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
May 23, 2024 - Sales Up Year to Date
- Sales at health and personal care stores, which includes health supplement stores, were up nearly 3% in the first four months of 2024 compared to the previous year, according to data from the Census Bureau. Additionally, consumer spending was up 3.1% in March 2024 compared to a year ago and 0.5% from the previous month, according to personal consumption expenditures data from the Bureau of Economic Analysis.
- 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.
- Consumer confidence levels fell in April 2024 from March 2024, marking a third consecutive month of weakness, according to data from The Conference Board. The Conference Board’s consumer confidence index was 97 in April 2024 from 103.1 in March 2024. According to Dana Peterson, Chief Economist at The Conference Board, “Confidence retreated further in April, reaching its lowest level since July 2022 as consumers became less positive about the current labor market situation, and more concerned about future business conditions, job availability, and income.” Peterson added that confidence declined among consumers of all age groups and for all income groups except those in the $25,000 to $49,999 range. Plans for vacations, home purchases, and large appliances decreased on a six-month basis.
- According to a new ConsumerWise report from McKinsey, consumers continue to “trade down,” changing the type or quantity of purchases for better pricing and value, in Q1 2024. About 76% of respondents reported engaging in trade-down actions in Q1 2024, compared to 77% in Q4 2023. Younger consumers tended to trade down more often than older consumers, while low and middle-income consumers traded down more frequently than high-income consumers, per the report. The report also shows that the percentage of consumers using the “buy now, pay later” option has remained mostly the same in Q1 compared to the previous quarter. Additionally, fewer consumers are delaying their purchases, with only 30% doing so in Q1 compared to 35% in Q4.
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