Global Psyllium Shortage

World events have created a perfect storm for KFibre and our company, Health Food Symmetry Limited. Has anyone noticed that there is a big empty spot on the pharmacy and supermarket shelves where Metamucil used to be? Metamucil is one of the world’s leading retail gut health products and is part of the massive Proctor and Gamble conglomerate.

For 2021 P & G reported USD $76.1 billion of turnover, with their healthcare division contributing 13% or $9.9 billion in revenue. Although no specific disclosure was made in respect to Metamucil, analysts have estimated its sales at circa $200 million per annum.?

So why is there none on the shelves? Metamucil is essentially powdered psyllium husk with flavorings and color. There is ongoing concern and debate surrounding psyllium husk, with reports of it creating a number of digestive problems like abdominal pain, nausea and vomiting and flatulence.

It has also been known to cause allergic reactions like skin rashes and itching.That said, it remains widely used and for the most part, consumers have generally been able to tolerate it.

For 2020 MMR (Maximise Market Research) estimated psyllium husk production at $321 million globally I must be noted that the “consumer pricing” as a retail consumer product adds a factor of about 10 times to this figure which would equate to $3.2 billion in retail sales.

80% of world psyllium production exports comes from India and as a result of massive flooding in the region and the continuing effects of COVID 19 including logistics issues, most of the world’s supply of psyllium has stopped.

It will take years to re-establish production, which may not even be feasible, creating a massive unmet need. Apart from the physical side effects of psyllium, conventionally produced psyllium husk is treated with methyl bromide, which is both poisonous and causes environmental pollution. No such externalities are generated in KFibre production, which is all natural, derived from sugar cane ( sucrose removed ) and processed without any chemical additives. North America currently accounts for 56% of the retail psyllium husk sales.

Opportunity For HFS HFS is in the final stages of executing a contract with a major Australian TGA contact manufacturer in the health products and nutraceuticals market. This initial contract is expected to generate $3m to $4m in revenue annually for HFS. HFS has also received very specific inquiries from global wellness brands that had previously relied upon psyllium.

KFibre has always been a superior alternative to psyllium husk, however major manufacturers are loath to change their formulations unless absolutely necessary. The psyllium husk shortage and the subsequent issues around price ( wholesale psyllium is now 20% per serve more expensive than KFibre) and ongoing supply and logistics have forced these companies to consider and utilize alternative products. This is a transformational event for the company and our ingredients arm will underpin revenue growth into the future, while we are developing our retail products globally.