Global Vitamin and Supplement Industry Overview
Vitamins and dietary supplements are non-drug and non-hormone based functional food products that can be taken orally in the form of pills, powders, liquids or intravenously. They afford consumers added amounts of beneficial elements in their diet, including amino and fatty acids, vitamins, minerals and fiber.
In 2013, the global market for vitamin and supplements exceeded $90 billion, growing at a compound annual growth rate (CAGR) of 5% from $75 billion in 2009, according to Euromonitor.
Increasing consumer awareness of the importance of vitamins and the desire to reduce healthcare costs are driving the market for disease prevention, a key component of which is the vitamin and supplement market.
Multivitamins were the most popular supplement with consumption of over $16 billion in 2013, according to Euromonitor. This was distantly followed by tonics, bottled drinks and combination supplements. Combination and multivitamin products are especially popular due to their ease of use.
Vitamin and Supplement Key Markets
The U.S., China and Japan are the largest markets for vitamin and supplements and held shares of 28%, 21% and 20% respectively in 2013, according to Euromonitor. China is currently seeing the highest growth, as the most populated country in the world attempts to control healthcare costs and focus on disease prevention. The U.S market is continuing to grow, while the Japanese market has been declining since 2006, according to Euromonitor.
Latin America and countries in Asia such as China and India will be the key markets for growth over the next few years, due to rising awareness and increasing availability of products in these regions.
Vitamins and Supplements Key Players
The vitamin and supplement market is fragmented. The top four companies– Amway, Pfizer, Herbalife, and NBTY – accounted for a share of 16% in 2013, according to Euromonitor. Across the globe, the market is also supplied by local manufacturers including large retail chains, many of which have their own brands.
Vitamins and Supplements Sales Forecast
The global vitamin and supplement market is expected to grow at a CAGR of 4% between 2013 and 2018 to reach $112 billion in 2018, according to Euromonitor.
Going forward, the market will be driven by increased demand from more health-conscious consumers and more reliable and effective products.
Key Trends and Strategies to Generate Growth in the Vitamin and Supplement Industry
Four key trends are shaping the vitamin and supplement industry.
Consumers are More Health Conscious
People are becoming more health-conscious and more focused on preventative health care. In 2013, about 75% of the population in the U.S. took dietary supplements. Vitamins accounted for a major portion of the consumption, according to the Council for Responsible Nutrition (CRN). Women showed higher uptake of vitamins and supplements than men, and, among women, usage grew with age. Pregnant women, the elderly, children and those with specific deficiencies are key segments for vitamins and supplements.
To respond to this trend, manufacturers need to focus on innovative information-based advertising campaigns.
People are Buying Vitamins Online
The popularity of e-commerce has increased vitamin sales significantly. The ease of purchase as well as the availability of extensive information on products online is prompting more and more individuals to buy and consume these products.
To ensure growth, manufacturers should develop their online strategy for sales but also provide information on educative websites and social media communication around their products.
Regulations on Nutritional Supplements are Set to Become More Stringent
Regulators are becoming stricter about enforcing rules on supplements. For example, in the U.S., more than half of the drugs the Food and Drug Administration (FDA) recalled due to safety issues between 2004 and 2012 were nutritional supplements.
Manufacturers should check the efficacy and safety of their products through clinical research. They should also work with regulators to ensure counterfeit and adulterated products are kept from entering the market.
Mergers and Acquisitions are Common in the Supplements Industry
The vitamin market is characterized by mergers and acquisitions, especially as a means to enter this market. Consumer goods and pharmaceutical companies are increasingly looking to acquire vitamin and supplement companies to tap into this lucrative market without the additional burden of research and other related costs. For instance, in 2012, Procter and Gamble (P&G) acquired New Chapter Inc., a Canadian supplement company, Reckitt Benckiser bought U.S.-based Schiff Nutrition and Pfizer acquired Centrum.
Companies should consider acquisitions or mergers in order to enter or grow in this lucrative market.
- International Alliance of Dietary Food Supplement Associations
- International Council for Responsible Nutrition
- National Products Association
- National Center for Complementary and Alternative Medicine
- US Food and Drug Administration (FDA)
- Consumer Healthcare Products Association
- American Herbal Products Association
- American Herbal Pharmacopoeia
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