BOULDER, Colo., June 7, 2022 /PRNewswire/ — New Hope Network’s Nutrition Business Journal (NBJ), an Informa Markets brand, unveiled the 2022 Supplement Business Report, finding the supplement market grew 7.5% in 2021, adding $4.15 billion in sales and coming in over $5 billion higher than pre-COVID projections from 2019. The industry ended 2021 at $59.91 billion in annual sales, up from just $43.42 billion five years ago – and is expected to add nearly another $10 billion through 2025. Last year, NBJ’s 2021 Supplement Business Report detailed record-breaking 2020 growth of 14.5% for the supplement market, driven by the COVID pandemic.
Vitamins continue to be the largest single category with 31.2% of sales in 2021, but herbs and botanicals—the second largest category—shine when it comes to growth. With the exception of 2020, when general health and immunity demand drove vitamin growth, herbs and botanicals has had the highest category growth since 2014. This has led to a shift in market share, with the category on track to capture 22% of the market by 2025, up from just 18.6% in 2017, indicating a more mainstream market for herbs.
According to NBJ Senior Industry Analyst Claire Morton Reynolds“While the total market growth of 7.5% seen last year is certainly a normalization of the market, it is less dramatic than the 5.3% that NBJ had previously projected, driven by extended effects of the COVID pandemic on consumer health purchases.”
Across sales channels, e-commerce is leading a huge shift in channel dynamics. While growth in the channel dipped from an incredible 87.3% in 2020, the 30% seen in 2021 was still over four times total industry growth. With this growth trajectory, 2024 is expected to be the record year where e-commerce market share in supplement sales is larger than natural and specialty or mass market retail, coming sooner than previously forecasted given the-related acceleration.
“Consumer habits have changed significantly over the past two years and this report illustrates how categories and channels have shifted in response. The effects of COVID in 2020 and 2021 impacted each facet of the market differently – some are normalizing, some are returning to normal growth curves, and some weren’t very impacted,” commented NBJ Content & Insights Director Bill Giebler.
Nutrition Business Journal’s 2022 Supplement Business Report is available for purchase here. With category-by-category analysis, this report is a keystone reference for understanding how the industry developed in the past year and forecasting where it’s heading through 2025.
Earlier this year, NBJ released the 2022 Delivery Format Report, providing a deep dive into how the gap between pill and non-pill market shares has been growing, with gummies now making up 21.3% of supplement sales making them the single largest format by market share. “It’s not just COVID and e-commerce that defines the last couple of years for supplements. Gummies are a defining component, too, exhibiting the fastest growth among one of the largest format categories,” said Giebler. That complete report is available for purchase here.
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About Nutrition Business Journal
Nutrition Business Journal guides decision makers in the nutrition, health, and wellness space in developing their strategy, understanding trends, realizing opportunity, and analyzing potential risks. NBJ’s market research reports provide business intelligence and thought leadership to all levels of the nutrition industry. Each report is exhaustively researched by our staff of industry experts and presents an analysis of markets, trends, competition, and strategy in the US and global nutrition industry. Learn more at nutritionbusinessjournal.com.
About New Hope Network
New Hope Network is at the forefront of the healthy lifestyle products industry. With solutions for the complete supply chain from manufacturers, retailers/distributors, service providers and ingredient suppliers, the network offers a robust portfolio of content, events, data, research and consultative services. Through all its actions, New Hope Network aims to cultivate a prosperous high-integrity CPG and retail ecosystem that creates health, joy and justice for all people and regenerates the planet. For more information visit www.newhope.com.
About Informa Markets
Informa Markets creates platforms for industries and specialist markets to trade, innovate and grow. We provide marketplace participants around the globe with opportunities to engage, experience and do business through face-to-face exhibitions, targeted digital services and actionable data solutions. We connect buyers and sellers across more than a dozen global verticals, including Pharmaceuticals, Food, Medical Technology and Infrastructure. As the world’s leading market-making company, we bring a diverse range of specialist markets to life, unlocking opportunities and helping them to thrive 365 days of the year. For more information, please visit www.informamarkets.com.
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SOURCE New Hope Network