Help Them Be Healthy

Today’s consumers have a proactive mindset when it comes to health. This reality, along with new product formats and claims, has helped fuel sales of vitamins and supplements in the North American market.

According to “Category Insight: Vitamins and Dietary Supplements,” a July 2014 report from global market research company Mintel, dollar sales of vitamins and minerals are expected to rise 9 percent to reach $14.3 billion by 2016. Meanwhile, the Canadian market is projected to reach $1.3 billion by 2016.

In the vitamins sector, sales of individual-letter vitamins and women’s vitamins helped drive sales from 2012 through 2014, says “Vitamins, Minerals and Supplements — US,” a Mintel report from August 2014. However, multivitamins experienced a sales decline between 2013 and 2014.

As for supplements, among the biggest subcategories rife with opportunity in the private label realm are anti-aging products, weight loss items, beauty care products and essential fatty acids, says Paul Marotta, vice president of operations with Norcross, Ga.-based Private Label Nutraceuticals LLC. And as consumers’ awareness and focus on health and wellness continue to grow, these categories will remain “extremely progressive.”

Probiotics remain popular

Also continuing to grow in popularity are probiotics — one of the few supplement categories that continues to grow year after year, says Matthew Osborn, marketing manager with UASLabs, Madison, Wis.

“With the vast increase in research in this category, the ‘friendly bacteria continue to increase in demand with consumers,” he says. “Commonly, branded probiotics are very expensive; this offers a great opportunity for retailers to create a probiotic at a great selling point to move their private label probiotics off the shelf.”

Kenn Israel, vice president, marketing with Santa Ana, Calif.-based Robinson Pharma, also sees strong opportunity in private label probiotics, noting that as time goes by, products will become more diverse and consumers will become more educated. Consumers will be purchasing specific probiotics — along with traditional remedies — to help make them feel better when they’re feeling sick, when their allergies flare up and even when they feel depressed.

“Probiotics are as complex, nuanced and diverse as all other nutrients and nutritionals put together,” he says. “I like to look at the human being as a complex city versus a uniform organism. And what we’re learning about probiotics is that they can impact almost every major system in the body. … It creates a massive market opportunity, from dietary supplements to functional foods to supplemented foods, fermented foods — this is a real big area, and private label is embracing it.”

Other exciting areas

Israel also points to ashwagandha, a herb used in traditional Indian medicine, as another exciting area for product development. The product — which has seen growing popularity for several years — helps the body deal with stress and rest more effectively.

Additionally, supplements that strengthen hair, skin and nails, as well as biotin, are showing “strong results,” says John Wernowsky, chief marketing officer for Atlanta-based inLife business Development Group. Anti-aging products also appear to be ready for similar success.

And while protein continues to be big in the supplement market, brands increasingly are looking to focus on offering protein from more natural sources, Mintel says in its July 2014 report. Companies have developed a range of plant-based protein powders targeting muscle-building consumers with an eco-conscience.

Brandon Martin, managing partner with Tempe, Ariz.-headquartered LifeTree Manufacturing LLC, notes that his company is seeing demand for non-allergenic protein supplements such as powders made from such natural sources as rice, peas and hemp.

In terms of delivery, the development of non-traditional formats could help brands engage non-users of vitamins and supplements by “injecting some excitement into the category,” Mintel explains in its July 2014 report. Consumers are particularly interested in trying strips and pills that dissolve on the tongue — as well as gummies and soft chews. Meanwhile, the success of vitamin-enhanced beverage brands such as Coca-Cola’s Glaceau vitaminwater points to possible opportunity in liquid formats such as shots and water enhancers.

Package, position to sell

But even with the right products, retailers still need to find a way to command attention at shelf. Marotta explains that retailers need to communicate their identity through graphics and visual effects on packaging.

“Visual elements that include color, fonts and printed information all serve as an important role in the decision-making process, therefore making them key factors with regard to grabbing the attention of a consumer,” he states. “Specific colors can ignite certain emotions that stimulate a purchase — bright, vibrant colors are always best with regard to catching the consumer eye through packaging.”

Images of athletes on sports supplements also help to sell products, Marotta notes.

With verbiage, be simple and clear, Wernowsky says. Transparency related to ingredient origins and raw materials sourcing also helps to win consumers’ trust, Martin adds.

And be honest.

“There is no shortage of consumer products that have come under fire for misleading labeling,” Wernowsky states. “Many retailers are asking for clinical study support before bringing in new items or allowing claims.”

It’s also important to communicate a product’s benefit to shoppers front and center, Osborn explains, making sure to emphasize any natural ingredients as well.

In terms of packaging types, Martin says he sees retailers increasingly moving away from rigid containers, opting instead for gusseted pouches to pack their private brand supplements. Eco-friendly packaging, too, has found increased favor among his company’s clients.

As for merchandising, Osborn says the best place to stock store brand vitamins and supplements is next to their national brand counterparts.

“At that point, it becomes a decision largely based on price in the consumer’s mind,” he says.

And providing promotional content online is a direct way to promote relationships with potential and existing consumers, giving products “ultimate exposure” within the vitamins and supplements category.

Do be sure to offer single-letter vitamins in your assortment, as multivitamins have seen sales declines.

Don’t assume all probiotics are the same — the subcategory is huge and continues to grow.

Do consider introducing ashwagandha, a stress-reducing herb, under your own brands.

Don’t be dishonest about a product’s benefits on packaging.