Q&A with Liz Cummings, VP, Business Development North America, Nicholas Hall & Company
Q: How would you describe the current landscape of the supplement industry?
Looking at the global picture, we’re seeing the overall market for all consumer health products in all distribution outlets growing by more than 6% in 2023 over 2022, with the Vitamins, Minerals & Supplements (VMS) category expanding at 7.4%. The US market for dietary supplements was more challenging, up by only 4.5%, due to an especially weak performance in physical retail stores.
Q: What emerging trends in consumer behavior do you see shaping the industry?
Our data shows a 8.7% four year historical CAGR for VMS, and we find that the supplement categories with double-digit growth align with consumer wellness trends in general. When we look at traditional brick & mortar outlets, still the predominant distribution in most markets, immunity (including zinc) has been very strong, and we saw dynamic performances for minerals like magnesium and iron. Brain health, herbal antidepressants and chyawanprash have all delivered growth above the overall category trend at retail. When we look at the next five years, we forecast growth for VMS to be around 8%, driven by internet and mail order distribution, with continued strong interest for categories like vitamin D, minerals, brain health and herbal antidepressants. Probiotics and joint health, two perennially strong categories that were overshadowed by immunity in recent years, will continue to perform well. Probiotics still struggle to make claims in some markets, but overall, the multitude of benefits continuously supported by scientific studies, bode well for the category’s future. We are also seeing consumers opting for more natural pain relief and prevention, and joint health supplements will benefit from an aging population that wants to remain active and healthy.
Q: Where do you see significant growth opportunities within the industry?
There are so many regions where we are seeing growth, including East and Southeast Asia, Central / Eastern Europe, Latam and India. North America and China are still the dominant, but maturing, markets, while countries like Indonesia and Brazil have been posting double digit CAGRs, with good forecasts. Nestle’s recent announcement of a joint-venture with pharma company Dr Reddy’s to bring science-based nutrition to consumers in India is a good example of this trend.
Q: How do global regulatory differences impact multinational supplement companies?
Looking at the self care market as a whole, multinational companies are well equipped to accommodate local regulations. For example, Haleon’s Centrum and Caltrate are among the leading brands in the world, and have been trusted for nutritional support by consumers in many countries for decades.
Nicholas Hall’s data and analysis of markets around the world includes dietary supplement ingredients can have multiple regulatory classifications worldwide, from OTC drugs to medical devices to dietary supplements and foods. Sometimes they can be reimbursed by insurance or government health plans, which can also change the competitive landscape. The US market provides an interesting contrast, with its private insurance model and initiatives to include supplements under tax advantaged FSAs/HSA.
It’s also very interesting to see the marketing creativity that leverages brand equity and local regulations to introduce dietary supplements that meet consumer needs. Recently, for example, Kenvue extended the Motrin pediatric pain brand with Motrin Shui Le Multivitamin Straws for kids in China.
Q: What are some of the most innovative developments in supplement formulation and delivery?
Nicholas Hall’s CHC New Products Tracker includes 44,526 launched in leading markets over the past 8 years, and uses a rating system to assess real innovation. Some of the more innovative products launched in the past year include:
Life-Space Cold Brewed Tea Probiotics pods (By-Health China) are probiotics for pod drink systems that can be brewed for refreshing antidote for digestive discomfort
CholBiomeVH (Optibiotix, UK) supports the reduction of plaque formation and hardening of the arteries. It claims to help direct calcium away from the arteries, promote heart function, and contribute to normal vascular health.
Mokbio (M8 Pharmaceuticals/Bened Biomedical, Mexico) Claiming to be the country’s first psychobiotic, the capsules have been shown to adjust levels of neurotransmitters, such as dopamine and serotonin, through modulation of the gut-brain axis.
TasteCare (Cantabria, Spain) Positioned to help support those with taste disorders associated with dysgeusia. Claimed to be the first sensory supplement for those with taste disturbances.
Mr. Yee Yixiansheng Black Tomato Probiotic Gummies (Mr Yee, China) Black tomato juice from the Alxa Desert (rich in vitamin E), maltitol and probiotic powder in jelly burst gummies for eye and digestive health
Shelcal 500 (Torrent, India) This is an example of a supplement that was switched from Rx to OTC, and it’s positioned to treat various conditions caused by low calcium.
Q: How does Nicholas Hall assist companies in navigating the complexities of the supplement industry?
Specializing in consumer health care, the Nicholas Hall team has been supporting the growth of the industry for more than 40 years, and we pride ourselves on best-in-class data and analysis, and amazing customer service.
We offer many tools for companies to assess the markets and benchmark performances, including three user-friendly digital platforms: DB6 CHC Global Sales database, CHC Dashboard facts & figures and the CHC New Products Tracker.
Publications include bi-monthly Nicholas Hall’s CHC Insight Regional Reports (North America, Latam, APAC, Europe); CHC Newsflash and CHC New.Directions newsletters, and off-the-shelf reports including the recently published CHC Yearbook, CHC Innovation Report and the upcoming Digestive Health report, which will be published in July.
Our Consulting and Competitive Intelligence teams work hand in hand with clients to provide M&A (including due diligence) and licensing support, market landscaping assessments, competitive benchmarking and more.
Our events team gathers people in the consumer health industry several times each year in various locales worldwide to enjoy expert speakers and networking opportunities at our conferences, including most recently in Rome, and on September 12 in Morristown, New Jersey.
And last but not least, TalentSelect helps clients recruit high quality candidates from our wide network of contacts and friends in the industry.
About Liz:
Liz Cummings is VP, Business Development North America, based in North Wales, PA. Liz joined Nicholas Hall over 20 years ago to provide thought leadership and and manage business development initiatives for the North American market. She is a member of the Council for Responsible Nutrition and Consumer Healthcare Products Association, and also contributes to industry publications like Nutrition Business Journal and Chain Drug Review, as well as Nicholas Hall’s CHC.NEWSFLASH and CHC.NewDirections newsletters, and CHC Insight North America reports. She can be reached at liz.cummings@nicholashall.com