• Login
    • Join
  • FOLLOW:
  • Subscribe Free
    • Magazine
    • eNewsletter
    Checkout
    • Magazine
    • News
    • Exclusives
    • Nutraceuticals
    • Markets
    • Health
    • Jobs
    • Events
    • Buyers' Guide
    • Showcases
    • More
  • Magazine
  • News
  • Exclusives
  • Nutraceuticals
  • Markets
  • Health
  • Jobs
  • Events
  • Buyers' Guide
  • Showcases
  • Current & Past Issues
    Features
    Columns
    Editorials
    Digital Edition
    Subscribe Now
    Advertise Now
    eNewsletter
    Editorial Guidelines
    Top Features
    Contract Manufacturing: Trials & Tribulations of Today’s Supply Chains

    Analytical Testing in Nutraceuticals: Methods and Mindsets to Uphold Quality

    Nutrition and Flavor: Formulating for Modern Product Preferences

    What Do Consumers Know About the Gut Microbiome?

    How Will the European Green Deal Impact Dietary Supplements?
    Breaking News
    Certifications, Approvals and Patents
    Exclusives
    Industry & Market News
    People
    Products
    Regulatory
    Research
    Supplier News
    Supplier Insights
    Live From Shows
    Top News
    Vitamin K2 May Ameliorate Polycystic Ovary Syndrome

    Vitamin D May Prevent Changes to Liver Enzymes and Lipid Profile After Exhaustive Exercise

    Omega-3 Fatty Acids Linked to Reduced Episodes of Depression

    Charlotte’s Web Sports Product Line to Undergo NSF Certification Process

    ADM and Benson Hill Partner to Scale High Protein Soy for U.S. Market
    Exclusives
    Blogs & Guest Articles
    Health E-Insights
    Area Code 420
    eBook
    Antioxidants
    Dairy-Based Ingredients
    Enzymes
    Fatty Acids
    Fiber & Carbohydrates
    Green Foods
    Herbs & Botanicals
    Marine Nutraceuticals
    Minerals
    Omega 3s
    Probiotics & Prebiotics
    Proteins, Peptides, Amino Acids
    Sweeteners
    Vitamins

    Vitamin K2 May Ameliorate Polycystic Ovary Syndrome

    Vitamin D May Prevent Changes to Liver Enzymes and Lipid Profile After Exhaustive Exercise

    Omega-3 Fatty Acids Linked to Reduced Episodes of Depression

    Fact or Myth: Antioxidants Negatively Impact Iron Absorption

    Charlotte’s Web Sports Product Line to Undergo NSF Certification Process
    Consumer Trends
    Contract Manufacturing
    Cosmeceuticals / Nutricosmetics
    Delivery & Dosage Technologies
    Dietary Supplements
    Flavors & Colors
    Functional Foods & Beverages
    Healthcare Trends
    Medical Nutrition
    Mergers & Acquisitions
    Natural/Organic
    Nutrition Bars
    Packaging
    Pet Nutraceuticals
    Quality & Safety
    Regulations
    Research
    Testing
    World Markets

    Vitamin K2 May Ameliorate Polycystic Ovary Syndrome

    Vitamin D May Prevent Changes to Liver Enzymes and Lipid Profile After Exhaustive Exercise

    Omega-3 Fatty Acids Linked to Reduced Episodes of Depression

    Fact or Myth: Antioxidants Negatively Impact Iron Absorption

    Charlotte’s Web Sports Product Line to Undergo NSF Certification Process
    Bone & Joint Health
    Cancer Risk
    Cardiovascular Health
    Cognitive Function
    Diabetes & Blood Sugar Management
    Digestive Health
    Energy
    Eye Health
    Healthy Aging
    Immune Function
    Infant & Children's Health
    Inflammation
    Men's Health
    Mood Health & Sleep
    Oral Health
    Sexual & Reproductive Health
    Skin Health
    Sports Nutrition
    Weight Management/Weight Loss
    Women's Health

    Vitamin K2 May Ameliorate Polycystic Ovary Syndrome

    Vitamin D May Prevent Changes to Liver Enzymes and Lipid Profile After Exhaustive Exercise

    Omega-3 Fatty Acids Linked to Reduced Episodes of Depression

    Charlotte’s Web Sports Product Line to Undergo NSF Certification Process

    Caffeine-Free Energy Supplement Linked to Alertness, Fatigue Benefits
    Industry Events
    Live From Show Events
    Webinars
    All Companies
    Categories
    Trade Associations
    Company Capabilities
    International Buyers Guide Companies
    Sabinsa Corporation

    Atlantia Clinical Trials

    Bioenergy Life Science, Inc. (BLS)

    Botanic Healthcare LLC

    Verdure Sciences
    Companies
    Product Releases
    News Releases
    Literature / Brochures
    White Papers
    Jobs
    VIdeos
    Services
    Add New Company
    International Buyers Guide Companies
    Sabinsa Corporation

    Atlantia Clinical Trials

    Bioenergy Life Science, Inc. (BLS)

    Botanic Healthcare LLC

    Verdure Sciences
    • Magazine
      • Current / Back Issue
      • Features
      • Editorial
      • Columns
      • Digital Edition
      • eNewsletter Archive
      • Editorial Guidelines
      • Subscribe Now
      • Advertise Now
    • Breaking News
    • Buyers' Guide
      • All Companies
      • Categories
      • Trade Associations
      • Company Capabilities
    • Nutraceuticals
      • Antioxidants
      • Dairy-Based Ingredients
      • Enzymes
      • Fatty Acids
      • Fiber & Carbohydrates
      • Green Foods
      • Herbs & Botanicals
      • Marine Nutraceuticals
      • Minerals
      • Omega 3s
      • Probiotics & Prebiotics
      • Proteins, Peptides, Amino Acids
      • Sweeteners
      • Vitamins
    • Markets
      • Consumer Trends
      • Contract Manufacturing
      • Cosmeceuticals / Nutricosmetics
      • Delivery & Dosage Technologies
      • Dietary Supplements
      • Flavors & Colors
      • Functional Foods & Beverages
      • Healthcare Trends
      • Medical Nutrition
      • Mergers & Acquisitions
      • Natural/Organic
      • Nutrition Bars
      • Packaging
      • Pet Nutraceuticals
      • Quality & Safety
      • Regulations
      • Research
      • Testing
      • World Markets
    • Health
      • Bone & Joint Health
      • Cancer Risk
      • Cardiovascular Health
      • Cognitive Function
      • Diabetes & Blood Sugar Management
      • Digestive Health
      • Energy
      • Eye Health
      • Healthy Aging
      • Immune Function
      • Infant & Children's Health
      • Inflammation
      • Men's Health
      • Mood Health & Sleep
      • Oral Health
      • Sexual & Reproductive Health
      • Skin Health
      • Sports Nutrition
      • Weight Management/Weight Loss
      • Women's Health
    • Online Exclusives
    • Webinars
    • Slideshows
    • Blogs & Guest Articles
    • Health E-Insights
    • Videos
    • Podcasts
    • Infographics
    • eBook
    • Whitepapers
    • Research
      • TrendSense
      • Monograph Center
      • White Papers
      • Research News
    • Jobs
    • Events
      • Industry Events
      • Live From Show Events
      • Webinars
    • Supplier Showcases
      • Companies
      • Product Releases
      • News Releases
      • Literature / Brochures
      • White Papers
      • Jobs
      • VIdeos
      • Services
    • About Us
      • About Us
      • Contact Us
      • Advertise With Us
      • Privacy Policy
      • Terms of Use
    Columns

    Word From Wall Street: Reviving Supplement Sales

    Evaluating the importance of marketing spend.

    Related CONTENT
    • A Growing Herbal Products Market Still Faces Formidable Threats, Challenges
    • ODSP Director Cara Welch Discusses Agency Priorities
    • Senate HELP Committee Advances Bill with Supplement Provisions That Industry Trade Groups Oppose
    • FDCA Preemption of State-Level Misbranding Laws for Structure/Function Ingredient Claims
    • Safe & Accessible: Dietary Supplements Are Far From ‘Unregulated’
    Adam Ismail07.01.02

    Reviving Supplement Sales



    Evaluating the importance of marketing spend.



    By Adam Ismail



    When supplement sales growth began to fall a few years ago, not a lot of effort focused on trying to determine the drivers behind the decline. In fact, the most common response was to blame it on the media and its overly negative coverage of supplements. However, one trend that went largely unnoticed was a steady decline in marketing dollars invested in the space, a trend which continues even to this day.

    By examining public supplement manufacturers like Natrol, Twinlab, Weider and Nutraceutical International, the close relationship between de­creased investment and its effect on revenues can be seen.

    In traditional consumer products industries, which have been studied much more extensively than the supplement industry, conventional wisdom indicates that not increasing marketing investment, keeping all other factors the same, will result in a decrease in sales between 7-10%. In our industry the case remains more or less the same. In a sampling of three quarters where these leading manufacturers did not increase their marketing expenditures, sales dropped an average of 10%.

    This is not to say that marketing spend is the only reason supplement companies experienced sales decreases, as they certainly faced an uphill battle against other factors like the media. In the three quarters where they recorded their largest increases in marketing spend, an average 16% increase, companies only mustered an average 1.4% increase in sales.

    Does this mean marketing in our industry is hopeless if we can only hope to muster 1-2% increases in sales with significant increases in marketing expenditures? Probably not, in fact, it has probably helped companies in the industry try to focus on finding ways to operate more efficiently in order to avoid letting their sales decreases turn into net losses. What it does mean is that the industry may need to find a more effective way to market its products.

    Most people have seen the brand building statistics showing that most consumers cannot name a supplement brand. And the closest thing to a recognizable brand for the industry is Centrum®, which has probably done the best job of marketing. However, for most supplement manufacturers, which have many more SKUs than the Centrum line, marketing is a much more difficult task.

    In the past two years companies have resorted to branding their individual formulas and products rather than focusing on their entire portfolio. While this approach certainly allows more flexibility in taking advantage of hot trends and ingredients at the consumer level, it really is a short term strategy. While none of these manufacturers completely abandon their own brand, the product name holds much larger significance on most packages. In the long term, it takes money away from building companies’ brands, which is a very lengthy but vital process. While Centrum is the most recognizable supplement brand, none of the product formulas resonate significantly with consumers. Yet, the lesson we learned from St. John’s Wort and other herbal products is that fad products will not maintain their growth. So, why invest in building a product brand that may decline in the near future when you can invest in your company’s brand, which should last significantly longer?

    Private label brands quickly took share from established supplements in both the mass market and natural foods channels because there was little consumer loyalty to supplement brands. With some private label supplements being priced up to 40% less than branded products, supplement manufacturers have their work cut out for them. This is why maintaining marketing spend is vital, but even more so why it is important that manufacturers devote necessary resources to building brands to survive in the long term.NW
    Related Searches
    • Healthcare Trends
    Related Knowledge Center
    • Healthcare Trends
    Suggested For You
    A Growing Herbal Products Market Still Faces Formidable Threats, Challenges A Growing Herbal Products Market Still Faces Formidable Threats, Challenges
    ODSP Director Cara Welch Discusses Agency Priorities ODSP Director Cara Welch Discusses Agency Priorities
    Senate HELP Committee Advances Bill with Supplement Provisions That Industry Trade Groups Oppose Senate HELP Committee Advances Bill with Supplement Provisions That Industry Trade Groups Oppose
    Safe & Accessible: Dietary Supplements Are Far From ‘Unregulated’ Safe & Accessible: Dietary Supplements Are Far From ‘Unregulated’
    FDCA Preemption of State-Level Misbranding Laws for Structure/Function Ingredient Claims FDCA Preemption of State-Level Misbranding Laws for Structure/Function Ingredient Claims
    What People Were Reading in May 2022 on NutraceuticalsWorld.com What People Were Reading in May 2022 on NutraceuticalsWorld.com
    Leaven Essential to Launch Branded Botanical Extracts to Global Markets Leaven Essential to Launch Branded Botanical Extracts to Global Markets
    Podcast: Michael McGuffin Discusses Dietary Supplement Regulation and Mandatory Product Listing Bill Podcast: Michael McGuffin Discusses Dietary Supplement Regulation and Mandatory Product Listing Bill
    IFF to Discuss Customizable, Sustainable Solutions for Supplements IFF to Discuss Customizable, Sustainable Solutions for Supplements
    Is There Momentum to Modernize DSHEA, or Too Much Division? Is There Momentum to Modernize DSHEA, or Too Much Division?
    What People Were Reading in April 2022 on NutraceuticalsWorld.com What People Were Reading in April 2022 on NutraceuticalsWorld.com
    Dietary Supplement Listing Bill Introduced in Senate Dietary Supplement Listing Bill Introduced in Senate
    FDA Issues NAC Enforcement Discretion Guidance FDA Issues NAC Enforcement Discretion Guidance
    Leveling Out the Energy Segment for Mainstream, and Rethinking Caffeine Leveling Out the Energy Segment for Mainstream, and Rethinking Caffeine
    How Blockchain Can Improve Transparency in the Dietary Supplement Industry How Blockchain Can Improve Transparency in the Dietary Supplement Industry

    Related Features

    • Dietary Supplements | Healthcare Trends | Herbs & Botanicals | Mood Health & Sleep | Quality & Safety
      A Growing Herbal Products Market Still Faces Formidable Threats, Challenges

      A Growing Herbal Products Market Still Faces Formidable Threats, Challenges

      Environmental and social stewardship can help sustain long-term interests and build trust among consumers. It’s good for business too.
      By Sean Moloughney, Editor 07.18.22

    • Breaking News | Dietary Supplements | Industry & Market News | Quality & Safety | Regulations
      ODSP Director Cara Welch Discusses Agency Priorities

      ODSP Director Cara Welch Discusses Agency Priorities

      Facility inspections, NDIs, enforcement, and education are all top-of-mind.
      Mike Montemarano, Associate Editor 07.05.22

    • Dietary Supplements | Regulations
      Senate HELP Committee Advances Bill with Supplement Provisions That Industry Trade Groups Oppose

      Senate HELP Committee Advances Bill with Supplement Provisions That Industry Trade Groups Oppose

      Wide-ranging ‘must-pass’ legislation heads to the full Senate for consideration.
      By Mike Montemarano, Associate Editor 06.17.22


    • Dietary Supplements | Regulations
      FDCA Preemption of State-Level Misbranding Laws for Structure/Function Ingredient Claims

      FDCA Preemption of State-Level Misbranding Laws for Structure/Function Ingredient Claims

      If a claim describes the substantiated role a nutrient or dietary ingredient plays in the body, plaintiffs cannot survive a motion for summary judgment.
      By Todd Harrison, Partner; Richard Starr, Associate; and Olisa Onyiuke, Associate, Venable 06.02.22

    • Dietary Supplements | Quality & Safety | Regulations
      Safe & Accessible: Dietary Supplements Are Far From ‘Unregulated’

      Safe & Accessible: Dietary Supplements Are Far From ‘Unregulated’

      With fewer recalls than conventional foods, drugs, animal products and medical devices, supplements could be considered the safest class of goods FDA regulates.
      By Michael McGuffin, President, American Herbal Products Association (AHPA) 06.02.22

    Loading, Please Wait..
    Trending
    • Study Examines Vitamin K2 Content In Cheese
    • Chenland Nutritionals Self-Affirms GRAS For Cumin UP60 Ingredient
    • Pycnogenol Evidenced To Have Skin Benefits In Dermatology Study
    • ADM And Benson Hill Partner To Scale High Protein Soy For U.S. Market
    Breaking News
    • Vitamin K2 May Ameliorate Polycystic Ovary Syndrome
    • Vitamin D May Prevent Changes to Liver Enzymes and Lipid Profile After Exhaustive Exercise
    • Omega-3 Fatty Acids Linked to Reduced Episodes of Depression
    • Charlotte’s Web Sports Product Line to Undergo NSF Certification Process
    • ADM and Benson Hill Partner to Scale High Protein Soy for U.S. Market
    View Breaking News >
    CURRENT ISSUE

    July/August 2022

    • A Growing Herbal Products Market Still Faces Formidable Threats, Challenges
    • Analytical Testing in Nutraceuticals: Methods and Mindsets to Uphold Quality
    • Nutrition and Flavor: Formulating for Modern Product Preferences
    • Contract Manufacturing: Trials & Tribulations of Today’s Supply Chains
    • How Will the European Green Deal Impact Dietary Supplements?
    • What Do Consumers Know About the Gut Microbiome?
    • View More >

    Cookies help us to provide you with an excellent service. By using our website, you declare yourself in agreement with our use of cookies.
    You can obtain detailed information about the use of cookies on our website by clicking on "More information”.

    • About Us
    • Privacy Policy
    • Terms And Conditions
    • Contact Us

    follow us

    Subscribe
    Nutraceuticals World

    Latest Breaking News From Nutraceuticals World

    Vitamin K2 May Ameliorate Polycystic Ovary Syndrome
    Vitamin D May Prevent Changes to Liver Enzymes and Lipid Profile After Exhaustive Exercise
    Omega-3 Fatty Acids Linked to Reduced Episodes of Depression
    Coatings World

    Latest Breaking News From Coatings World

    Indorama Ventures Posts Record 2Q 2022 Results
    Advanced Polymer Coatings Strikes Series of New Tanker Deals
    Barentz Named Distributor for Pilot Chemical Segments in US and Canada
    Medical Product Outsourcing

    Latest Breaking News From Medical Product Outsourcing

    Spartech Promotes Three Staff Members
    Elisabeth Lackner Named Chief Scientific Officer at Element Materials Technology
    Natech Plastics Purchases Three New Injection Molding Machines
    Contract Pharma

    Latest Breaking News From Contract Pharma

    Novavax Submits EUA for Protein-based COVID-19 Vax Booster
    BeiGene, Ontada Enter Strategic Oncology Alliance
    AskBio Appoints Clinical Ops Executives
    Beauty Packaging

    Latest Breaking News From Beauty Packaging

    Mary Kay Supports International Women's Forum's Latest Research
    Vegamour Launches in the UK
    Maelys Rolls Out to Ulta Beauty
    Happi

    Latest Breaking News From Happi

    Dr. Bronner’s Releases 2022 All-One! Report, ‘Leading with Heart’
    In-Cosmetics Asia Returns to Bangkok to Deliver Look at Market Trends and Ingredient Innovations
    Perfect Corp. AI Skin Analysis Beauty SaaS Brand Console Is HIPAA-Compliant
    Ink World

    Latest Breaking News From Ink World

    BASF Breaks Ground on Riverfront Park in East Newark
    Roland DG Corporation to Relocate HQ to Miyakoda, Japan
    Gallus Launches Gallus One, Its First Fully Digital Inkjet Label Press
    Label & Narrow Web

    Latest Breaking News From Label & Narrow Web

    Color-Logic partners to feature metallics at autumn events
    New Era Converting Machinery heads to The Battery Show
    Cyngient, Imageworx partner at Labelexpo for security labeling innovation
    Nonwovens Industry

    Latest Breaking News From Nonwovens Industry

    Babyganics Introduces Triple Dry Diapers
    Daio Paper Acquires Pet Care Products Manufacturer
    Honest Reports Increased Revenue
    Orthopedic Design & Technology

    Latest Breaking News From Orthopedic Design & Technology

    FundamentalVR Raises $20 Million in Series B Funding
    Bioventus Achieves Strong Growth in Q2 2022
    Bone Void Fillers Market Growing at 6%
    Printed Electronics Now

    Latest Breaking News From Printed Electronics Now

    onsemi Celebrates Expansion of Silicon Carbide Production Facility in New Hampshire
    Applied Materials CTO Dr. Om Nalamasu Receives IEEE Frederik Philips Award
    Weekly Recap: ALTANA, Universal Display and Emerson Top This Week’s Stories

    Copyright © 2022 Rodman Media. All rights reserved. Use of this constitutes acceptance of our privacy policy The material on this site may not be reproduced, distributed, transmitted, or otherwise used, except with the prior written permission of Rodman Media.

    AD BLOCKER DETECTED

    Our website is made possible by displaying online advertisements to our visitors.
    Please consider supporting us by disabling your ad blocker.


    FREE SUBSCRIPTION Already a subscriber? Login