Companies in this industry sell vitamins, minerals, and dietary supplements from physical retail locations. Major companies include GNC Holdings, Vitamin Shoppe, and Vitamin World (all based in the US), along with Holland & Barrett (UK).
Worldwide, annual sales of vitamins and dietary supplements through all channels are projected to surpass $100 billion by 2017, according to Euromonitor. The US is the world's largest market, accounting for nearly a third of annual sales, and China is the fastest-growing. Growth in China and other emerging markets is driven by the rise in middle-class populations.
The US health supplement store industry includes about 10,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $6.5 billion.
Health and nutrition trends, aging populations, and consumer spending drive demand. The profitability of individual companies depends on product innovation, effective merchandising, and competitive pricing. Large companies have advantages in purchasing, distribution, finance, and marketing. Small companies can compete effectively by providing superior customer service, offering unique products, serving a local market, or leveraging online sales. The US industry is concentrated: the top 50 companies generate about 55% of sales.
Health supplement stores compete with discount stores, supermarkets, drugstores, mail order and internet retailers, health food stores, and direct sellers of supplements. The highest concentrations of vitamin, mineral, and health supplement sales are in supermarkets and superstores, followed closely by online merchants and specialty stores....