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Supplement sales growth has been strong but the effects of inflation and a potential economic downturn loom large.
December 1, 2022
By: Sean Moloughney
U.S. dietary supplement sales grew 7.5% to $60 billion in 2021, according to Nutrition Business Journal data. Consumers had already increasingly demonstrated a strong desire for natural, non-pharmaceutical health and wellness options. Then COVID-19 turbo-charged that momentum. While growth markets like immune health have moderated following an incredible demand spike, there appears to be a new, higher baseline, especially as the distinction between general health and immune health has blurred. People are still mindful about the cost of illness. Let’s not forget, for many people, getting sick—or needing to care for someone else—can mean lost wages. In the U.S., there are still no federal legal requirements for paid sick leave, which has been a big issue for railroad workers threatening to strike in 2022. It’s still an open question what effect inflation and a potential economic downturn will have on consumer purchasing of supplements and other health products. But issues like sleep, stress, mood, fatigue/lack of energy, children’s health, and more are top-of-mind when it comes to health and wellbeing. Those issues don’t recede in a recession, so it seems there are growth opportunities for brands. Our fifth annual State of the Industry survey indicates concern about the economy, supply chains, quality, and other business challenges. Still, there’s clear optimism about the future of the nutraceuticals market. And rightly so. From my vantage point, the long-term outlook for health products this industry offers is bright, especially considering researchers are still scratching the surface of understanding the gut microbiome, precision nutrition, the potential of plants, fungi, and more. I hope that innovation doesn’t suffer from uncertainty. The turbulence of modern times can often feel unique or unprecedented. I certainly don’t want to diminish or downgrade the magnitude and impact of COVID-19, Russia’s war in Ukraine, reckoning with prejudice, bigotry, colonialism, and climate change, or any other global issues of importance. However, I was reminded recently that catastrophe and chaos are very much precedented. In fact, unfortunately, war, famine, and plague are recurring themes throughout human history. My point is that today is the time to make an imprint on the world. Perhaps your business can help mend wounds and find a better path forward, in and through health.
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