What Does New Dietary Supplement Product Activity Look Like Today?

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Innova Market Insights is taking the temperature of the dietary supplements market, with an updated look at why, how, and where supplements are launching today.

Global Innovation

It’s no surprise, but Innova Market Insights confirms that North America (especially the United States) remains the leading market for new dietary supplement launch activity, accounting for over 42% of global product launches recorded by Innova Market Insights in 2015 (specifically, the 12 months ending November 2015). Europe is the second largest market, at 30% of launch activity.

In terms of emerging markets, Asia is definitely the country to watch. Its share of the global market for new supplements now stands at 16%-up from 11% just two years prior. Innova Market Insights attributes growth to increasing disposable incomes and more consumers striving for a Western lifestyle.

Product Variety

More choice equals more customers, and this holds true for dietary supplements, Innova Market Insights says. “Other factors driving the market include growing availability, the range of products and formats appearing, and an increased focus on branding rather than just promoting specific ingredients and their potential benefits,” said Lu Ann Williams, director of innovation, Innova Market Insights, in a press release.

In terms of product type, vitamins and minerals continued to “dominate” product launches in 2015, accounting for 28% of all supplement launches. Herbal and botanical launches stood at nearly 14% of total launches.

Delivery Systems

“A move away from supplements in the form of tablets and capsules and toward alternative, easier-to-consume formats, such as powders and liquids,” are driving success, Innova Market Insights says. Products that create a bridge between supplements and food are gaining interest, including dose-delivery probiotic drinks like Yakult and Actimel (known as DanActive in the United States), the market researcher says.

Other formats gaining interest include fortified confectionery drops, chews and gums, and supplement-type beverages like Joint Juice.

Health Conditions

Targeting specific consumer groups such as seniors or female consumers continues to be a successful tactic for supplements. Condition-specific marketing also continues to work, with Innova Market Insights pointing to the weight-management category, with nearly 10% of dietary supplement launches in 2015 angled for weight loss.

Sports nutrition is a key opportunity area, as not just hardcore athletes but generally active consumers look to improve performance and health.

Lots of Competition

“The high level of new product and promotional activity reflects the fact that the global supplements industry is increasingly competitive,” Williams said. “This is both internally between different manufacturers and brands and between different ingredients targeting the same health conditions-and also externally where supplements have to compete with healthy foods, functional foods, and even OTC pharmaceuticals to cater to increasingly demanding and savvy consumers.”

Also read:

2016 Ingredient Trends to Watch for Food, Drinks, and Dietary Supplements: Stevia

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Jennifer Grebow
Editor-in-Chief
Nutritional Outlook magazine
jennifer.grebow@ubm.com