If you’re looking for a solid place to start a business, look no further than the nutrition industry.
Even in the dismal days of 2009, the industry experienced double-digit growth.
- Sales of herbal products in the food, drug and mass-market channels made plenty herbal manufacturers happy. According to leading trade journal, Nutrition Business Journal (NBJ), sales increased by 14.4% in 2009 over 2008’s numbers.
- NBJ also reports that the industry as a whole experienced 10% growth. And sales through health practitioners reached increased sales by as much as 15%.
- And an April 2009 New York Times article reported that leading supplement companies Vitamin Shoppe and New Chapter reported increased – if not phenomenal – sales for the first quarter of 2009.
While so many industries were seeing their sales drop, the nutrition industry has continued to stay strong.
As the vitamin manufacturer partner for dozens of supplement companies, we’ve seen businesses both large and small hold steady if not increase their sales while so many businesses are floundering.
So if you’re looking for a solid market to sell to, the nutrition supplement market is full of devoted consumers. And their ranks are growing.
But let’s look beneath the numbers a little. Because statistics are one thing … Understanding why people are devoting parts of their ever-shrinking budgets to supplements is the real story…
Four Major Factors In The Supplement Industry’s Healthy Growth
- Factor #1 Health care is not an easy item to cut out of your household budget.No matter what the economy is like, most folks are unwilling to compromise their core well-being, their health. They may initially cut some interventions. But soon the misery of constipation or that drop in energy will bring them back to store.Sure, many consumers report that they are more price conscious, looking for special deals and using coupons. But investment in good health and the comfort that comes with it is still a priority.
- Factor #2 The cost of conventional medicine is increasingly unsavory.Nothing makes the price of supplements more appealing than the price for prescription drugs. And this has only been underscored by more and more data showing that supplements work just as well if not better than many of their pharmaceutical counterparts.Just recently, a study published in the New England Journal of Medicine reported that extended-release niacin performed better than statin drugs in preventing plaque build-up. And when you can purchase niacin for a fraction of the cost of prescription statins, the choice is clear.With deals like this, who can afford not to join the 65% of American adults who report that they use supplements.
- Factor #3 Increased nutrition industry quality standards and regulation.For a long time the nutrition industry has gotten a bad rap for inadequate regulation and unreliable products. While until now, most companies have been using stringent manufacturing standards, it took the FDA thirteen years to comply with legislation and establish government-mandated good manufacturing practices (GMPs).Now with the long-awaited implementation of the FDA GMP requirements, consumers can now count on even better oversight when it comes to the quality of their herbal products and supplements.
- Factor #4 Supplement sales to baby boomers are booming.The growing baby boomer population is looking for more ways to stay healthy and enjoy their post-retirement life. They’ve already got a healthy skepticism about conventional approaches. And they’re more comfortable with alternative medicine. So supplements are a perfect sell.Better yet, not only are they keeping nutrition sales humming, but they’ve also passed on much of their interest in nutrition and alternative health to their children and grandchildren in Gen Y and Gen X.
At Vitakem, we make it easy for you to step into this market and build your presence sale by sale with smooth production and quality products. We offer both private label vitamins and supplements or custom formulated supplement manufacturer services.
So if you’d like to tap into this steady market, contact our sales team and find out more about how we can help you.
We’re looking forward to helping you build a strong business that can weather any economy.