Vitamin Vitae

Vitamins and nutritional product sales may be correcting, but there’s still innovation across key segments

By Carol Radice

It is still early in 2023, but there are a few things we already know about how the vitamin and nutrition category is shaping up and what the next handful of months have in store.

Market research shows the vitamins, minerals and supplements segment is expected to see a respectable 5% lift in sales this year, which would bring the market to $37.44 billion. Growth beyond this period looks optimistic as well. Category insight information shows the sector growing at a 7.5% CAGR through 2028.

The mindset shift that we witnessed toward health and wellness during the pandemic will continue to be seen this year, albeit at a much slower pace. But as most agree, pace can be relative, considering the comparative backdrop for sales movement is a record-setting year fueled by a global health crisis. So while data may show subcategories, such as immunity (vitamins C, D, and zinc), are experiencing a decline in sales, it does not mean consumers are no longer interested in these products; it simply indicates sales are settling back to normal levels.

A recent Mintel report exploring trends in vitamins, minerals and supplements noted brands that focus on emerging health issues and innovation would be among those that stand out in 2023.

The report also indicated that as consumers have become savvier about the role VMS products can play in their overall physical and mental health they are more apt to customize a daily regimen to best suit their personal needs. These findings represent a swing from past buying trends, in which consumers leaned toward a onepill-addresses-most-concerns approach.

As a result, interest in magnesium, beetroot, amino acids, St. Johns Wort, mushrooms, lecithin and green tea is on the rise.

Keith Frankel, CEO of Windmill Health Products in West Caldwell, N.J., said

innovation aside, the challenging economy combined with lower consumer disposable income will likely be influential factors affecting sales this year.

“Normally, our industry is largely insulated from market instability, but I think we are going to see uncharted waters this year,” Frankel said. “With each crisis comes opportunity for those who can pivot and provide needed goods and services to the various retail channels.”

Omnichannel strength is going to be more important than ever before, Frankel noted. “There will be several bright spots emerging this year, especially in beauty nutrition, targeted superfoods and higher-end nutrigenomics,” he said. “We are preparing to access these opportunities as they emerge.”

Even with the challenging year-over-year growth comparisons arising from the sales spike of January 2022, the year has started off well, noted Kara Siak, vice president of sales strategy and operations for Pharmavite in West Hills, Calif. Siak expects continued growth through 2023 without the sharp, unpredictable responses to acute events that we’ve seen the last three years. “This should lead to more consistent and predictable performance in the VMS category,” Siak said.

Rebound predicted

Raza Bashir, vice president of scientific affairs and product innovation for Iovate in Oakville, Ontario, Canada, noted that despite the current economic challenges, his company anticipates a year of growth for the nutritional supplement industry. “Consumers view nutritional supplements as a non-negotiable essential—even in challenging economic times,”