Ron Bailey07.01.02
HERBS & BOTANICALS IN JAPAN
An update of recent activity in the market.
By Ron Bailey
There have been so many positive developments impacting the herb and botanical market in Japan over the year that it is difficult to know where to begin. It is clear that the primary health-related “market drivers”—the aging population, a declining birth rate and increases in required co-payments for medical system users—are not only still in place, they’re actually increasing in importance.
Japanese individuals 65 years of age and older now account for a record 18% of the population. And the National Institute of Population and Social Security Research is predicting that this segment will account for approximately 36% of the population by 2050, with life expectancy increasing to over 89 years for women and 81 years for men. At the same time, the Ministry of Public Management, Home Affairs, has reported that as a result of lower birth rate, children under the age of 15 in Japan account for only 14% of the population, the lowest ever and the lowest amongst major industrialized countries, down from 35% in 1950.
The burden that the aging population places on the healthcare system in Japan cannot be underestimated. The national health insurance system is under constant pressure to push more of the costs down to the system users. As a result, alternative medical care, such as the use of herbs and botanicals for self-treatment, is on the rise.
Regulatory Development Impact
As the Japanese government monitors its response options to these continuing demographic shifts, it periodically reviews the food and drug regulations to decide which changes can be incorporated. This effort is, in part, justified by the growth of the FOSHU (Foods for Specified Health Use) category and the lack of problems with the products, which have been approved under the FOSHU system. The administrative agency for FOSHU, the Japan Health Food and Nutrition Food Association, reported that total annual retail sales of the nearly 300 approved FOSHU products in 2001 were well over $3 billion U.S. dollars. Although the bulk of sales went to products containing prebiotic and/or probiotic “functional components” directed toward intestinal health, there remained a number of FOSHU products using plant-derived functional components such as psyllium seed husk, indigestible dextrin from corn starch, diacylglycerol and phytosterols from plant oils and low molecular weight sodium alginate from seaweed.
Recently, the Japanese government said it will be taking regulatory action against food and dietary supplement products, which are making unauthorized health-related claims in television and print advertising (on-label claims for non-FOSHU products have never been allowed). Essentially, the government is indicating to the food and dietary supplement industry that they can either choose to participate in the FOSHU process and make approved health-related claims, or stop making such claims in their promotional materials. Although the FOSHU process is time consuming and can be relatively expensive, it is (generally) fairly administered for the benefit of consumers as well as manufacturers. Since product form is no longer an issue (even tablets and capsules are acceptable as FOSHU products), market entry is not restricted to food companies.
Companies in Japan with new ingredients to market, including herbs and botanicals, are now indicating very early in the development process that they will be generating the necessary safety and efficacy data for their ingredients suitable to support an eventual FOSHU product application. This is a major change, but a welcome one, since it will drive the market to an even higher level of credibility with both the regulators and more importantly with consumers. This is comparable to the approach taken by responsible ingredient suppliers when they consider Generally Recognized as Safe (GRAS) status for eventual use in foods in the U.S. marketplace.
Herb and Botanical Ingredient Market Activity
It is often instructive to compare the Japanese trade show guidebooks from one year to the next to help determine market trends. The May ifia 2002 (international food ingredients and additives) show held in Tokyo is just one example. Examples of herbs and botanicals exhibited at the 2002 show, and their function as claimed in the English-language guidebook, included:
—Tea tree oil with a “natural antiseptic function”
—Fenugreek gum to “reduce blood sugar”
—Gliaden and glutenin wheat proteins without claims
—Guava polyphenols without claims
—Luo Han Guo fruit extract as a natural sweetener
—Rice bran arabinoxylan “to enhance the activity of NK cells…”
—GABA (gamma amino butyric acid) fermented soybean without claims
—Unicell soybeans to “minimize the beany flavor”
—Low molecular weight sodium alginate as a water-soluble dietary fiber
—Soy isoflavone aglycones without claims
—Sesame peptide as a “clinically proven hypotensive agent”
—Red wine polyphenols without claims
—Lutein and lutein esters without claims
—Acerola powder with “natural vitamin C 17%”
—Indigestible dextrin as a “dietary fiber source”
—Fucoidan seaweed extract without claims
—Evening primrose extract with “new clinical data” (for allergies)
—Broccoli sprout extract with “antioxidant and detoxic effect”
—Grape seed extract to “relax blood vessels” and “inhibit oxidation of LDL”
—Herperidin and rutin with “anti-allergic” effects
—Wild blueberries for “antioxidant” properties
Although the ingredient health-related claims in the guidebook are generally quite limited, the promotional literature used at the show (usually in Japanese) often included the latest health-related research findings. It is perfectly legal to present clinical study results at trade shows as a way of generating interest in the ingredients. The previously mentioned list is by no means complete in the herb and botanical area, but rather a cross-section of the types of ingredients of current interest to the food and dietary supplement industry in Japan.
Other Examples of Recent Market Activity
An article in the May 13 issue of the Nikkei Weekly English language newspaper summarized the recent market success of several products targeted toward the growing women’s health market, some of which feature herb/botanical ingredients. Suntory’s “Kubiretto” supplement contains “sesamin, which comes from sesame seeds and helps burn fat,” Kanebo’s popular “VitaRosso” line includes a supplement, which contains “raspberry ketone, a chemical in the aroma component of raspberries that reduces subcutaneous fat” and can “burn three times the amount of fat as capsaicin.” Suntory’s “Kakyoku is “meant to foster beautiful skin” and is “derived from a kind of wild rose…found in China.” It is not yet clear if the government is planning to ban the use of these types of indirect promotions in their promised crack down on unauthorized claims. It is possible, however, that claims which are not (yet) authorized for use with FOSHU products, such as “support for maintaining a healthy weight,” will continue to be used off-label.
The spring allergy/hay fever season this year was particularly bad for sufferers. The most popular herbs and botanicals used for self treatment included stinging nettles, shiso (perilla), Chinese quince and a Chinese tea called tencha. This is an important and growing market for herbs and botanicals in Japan, and one with considerable consumer credibility based on positive results.
The monthly Japanscan Food Industry Bulletin continues to be an excellent source of information on new herbal and botanical developments in Japan. The March 2002 issue highlighted new ingredient developments such as GABA-rich fermented soybeans, prune extracts, rosemary extracts, funoran seaweed extract, green tea theanine, luo han guo (“rakanka” in Japanese) sweetener and olive leaf extracts for antimicrobial properties, for example. Each monthly issue is a source of interesting developments.
Opportunities
There is no question that the Japanese herb and botanical markets will continue to grow in the future, particularly for ingredients and products with proven safety and efficacy. If anything, the potential for growth has been enhanced by the positive market developments in Japan throughout the last year.NW
Note: Important sources of information in this summary include the Ministry of Health, Labor and Welfare, the Japan Health Food and Nutrition Food Association, the Nikkei Weekly newspaper published in Japan, the ifia 2002 Guidebook and the Japanscan Food Industry Bulletin published in the U.K.