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Analysis of Competition and Domination in the Market of Biologically Active Supplements in Russia

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Studies on Russian Economic Development Aims and scope

Abstract—

The article provides an analysis of the dynamics of competition and dominance in the market of biologically active additives (BAA) in Russia from 2004 to 2022. The relationship between changes in the concentration of the industry and legislative acts regulating advertising and turnover of dietary supplements, as well as data on the shares of the largest manufacturers in order to identify dominant groups in the market, was analyzed. The Herfindahl–Hirschman, Linda, strength/variety (SV) matrix, and concentration ratios were used as tools. The dominant group was identified four times in the period from 2005 to 2015. It is shown that after 2010, competition in the dietary supplements market has intensified. The results of the analysis indicate similarities in the development of competition in the dietary supplements market and the drug market.

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Notes

  1. DSM Group. Russian pharmaceutical market. Annual reports. 2022. https://dsm.ru/news-reports/. Accessed April 26, 2023.

  2. Federal Law no. 38-FZ of March 13, 2006 (as amended on December 5, 2022), On Advertising, 2022. http://www.consultant.ru/document/cons_doc_LAW_58968/6147d77ef3ebff43fadce8d43d23f5e36cd7aa20. Accessed April 26, 2023.

  3. Farmvestnik. FAS 2022 proposes to unify the registration of dietary supplements and medicines. https://pharmvestnik.ru/content/news/fas-predlagaet-unifitsirovatj-registratsiju-badov-i-lekarstv.html. Accessed April 26, 2023.

  4. Self-regulatory organization Union of manufacturers of dietary supplements for food. http://nppbad.ru/. Accessed April 26, 2023.

  5. Business Petersburg: RIA Panda lost 2.3 billion rubles after the ban on its dietary supplements Ali Caps. 2017. https://www.dp.ru/a/2017/02/26/Panda_ostalas_bez_doba. Accessed April 26, 2023.

  6. More details about the calculation of SV matrix parameters can be found at http://www.svmatrix.online.

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  1. Moscow State University, 119991, Moscow, Russia

    N. I. Markov

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Markov, N.I. Analysis of Competition and Domination in the Market of Biologically Active Supplements in Russia. Stud. Russ. Econ. Dev. 34, 640–650 (2023). https://doi.org/10.1134/S107570072305009X

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