Health Supplement Stores
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 5,800 health supplement stores in the US sell vitamins, nutritional supplements, body enhancing supplements, and related products. Companies may also carry additional product categories associated with healthy lifestyles, including organic/natural foods and personal care products; diet and weight management supplements; and specialty pet foods. The industry includes national and regional chains, franchises, and independent operators. Large retailers often stock several thousand stock keeping units (SKUs) in each store, across multiple categories and brands.
Consumer Skepticism
The world of health supplements is fraught with conflicting information.
Fads And Trends
Driven by new product proliferation, the health supplement industry is subject to fads and trends, which can cause uneven demand and cash flow.
Industry size & Structure
The average health supplement store operates out of a single location, employs 8 workers, and generates $1.2 million annually.
- The health supplement retailing industry consists of about 5,800 firms that operate 9,000 stores, employ 49,500 workers and generate about $6.3 billion annually.
- The industry is fragmented at the bottom with some large players at the top; the top 50 companies account for about 51% of industry revenue.
- Large companies include General Nutrition Centers (GNC), Vitamin Shoppe, and Vitamin World.
- The industry includes national and regional chains, franchises, and independent operators.
Industry Forecast
Health Supplement Stores Industry Growth
Recent Developments
Nov 21, 2024 - Employment Up, Inflation Flat
- Employment by health supplement retailers rose in September 2024 year over year while producer inflation was flat, according to the US Bureau of Labor Statistics (BLS). Employment by health supplement retailers increased 6.2% in September 2024 compared to a year ago. Producer inflation for health supplement retailers was flat in September 2024 compared to a year ago, according to producer price data from the BLS. Producer prices remain nearly 20% higher than before the pandemic. Sales for health and personal care stores grew 7.9% in July 2024 compared to a year ago and increased 4.7% from the previous month, according to the Census Bureau.
- The 2024 Consumer Survey by the Council for Responsible Nutrition (CRN) found that 75% of Americans use dietary supplements, with higher growth seen for magnesium, prebiotics, and melatonin supplements, according to Vitamin Retailer. Magnesium use increased to 23% in 2024 from 19% in 2023, prebiotics increased to 7% in 2024 from 5% in 2023, melatonin increased to 16% in 2024 from 10% in 2020, and ashwagandha grew to 8% in 2024 from 2% in 2020, per the survey. Overall monthly spending on supplements in 2024 was $50, consistent with the median monthly expenditure of $48 in 2023. According to the report, top factors for using supplements are overall health and wellness, immune health, and energy with two-thirds of users saying they believe it is important to have a personalized regimen.
- Consumer confidence levels increased in October 2024, improving in all five components of the Consumer Confidence Index, according to The Conference Board. The index was 108.7 in October 2024 from 99.2 in September 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those between the ages of 35 to 54 and those in the income category of over $100,000. Per Peterson, “Consumer confidence recorded the strongest monthly gain since March 2021, but still did not break free of the narrow range that has prevailed over the past two years.” Plans to purchase homes and new cars rose on a six-month average basis.
- Top wellness and health trends in the nutritional supplements industry include nutritional support products for GLP-1 users, longevity-centric products, and gut-health products, according to a study by The Vitamin Shoppe. Products that support weight management such as ready-to-drink protein beverages were up 10% in 2023 over the previous year and meal replacement products were up 13% in the first four months of 2024 at The Vitamin Shoppe. Protein supplements and meal replacements were up 15% industry wide in the 52 weeks ending November 5, per SPINS data. Other trends in 2024 included a focus on women’s health and higher demand for functional beverages. According to the study, 55% of respondents said they were “much more” or “somewhat more” healthy since the pandemic ended in May 2023.
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