimed that there’s a ‘noticeable shift’ in the different channels from which vitamin purchases are being made, with more ‘value-oriented customers’ hunting for special deals and the lowest prices.
‘We are seeing a little bit of shifting out of the traditional pharmacy,’ he said. Mr Symington added that in the first weeks of February, their sales weren’t impacted yet.
But as their team closely monitored consumers’ buying patterns, their experts deduced that some consumers will stick to purchasing only the essential items.
He continued on to say that people will keep spending on health supplements they consider crucial, but will be more discerning about when and where to buy as cost-of-living pressures rise.
Blackmores is not the only company warning consumers of increased costs. Several major companies warned investors earlier this month that prices on a variety of products, from dairy goods to kitchen appliances, will go up to offset inflation.
Dairy company Bega declared that it was confident that dairy prices will cease to increase soon, but it noted that increases in line with ‘normal inflationary pressures’ will still impact consumers.
Meanwhile, supermarket giants Coles and Woolworths expressed their optimism that grocery prices would be more manageable for their customers. However, both confirmed that inflation accelerated faster in the December quarter last year. According to the Australian Bureau of Statistics, inflation surged to 7.8 per cent in the last month of 2022.
Based on consumer analysts' reports, Australia can expect inflationary pressures to moderate later this year. However, some experts predict that there will be further hikes in certain products, particularly food.
Tom Kierath, a consumer analyst, stated: ‘Channel checks with suppliers, assessment of global fast-moving consumer goods (FMCG) outlook statements and analysis of soft commodity prices point to significant food inflation over the coming two to three years.’
Members, there are government cards available to help you should you need additional assistance in purchasing medication. You can confirm your eligibility here.
What do you think of the increase in vitamin prices? How do you make sure you’re getting quality products at the most affordable prices? Share your thoughts and opinions in the comments below!
Business owners are warning of a spike in costs for vitamins, thanks to inflationary pressures which seem to be driving prices up with no end in sight.
According to reports, two factors are behind the soaring prices: high production costs, and the combined expenses related to the (already) rising costs of raw materials used in manufacturing the supplements.
For instance, fish oil exported from South America has seen a twofold increase in price since 2020.
During this time, disruptions in supply chains for the production of supplements hampered the growth of the vitamins and mineral supplement market. COVID-19 restrictions, including social distancing and remote working, and the closure of industries and other commercial activities, also led to further interruptions.
As a result, the entire supply chain from production to international trade was impacted.
The price of vitamins has increased due to inflation. Credit: Anna Shvets/Pexels
Alastair Symington, Chief Executive of Blackmores, said the price of raw materials for its products had risen between 15 and 20 per cent over the past six months.
Additionally, the upsurge in costs prompted the pharmaceutical company to increase the prices of some of its products over the past few months, particularly goods related to eye care, immunity, and energy.
Blackmores’ products increased in price between 5 to 6 per cent in Australia and New Zealand, and between 7 and 8 per cent in international markets.
Mr Symington explained that the company would consider further hikes in the coming months to offset continued inflationary pressures.
‘It’s something that we’re looking at ... but it is not something that we would take unilaterally across our range, it would be selective,’ he told reporters.
However, some products could see further price hikes of more than 5 per cent if the cost of materials remains high. This is because global supply chains are still stabilising, and commonly used ingredients in manufacturing vitamins and health supplements (such as fish oil) have spiked in price over the past year. This puts more pressure on supplement makers.
The price of raw materials used in many vitamins increased in price. Credit: Anna Shvets/Pexels
Aside from this, Mr Symington claimed that there’s a ‘noticeable shift’ in the different channels from which vitamin purchases are being made, with more ‘value-oriented customers’ hunting for special deals and the lowest prices.
‘We are seeing a little bit of shifting out of the traditional pharmacy,’ he said. Mr Symington added that in the first weeks of February, their sales weren’t impacted yet.
But as their team closely monitored consumers’ buying patterns, their experts deduced that some consumers will stick to purchasing only the essential items.
He continued on to say that people will keep spending on health supplements they consider crucial, but will be more discerning about when and where to buy as cost-of-living pressures rise.
Blackmores is not the only company warning consumers of increased costs. Several major companies warned investors earlier this month that prices on a variety of products, from dairy goods to kitchen appliances, will go up to offset inflation.
Dairy company Bega declared that it was confident that dairy prices will cease to increase soon, but it noted that increases in line with ‘normal inflationary pressures’ will still impact consumers.
Meanwhile, supermarket giants Coles and Woolworths expressed their optimism that grocery prices would be more manageable for their customers. However, both confirmed that inflation accelerated faster in the December quarter last year. According to the Australian Bureau of Statistics, inflation surged to 7.8 per cent in the last month of 2022.
Based on consumer analysts' reports, Australia can expect inflationary pressures to moderate later this year. However, some experts predict that there will be further hikes in certain products, particularly food.
Tom Kierath, a consumer analyst, stated: ‘Channel checks with suppliers, assessment of global fast-moving consumer goods (FMCG) outlook statements and analysis of soft commodity prices point to significant food inflation over the coming two to three years.’
What do you think of the increase in vitamin prices? How do you make sure you’re getting quality products at the most affordable prices? Share your thoughts and opinions in the comments below!
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