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FEATURE/Nutritional Supplements Generate $22.5 Billion In Consumer Sales; Nearly two-thirds of adult Americans purchase and use nutritional supplements, a new market research report reveals

FEATURE/Nutritional Supplements Generate $22.5 Billion In Consumer Sales; Nearly two-thirds of adult Americans purchase and use nutritional supplements, a new market research report reveals

Health Editors

FEATURE…

STEVENS, Pa.–(BUSINESS WIRE FEATURES)–May 18, 2000

Buoyed by rising consumer interest in improving the quality of life including health and wellness, the consumer market for nutritional supplements, encompassing vitamins, minerals and herbal supplements, totaled $22.5 billion in 1998. Total industry sales are projected to reach $27.2 billion in 2000 as more than 60% of adult Americans purchased and consumed nutritional supplements, according to a new market research study from Unity Marketing, Market for Nutritional Supplements: Vitamins, Minerals & Herbs — Insights for Marketers on the Industry, the Trends, the Consumers and Specialty Retailers.

“While vitamin and mineral supplements account for the lion’s share of the market with $16.8 billion in consumer sales, herbal supplements are used by nearly one-third of adult Americans and generate about $4 billion at retail,” explains Pam Danziger, president of Unity Marketing. The core market for nutritional supplements is women, between the ages of 35-to-54, although herbal supplement users tend to skew younger than those who take vitamin & mineral supplements only. Nutritional supplement consumers tend to favor drug stores, pharmacies or grocery stores as a source for these products, on average spending $37 in a three-month span. Health food stores are used by 39% of nutritional supplement consumers. These shoppers are more serious about their health purchases and are more likely to take herbal supplements along with their vitamins. Mail order, used by 12% of the supplement consumers, is also preferred by the more serious supplement consumers. Today the Internet is a source for only 1% of nutritional supplement consumers, but it is expected to grow rapidly in the next several years.

With more channels of distribution available in the nutritional supplement market, this report includes an analysis of a survey among specialty vitamin retailers who capture the most motivated, educated and highest-spending segment of the consumer market. “Our research indicates that the typical specialty vitamin retailer is not growing as fast as the overall market as more mass merchants, discounters, grocery and drug stores expand their focus on this category. In fact, these retailers account for about 55% of the total industry sales,” says Danziger. “Yet the specialty retailers that command about 30% share of market see their competitive advantage as the ability to offer more one-on-one customer service and expert advice.”

Providing a unique perspective on the consumer market, the report includes an analysis of five different consumer segments characterized by different drives and motivations for nutritional supplement use. For example, the largest consumer segment is called the “Good Living” segment, who practice good health and are concerned but not fanatical about nutrition, health and fitness. Next is the “Go-Along-with-the-Crowd” segment, dominated by married men, who know that nutrition is important but only take their vitamins when convenient or when they remember. “Health Enthusiasts” comprise about 18% of the total market. They represent those who are most serious about nutrition and tend to take supplements both for health and life-enhancement. The “Searchers” use supplements as a substitute for prescription drugs in times of sickness, but don’t necessarily make supplements a part of their daily routine, while the “Disenfranchised,” the smallest segment accounting for 14% of the total, is composed of consumers who reject the medical establishment and do their own research to select supplements and to self-medicate.

The report, Market for Nutritional Supplements: Vitamins, Minerals & Herbs — Insights for Marketers on the Industry, the Trends, the Consumers and Specialty Retailers contains analysis from in-depth market research surveys of consumers and specialty vitamin retailers. It provides an estimate of total market sales by product, distribution channel and projections for consumer sales through 2003. The report identifies key trends that will have the greatest impact on sales in this industry in the future, as well as competitive profiles of the leading manufacturers of nutritional supplements. This over 100-page report is available from Unity Marketing for $2,250. Unity Marketing is a marketing research and consulting firm that helps companies unite with their target markets through consumer insights. For more information, contact Pam Danziger, Unity Marketing, 188 Cocalico Creek Road, Stevens, PA 17578; telephone 717/336-1600; fax 717/336-1601; www.unitymarketingonline.com

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