Vitamin and Supplement Industry: Market Research Reports, Statistics and Analysis

Leading Market Segments

Vitamins represent under $8.5 billion of the overall US vitamins and supplements market, over half of which is sales of multivitamins. Individual vitamins are showing faster market growth than multivitamins, with the former reaching 13% growth while the latter is closer to 2%, reports Euromontior. Individual vitamins showed the greatest increase at 13%, with B vitamins representing growth of more than 14%. According to Business Insights, vitamins and minerals market (but excluding other dietary supplements such as herbal pills, probiotics, etc.) will see compound annual growth of 4.5%, nearing $30 billion in 2015.

Combination supplements constitute a market segment enjoying strong growth. Examples include calcium magnesium with vitamin D and fish oil with CoQ10. The former promotes healthy bones and boosts the immune system, while the latter has antioxidant properties and improves circulation and heart function. With cases of cardiovascular disease rising and government initiatives to increase awareness, health-conscious consumers are eager to promote prevention before reaching the point at which they need a cure. This makes fish oil one of the most dynamic segments of the supplement market.

Regional Market Share

The US is the world leader in terms of market share for vitamins and supplements with around 30% of the worldwide market, or $20 billion. Japan is the next biggest market with a share of just over $15 billion or 22% of the world market, up less than a percent the previous three consecutive years.

China holds 12% of the global market and is expected to overtake Japan by 2014 due to its faster rate of market growth. Non-herbal dietary and calcium supplements are leaders on the Chinese market with herbal supplements accounting for almost $2 billion, representing a near 5% increase on the previous year. Ginseng is one of the most popular products boosting supplement sales in China.

Europe has a 14% share of the worldwide market in vitamins and dietary supplements, though growth has been slowing in this regional market. Factors impacting the European growth rate include strict regulatory measures, the global financial crisis, aggressive pricing and market saturation. Particularly popular products in the EU market include calcium and fish oils.

Key Industry Competitors

The global market for nutritional supplements is characterized by fragmentation, lending itself to mergers and acquisitions. Industry leaders include NBTY, Wyeth, GlaxoSmithKline, Atrium Innovations, Herbalife and Glanbia. The vitamins market has many significant players including Adisseo France, Nutraceutical Co., Archer Daniels Midlans, BASF and Pharmavite.

• NBTY is a world leader in nutritional supplements and vitamins. The company makes more than 22,000 products that are distributed through various brands, including Solgar, Holland & Barrett, Vitamin World and Sundown. Established in 1971, NBTY was acquired by Carlyle Group in 2010 for $3.8 billion in a private equity bill.

• US based Solgar, established in 1947, distributes its products through centers in the US, the UK, Spain, South Africa and New Zealand, reaching 45 countries worldwide. It is a leader in nutritional supplements owned by NBTY and offers a wide range of products including multivitamins, minerals, specialty formulas and botanicals. Many of its supplements are halal, vegetarian and kosher, suitable for a variety of consumers.

Market Outlook

As aging populations struggle against health issues characteristic of increased longevity, such as those relating to diminishing eyesight and mobility, the market for targeted supplements is growing rapidly, as is the case of glucosamine used to improve joint mobility, lutein to promote healthy eyes, and probiotic supplements to enhance digestion. The global market segment for probiotics is expected to reach $2.07 billion by 2015 at a compound annual growth rate of almost 10%, according to a BCC Research report.

Consumer demand for nutritional supplements should remain high as health-conscious customers seek optimal health in a bid to prevent or treat chronic conditions.

Leading Associations

• International Alliance of Dietary Food Supplement Associations www.iadsa.org
• International Council for Responsible Nutrition www.crn-i.ch
• National Products Association www.npainfo.org
• National Center for Complementary and Alternative Medicine www.nccam.nih.gov
• US Food and Drug Administration (FDA) www.fda.gov
• Consumer Healthcare Products Association www.chpa-info.org
• American Herbal Products Association www.ahpa.org
• American Herbal Pharmacopoeia www.herbal-ahp.org