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 5,700 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 $1.3 million annually.
- The health supplement retailing industry consists of about 5,700 firms that operate 10,000 stores, employ 44,000 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 16, 2023 - Sales Climb, Employment Dips
- Sales for health and personal care stores, including health supplement stores, increased into the third quarter of 2023 as consumers continued to spend on health categories. Sales year to date in 2023 have tracked higher compared to 2022, with rising consumer interest in wellness. Producer prices for health supplement retailers have stayed relatively stable into the fall 2023, as supply chains normalize. Employment levels in the industry in the Q3 period have decreased slightly and are tracking lower than 2022 levels.
- The latest Consumer Price Index (CPI) report showed inflation cooling in October 2023 compared to a year ago, according to the Wall Street Journal. The overall CPI was 3.2% in October 2023 and did not change from the previous month. The core CPI, which excludes food and energy costs, was 4%, up 0.2% in October. The core index reflects a slower pace than the two prior months, as prices have eased for housing, vehicles, and airfares. The latest report shows progress in lowering the inflation rate with room for improvement; inflation remains above the Federal Reserve’s 2% target.
- A new report from Circana shows that probiotic sales now account for 9% of US vitamin sales, according to Nutritional Outlook. The “US Probiotics Update” report stated that US household penetration of probiotics increased to 16.5% in 2022 from 15.6% in 2019. Most probiotic products are sold at mass-market channels, with ecommerce also identified as a critical sales outlet. The buy rate for the products increased to $69 in 2022 over $60 in 2019. Prebiotics had the fastest growth rate among biotic types, with consumers citing regularity, bone density, and anti-inflammatory effects as reasons for purchase. Probiotics in general had a 3.4% CAGR in the past three years. “While consumers often turn to vitamins and supplements for well-being, they’re increasingly finding value in probiotics, mainly in the mineral supplement subcategory, to address gut health and other ailments,” per the report.
- Consumers are seeking product solutions to solve interconnected health issues, according to a survey conducted by nutraceutical brand Nutiani in Nutraceuticals World. Ninety percent of respondents reported that their physical and mental wellbeing can affect other areas of their health. About half of consumers said their mental health affects their ability to control their weight or exercise regularly. About 70% connected their digestive health to lower stress levels and better immune health. Brands that create single, multifunctional products that address multiple concerns will be valuable to consumers, especially with the rising cost of living. According to Charlotte Ortiz, Nutiani’s global brand marketing manager, “Our research supports what our customers and industry experts are saying. Consumers are becoming more sophisticated in their understanding of how health issues are interconnected, and how concerns in one area of their physical, mental or inner health can have a ripple effect on their overall wellbeing.”
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