While the world’s economic problems have hit many industries hard, the nutritional supplement business has proved resilient on the strength of spending by the aging Baby Boomer population and other health conscious consumers, according to a new report.
“Nutritional Supplements in the U.S., 4th Edition” by market research publisher Packaged Facts, estimates U.S. retail sales of nutritional supplements exceeded $9 billion in 2009, up 8% over 2008 sales. From 2005 to 2009, the market grew by a total of 26%, fueled by growing consumer awareness about health maintenance, in addition to pressure by the media and government to enforce product accountability.
“Part of the resiliency of nutritional supplements during this trying economic period stems from the fact that Americans are losing confidence in their ability to pay for healthcare, even as the economy shows signs of turning around,” said Don Montuori, publisher of Packaged Facts. “Compared to doctors visits, hospital stays, and prescription drugs, nutritional supplements can be a bargain.”
The shift toward an increasingly health conscious attitude, along with the supplement industry’s move toward more science-based claims and various other efforts to shore up its credibility, will help push nutritional products further into the mainstream, according to the report. Despite the weak economy, the prevailing needs of Boomers and seniors should also help to protect the market from any serious downturn. As a result, Packaged Facts forecasts annual sales growth in nutritional supplements will gradually improve over the new few years and sales will exceed $13 billion in 2014, yielding a compound annual growth rate of 7%.
The report examines the U.S. market for nutritional supplements sold to consumers through the full retail spectrum, including vitamins, minerals, herbals, homeopathics and combination products. It provides extensive retail sales breakouts, past and future, along with a thorough examination of market drivers, the competitive situation, marketer and brand shares, marketing trends and consumer trends.