JUNE 24, 2016
One of the fastest growing industries in the world is the nutritional supplement group, or more broadly known as Vitamins, Minerals and Supplements, or VMS. Producing about $32 billion in revenue for just nutritional supplements alone in 2012. Over the last decade, sales of vitamins, minerals, and nutritional and herbal supplements (VMS) have surged and many new companies have entered the space. Globally, the market is now valued at $82 billion, with roughly 28 percent of that in the U.S., where sales increased by approximately $6 billion between 2007 and 2012. Growth is expected to remain strong through 2017 – between 5 and 6 percent a year both globally and in the U.S. A quick look at magazine stands, TV lineups and news articles reveals that many Americans have an almost insatiable appetite for information pertaining to preventative healthcare. This barrage of information has been a key driver for consumer purchasing. Over the last ten to fifteen years, sales in the global nutrition and supplements market have seen an unprecedented spike.
In the coming years, the industry is anticipated to benefit from the same trends that have supported its growth in the past, including increasing health expenditure and growing interest in wellness and nutrition among mainstream consumers. As discretionary income continues to strengthen, more consumers will trade up to premium, all-natural and organic products. Due to improved economic conditions and rising household wealth, consumers are willing to spend on vitamins and dietary supplements in addition to their regular foods to maintain their health. Other factors such as an ageing population, increasing consumer interest in health and wellness, new product launches, and the improved accessibility of products through various distribution channels also supported to the growth of vitamins and dietary supplements. The vitamins and dietary supplement market is very competitive, as no company accounted for more than a 5% share of value sales in 2015. Vitamins and dietary supplements comprises a diverse range of products, and various types of companies from large pharmaceutical companies to packaged foods and beverage companies as well as from private label to direct sellers are present.
Manufacturers are continuously extending their brand portfolios across different categories, hoping to increase brand shares in the market. Manufacturers will extend their research in order to develop new formulations and delivery formats that cater to consumers’ specific needs and preferences. For younger consumers, natural ingredients may become a more attractive proposition as they are driving the increasing consumer demand for healthier and more natural ingredients. The dietary supplement industry is a significant economic engine that powers businesses in communities in every state across the country and the fact that the industry has been growing steadily at a rate that exceeds inflation for more than 10 years, even in unstable economic times, bodes well for the future.