07.01.16
More than two-thirds of American adults take dietary supplements each year, and according to a new economic impact report funded by the Council for Responsible Nutrition (CRN), the dietary supplement industry contributes $121.6 billion to the U.S. economy (about 0.68% of GDP), creates 754,645 jobs nationwide, and pays $38.4 billion in wages. Additionally, the industry contributes nearly $15 billion in business taxes—federal and state—not including taxes collected on product sales.
This economic impact report was produced by John Dunham and Associates on behalf of CRN. The results provide data on a national basis, as well as state-by-state and by congressional district.
According to CRN President & CEO Steve Mister, the dietary supplement industry is robust, “and this new economic analysis further demonstrates the important and positive impact our industry has on people’s lives.”
The statistics are based on the total overall economic impact from the industry, which combines direct contributions (those that are solely attributable to the dietary supplement industry), indirect contributions (those that result from dietary supplement industry firms purchasing goods and services from other industries), and induced effects (which economists refer to as the multiplier effect of an activity—in this case, resulting from the dietary supplement industry).
Mr. Mister added, “With the completion of this new report, CRN can demonstrate a trifecta of data about dietary supplements and the people who take them. Here’s what we know: more than 150 million Americans take dietary supplements for the health benefits they provide; supplements offer tremendous potential for societal healthcare cost savings; and the industry makes vital contributions to the economy at large. What’s good for your health is also very good for America’s wallet.”
The 2016 Economic Impact of the Dietary Supplement Industry report measured the combined impact of the manufacturing, retail, wholesale, ingredient suppliers, and direct-selling industries to the U.S. economy in 2016. The analysis used standard econometric models first developed by the U.S. Forest Service, and now maintained by IMPLAN Group, LLC. Data came from industry sources, government publications, Dun & Bradstreet, Inc, and Infogroup.
According to the report, the dietary supplement industry accounted for about $121.59 billion in total economic output, or roughly 0.68% of GDP, based on 2015 GDP of $18.2 trillion. Dietary supplement manufacturers, ingredient suppliers, wholesalers, direct sellers and retailers directly employed 383,230 Americans in 2016. These workers earned over $16 billion in wages and benefits. When indirect and induced impacts are taken into account, the dietary supplement industry is responsible for 754,645 jobs in the U.S. and $38.36 billion in wages, as well as $14.94 billion in Federal, state and local taxes—not including state and local sales taxes imposed on dietary supplements.
According to the report, 962 facilities comprise the manufacturing component of the dietary supplement industry; combined with the ingredient suppliers, the production sector employs approximately 53,589 people. Additionally, the dietary supplement industry is directly responsible for approximately 5,408 jobs in the wholesaling sector. Finally, the third tier of the industry directly sells products to the consumer. For this analysis, the retail tier is assumed to consist of firms in the following industries: supermarkets, nutrition stores, health food markets, mail-order catalogues, websites, direct-sellers, pharmacies, warehouse stores and other miscellaneous retail stores. The dietary supplement industry is directly responsible for approximately 324,233 jobs in the retailing sector.
Other indirect firms produce and sell a broad range of items including machinery, tools, parts and other materials needed to produce dietary supplements. In addition, indirect firms can provide a range of services, including personnel, financial, advertising, consulting and/or transportation. Finally, a number of people are employed in government enterprises responsible for the regulation of the dietary supplement industry. All told, the report estimated that the dietary supplement industry is responsible for 140,371 indirect jobs. Indirect firms generate about $31.94 billion in economic activity.
This economic impact report was produced by John Dunham and Associates on behalf of CRN. The results provide data on a national basis, as well as state-by-state and by congressional district.
According to CRN President & CEO Steve Mister, the dietary supplement industry is robust, “and this new economic analysis further demonstrates the important and positive impact our industry has on people’s lives.”
The statistics are based on the total overall economic impact from the industry, which combines direct contributions (those that are solely attributable to the dietary supplement industry), indirect contributions (those that result from dietary supplement industry firms purchasing goods and services from other industries), and induced effects (which economists refer to as the multiplier effect of an activity—in this case, resulting from the dietary supplement industry).
Mr. Mister added, “With the completion of this new report, CRN can demonstrate a trifecta of data about dietary supplements and the people who take them. Here’s what we know: more than 150 million Americans take dietary supplements for the health benefits they provide; supplements offer tremendous potential for societal healthcare cost savings; and the industry makes vital contributions to the economy at large. What’s good for your health is also very good for America’s wallet.”
The 2016 Economic Impact of the Dietary Supplement Industry report measured the combined impact of the manufacturing, retail, wholesale, ingredient suppliers, and direct-selling industries to the U.S. economy in 2016. The analysis used standard econometric models first developed by the U.S. Forest Service, and now maintained by IMPLAN Group, LLC. Data came from industry sources, government publications, Dun & Bradstreet, Inc, and Infogroup.
According to the report, the dietary supplement industry accounted for about $121.59 billion in total economic output, or roughly 0.68% of GDP, based on 2015 GDP of $18.2 trillion. Dietary supplement manufacturers, ingredient suppliers, wholesalers, direct sellers and retailers directly employed 383,230 Americans in 2016. These workers earned over $16 billion in wages and benefits. When indirect and induced impacts are taken into account, the dietary supplement industry is responsible for 754,645 jobs in the U.S. and $38.36 billion in wages, as well as $14.94 billion in Federal, state and local taxes—not including state and local sales taxes imposed on dietary supplements.
According to the report, 962 facilities comprise the manufacturing component of the dietary supplement industry; combined with the ingredient suppliers, the production sector employs approximately 53,589 people. Additionally, the dietary supplement industry is directly responsible for approximately 5,408 jobs in the wholesaling sector. Finally, the third tier of the industry directly sells products to the consumer. For this analysis, the retail tier is assumed to consist of firms in the following industries: supermarkets, nutrition stores, health food markets, mail-order catalogues, websites, direct-sellers, pharmacies, warehouse stores and other miscellaneous retail stores. The dietary supplement industry is directly responsible for approximately 324,233 jobs in the retailing sector.
Other indirect firms produce and sell a broad range of items including machinery, tools, parts and other materials needed to produce dietary supplements. In addition, indirect firms can provide a range of services, including personnel, financial, advertising, consulting and/or transportation. Finally, a number of people are employed in government enterprises responsible for the regulation of the dietary supplement industry. All told, the report estimated that the dietary supplement industry is responsible for 140,371 indirect jobs. Indirect firms generate about $31.94 billion in economic activity.
