Sales of nutritional supplements in the US reached $11.5 billion in 2012, according to a new report.
Market research firm Packaged Facts said that that dollar sales increased by 31.7% in 2012 and the category had a compound annual growth rate (CAGR) of 7.1% between 2008 and 2012. The report forecasts sales to reach $15.5 billion by 2017, in-line with a CAGR of approximately 6%.
Growth was led by general supplements (such as mineral, herbal and other non-vitamin supplements) which grew by 51% between 2008 and 2012. Other strong performers included multivitamins (+25.8%), “one and two letter” vitamins (+16.8%) and liquid supplements (+6.4%).
The ageing population of Baby Boomers, rising health care costs and an increase in the number of parents who buy supplements for their children are singled out by the report as key growth drivers.
Mass-market retail sales (such as supermarkets, drug stores and mass merchandisers other than Wal-Mart) increased by 5.4% in the year ending 10 June and accounted for around a third of sales. Natural/specialty stores (26%), drug stores (21%) and traditional supermarkets (12%) followed.
The report stresses the need to address declining supplements use in the 18-29 demographic and lower-than-average consumption amongst the US’ Hispanic population.
Also singled out is the need to target over 65 and Baby Boomer sales with fit-for-purpose marketing. Manufacturers must also ensure that products have a strong scientific basis to health claims as regulation and scrutiny becomes ever tighter, the report says.
