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 $6.6 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
May 1, 2023 - Consumer Support for Supplement Coverage
- Nearly 80% of US consumers want their health savings accounts (HSAs) and flexible savings accounts (FSAs) to cover supplements, according to a recent survey reported by Nutraceuticals World. The survey conducted by Ipsos and jointly commissioned by the Council for Responsible Nutrition (CRN) and Consumer Healthcare Products Association (CHPA) showed that most Americans believe supplements should receive automatic coverage. Currently, supplements can only be covered by an HSA or FSA if prescribed by a doctor with a letter of medical necessity and used to treat a medical condition. A third of FSA/HSA account owners incorrectly think they can already use these accounts to purchase vitamins and other dietary products for general health, and 29% said they didn’t know whether the products were covered.
- Consumer confidence levels fell in April 2023 after a slight increase in March 2023, according to data from The Conference Board. The Conference Board’s consumer confidence index dipped to 101.3 in April 2023 from 104 in March 2023. According to Ataman Ozyildirim, a senior director of economics at The Conference Board, “Consumers became more pessimistic about the outlook for both business conditions and labor markets. Compared to last month, fewer households expect business conditions to improve and more expect worsening of conditions in the next six months. They also expect fewer jobs to be available over the short term. April’s decline in consumer confidence reflects particular deterioration in expectations for consumers under 55 years of age and for households earning $50,000 and over.” Plans to purchase appliances, autos, homes, and vacations cooled in April 2023, a sign that consumers are pulling back amid reduced optimism, per Ozyildirim.
- Vitamin D was the most popular supplement in the past year, followed by magnesium, fish oil, and multivitamins, according to a ConsumerLab survey in Nutraceuticals World. About 8,600 people who regularly use dietary supplements responded to ConsumerLab’s “Survey of Vitamin and Supplement Users.” Vitamin D was purchased by about 70% of respondents, while 53% bought magnesium, 51% bought fish oil, and 44% bought multivitamins. The survey found supplements with the greatest growth were probiotics, quercetin, and vitamin K, while supplements with the largest declines were vitamin C, calcium, melatonin, vitamin D, and green tea.
- Sales for health and personal care stores increased by 8% unadjusted year over year and 0.9% month over month seasonally adjusted in February 2023, according to data released by the National Retail Federation. Overall retail sales were up 5.4% in February 2023 over a year ago and down 0.4% from January 2023, according to the US Census Bureau. NRF’s retail sales calculation, which excludes car dealers, gas stations, and restaurants, showed an increase of 6.5% unadjusted year over year and 0.5% month over month in February 2023. According to NRF Chief Economist Jack Kleinhenz, “Sales growth has slowed in recent months, but consumers’ economic health still looks good. February is typically the slowest month of the year, so monthly fluctuations are expected. Sales are higher than last year and that’s due in large part to the strong labor market, which means more income and spending. We are seeing a decent trend for retail sales growth built on the upward revisions to December and January sales. Nonetheless, seasonal adjustment factors the government is applying to the monthly data to account for irregular post-pandemic spending patterns make it difficult to accurately measure the strength of the consumer.”
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