How Big is the Supplement Ecommerce Market?
10/12/2023
E-commerce has emerged as the go-to channel for selling vitamins, minerals and supplements (VMS) in the US. E-commerce added over $10 billion in VMS sales revenue during 2021 - more than double what natural and specialty channels achieved during that same time frame.
Check out The Consumable System to learn how to get started Research shows that health and wellness trends are taking root online before spreading to physical stores. 1. Global Supplement MarketThe global supplement market is projected to experience compound annual compound annual compound growth of over 7% during its forecast period, driven by multiple factors. Consumer demand for plant-based and organic supplements, along with alternatives like soft chews or gummies to traditional tablet formats has contributed significantly. As a result, companies in this field have responded with innovative product lines like Frunutta which manufacture vitamin supplements designed to disintegrate under the tongue without additional colors, coatings, or flavors needed - driving market growth exponentially. Revenue-wise, the global supplement market can be divided into various segments by distribution channel, product type and region. It is anticipated to continue its rapid expansion due to rising health awareness worldwide as well as growing disposable income levels and consumer expenditure on health & wellness products. Current market leaders for supplements include North America and Europe; Asia Pacific markets are anticipated to experience rapid expansion during their forecast periods due to rising health awareness in countries such as China and India. Abbott Laboratories, Archer Daniels Midland, Amway Corporation, Herbalife International of America Inc, Arkopharma Laboratoires Pharmaceutiques and Stepan Company are some of the major players dominating this market. Each is investing heavily to diversify their product lines and strengthen their presence online to take advantage of increasing opportunities in nutritional supplements. The global dietary supplement market is projected to experience rapid expansion during 2023-2030 due to growing consumer awareness regarding health-enhancing supplements and an increase in consumer purchasing decisions for products with additional supplements. Furthermore, an increasing demand for functional food incorporating additional supplements could spur this market growth; furthermore the rise of geriatric populations will spur it further; government initiatives supporting herbal supplement production will bolster market expansion whereas high production costs associated with manufacturing supplements could act as an impediment to growth. 2. US Supplement MarketThe US supplement market is projected to experience moderate compound annual compound annual growth over its forecast period, driven by various factors including increased health awareness and an emphasis on preventive healthcare, leading to an increase in consumer expenditure on dietary supplements over prescription pharmaceuticals; in addition, rising healthcare costs are prompting people to turn to vitamin supplements as a cost-cutting measure. E-commerce platforms have also contributed significantly to the market, enabling consumers to purchase dietary supplements at their convenience regardless of location or time of day. This has opened up an entirely new market for industry companies as they can reach a much broader audience than through traditional retail channels. Post-COVID-19 immunity surge has driven consumers to purchase supplements targeting the immune system such as prebiotics, probiotics, mushrooms, elderberry and cranberry supplements - including pre- and probiotics as well as mushrooms, elderberry and cranberry products. According to Morton Reynolds of NBJ's Senior Director of Research Morton Reynolds believes this creates a gateway for consumers unfamiliar with supplements but looking for "general wellness" products to enter. However, the market is currently facing several obstacles. One such obstacle is an evolving regulatory environment that has caused greater scrutiny of manufacturing and marketing practices of supplement companies. A number of them have been accused of falsely advertising that their ingredients can help prevent or cure COVID-19; for this offense alone the FDA issued warning letters against several of these businesses. North America currently leads the global dietary supplements market due to the presence of major manufacturers and high disposable income among populations, followed by Europe due to their presence. Asia Pacific is expected to experience significant growth due to chronic diseases being more prevalent and increased emphasis on preventive healthcare services being made available; Middle East and Africa could also see notable gains as populations become aware of nutrition and its importance within their societies. 3. Europe Supplement MarketThe Europe Supplement Market is forecasted to experience steady and sustained growth over its forecast period, driven primarily by the COVID-19 pandemic which caused an explosion of demand for immunity-enhancing products, increasing awareness among consumers about maintaining a healthy lifestyle, as well as technological innovations like Artificial Intelligence-powered platforms for personalized nutrition. The European Supplement Market can be divided into various segments by product, formulation and region. Dietary supplements are projected to hold the largest market share by 2022 due to increasing numbers of people being diagnosed with chronic illnesses like high cholesterol, high blood pressure and diabetes; caused by unhealthy eating habits and lack of physical activity. Dietary supplements may help prevent diseases by providing the body with essential nutrients it requires to remain healthy. Furthermore, they can boost your immunity system; hence the expected faster growth rate in this segment within Europe's supplement market. Formula-wise, Europe's supplement market is currently dominated by tablets and capsules; however, powder is anticipated to experience strong growth as its versatility and convenience outstrip those offered by tablets or capsules. Furthermore, powders tend to be more digestible. Europe's aging population is another force driving Europe's supplement market forward. An increasing prevalence of chronic illnesses like diabetes and high cholesterol among older people has created a surge in demand for dietary supplements; consequently, Europe's supplement market is expanding exponentially. Manufacturers in Europe's Supplement Market are competing with rivals by creating new and innovative products, expanding distribution channels to boost sales, and forming partnerships with online personal care product selling platforms to promote and drive sales of their own. 4. China Supplement MarketChina is home to one of the world's largest markets for health supplements and vitamins. Over the past decade, its market has experienced sustained growth largely due to an aging population and greater focus on wellness initiatives. Ecommerce sales for these products are also rising quickly; more people prefer buying them online rather than from physical stores. At present, China's supplement market is dominated by By-Health, Infinitus (China), and Amway; these three firms hold 28% market share combined. Of the twelve top companies listed above, eight offer products specifically targeted to address consumer needs such as weight loss, beauty enhancement and energy support; they have also enhanced their online marketing and sales strategies in order to attract more Chinese consumers. Consumers have increasingly turned to functional gummies and ready-to-drink products like functional energy drinks as an easy, tasty alternative to taking traditional tablet supplements. Their market is expected to experience significant growth, especially among younger consumers due to long working hours in Tier 1 cities as well as hectic school schedules that restrict rest time. Consumers are also seeking products to help enhance their skin, hair and nails - such as vitamin C, collagen and retinol-based solutions - especially among women who subscribe to the idea of inner beauty. Demand for such products is particularly strong among female shoppers. COVID-19 caused a brief dip in China supplement sales in January, though overall performance is improving and expected to remain so until 2023, with consumers paying greater attention to personal health and wellbeing. Millennials and Gen-Z consumers are driving the growth of China's health supplement market. These consumers are particularly drawn to integrated nutrition products like integrated nutrition, melatonin and anti-fatigue remedies; likely due to their hectic lifestyles or desire to maintain a healthy lifestyle. New overseas vendors are entering China's burgeoning supplement market to capitalize on its massive success, yet many face significant hurdles due to its complex regulations and standards. Consumers tend to buy imported products only from established brands that have established trustworthiness over time in China.
0 Comments
|
Mark
Archives
October 2023
Categories |