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
                                  Source: Vertical IQ and Inforum

                                  Recent Developments

                                  Sep 27, 2024 - Sales Dip, Inflation Up
                                  • Sales for health and personal care stores fell almost 2% in June 2024 compared to a year ago and declined 4.2% from the previous month, according to the Census Bureau. Producer inflation for health supplement retailers grew 0.8% in July 2024 compared to a year ago, according to producer price data from the US Bureau of Labor Statistics. Prices are about 13% higher than before the pandemic. Employment by health supplement retailers increased 0.6% in July 2024 compared to a year ago. In addition, consumer spending levels have been consistently higher through the first six months of 2024, compared to year-ago levels, according to personal consumption expenditures data from the Bureau of Economic Analysis.
                                  • Consumer confidence levels increased in August 2024, according to data from The Conference Board. The Conference Board’s consumer confidence index was 103.3 in August 2024 from 101.9 in July 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those over age 35 and those in the income category of over $100,000. Plans for large appliances and smart phone purchases rose on a six-month average basis. Plans to buy a home dropped to a 12-year low while plans for car purchases improved 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.
                                  • GNC has announced a new line of products aimed at supporting GLP-1 users taking medicines such as Ozempic and Wegovy, according to HealthNews.com. The retailer said the products are aimed at counteracting common side effects of GLP-1 medications such as digestive troubles and loss of muscle mass and bone density. According to reports, more than 50% of GLP-1 users stop treatment in the first year of use, often citing side effects as a reason. Many companies are seeing opportunities in products and services adjacent to the expanding use of weight loss medications. According to HBW Insight, Vitamin Shoppe has introduced new telehealth services under the “Whole Health Rx” brand offering access to doctors who can prescribe weight loss drugs and products for nutritional support.
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