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E-commerce is biggest sales channel for US supplements

Ingredients Network 2023-08-31
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E-commerce appears to be continuing its rapid rise in the US – flying in the face of predictions of declining importance following the easing of Covid-19 restrictions – and has become the biggest single channel for sales of dietary supplements in the US, according to market insights provider Euromonitor.

Buying supplements online is often perceived by consumers as more convenient, and e-commerce retailers are expanding on this by developing their online offerings to include offers such as subscription and pack services.

E-commerce is biggest sales channel for US supplements

© AdobeStock/shurkin_son

According to insights manager at Euromonitor Fatima Linares, this kind of innovations focused on increasing convenience make e-commerce an even more attractive option for people who follow a regular supplement schedule, which can be expensive in the long-run and requires organisation to order more when stocks are running low. Pack services can help people save money and ensure a regular supply of the products they need, she noted.

Health and wellness trends are originating online

Perhaps a reflection of how influential the online retail segment is becoming, Linares said that health and wellness trends are also increasingly originating online and subsequently spreading to brick-and-mortar outlets: “Producers are also taking notice of purchasing patterns in e-commerce, and there is evidence that supplement trends are beginning in online purchasing before making it to in-person retail,” she said.

“Interest in certain ingredients or supplements generated through social media and influencer marketing creates a quick path to purchase that will reshape both consumer purchasing patterns and corresponding company strategies in the next few years.”

Influencer impact: Beauty-focussed supplements on the rise

Euromonitor also predicts that beauty-focused supplements are set to become one of the largest positionings for the US supplement category in the near term, bolstered by the self-care movement and a growing body of scientific research that adds clout to the relevance of supplements for skin, hair, and beauty concerns. The interaction between the skin microbiome and gut microbiome – known as the skin/gut axis – is just one example.

Improvements in bioavailability and innovations regarding formats also mean that brands can appeal to consumers with novel products, such as beauty tonics, shots, or chewable gummies.

Market confidence in this sub-category is evidenced by merger and acquisition activity by big players as they seek to secure a share. In May 2022, for example, Unilever acquired a majority stake in the hair supplement brand Nutrafol.

“Celebrity endorsements also show the growing power and reach of the beauty-focused segment, as shown by Vitafusion’s new beauty gummies, launched in a campaign with actress Tiffany Haddish,” said Linares.

Women’s health is not just about beauty

However, beauty-from-within is not the only area of women’s health that is poised for growth.

Brandon Casteel, vice president of partnerships at SPINS, a US market insights agency specialised in retail, said that a specific area of interest is women’s health beyond beauty.

“The supplements industry has primarily been a space that has been male-centric, however, [it] has expanded to include more female focused products […] covering digestive, urinary tract, and reproductive health.

“Marketing and education around products that include ingredients such as creatine and ashwagandha has helped incorporate what was largely considered male-centric to include women’s health benefits. Ashwagandha, largely believed to be a male libido product, includes benefits for women to soothe stress, menstrual issues, adrenal health, thyroid health, sexual drive, and improve cognitive function.”

Another ingredient that once principally appealed to a very “niche demographic” – creatine – is now branching out and finding success among women and older consumers, Casteel said. Creatine is an amino acid that plays a role in promoting muscle strength, performance, and recovery and, as such, has been popular among bodybuilders and male athletes.

However, it has expanded its reach to female gymgoers and seniors, who are interested in maintaining healthy joints and mobility and preventing sarcopenia, he added.

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