The Vitamin and Supplement Manufacturing industry has grown rapidly over the past five years, benefiting from increased demand from a larger mainstream, health-conscious consumer base and an increasingly aging population. In the coming years, the industry is anticipated to benefit from the same trends that have supported its growth in the past, including increasing health expenditure and growing interest in wellness and nutrition among mainstream consumers. As discretionary income continues to strengthen, more consumers will trade up to premium, all-natural and organic products.
Globally, the vitamin supplements market is expected to grow at a calculated annual growth rate of approximately 6.8% between 2014 and 2020, rising from a market value of US$37.4 billion in 2013 to US$59.6 billion in 2020, a new report has found.
The report, by US-based market research group Persistence Market Research, says that Asia Pacific is the largest market for vitamin supplements.
"Increased consumer awareness of health issues, coupled with rising healthcare costs, is found to be influencing supplement demand in North America, while the supplement market in Europe is being propelled by the incidence of chronic diseases, among other factors."
The global vitamin supplement market grew from US$31 billion in 2010 to US$37.4 billion in 2013 at a CAGR of 6.4%.
Among regions, the Asia-Pacific vitamin supplements market (the largest market in 2013) stood at US$11.5 billion in 2013, expanding at a CAGR of 6.0% from 2010 to 2013.
Strong category growth is expected to continue amid both increased consumer interest in health and retailersâ€™ efforts to position themselves as one-stop health and wellness destinations. Manufacturers will need to closely watch regulatory shifts and adjust accordingly in order to avoid consumer backlash or supply disruption due to product quality concerns. Yet taking on these challenges is well worth it. The expansion of the VMHS space throughout the next decade offers a unique opportunity for retailers and manufacturers to capitalize on a robust growth sector.