SECAUCUS, New Jersey – In the ever-evolving landscape of the supplement market, staying ahead of the curve is crucial for businesses to thrive.
That was one of the main takeaways from an info session at Supply Side East 2024. As consumers become increasingly health-conscious and seek out products to support their well-being, understanding market trends and adapting strategies accordingly is essential.
Market Dynamics and Growth Projections
Erika Craft, a market research analyst for Nutrition Business Journal, shared that the supplement market is currently experiencing significant growth, with a projected increase of $14.47 billion between 2023 and 2027.
Despite a post-COVID market correction in 2022, the industry is anticipated to grow steadily, with a 4.8% estimated growth in 2024 and a compound annual growth rate (CAGR) of 5.2% between 2023 and 2027.
Category Insights and Consumer Preferences
Examining category growth in 2023 provides valuable insights into consumer preferences. While vitamins experienced modest growth at 0.9%, herbs & botanicals saw a substantial increase of 4.4%, capturing a significant market share.
Specialty supplements, sports nutrition, and meal supplements also demonstrated positive growth trajectories, reflecting diverse consumer needs and preferences.
A notable trend is the resurgence of interest in minerals, particularly magnesium, driven by growing awareness of its health benefits. Online sales of magnesium supplements have surged, comprising 40% of the total mineral market share.
Shift in Sales Channels and Delivery Formats
The sales channel dynamic is undergoing a transformation, with natural and specialty stores gradually losing market share to mass market retailers and e-commerce platforms. E-commerce emerged as the fastest-growing channel in 2023, with a 9.5% increase, highlighting the importance of online presence and accessibility.
Moreover, consumers are gravitating toward innovative delivery formats, favoring powders, chews, and liquids over traditional capsules and tablets. Among Gen Z consumers, there’s a preference for capsules, liquids, powders, and gummies, reflecting a demand for convenient and enjoyable consumption experiences.
Protein & Meal Replacements on the Rise
In the realm of vitamins and supplements, consumers are increasingly focused on enhancing their health and well-being, driving a notable 10% year-over-year growth in protein supplements and meal replacements, according to SPINS director of sales Jeff Kamholz.
Kamholz reiterated that at the forefront of the trend was the rising popularity of magnesium, which has seen a remarkable 62% increase in product sales, according to SPINS data.
New Delivery Methods Gaining Prominence
Innovative delivery methods are also reshaping the market, with powder formats experiencing 17% growth and liquid ready-to-drink options up by 18%.
On e-commerce platforms like Amazon, sales of vegetable capsules, powder supplements, and gummies have surged by 34%, 29%, and 35% respectively, indicating a preference for convenient and accessible supplementation.
Future-Forward Viewpoints
Within the realm of women’s health and beauty, there’s a significant demand for superfoods and performance nutrition, with weight-loss solutions garnering particular attention. Unique products like the Sleepy Girl Mocktail have gained viral popularity, highlighting the consumer interest in functional beverages.
Kamholz anticipates continued growth in functional ingredients such as mushrooms, magnesium, and ashwagandha. With evolving consumer preferences and the emergence of new product categories like cannabis-infused drinks, the supplement market is poised for further expansion and innovation.
The Food Institute Podcast
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