Dietary Supplements Market Outlook: Key Factors Shaping Future Growth

Dietary Supplements Market Outlook: Key Factors Shaping Future Growth

Dietary supplements are products intended to supplement the diet that contain one or more dietary ingredients such as vitamins, minerals, herbs, amino acids, or other botanicals. The dietary supplement industry has witnessed significant growth over the past few years due to the increasing focus of consumers on preventive healthcare and maintenance of general wellbeing. Dietary supplements help fulfill the nutritional gaps in regular diets and support active, healthy lifestyles. The product categories within the dietary supplements segment comprise of vitamins, minerals, botanicals, proteins, fatty acids, and others.

The global Dietary Supplements Market is estimated to be valued at US$ 203.43 billion in 2023 and is expected to exhibit a CAGR of 8.2% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:

The growing prevalence of lifestyle diseases and chronic health conditions represents a key market opportunity for players in the dietary supplements market. According to the Centers for Disease Control and Prevention, over half of the adult population in the United States currently suffers from at least one chronic disease such as diabetes, heart disease, and obesity. Dietary supplements can potentially help in management and prevention of these conditions by fulfilling nutritional deficiencies. They offer natural alternatives to medications with generally lower risks or side effects. The increasing consumer awareness about preventive healthcare approaches and proactive management of general wellbeing through balanced diets and active lifestyles will continue to drive demand for dietary supplements over the forecast period.

Porter’s Analysis

• Threat of new entrants: The dietary supplements market has moderate threat of new entrants due to product differentiation, existing intellectual property protection and patents held by major players. However, ease of manufacturing may encourage new players with innovative offerings.
• Bargaining power of buyers: Buyers have moderate bargaining power due to variety of options and substitute products available in the market. Switching costs are low.
• Bargaining power of suppliers: Key raw material suppliers like vitamins and minerals manufacturers have moderate bargaining power due to specialized ingredients required and switching costs.
• Threat of new substitutes: Threat from new substitutes is moderate as substitute options include prescription drugs, organic foods and functional beverages. Product innovation is a key differentiator.
• Competitive rivalry: The market has high competitive rivalry due to presence of global established brands with diverse product portfolios. Pricing pressure exists due to competition.

SWOT Analysis

• Strength: Wide range of products, extensive distribution channels, strong brand recognition and marketing campaigns by major established players.
• Weakness: High R&D investment required, regulatory compliance and quality certifications costs. Vulnerability to adverse publicity on any health claims.
• Opportunity: Rising health awareness, growing geriatric population, increased income levels in developing nations boosting demand.
• Threats: Stringent regulations. Shift towards preventive healthcare and healthy lifestyle changes decrease dependence on supplements.

Key Takeaways

The global Dietary Supplements Market is expected to witness high growth during the forecast period from 2024 to 2031. The global Dietary Supplements Market is estimated to be valued at US$ 203.43 billion in 2023 and is expected to exhibit a CAGR of 8.2% over the forecast period 2024 to 2031.

North America currently dominates the market due to heightened health awareness and discretionary spending on wellness products. The market in Asia Pacific is expected to grow the fastest during the forecast period supported by rising middle class population, increased lifestyle diseases and growing acceptability of dietary habits from western countries. North America currently accounts for the largest share of over 35% of the global dietary supplements market supported by early adoption of supplements as preventive healthcare and availability of diverse products. The Asia Pacific region is expected to grow at the fastest CAGR during the forecast period backed by nutrition awareness, lifestyle changes and escalating per capita income in populous developing countries like India and China. Expansion of modern retail outlets and e-commerce boost access to supplements in the region.

Key players operating in the dietary supplements market are Abbott Laboratories, Amway (Nutrilite), DuPont, NBTY Inc., Royal DSM N.V., Glanbia Plc., Bayer AG, GlaxoSmithKline PLC., Herbalife International, and BASF SE. These established players have strong global presence and brand recognition leveraged by extensive marketing activities. Abbott Laboratories leads the US market, while Herbalife International dominates Latin America. Glanbia has a stronghold in Europe through its acquisition strategy.