Cashing in on dietary supplements market

Over the last decade, sales of vitamins, minerals, and nutritional and herbal supplements (VMHS) have jumped and lots of new businesses have entered the area. Globally, the industry is currently valued at $82 billion, with approximately 28 percent of the at the U.S., where sales rose by roughly $6 billion between 2007 and 2012.

Healthful living and the numerous products related to that. Even though the phenomenon is global, this report focuses primarily on the features of the U.S. market.

1. An aging market

Much has been made of the way that the aging of baby boomers will transform the U.S. economy.

Much has been Made from How the aging of baby boomers will The phenomenon is already observable in the dietary and vitamin supplement industry, where purchases have increased by 6 per cent yearly from 2007-2012, a lot of the coming out of eye, joint and bone supplements. As of 2012, consumers 65 and older accounted for 36 percent of U.S. VMHS sales, a trend that’s predicted to continue for the near future.

2. Greater consumer awareness for preventative healthcare

A Glance at magazine stands, TV lineups and news articles reveals Celebrity doctors like Dr. Oz and Dr. Sanjay Gupta, online forums like bodybuilding.com and Livestrong.com, and magazines like Shape, Fit, and Men’s Health all regularly dispense both diet and lifestyle ideas and extend details about new products.

VMHS manufacturers, which have increased their advertising efforts aimed directly at consumers. Such marketing focuses on new product innovation and the improved effectiveness and safety of goods, and it has successfully influenced a broad selection of consumers at multiple touch points and given increased credibility to the role VMHS can play in contributing to preventative healthcare.

3. The Growth of the self-directed consumer

answers. Consumers are increasingly relying on alternative channels to self-diagnose and to identify targeted health requirements. This is partly driven by the fact that insurers are increasing co-pays and incentivizing their clients to take preventative care measures. Today, 70 percent of Americans use the web to find health information and to help make decisions throughout all areas of the health journey (pre-diagnosis, diagnosis and treatment). The vast majority of individuals consult the net both before and after their visits to doctors, to both inform their conversations with their physicians and validate medical advice after consultations.

This trend has benefited VMHS manufacturers because many supplement Purchases are caused by consumers taking their health into their own hands, not the direct advice of a physician. VMHS manufacturers have encouraged this self-directed behavior by improving their education and advertising efforts, and targeting consumers both on and off-line. Additionally, as consumers become more educated, they are increasingly interested in personalized VMHS solutions and are leveraging online tools offered by retailers and manufacturers to create a personalized regimen.

4. Channel proliferation

VMHS manufacturers are highly fragmented and are accessing new sales Channels to reach a diverse and broad set of consumers. The top manufacturer Living Essentials, for example, maintains only 7 percent market share, and the top five branded manufacturers together hold less than a 25 percent market share. Private label accounts for 10 percent of sales. Such fragmentation is the consequence of an overall lack of brand awareness and an absence of consumer loyalty within the category. The maximum concentration of VMHS sales are in super/hyper markets, with online stores and specialty retailers like GNC following closely behind. As they’ve grown in popularity as a result of their perceived higher product quality and private label options, specialty retailers have contributed significantly to channel proliferation. Internet sales have experienced significant growth over the previous five years (17 percent CAGR 2007-2012), a trend that’s forecast to continue as consumers become more familiar with the category and leverage the ease of internet shopping for repeat purchases.

5. A shift to broader brand positioning

Historically, VMHS marketing has been focused on promoting a specific ingredient that addresses a consumer health need –e.g. omega 3 for heart health or lutein for eye support. This emphasis produced a market in which products were commoditized and consumers had difficulty differentiating between brands. To combat this, marketers have lately started to tailor their consumer messaging to incorporate a focus on a holistic benefit platform, in the hopes of encouraging usage of a broader array of goods.

manufacturer’s family of preventative eye health solutions and General Mills’ heart healthy cereals are prime examples of this growing trend. Through targeted marketing efforts, these companies have Successfully produced a need and sold a benefit oriented solution to consumers. VMHS manufacturers are also using the benefit platform as a way of achieving a differentiated, premium positioning in the Marketplace, appealing, for example, to expectant mothers, heart health, 60+ men, or other specific consumer segments. The resulting Expanded suite of product offerings has been a main driver of growth within the category.

Leave a Reply

Your email address will not be published. Required fields are marked *