Market for Nutritional Supplements

Vitamins, Minerals & Herbs

STEVENS, Pa. (BUSINESS WIRE FEATURES) Buoyed by rising consumer interest in improving the quality of lifeincluding health and wellness, the consumer market for nutritionalsupplements, encompassing vitamins, minerals and herbalsupplements, totaled $22.5 billion in 1998. Total industry sales areprojected to reach $27.2 billion in 2000 as more than 60% of adultAmericans purchased and consumed nutritional supplements,according to a new market research study from Unity Marketing,Market for Nutritional Supplements: Vitamins, Minerals & Herbs --Insights for Marketers on the Industry, the Trends, the Consumersand Specialty Retailers.

"While vitamin and mineral supplements account for the lion'sshare of the market with $16.8 billion in consumer sales, herbalsupplements are used by nearly one-third of adult Americans andgenerate about $4 billion at retail," explains Pam Danziger,president of Unity Marketing. The core market for nutritionalsupplements is women, between the ages of 35-to-54, althoughherbal supplement users tend to skew younger than those whotake vitamin & mineral supplements only. Nutritional supplementconsumers tend to favor drug stores, pharmacies or grocery storesas a source for these products, on average spending $37 in a three-month span. Health food stores are used by 39% of nutritionalsupplement consumers. These shoppers are more serious abouttheir health purchases and are more likely to take herbalsupplements along with their vitamins. Mail order, used by 12% ofthe supplement consumers, is also preferred by the more serioussupplement consumers. Today the Internet is a source for only 1%of nutritional supplement consumers, but it is expected to growrapidly in the next several years.

With more channels of distribution available in the nutritionalsupplement market, this report includes an analysis of a surveyamong specialty vitamin retailers who capture the most motivated,educated and highest-spending segment of the consumer market."Our research indicates that the typical specialty vitamin retailer isnot growing as fast as the overall market as more massmerchants, discounters, grocery and drug stores expand theirfocus on this category. In fact, these retailers account for about55% of the total industry sales," says Danziger. "Yet the specialtyretailers that command about 30% share of market see theircompetitive advantage as the ability to offer more one-on-onecustomer service and expert advice."

Providing a unique perspective on the consumer market, the reportincludes an analysis of five different consumer segmentscharacterized by different drives and motivations for nutritionalsupplement use.

For example, the largest consumer segment is called the "GoodLiving" segment, who practice good health and are concerned butnot fanatical about nutrition, health and fitness.

Next is the "Go-Along-with-the-Crowd" segment, dominated bymarried men, who know that nutrition is important but only taketheir vitamins when convenient or when they remember.

"Health Enthusiasts" comprise about 18% of the total market. Theyrepresent those who are most serious about nutrition and tend totake supplements both for health and life-enhancement.

The "Searchers" use supplements as a substitute for prescriptiondrugs in times of sickness, but don't necessarily makesupplements a part of their daily routine, while the"Disenfranchised," the smallest segment accounting for 14% of thetotal, is composed of consumers who reject the medicalestablishment and do their own research to select supplementsand to self-medicate.

The report, Market for Nutritional Supplements: Vitamins, Minerals& Herbs -- Insights for Marketers on the Industry, the Trends, theConsumers and Specialty Retailers contains analysis from in-depthmarket research surveys of consumers and specialty vitaminretailers. It provides an estimate of total market sales by product,distribution channel and projections for consumer sales through2003. The report identifies key trends that will have the greatestimpact on sales in this industry in the future, as well as competitiveprofiles of the leading manufacturers of nutritional supplements.This over 100-page report is available from Unity Marketing for$2,250. Unity Marketing is a marketing research and consultingfirm that helps companies unite with their target markets throughconsumer insights.

For the more personal touch, here is the story of how a nutritional supplement saved the life of one of my mentors in the industry.