Vitamins and Dietary Supplements Industry Supply Intelligence Report: Rising Popularity of Herbal Vitamins and Dietary Supplements to Propel Global Industry Growth

SAN FRANCISCO, March 1, 2022 /PRNewswire/ — The global vitamins and dietary supplements market is expected to grow at a CAGR of 4.9% from 2020 to 2025 capsules and tablets being the most consumable dosage form of supplements. Powder is expected to become the fastest growing dosage form from 2020 to 2025 with an expected CAGR of 6.4% from 2020 to 2025.

Multivitamins have traditionally been used as supplements with food to improve nutritional qualities and reduce health problems, such as osteoporosis and arthritis. With the onset of COVID, there has been a public idea that vitamins might reduce the severity of symptoms (although not a cure) for COVID. Multivitamin manufacturers are taking advantage of this and the demand for multivitamins has increased since 2020. Overall, the vitamins and dietary supplements market is expected to grow at a CAGR of 4.9% from 2020 to 2025. However, over the time, these myths have been debunked by several studies. For example, the NCBI has published articles stating that CBD supplements are not a cure for coronavirus or any other disease caused by coronavirus infection.

One of the recent trends seen in the market is the entry of vitamin and dietary supplement manufacturers into the food and snack industry. For example, Chinese dietary supplement supplier BY-HEALTH invests in product diversity and separates its products into foods and snacks with “light” features and supplements with “strong” features. Protein bars have become the snack choice for these dietary supplement providers. The company, as of the end of 2020, has received filing approvals for 112 health foods and registration approvals for over 140 health foods.

Vitamins and Dietary Supplements Industry Supply Intelligence Report, by Grand View ResearchDive into the following industry insights:

  • The global vitamins and dietary supplements market is driven by the growing popularity of herbal vitamins and dietary supplements. However, product counterfeiting remains a challenge North America is currently the largest consumer volume of vitamins and dietary supplements, occupying about 40% global market share. The consumption of vitamins and dietary supplements in the Asian region is expected to grow at the highest rate between 2020 and 2025.
  • The global multivitamin market is highly fragmented. The top 5 players account for just 13% of the overall share. Amway, the world leader has only 4% market share The multivitamin market is highly fragmented with several small players operating regionally. The top 5 players represent a mere 13% share, and the top 10 players collectively occupy ~21% share of the overall market. The biggest player, Amway, held a measly 4% share in 2020.
  • Raw materials represent the largest cost item for manufacturers. In addition to raw material costs, significant investments are made in marketing channels for product promotion The main cost element for a manufacturer is the cost of raw materials. Since several small and medium-sized players invest very little in automation, the cost of labor and personnel is quite high. In fact, the cost of raw materials (~50%) and labor costs (~17%) are two of the largest cost items.
  • While North America is the largest market for vitamins and dietary supplements, Asian countries like China and Singapore are the least expensive countries to manufactureWhile North America has the largest consumer base of vitamins and dietary supplements, of Asian counties like China, Singaporeand India are still the most profitable countries for manufacturing. Most of the manufacturing in these countries is carried out by subcontractors. However, imports of multivitamins have increased recently and exceeded the export amount in China.

Vitamins and Dietary Supplements Market – Cost Intelligence Highlights:

Grand View Research has identified the following major cost elements for manufacturing vitamins and dietary supplements:

  • Raw materials
  • Cost of machines and accessories
  • Work
  • Cost of facilities and goods/Cost of outsourcing
  • Depreciation
  • Tax
  • R&D and other costs
  • Benefits

Vitamins and food supplements Industry – Supplier Intelligence – Ranking and selection criteria based on capabilities with weighting:

Operational Capabilities –

  • Years of Service (15%)
  • Geographical presence of services (30%)
  • Strength of employees (5%)
  • Revenue generated (10%)
  • Key customers (10%)
  • Certification/Marketing (30%)

Functional Abilities –

  • By form (45%)
    • capsules
    • Tablets
    • Liquid
    • Powder
    • Freeze
    • Others
  • By type of manufacturer (35%)
    • internally
    • Through the CDMOs
    • Other services offered by the manufacturer (20%)

List of major suppliers of vitamins and dietary supplements industry:

  • Amway
  • The bounty of nature
  • KT&G
  • Bayer
  • ByHealth
  • HerbalifeNutrition
  • GSK
  • Infinity
  • Abbott

Additional services offered by Grand View Research:

  • Cost analysisIn the vitamins and dietary supplements supply intelligence study, we have estimated and forecasted the prices of major cost items. Raw materials represent the largest component of manufacturing costs for vitamins and dietary supplements. It accounted for more than 50% of the share of the overall manufacturing cost. The raw materials include the combination of vitamin A and vitamin K. Among these, vitamin A and beta-carotene hold the major cost of 9% and 7% respectively. The price of vitamin A is expected to fluctuate over the forecast period, continuing its trend from 2015. While the price of beta-carotene is expected to remain stable over the next five years.
  • Comparative rate analysisThe dosage form is one of the most important aspects when analyzing the comparative analysis of multivitamin and supplement ratios. In our research, we have analyzed vitamin A levels in three major types of the dosage form; solids (tablets and capsules), liquids and powders. Using comparative rate analysis, we found that solid forms of multivitamins are approximately 50% more cost effective than liquids and powders. The solid forms also have a longer shelf life than the other two dosage forms. Therefore, most multivitamin and supplement manufacturers have allocated over 60% of overall production capacity to the production of multivitamin tablets and capsules. Only 20% of the production line is used for the production of liquid and powder supplements.
  • Salary BenchmarkingLabor is one of the major cost items incurred when delivering a product or service. Understanding the salary pricing structure is important for organizations to select the appropriate vendor and build a good negotiation strategy. This is also an important factor in determining whether the targeted category should be outsourced or built in-house.
  • Supplier NewsletterIt is tedious for any organization to constantly keep up with the latest developments in its supplier landscape. Our newsletter service helps them stay informed, avoid any supply chain disruptions they may face, and keep up with the latest supplier innovations. Outsourcing these activities helps customers focus on their core offerings.

A smart and efficient supply chain is essential to the growth of any organization. Grand View Research’s Pipeline Division provides detailed insight into every aspect of the supply chain, which helps make effective sourcing decisions.

Our services include (but are not limited to):

  • Market intelligence involving – market size and forecast, growth factors and driving trends
  • Price and Cost Intelligence – pricing models adopted for the category, total cost of ownership
  • Supplier Intelligence – rich insight into the supplier landscape and identifies suppliers that dominate, emerge, bask and specialize
  • Sourcing / Procurement Intelligence – best practices followed in the industry, identification of standard KPIs and SLAs, peer analysis, negotiation strategies to be used with best-suited suppliers and countries for sourcing to minimize chain disruptions supply

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About Grand View Research

Grand View Research, a US-based market research and consulting firm, provides syndicated and custom research reports and consulting services. Checked in California and whose head office is at San Francisco, the company has more than 425 analysts and consultants, adding more than 1,200 market research reports to its extensive database each year. These reports offer in-depth analysis of 46 industries in 25 major countries around the world. Using an interactive market intelligence platform, Grand View Research helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and assess upcoming opportunities.


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