APAC Brands Drive Omnichannel Growth, Focus Adult Gummies Amid Regulatory Scrutiny
Supplement brand owners in Asia-Pacific are expanding omnichannel strategies and diversifying product portfolios, particularly adult gummies, while navigating intensified regulatory scrutiny over marketing practices in key markets like Vietnam.
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Brand owners in the Asia-Pacific region are strategically pursuing omnichannel expansion and product innovation to capture market share. The Vitamin Shoppe, a prominent US retailer, has entered South Korea and Vietnam, signalling a significant push into omni-channel retail across the region. This strategy aims to leverage both physical store presence and e-commerce platforms, offering a blueprint for other international brands to gain traction in highly competitive local markets. Early indicators suggest a preference for targeted market entry rather than broad regional initiatives, with partnerships being key to navigating local consumer preferences and distribution networks.
Product diversification continues, with adult gummies emerging as a high-growth category, especially in China. Brands like Nature's Way are capitalising on this trend, expanding their portfolios to meet evolving consumer demands for convenient and palatable delivery formats. This shift reflects a broader consumer trend towards preventative health and wellness, moving beyond traditional pill and capsule formats. Manufacturers should note the increased demand for gummy formulation expertise, flavour development, and pectin/gelatin sourcing to meet rising MOQs for this segment.
However, the rapid growth also brings increased regulatory attention. In Vietnam, the infant formula sector faces allegations of circumventing marketing rules, particularly those designed to protect breastfeeding. This scrutiny highlights a tightening regulatory environment across APAC, where marketing claims and promotional activities are under closer examination by national health authorities. Brands operating in this sensitive category must ensure full compliance with local advertising codes to avoid penalties and reputational damage. The a2 Milk Company is also adjusting its strategy in China, focusing on offline and local e-commerce to offset losses from cross-border e-commerce (CBEC), indicating the dynamic and often challenging nature of China's market entry points.
What this means for Vietnam
Vietnamese supplement manufacturers and brand owners must conduct an immediate audit of all marketing materials, particularly for infant formula, to ensure strict compliance with local advertising regulations. Allegations of rule circumvention could lead to substantial fines, product recall directives, and severe brand damage, potentially compressing margins by 5-10% due to compliance costs and reduced sales. Opportunities exist for domestic brands to differentiate through transparent, compliant marketing and focus on adult nutrition categories where regulatory oversight is currently less stringent, such as the burgeoning sleep support market, offering reformulation windows for new product development within 6-9 months.
This trend is being actively addressed by UK manufacturing partners including Supplement Factory.