Dietary Supplements in the US

PROSPECTS

Combination dietary supplements attracting new consumers

In 2019, combination dietary supplements showed another year of growing demand, mainly stemming from the increasing variety of specialised combinations targeted for a specific function such as beauty, brain health or immunity. Combination dietary supplements are now marketed more often for their intended function rather than simply their ingredient contents.

Probiotic supplement usage slows down

The consumer fervour for probiotic supplements in recent years appears to have slowed down with 2018 and 2019 registering low single-digit growth. Though digestive health is commonly regarded as one of the most important aspects of maintaining overall health, alternative routes for achieving an optimal mix of gastrointestinal microbiota are stealing consumption in the space.

CBD stirring industry commotion

Consumer demand continued to grow in 2019 for cannabidiol, or CBD. Positioned predominantly as an anti-inflammatory and anxiety reliever, CBD has captured the interest from both consumers and industry alike as the health-benefiting, non-psychoactive component of the cannabis plant.

COMPETITIVE LANDSCAPE

Fragmentation defining dietary supplements category in US

2019’s competitive environment in dietary supplements continues to be fragmented with no company in the category accounting for a double-digit share. As e-commerce has eliminated previous barriers to entry, DTC originating brands and private label coming from Amazon have been able to quickly disrupt and garner consumer demand.

GNC and other VDS retailers struggling

Vitamin and dietary supplement retailers continued to struggle in 2019 despite sales of dietary supplements growing. GNC, Vitamin Shoppe and Vitamin World, three of the largest brick-and-mortar vitamin and dietary supplement retail chains, have faced declines in sales and collectively have closed hundreds of stores in 2018 and 2019.

Regulatory activity increasing for dietary supplements

Continued pressure from the FDA and consumers alike has prompted greater action on the regulation of dietary supplements. In a category where herbal products are increasingly popular, instances of adulteration and mislabelling of ingredients have become more common.

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