GENERAL TRENDS
Nutrition & Wellness Overview
The global dietary supplements market is estimated to grow at a CAGR of 6.7% from 2022-2027, with growth driven by a fundamental shift among consumers towards preventive healthcare
Recent growth in the sector continues to be driven directly by the COVID-19 pandemic, with sales in vitamins and nutritional supplements surging by an unprecedented 21% last year
Although this tremendous growth is unlikely to be sustained at its current breakneck pace, the overarching trends in consumer health developed amidst the pandemic are expected to persist
Before COVID-19, over 75% of American consumers were already using some type of vitamin, mineral, or nutritional supplement
The pandemic not only strengthened existing consumers’ commitment to the product segment and increased their intake, but also drove new, health-conscious consumers to enter the market
The nutritional supplement market landscape has shifted dramatically to meet ever evolving needs, as consumers have increasingly adopted a tech-enabled, holistic approach to health and wellness
E-commerce continues to be the fastest-growing channel in the industry as “brick-and-mortar growth in 2019 was 2.8% while e-commerce grew at nearly 10 times that rate” according to Nutrition Business Journal
The market is also putting intensified pressure on manufacturers to increase transparency, with high ingredient quality and ethical, sustainable sourcing entering the forefront of consumer awareness
Natural, organic, and functional supplements were once hindered by cost barriers, but are now among the top attributes that consumers are willing to pay a premium for
The shift towards holistic wellness has given way to a number of new, more niche product categories beyond established categories such as multivitamins
While gummy supplements have quickly been cemented as a mainstream delivery form, the category continues to expand to serve new needs such as sleep quality, stress management, CBD and immune system support
Consumers are increasingly looking to dietary supplements as an intersection between health and beauty, with demand for collagen and fish oil continuing to grow
Genetic data-driven, personalized nutrition solutions designed for an individual’s specific health requirements have also garnered strong interest with a number of startups emerging this category
Preventive Health: Healthcare + Consumer
COVID-19 appears to be in its final stage as a pandemic and may be entering an endemic stage. Many of the fundamental shifts among businesses, consumers and healthcare providers may be permanent fixtures. Preventive health has emerged as a key driver of growth in the wellness industry, blurring the distinction between consumer goods, professional healthcare and technology.
Owed to growing awareness of general health and nutrition practices, rising median incomes in developed nations, and increased focus towards holistic wellness, preventive healthcare looks to address risk factors for disease before they affect the individual
Pandemic-related factors such as tremendous pressure on healthcare systems and a need for health and immunity solutions have increasingly driven consumers to seek remedies via consumer goods channels, such as over the counter supplements
Preventive health has also infiltrated the technology sector as the pandemic accelerated digital transformations across the board, driving growth for tech-integrated fitness and wellness solutions such as Tonal, Peloton, Mirror and Oura
Overall, the pandemic has transformed the consumer health landscape, with a new focus on holistic wellness and balanced lifestyles augmented by readily available, tech-enabled solutions.
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