Vitamin, Nutritional Supplement & Other Health-Related Product Manufacturing
Brief Excerpt from Industry Overview Chapter:
Companies in this industry develop and manufacture vitamins, nutritional supplements, herbal remedies, and other natural health products. Major companies include Herbalife, Nature's Sunshine, NBTY, and USANA (based in the US), as well as Arkopharma (France), Nelsons (UK), and Tongrentang (China).
The global vitamin and nutritional supplement industry has annual retail sales of about $37 billion, according to Nutrition Business Journal. Growth is strongest in emerging markets such as China, India, and Brazil that have expanding middle-class and elderly populations.
The US vitamin and nutritional supplement industry includes about 400 companies with combined annual revenue of about $13 billion. Companies in this industry also manufacture uncompounded medicinal chemicals for use by pharmaceutical manufacturers.
Demand for vitamins and nutritional supplements is driven by demographics, acceptance of natural medicines, and the desire to maintain long-term health. The profitability of individual companies depends on the ability to develop superior products. Large companies benefit from economies of scale of manufacturing, research, and marketing. Small companies can compete effectively by specializing in niche nutritional products, or through advanced product development efforts. The US industry is highly concentrated: the top 50 companies account for more than 80% of revenue.
Exports account for about 70% of US production. Major export markets for US vitamins include Italy, Austria, Belgium, and France. Imports of vitamins and nutritionals to the US, partly from foreign manufacturing plants of US companies, and partly from foreign drug companies, account for more than...