Dietary Supplements in the Age of Personalized Nutrition: Will advanced treatment lead to the market of dietary supplements?

Published On: March 2018

Market Overview:

Nowadays, the burden of cardiovascular diseases around the globe is increasing due to growing patient and geriatric populations. As per Centers for Disease Control and Prevention (CDC), in 2017 about 30.3 million people had diabetes out of which 23.1 million people were diagnosed with diabetes while 7.2 million people remained undiagnosed in the U.S. Increasing prevalence of lifestyle diseases is projected to boost the market growth during the forecast period 2017-2023.

Dietary supplements are substances that include vitamins, amino acids minerals, herbs, or other plants or parts of these substances. These dietary supplements are available in the market in different dosage forms such as tablets, capsules, powder, liquids, soft gels, and others. They supplement (add to) the diet and should not be considered a substitute for food.

These dietary supplements are available in health food stores, grocery stores, pharmacies, online stores, and by mail. People commonly take them for health-related disorders. Common dietary supplements include vitamins, herbs & botanicals, sports supplements, meal supplements, minerals, and others.

The dietary supplements in the age of personalized nutrition in the age of personalized nutrition market has been on the rise over the past few years. Based on the MRFR analysis, the market for the U.S. dietary supplements in the age of personalized nutrition is projected to reach at USD 30,910.00 million by 2023 and is expected to grow at a CAGR of 7.95% during the forecast period. In the region, South region accounted for the largest market share with 38.47% for the market of the U.S. dietary supplements in the age of personalized nutrition.

What would be the impact of the mergers and acquisitions over the market?

The high level of fragmentation of dietary supplements industry makes it a prime candidate for mergers and acquisitions. Large M&A is expected due to the benefits such as increasing product lines, complementary markets and product development, and others. The large cash pile on balance sheets of pharmaceutical companies coupled with the loss of revenue due to patents lapse is expected to stimulate M&A activity. Pfizer’s purchased Alacer is an example of large companies using surplus cash to diversify their portfolios and retain future cash flows by using high CAGR growth of consumer health goods. These companies are also trying to leverage their established drug distribution chain and marketing platforms for additional sales of lucrative dietary supplements products. Thus synergies achieved by using specialized distribution chains is expected to drive larger M&A activity.

Where is the market heading to?

Currently, the market for dietary supplements in the age of personalized nutrition showing instant growth owing to the involvement of companies in introducing better and effective products for various health-related problems. Also, many investors are investing their money in personalized care associated with various lifestyle diseases are also increase the spending on research for getting better results.

Dietary supplements market is highly fragmented resulting in little brand loyalty not to speak of pressure on pricing margins. The top five branded manufacturers together hold less than a 25% share with a sizable 10% market share being captured by small private players of a unit size, which bank on increasing personalized and customization demands.

Companies like Nestlé Health Science, Danone Nutricia, Carlyle Group, Amway (Nutrilite), Archer Daniels Midland, Abbott Laboratories, Herbalife International, Amway, Danisco, Glanbia, Bayer AG, GlaxoSmithKline plc., Pfizer Inc., Balchem Corporation, Natures Product Inc., Bactolac Pharmaceutical Inc. and others are focusing on partnership & acquisition part for developing a new and personalized care dietary supplements for various lifestyle diseases. For instance, in December 2017, Nestlé agreed on the acquisition of privately held Atrium Innovations, a global leader in nutritional health products. This move made by Nestlé will help the company to pursue growth opportunities in consumer healthcare to complement the company’s focus on high-growth food and beverage categories.

What are the restraining factors for the growth of the market?

Regulatory strictness and stringency regarding manufacturing, safety, and claims are expected to be increased. There has been an increase in FDA enforcement actions pertaining to food and dietary supplement and labeling violations. Tighter regulations are also expected to be applied to manufacturing processes and practices to ensure quality and safety in light of recent recalls. For example, numerous dietary supplements recalls were initiated by the FDA which claimed sexual enhancement, bodybuilding, and weight loss products. This may hinder the growth of the dietary supplements in the age of personalized medicine market. 

What are the predictions for the U.S. Dietary Supplements Market?

The dietary supplements industry is experiencing an extensive growth owing to increasing prevalence of lifestyle diseases and rising healthcare expenditure. The major market players are engaged in product and geographical expansion and strategic approaches such as new product launches, mergers and acquisitions, and tapping emerging markets.

The industry is expected to flourish during the forecast period due to various factors such as online sales of dietary supplements have experienced a dramatic increase over the last five years despite being a difficult category for consumers to shop online without any prior product knowledge. Moreover, retailer’s focuses on improving the online shopping experience through better online education and target marketing.