Pharmaceuticals and consumer goods companies have been acquiring dietary supplements companies, or companies with strong dietary supplements products, in recent years. This is part of a larger trend and growing awareness of healthfulness among consumers. Dietary supplements are growing year on year and can provide consistent growth to companies offering them.
Features and benefits
This case study looks at how the dietary supplements market is defined and how consumers can increase their intake of them.
The case study examines why some companies are choosing to acquire dietary supplements companies, and how consumer interest has grown.
This case study analyzes how both pharma and consumer goods companies have acquired dietary supplements companies to diversify their operations.
According to IFIC's 2014 Food and Health Survey, 71% of consumers cited healthfulness as a purchase driver in 2014, up from 61% in 2012. Young consumers aged 18-34 narrowed the gap with other age groups as their responses citing healthfulness as a purchase driver increased from 55% in 2013 to 66% in 2014. TABS Group's survey found that 75% of households purchased vitamins at least once in the year ending April or May 2014, up two percentage points from 2013, and a dramatic jump from 66% of households in 2012. This growth indicates an increasingly popular industry, one which TABS Group estimated to be worth $11.4bn in 2014, up 3-4% from 2013. Reckitt Benckiser's health brands, which include the Schiff acquisition, and form the company’s second largest segment, have experienced the strongest growth for the company, with 27% in 2012/ 2013. Other segments' growth was negligible compared to the health segment: 4.2% for hygiene, 0.4% for home, and 1.2% for food.
Your key questions answered
Are dietary supplement sales growing? Why?
What kind of consumers purchase them?
Why are corporations acquiring dietary supplements companies? How has this impacted on their revenues?