Health Supplement Stores Industry Profile

Companies in this industry sell vitamins, minerals, and dietary supplements from physical retail locations. Major companies include GNC Holdings, Vitamin Shoppe, and Vitamin World (all based in the US), along with Holland & Barrett (UK).

Worldwide supplement sales through all channels are projected to approach $151.9 billion in 2021 expected to expand at a CAGR of 8.9% from 2022 to 2030, according to Grand View Research. North America along with Asian countries, notably China, Singapore, and India, are the countries that have either a large consumer base or a cost-effective manufacturing.

The US health supplement store industry includes about 10,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $6 billion. Dietary supplement usage in the US is at an all-time high, with more than 80% of adults taking supplements, according to The Council for Responsible Nutrition.

COMPETITIVE LANDSCAPE

Health and nutrition trends, aging populations, and consumer spending drive demand. The profitability of individual companies depends on product innovation, effective merchandising, and competitive pricing. Large companies have advantages in purchasing, distribution, finance, and marketing. Small companies can compete effectively by providing superior customer service, offering unique products, serving a local market, or leveraging online sales. The US industry is concentrated: the top 50 companies generate about 50% of sales.

Health supplement stores compete with discount stores, supermarkets, drugstores, mail order and internet retailers, health food stores, and direct sellers ...