As in other manufacturing industries, dietary supplement makers must contend with global issues like tariffs and trade uncertainty, supply chain disruption and raw material availability, inflation and shifting consumer habits, and more.

Tariffs and Trade

President Trump has made clear his intention to use tariffs as a tactic for achieving policy objectives as well as an economic tool for rebalancing trade deficits.

In February the Trump administration levied 25% tariffs on imports from Canada and Mexico, and 10% on goods from China. Tariffs on Canada and Mexico were delayed for a 30-day negotiation period following some concessions by America’s neighbors.

Meanwhile, the administration is investigating the possibility of implementing “reciprocal tariffs,” which would mirror levies that other countries place on U.S. goods. Such a policy change could be significant for trade partners like India, Japan, and the E.U.

As trade policies evolve, Nutraceuticals World fielded an audience survey in February to assess the potential impact of tariffs on the food, beverage, and dietary supplement industries.

Out of 126 total respondents, about 36% said their business was “minimally prepared, monitoring the situation,” while 32% said they were “partially prepared with initial discussions.” Meanwhile, 17% said they had taken no preparation with regard to tariffs.

Asked what strategic action they were most likely to consider if significant tariffs were implemented, 44% said they would implement price adjustment strategies, 23% said they would diversify their supplier base, and 18% opted for domestic manufacturing or sourcing alternatives.

In terms of timing, 27% of survey respondents said their organization would be prepared to implement adjustments immediately (within 30 days), 34% said 1-3 months, and 22% said 4-6 months.

“Ongoing trade tensions with major trading partners like China can have an impact on our material costs,” said Tom Ullrich, chief supply chain officer at Vitaquest. “Our business relies on materials sourced internationally, like proteins, vitamins, minerals, etc. Tariffs, if imposed, could have a significant impact on material cost and availability.”

Trade disputes can also lead to delays, reduced availability of key ingredients, or logistical bottlenecks, Ullrich added. “The industry relies on a consistent supply of materials; even a short disruption could have long-term effects on production schedules and the ability to meet the industry’s demand.”

If tariffs or trade barriers cause supplement prices to rise, Ullrich said consumer demand could decline, “particularly in price-sensitive market segments or for branded ingredients with clinical studies.” Some consumers may discontinue use or switch to generic alternatives.

“Companies can mitigate risks by diversifying supply chains to reduce reliance on a single ingredient supplier,” he added. Engaging in lobbying and advocacy can also help influence trade policies and stay informed.

“Leveraging market intelligence through supplier networks enhances awareness of market conditions and potential disruptions … While tariffs and trade disputes can present significant challenges, proactive adaptation strategies can help dietary supplement companies navigate the changing trade environment.”

Private Label on the Rise

Across the board, consumers are looking for value from the products they buy, without sacrificing integrity. According to the Private Label Manufacturers Association (PLMA) and Circana data, sales of store brands increased $9 billion to a record $271 billion in 2024 compared to the year before.

“Sales of store brands hit a record high last year, once again outperforming national brands,” said PLMA President Peggy Davies, who pointed to the quality, value, and innovation of retailers’ own brands.

The latest numbers represent a 3.9% rise in dollar sales in all outlets from Jan. 8 to Dec. 29, 2024, versus the same period in 2023. Private label growth outpaced national brands, which grew 1% in dollar sales.

Over the past four years, annual store brand dollar sales have increased by over $51 billion, a 23.6% gain. In addition, since 2021, store brand unit sales rose 2.3%, while national brands fell 6.8%.

All 10 food and nonedible departments that Circana tracks showed store brand dollar growth over the year before. Refrigerated (+7.5%), General Food (+4.3%), and Beverages (+4%) had some of the highest growth. In unit sales growth, the top departments were Beverages (+3.5%), Pet Care (+3.5%), and Home Care (+3.3%).

In retail food and beverage, Circana reported at the end of 2024 that current dynamics are challenging and will continue to moderate overall growth in 2025.

“Consumers are driven by a demand for value, impacting both volume and price/mix growth,” said Sally Lyons Wyatt, global executive vice president and chief advisor at Circana. “We’re noticing that channels offering everyday value have become more influential. E-commerce solutions also are increasing convenience and price transparency, with online transactions now driving 35% of food and beverage dollar sales growth, despite holding only a 10% market share. We expect consumers to continue leaning into private label, which saw a 3% volume increase over last year (2023) versus a 1% decline from mainstream brands as they selectively choose premium brands (+3% volume) that deliver the right value.”

Containing Costs

For the dietary supplement industry, alongside trade tensions, some of the most significant challenges include navigating complex, global supply chains and containing costs.

“The availability of key raw materials is variable, due to inconsistent supply to meet variable demand,” said Ullrich. “Many materials we use are organic and seasonal, which increases supply chain variability.”

The cost of global logistics and variable transit times can also have a significant impact on manufacturers.

“Many of our materials are from overseas and rising shipping costs along with ocean transit delays impact both our costs and manufacturing lead times,” said Ullrich. “Navigating these challenges requires strategic planning, a robust ERP system, operational flexibility, and staying ahead of industry trends. Choosing a manufacturer with deep industry experience and the scale to manage these complexities is essential.”

Innovation and Opportunity

Innovation in the dietary supplement market today has largely centered around unique delivery formats like gummies as well as chewable and effervescent tablets that deliver actives while providing an enjoyable sensory experience, said Lauren Samot, commercial innovation leader at Vitaquest.

“There’s an increasing trend towards unique flavor systems that provide tropical, citrus, and fruity combinations that stand out and pack a punch,” she added. “We’re seeing formulations that target more than one health benefit, for example, one supplement that provides sleep support and promotes aspects of beauty for hair/skin/nails. We’re also seeing strains of pro- and postbiotics that provide health benefits beyond GI support.”

Michael Anthonavage, vice president of innovation at Vitaquest, noted that brands are creating opportunities around customized, personalized solutions, “integrating supplements with personalized health routines to boost overall wellness.”

“Technology companies that are thriving are offering their customers both clinical proof that their technology performs as advertised, as well as being socially and environmentally conscious of their footprint,” he added.

In terms of product trends, Samot noted emphasis on support for women’s health through various life stages such as fertility, menopause, and healthy aging.

Anthonavage noted support for weight loss products for consumers before, during, or after use of new anti-obesity drugs. “This ideology may drive other opportunities for the supplement market to expand its reach for the support for other pharmaceutical interventions as seen with CoQ10 supplementation and statin use.”

New brands and opportunities are emerging every day, he added, particularly with social media influencers fueling trends across major categories.

Ensuring Product Integrity

A manufacturer’s commitment to product integrity should start before raw materials arrive, said David Alcaraz, senior vice president of quality assurance at Vitaquest. “We implement a rigorous vendor approval process and conduct in-house testing to ensure all raw materials meet industry standards.”

To prevent economically motivated adulteration, Alcaraz said, “we partner only with suppliers who share our commitment to quality and safety. Every raw material undergoes ID testing, microbiology, and purity analysis in our in-house lab. In-process testing and environmental monitoring help identify any potential issues during production. Finally, finished goods undergo additional testing to confirm they meet label claims and industry safety requirements, ensuring the highest level of product integrity.”

Anthonavage noted that Vitaquest participates in the Botanical Adulterants Prevention Program (BAPP), which offers several advantages, including: “educating the industry about potential adulteration issues, providing standardized methods for identifying adulterants, promoting quality control practices, protecting consumers by ensuring the authenticity of botanical ingredients, and facilitating collaboration between researchers, industry professionals, and regulatory agencies to combat botanical fraud.”