Special offer: now 10% off original price of $3,750 Fears about the recession dampening the nutritional supplement business have not been realized. Indeed, if anything, the market appears to have benefited from the economic uncertainty, since supplements stack up well against expensive prescription medications and possibly preventable medical procedures, especially as healthcare costs continue to soar. Accordingly, consumers are turning to supplements as a more affordable way to stay healthy, and even cash-strapped consumers used to taking supplements have been reluctant to eliminate them from their lifestyle regimens. At the same time, older Americans are significantly more likely to integrate supplements into their daily lives, and as the massive Baby Boomer population ages the supplement industry continues to widen its customer base. With these favorable winds at its back, the market has progressed steadily from 5.5% annual growth in 2007 to 6.5% in 2008 to 7.5% in 2009, bringing U.S. retail sales to $9.4 billion in 2009.
This fully updated Packaged Facts report examines the U.S. market for nutritional supplements sold to consumers through the full retail spectrum, including vitamins, minerals, herbals, homeopathics and combination products. The report provides extensive retail sales breakouts, past and future, along with a thorough examination of market drivers, the competitive situation, marketer and brand shares, marketing trends, and consumer trends. Special features include a discussion of competition from nutraceutical foods and beverages based in part on Packaged Facts' own consumer polling, and in-depth coverage of condition-specific products in myriad segments including joint, calcium, children's, eye, energy, heart, men's, women's, brain, digestive and cosmetic.
Using SymphonyIRI Group data, the report quantifies sales and marketer/brand shares across four categories (General Supplements, Multivitamins, 1 & 2 Letter Vitamins, and Liquid Vitamins), while Experian Simmons national survey data for 2010 form the basis of a thorough examination of product and brand penetration levels, while also exploring consumer attitudes toward nutritional supplements vis-à-vis related trends such as preventive healthcare and healthy eating. The report also quantifies new product introductions using data from Datamonitor's Product Launch Analytics service, details trends in private label, and pinpoints key competitive thrusts among myriad market players.
Additional Information
Market Insights: A Selection From The Report
Walmart Draws the Most Supplement Shoppers
Walmart, the unavoidable behemoth of the consumer packaged goods retail landscape, practically exists as its own channel, and as such, more consumers buy their supplements from the Arkansas-based retailer than any other single channel. A Packaged Facts Internet survey conducted in May and June 2010 found that 63% of the 1,881 adults polled had taken nutritional supplements in the last 12 months, and of that group, 43% had purchased supplements at Walmart. Meanwhile, 18% of shoppers chose to purchase supplements at a warehouse store like Sam’s Club (owned by Walmart), Costco, or BJ’s Wholesale; while the other major mass merchandisers—Target, Meijer and Kmart—collectively attracted 17% of supplement shoppers.
Direct and Online Sales Enticing Supplement Sellers
According to Packaged Facts’ May/June 2010 online consumer poll, 26% of supplement users have purchased vitamin, mineral, or supplement products online in the last 12 months. And while only 4% of consumers bought supplements through the practitioner channel and 3% bought them from a multi-level marketing salesperson, the importance of these channels should not be overlooked. The combined nutrition industry direct-sales channels—which include Internet sales, catalog sales, TV-based sales, sales from multi-level marketers, and others—increased 7% per year on average during the 10-year period between 1999 and 2008, according to the Nutrition Business Journal. Because of the promise of a wider audience, direct-sales channels are looking enticing to nutritional supplement makers who sell through retail channels. These makers also often chafe at the limitations big-box retailers place on their businesses, such as pricing and distribution arrangements, in accepting and carrying their products.
Multivitamins Category a Two-Horse Race
The multivitamins category is pretty much a two-horse race in SymphonyIRI-tracked outlets, with Wyeth (Centrum) and Bayer (One-A-Day) continuing to run way out front. In years past, Wyeth had a comfortable lead over Bayer. But as of April 2008 that lead had dwindled to a few percentage points, with Wyeth at a 26.0% share of category sales ($185 million) and Bayer having climbed to a 22.4% share ($159 million), according to Packaged Facts’ 2008 edition of this report (which presented mid-year data). During full-year 2009, that lead narrowed even more, with Wyeth at a 25.0% market share ($194.3 million) and Bayer just one percentage point behind, at 24.0% ($186.4 million).
Wyeth’s Centrum lineup includes one double-digit market share product, Centrum Silver (13.9%), whose sales increased 9.5% during 2009. But none of its other major offerings did well in the year and most lost ground, including the Dora the Explorer version of Centrum Kids, which dropped 54.0%.
In the News
Boomers and Health Conscious Consumers Sustain U.S. Market for Nutritional Supplements
New York, August 30, 2010 — Whereas the world’s economic problems have hit many industries hard, the nutritional supplement business has proved resilient on the strength of spending by the aging Baby Boomer population and other health conscious consumer cohorts who favor supplements as an affordable way to stay healthy compared to costly prescription drugs and preventable medical procedures, according to Nutritional Supplements in the U.S., 4th Edition by market research publisher Packaged Facts.
“Part of the resiliency of nutritional supplements during this trying economic period stems from the fact that Americans are losing confidence in their ability to pay for healthcare, even as the economy shows signs of turning around,” says Don Montuori, publisher of Packaged Facts. “Compared to doctors visits, hospital stays, and prescription drugs, nutritional supplements can be a bargain.”
Packaged Facts estimates U.S. retail sales of nutritional supplements exceeded $9 billion in 2009, up 8% over 2008 sales. From 2005 to 2009, the market grew by a total of 26%, fueled by growing consumer awareness about health maintenance, in addition to pressure by the media and government to enforce product accountability.
This shift toward an increasingly health conscious attitude, along with the supplement industry’s move towards more science-based claims and various other efforts to shore up its credibility, will help push nutritional products further into the mainstream. Despite the weak economy, the prevailing needs of Boomers and seniors should also help to protect the market from any serious downturn. As a result, Packaged Facts forecasts annual sales growth in nutritional supplements will gradually improve over the new few years and sales will exceed $13 billion in 2014, yielding a compound annual growth rate of 7%.
Nutritional Supplements in the U.S., 4th Edition examines the U.S. market for nutritional supplements sold to consumers through the full retail spectrum, including vitamins, minerals, herbals, homeopathics and combination products. The report provides extensive retail sales breakouts, past and future, along with a thorough examination of market drivers, the competitive situation, marketer and brand shares, marketing trends, and consumer trends. Special features include a discussion of competition from nutraceutical foods and beverages based in part on Packaged Facts’ own consumer polling, and in-depth coverage of condition-specific products in myriad segments including joint, calcium, children’s, eye, energy, heart, men’s, women’s, brain, digestive and cosmetic.
About Packaged Facts - Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a wide range of consumer market topics, including consumer goods and retailing, foods and beverages, demographics, pet products and services, and financial products. Packaged Facts also offers a full range of custom research services.
Additional Materials
Tapping Into Format Opportunities
SupplySide West - October 2010
As the variety of food, beverage and nutraceutical options continues to grow, consumers are increasingly expecting more from all of their product choices. David Sprinkle, Packaged Facts, noted consumer preferences continue to evolve in selecting nutraceuticals and functional products, opening up opportunities for marketers and posing challenges for product developers. Sprinkle spoke briefly with Heather Granato, Virgo Publishing, in October 2010 during SupplySide West in Las Vegas, offering a historical perspective on the evolution and tips on what to expect in the coming years.
He detailed what could be considered the food and nutraceutical continuum, spanning from dietary supplements to functional foods to whole foods and even super foods. As the idea of supplementation has become increasingly central to people’s food choices, shoppers are willing to choose many types of products for their positive health effects. “Even though there is and could be an ideological battle between natural foods and whole foods and supplements, there’s really not in the minds of consumers," Sprinkle said. “Good things are good for you and more is more." Instead, he sees greater expectations among consumers that even packaged foods should offer some enhanced benefits, which could leave standard products on the shelves. As for what is on the horizon, he said functional foods may be able to gain additional market share from the supplement market as consumers are increasingly willing to buy in to a new dosage method for a health benefit.
Chapter 1: Executive Summary
Scope & Methodology
Scope of Report
Mass-Market Product Classifications
Report Methodology
The Market
U.S. Retail Sales on the Ups
Figure 1-1: U.S. Retail Sales of Nutritional Supplements, 2005, 2009, 2014 (in millions of dollars)
Mass-Market Sales Accelerate
General Supplements Dominate Mass-Market Sales
Modest Growth in Condition-Specific Products
Supercenters/Mass Merchandisers Lead in Supplement Sales
Macro Trends
Consumers Sticking with Nutritional Supplements
The Marketers
Competitive Overview
Natural Product Marketers
Direct Marketing Companies
Multi-Level Marketers
Practitioner Channel on the Rise
Private-label Share Stagnant
Pharmavite and NBTY Lead the Market
New Product Trends
Supplement Introductions Bouncing Back
Dietary Themes Sell Supplements
Market Leaders in New Product Entries
Macro Trends
Consumer Trends
Between 57% and 63% of Adults Use Supplements
Figure 1-2: Percent of Adults Using Nutritional Supplements, 2006-2010 (U.S. adults)
Vitamin D Riding High
Top Brand Lines Are Multivitamins
Faith and Doubt on Supplement Efficacy
Forgetting to Take Their Pills
Age Is Leading Demographic Indicator
The Gender Gap
Supplement Socio-Economics
Chapter 2: Introduction
Market Definition
Scope of Report
Product Categories and Classifications
Vitamins
Minerals
Supplements
Mass-Market Product Classifications
Combination Formulas
Other Product Classifications
Single-Element vs. Multivitamin/Mineral
Synthetic vs. Natural
Demographic Segmentation
Delivery Systems
Industry Regulation
FDA and DSHEA Oversee Supplements Industry
The Nutrition Labeling and Education Act (NLEA)
Qualified Health Claims
RDAs, RDIs, DRVs and DVs
Congress Passes Adverse Event Reports (AER) Bill
The Dietary Supplement Health and Education Act
DSHEA Remains FDA Focus, Evolves
FDA Enforces Good Manufacturing Practices for Dietary Supplements
More Regulation on the Horizon
CRN Spearheading Industry Self-Regulation
Chapter 3: The Market
Market Size and Growth
U.S. Retail Sales Top $9 Billion in 2009
Table 3-1: U.S. Retail Sales of Nutritional Supplements, 2005-2009 (in millions of dollars)
Mass-Market Sales Accelerate
Table 3-2: SymphonyIRI-Tracked Sales of Nutritional Supplements, 2008-2009 (in millions of dollars)
Liquid Supplements Provide a Jolt, General Supplements a Baseline
Table 3-3: SymphonyIRI-Tracked Sales of Nutritional Supplements: By Product Category, 2008-2009 (in millions of dollars)
Table 3-4: Annual Dollar Growth/Decline in SymphonyIRITracked Sales of Nutritional Supplements: By Product Category, 2008-2009 (in millions of dollars)
Table 3-5: Annual Percentage Growth/Decline in SymphonyIRI-Tracked Sales of Nutritional Supplements: By Product Category, 2008-2009 (percent)
Market Composition
General Supplements Dominate Mass-Market Sales
Figure 3-1: SymphonyIRI-Tracked Sales of Nutritional Supplements: By Product Category, 2008-2009 (in millions of dollars)
Modest Growth in Condition-Specific Products
Table 3-6: Condition-Specific Supplement Share of SymphonyIRI-Tracked Sales, 2008-2009 (in millions of dollars and percent)
Calcium and Joint Supplements Falling
Children’s Supplements Robust
Healthy Eyes and Healthy Hearts
Women’s Supplements Gaining on Men’s
Brain and Energy Supplements Losing Vigor
Digestive Gains Big While Cosmetic Supplements Slip
Table 3-7: SymphonyIRI-Tracked Sales of Condition-Specific Supplements: By Type, 2008-2009 (in millions of dollars)
Table 3-8: Share of SymphonyIRI-Tracked Sales of Condition-Specific Supplements: By Type, 2008-2009 (percent)
Another Look at Nutritional Supplement Category Sales
Herbal Supplements Going Strong
Supercenters/Mass Merchandisers Lead in Supplement Sales
Figure 3-2: Share of U.S. Nutritional Supplement Sales by Retail Outlet Type, 2010 (percent)
Walmart Draws the Most Supplement Shoppers
Table 3-9: Percentage of Consumers Purchasing Vitamin/Mineral/Supplement Products by Channel, May/June 2010 (percent)
Market Outlook
Macro Trends
Consumers Sticking with Nutritional Supplements
A Supplement a Day Keeps the Doctor Away
Supplements’ Public Image Always an Issue
A Growing Part of the Economy
Table 3-10: U.S. Out-of-Pocket Costs for Complementary and Alternative Medicine, 2007 (adults age 18 and over; in billions of dollar and percent)
Competition from Functional Foods
Figure 3-3: Level of Agreement with Statement, “Rather Than Vitamin/Supplement Pills, I Prefer to Buy Foods or Beverages with Specific Nutritional Benefits,” February 2009 (percent)
Figure 3-4: Level of Agreement with Statement, “I Frequently Choose Foods and Beverages Because They Are Naturally Rich in Specific Nutrients,” May/June 2010 (percent)
The Natural/Organic Connection
Aging Baby Boomers an Underpinning Market Force
Figure 3-5: Percent of U.S. Adults Using Nutritional Supplements: By Age Bracket, 2010 (U.S. adults)
Table 3-11: Number of Adults Using Nutritional Supplements: By Generational Cohort, 2010 (percent of total U.S. adult users)
Table 3-12: Projected U.S. Population by Age Bracket, 2010-2020 (in thousands)
Looking Ahead
Nutritional Supplements Not Immune to Economy
Table 3-13: New Vitamin and Mineral SKUs, 2005-2009
Projected Market Growth
Table 3-14: Projected U.S. Retail Sales of Nutritional Supplements, 2009-2014 (in millions of dollars)
Healthcare Bill Expected to Help Industry
Science Pushing Out Snake Oil
Integrative Pharmacies: A New Type of Supplement Retailer
Chapter 4: The Marketers
Competitive Overview
Recent Mergers & Acquisitions
Carlyle Group Purchases NBTY
Sanofi-Aventis Purchases Chattem
Atrium Takes Over Garden of Life
Practitioner Marketer Makes for Appealing Acquisition
Supplement Companies Help Relieve IPO Drought
Natural Product Marketers
Direct Marketing Companies
Direct and Online Sales Enticing Supplement Sellers
Online Sales at 3% of Revenue for GNC
Direct Mail Works for Nutritional Supplements
Ups and Downs of Multi-Level Marketers
Practitioner Channel on the Rise
Retailers Benefit from Private-Label Offerings
Private-label Share Stagnant
Figure 4-1: Private-Label Share of Mass-Market Sales of Nutritional Supplements by Category: 2007 vs. 2009 (percent)
Table 4-1: SymphonyIRI-Tracked Sales of Private-Label Nutritional Supplements by Category: 2007 vs. 2009 (in millions of dollars)
Category Cross-Over and Line Extensions
Consumer Advertising Themes and Promotions
Eco-Credibility
Traceability
Celebrity Endorsements
Web 2.0
Trade Support
The Retail Channel Classroom
Natural Grocers Continue to Extend Reach
GNC and Vitamin Shoppe Coming on Strong
Table 4-2: The U.S. Market for Nutritional Supplements: Selected Leading Marketers and Brands, 2009
Marketer and Brand Shares
Methodology
Pharmavite and NBTY Lead the Market
NBTY Leads in General Supplements
Multivitamins Category a Two-Horse Race
Pharmavite, Private Label Dominate in 1 & 2 Letter Vitamins
Liquid Supplements Category Highly Fragmented
Table 4-3: Top Twenty Marketers of Nutritional Supplements by SymphonyIRI-Tracked Dollar Sales and Market Share, 2008-2009 (in millions of dollars and percent)
Table 4-4: Top Fifteen Nutritional Supplement Brands by SymphonyIRI-Tracked Dollar Sales and Market Share, 2008-2009 (in millions of dollars and percent)
Table 4-5: Top Marketers and Brands of General Supplements by SymphonyIRI-Tracked Dollar Sales and Market Share, 2008-2009 (in millions of dollars and percent)
Table 4-6: Top Marketers and Brands of Multivitamins by SymphonyIRI-Tracked Dollar Sales and Market Share, 2008-2009 (in millions of dollars and percent)
Table 4-7: Top Marketers and Brands of 1 & 2 Letter Vitamins by SymphonyIRI-Tracked Dollar Sales and Market Share, 2008-2009 (in millions of dollars and percent)
Table 4-8: Top Marketers and Brands of Liquid Vitamins by SymphonyIRI-Tracked Dollar Sales and Market Share, 2008-2009 (in millions of dollars and percent)
Table 5-4: Number of Nutritional Supplement Launches by Company, 2008-2010
Macro Trends
Trends in Joint Supplements
Heart Health Supplements Going Strong
Aiming for the Gut
Omega-3s Still Have Mileage
Brain Boosters
Eye Care Supplements Lean on Scientific Support
The Oral Angle
Seeking Immunity
Supplements for Sleep
Targeting Specific Diseases and Conditions
Diabetes
Bariatric Patients
Tinnitus
ADHD
“Beauty from Within” Seeming Homely
Alternate Delivery Systems Tout Efficacy, Novelty
Powdered Supplements
Gummies and Gels
Oral Strips
Lip Balm
Up-and-Coming Ingredients
Vitamin D
Resveratrol
Superfruits
Chapter 6: Consumer Trends
Introduction
Notes on Experian Simmons Data
Between 57% and 63% of Adults Use Supplements
Figure 6-1: Percent of Adults Using Nutritional Supplements, 2006-2010 (U.S. adults)
Vitamin D Riding High
Figure 6-2: Selected Leading Types of Nutritional Supplement by Usage Rates, 2006 vs. 2010 (percent of U.S. adults)
Top Brand Lines Are Multivitamins
Figure 6-3: Top Nutritional Supplement Brand Lines by Usage Rates, 2006 vs. 2010 (percent of U.S. adults)
Table 6-1: Overview of Nutritional Supplement Usage, 2010 (percent and number of U.S. adults)
Consumer Psychographics
Faith and Doubt on Supplement Efficacy
Forgetting to Take Their Pills
Figure 6-4: Top Reasons Consumers Do Not Take Supplements, 2010 (percent)
Supplement Users Proactive About Healthcare
Stronger Skews for Specialized Products
A Taste for Alternatives
Branded vs. Private Label
Table 6-2: Psychographic Indicators for Nutritional Supplement Users, 2010 (percent and index of U.S. adults)
Table 6-3: Attitudes Toward Product Efficacy Among Nutritional Supplement Users, 2010 (percent of U.S. adults)
Table 6-4: Overall Psychographic Indicators for Daily Users of Nutritional Supplements, 2010 (number and percent of U.S. adults)
Table 6-5: Top Psychographic Indicators for Nutritional Supplement Usage by Product Type, 2010 (index of U.S. adults)
Table 6-6: Top Psychographic Indicators for Nutritional Supplement Usage by Brand, 2010 (index of U.S. adults)
Consumer Demographics
Age Is Leading Demographic Indicator
Figure 6-5: Percent of U.S. Adults Using Nutritional Supplements: By Age Bracket, 2010 (U.S. adults)
40% of Supplement Users Are Boomers
Figure 6-6: Number of Adults Using Nutritional Supplements: By Generational Cohort, 2010 (percent of total U.S. adult users and number in millions)
Usage Edges Up in Age Brackets
The Gender Gap
Supplement Socio-Economics
Patterns by Product Type
Patterns by Brand Line
Table 6-7: Nutritional Supplement Usage: Overall Demographic Patterns, 2010 (percent, number and index of U.S. adults)
Table 6-8: Percentage of Adults Using Nutritional Supplements: By Age Bracket, 2006 vs. 2010 (U.S. adults)
Table 6-9: Percentage of Adults Using Nutritional Supplements: By Age Bracket, Men vs. Women, 2010 (U.S. adults)
Table 6-10: Indices for Adult Use of Nutritional Supplements: By Educational Attainment and Household Income, 2006 vs. 2010 (U.S. adults)
Table 6-11: Demographics of Those Using Nutritional Supplements Once or More Daily, 2010 (percent, number and index of U.S. adults)
Table 6-12: Top Demographic Indicators for Nutritional Supplement Usage by Product Type, 2010 (percent and index of U.S. adults)
Table 6-13: Demographic Indicators for Nutritional Supplement Usage by Brand or Brand Line, 2010 (percent and index of U.S. adults)
Appendix: Addresses of Selected Marketers
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