There are two types of people in this world. Those that are selling supplements and those that are not. Sure, you could come up with a lot of of other types of people but when it comes to the supplement industry you are either "in" or "out". The numbers on the "in" side are growing exponentially for very good reasons and the appeal to jump into the game keeps getting more attractive.
But let's approach this from the "out" side. You've thought about starting a supplement line. You've got the entrepreneurial spirit and the drive to make it work. You just need a little validation that your hard work and investment is going to pay off. Let's take a look at the supplement industry as a whole to see just what you are getting into...
A study done by Zion Market Research in 2016 gave a very clear view of the growth of the supplement industry. Global dietary supplements have reached 132.8 billion (with a B) and is expected to rise to 220.3 billion by the year 2022. This is great news for supplement brand owners with that increase resulting from an 8.9% CAGR (compounded annual growth rate). Incidentally, this is the same CAGR for the S&P 500 from 2003-2015. Anybody warning that it is too late to enter the supplement market is simply not looking at the numbers. This market is solid and poised for steady growth growth.
What Is Causing This Growth?
There are some really interesting reasons for this growth, and expectation of success in this growing market is not unfounded. Let's explore some of these to better understand why it's happening and what implications it can have for your future supplement line.
Consumers for the most part have always tried to improve their health. The old standbys of low fat, cutting out sugar, moderate salt intake, and exercise have been spit out by healthcare professionals for so many years that everyone tries to stick to them when possible. Then came the internet. The internet has suddenly given consumers direct access to medical journals, nutritional blogs, health coaches, social media fitness stars, symptom checkers and more information on supplements then you could read in 1,000 lifetimes. All of this is seconds away with a simple Google search. The digital age has spawned a new era of health awareness. Surveys consistently show that 60%-80% of all internet users have used it to obtain health information. Consumers more and more are taking healthcare into their own hands and looking for solutions to common ailments themselves.
There has also been increased consumer awareness regarding natural solutions to health. 25 years ago most consumers were reactionary in their approach to health. Bad numbers at the Dr.'s office meant cutting back and trying to eat better.
Today's progressive consumer is focused on preventative health measures.
Eating right is a big part of that but the other staple is supplementation. It is understood that the food of today is not as rich in nutrients and vitamins as it was in the past and our busy lifestyle prevents optimal eating at all times. Supplements and vitamins bridge the gap. This understanding has helped drive consumer demand for supplements to where it is now and only looks to be increasing.
There are many reasons people buy supplements. Sometimes consumers identify a potential deficiency in their diet and search to find a supplement that will fill the void. Others are looking to decrease their weight or increase their energy. Whatever the case may be, the internet has again caused a fundamental shift in consumer access to supplements. For a long time supplements were only found at health food stores and specialty physician offices. Then came the Vitamin Shoppes and GNC's. Once the supplement industry figured out e-commerce the market exploded. More recent expansions into Amazon and other online retail giants has helped fuel sales as buying supplements is as easy as a few clicks on our phones. Financial institutions are working feverishly to lessen the amount of time and effort to make transactions with one-click payments and stored data. For these reasons consumer access to supplements has never been greater.
Once again the internet shows it's disruptive power. Nationally advertising a product in a bygone era took more money than your average startup could handle and didn't promise results. Today, anybody can advertise on any budget. Analytics are so robust that your potential consumer can be targeted with very high accuracy.
Targeted ads are often twice as effective and twice as valuable as non-targeted ads.
Social media has played a large part in consumer influencing. An article in the New York Times last year reported that Facebook alone has our attention for 50 minutes each day. Without even including Snapchat, Twitter and others the average American spends 1/16 of time awake on social media via Facebook's media platform. The entirety of that time consumers are being marketed to by targeted ads, targeted influencing and online word-of-mouth advertising. Research from Twitter shows that 49% of users rely on recommendations from social media influencers when buying a product. The supplement industry is starting to take full advantage of the opportunity social media presents as marketers are becoming more savvy and more sophisticated in their online approach.
It is believed that 20%-50% of all purchases are influenced by word-of-mouth marketing. As indicated above, the old standby word-of-mouth advertising has morphed into it's online counterpart. Product testimonials, product reviews and lifestyle blogs with beautiful people enjoying their favorite products all make their way to our screens and influence our decisions. Amazon.com has taken full advantage of this model with reviews and a star system to let consumers grade and review every product sold. Amazon's recent overhaul of their review policy to prohibit fraudulent or fake reviews gives you an idea of just how valuable trusted online opinions are. Online stores are increasingly allowing products to be reviewed on their website to help engage consumers. They all understand the tremendous benefits and value of social influencing through online word-of-mouth advertising.
What Does All This Mean For Your Future Supplement Brand?
Simply put...the supplement industry is growing, changing and has a bright future. Is it a sure thing for everyone? No. Nothing is. Starting your own supplement brand is not a guaranteed path to success. It requires the same steps of research, learning, planning and executing that have to be accomplished just like every other business venture. The point of this discussion is to help you understand the reasons behind the excitement a lot of supplement brand owners feel for the future of their products. The reasons are simple:
- The market for dietary supplements and vitamins is growing steadily.
- Consumers have never been more aware of the value that supplements and vitamins can have for their health.
- Consumers have never had greater access to easily purchase supplements and vitamins.
- Consumers have never been more easily and inexpensively engaged and marketed to.
The time is right for you to get started!
How Can We Help?
As a supplement manufacturer, we at Ameri-Kal have the luxury of shared experiences. We've seen thousands of products start with an idea. We've helped large companies build out their product lines. We've helped young entrepreneurs with nothing more than a burning desire get started small and build from the ground up.
It is rewarding to have a part in helping ideas move from the drawing board to the store shelves.
The one thing we pride ourselves on is the human component to what we do. There are many options to manufacture supplements and we bring a high level of expertise to that area. But we look at each customer as an opportunity to build. Our long-term success is dependent on the long-term success of our customers. We are not satisfied with a cold manufacturing transaction. Instead we are looking for the warm handshake of partnership and being part of team. Our understanding of the supplement market combined with our product development experience and marketing knowledge gives us a valuable vantage point that is a huge asset to our customers. This is how we can help.
How Can You Get Started?
At Ameri-Kal we offer FREE Consultation with a member of our development team to help get your ideas organized and your plan solidified. We also provide FREE Pricing for your products to help you plan out your manufacturing budget. Whether you need pricing for a custom manfuactured supplement or just have some questions about private label supplements availiability, you have no obligation and no commitment. We want to make sure we are the right fit for each other and we are happy to help in any way we can!
Be sure to take advantage of our FREE Guide to Manufacturing and Launching a Supplement Line above. Included is a supplement business checklist that will help you understand what is involved and what is important to consider. If you would like to get an instant response email us directly at firstname.lastname@example.org or call us today at (405) 225-1804. Let's get started soon!