Supplement Perspectives
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Emerging Markets, Expanding Delivery Formats Driving Supplement Market Growth

<p>Many factors are affecting growth of the global dietary supplement industry, including growth&nbsp;of emerging&nbsp;markets, interest in innovative delivery formats and the expansion of sports nutrition products into the mainstream market.</p>

Many factors are affecting growth of the global dietary supplement industry, including growth of emerging markets, interest in innovative delivery formats and the expansion of sports nutrition products into the mainstream market.

Insight from Innova Market Insights suggests the strong growth of the market for dietary supplements reflects increasing consumer concerns about the adverse effects of busy lifestyles and stress on health, as well as rising demand from an aging population. In addition to optimizing health via diet, consumers are increasingly using supplements for areas of their lives perceived to need additional support.

North America, particularly the United States, has been driving activity in supplements, accounting for over 42 percent of global launch activity, Innova reported in the 52 weeks to the end of November 2015. This reflects the highly developed nature of the market, which is the largest in the world. Europe came next with just under 30 percent, trailing the United States despite the number of countries involved.

Emerging markets are seeing rising demand, however, with increasing disposable incomes and a desire to take on elements of a more Western lifestyle. This is being led by Asia, particularly China, which is developing fast and has a large population that is increasingly able to afford this type of product. The share of Asia in supplement launch activity has reached 16 percent, up from just over 11 percent two years previously.

“Other factors driving the market include growing availability, the range of products and formats appearing and an increased focus on branding rather than just promoting specific ingredients and their potential benefits," said Lu Ann Williams, director of innovation at Innova Market Insights. The number of supplements available is very large, featuring an increasing range of ingredients, although general vitamin and mineral products continued to dominate launches in 2015, accounting for 28 percent of the total, ahead of botanical and herbal products with nearly 14 percent.

Methods of delivery have also changed in the sector, with a move away from supplements in the form of tablets and capsules and toward alternative easier-to-consume formats, such as powders and liquids. There has also been rising interest in products that straddle the boundary between supplements and foods, with dose-delivery probiotic drinks, such as Yakult and Actimel (DanActive in the United States) being one of the most high-profile examples. Others include fortified confectionery drops, chews and gums, as well as supplement-type beverages such as Joint Juice (with glucosamine) for joint health.

Initiatives in the dietary supplements sector have increasingly moved toward targeting specific consumer groups with benefit-oriented solutions. This involves not just lines formulated for groups such as women or older people, but also at application areas such as weight management, primarily weight loss, with nearly 10 percent of supplement launches taking this kind of positioning in 2015.

Another key growth area is sports supplements, which have seen rising levels of interest in line with sports nutrition as a whole. Usage is tending to spread away from professional sportsmen and athletes and more into the mainstream for a whole range of active consumers looking to improve their general health and performance levels.

“The high level of new product and promotional activity reflects the fact that the global supplements industry is increasingly competitive," Williams said. “This is both internally between different manufacturers and brands and between different ingredients targeting the same health conditions, and also externally where supplements have to compete with healthy foods, functional foods, and even OTC pharmaceuticals to cater for increasingly demanding and savvy consumers."

To learn more about supplement usage in the United States, watch the INSIDER’s video, “State of the Supplement Industry."  

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