Wishing Well(ness)

The dietary supplement category has some challenges, but consumers are still trying new products. Nutritional supplement users are not going to let some bad publicity stop them from buying their preferred products. Although there has been some negative media lately about vitamins, minerals and supplements’ efficacy, and some controversy about whether certain products really contain the ingredients they say they do, consumers are still eager to try new tablets, powders and foods that offer health benefits. While sales are flat in some segments, other segments are thriving, and industry observers say the dietary supplement category is still strong. In February, the New York State Attorney General’s office accused GNC, Target, Walgreens and Walmart of fraudulent labeling of some private label supplements. The office used DNA barcoding, a form of genetic testing, on the supplements in question, and found that some products contained houseplants, peanuts, beans, rice and other ingredients instead of the ingredients claimed on the labels. The authorities sent cease and desist letters telling the retailers to explain which procedures they use to verify the ingredients. Then in March, GNC announced it had reached an agreement with the AG to expand testing of the company’s Herbal Plus supplements using DNA barcoding. The Pittsburgh-based retailer also noted that the products comply with the U.S. Food and Drug Administration. The controversy did not exactly discourage consumers from buying supplements, vitamins and other nutritional products. According to IRI, a Chicago-based market research firm, multi-outlet sales of mineral supplements totaled just more than $3.376 billion for the 52 weeks ended March 22. That was an increase of 1.4% compared to the same period the previous year. Unit sales totaled more than 321.3 million, up 1.3%, at an average of $10.51 per item. Also according to IRI, sales of vitamins totaled nearly $6.6 billion, up almost 2%. Unit sales were up 2.4%, to more than 712 million. The average price per unit was $9.26, down 4-cents. The segment that performed the best was one and two letter vitamins, with sales totaling more than $1.1 billion, up 5.2%. Unit sales increased 6.1%, to more than 154.2 million. These items were less expensive, at $7.14 per unit. Still, the category faces other challenges. According to a report from Chicago-based Mintel, Vitamins, Minerals and Supplements - US 2014, recent studies indicate that certain products are not as effective as people think, and that created some doubt among consumers. According to Mintel, nearly 30% of users are not sure how effective vitamins, minerals and supplements actually are, while 23% think that all brands of vitamins are essentially the same. There was good news, as 77% of respondents to Mintel’s study said they took a vitamin, mineral or supplement in the past year, either daily or occasionally. Nearly half, 47%, said they think vitamins are a good way to get the nutrients they need that they are not getting from their diets. The report noted that there are some areas of opportunity. New formats, such as gummies and melting tablets, are gaining popularity. Also, consumers are seeking products that target specific issues. Products that address health concerns such as diet, fatigue and stress will continue to see success, the report noted. Also according to Mintel, the oldest baby boomers, those age 65-plus, are especially interested in products for their bones, immunity and heart health. Gary Pigott, executive vice president of sales and marketing for Mason Vitamins, says baby boomers are a large market for nutritional products, and these consumers are looking for more products. “The entire joint market is still a humungous dollar category and it has some spunk in certain areas,” he says. “The regular glucosamine and chondroitin still sells if it’s the right formula.” Baby boomers are looking for more than something for their sore knees. Miami Lakes, Fla.-based Mason Vitamins recently introduced In-Fla-Mend and Wellness, which contains curcumin, a substance in turmeric, as well as ginger, green tea, quinoa and other ingredients. The formulation is designed to address inflammation symptoms. Mason Vitamins also recently launched Moringa, which promotes energy and immune support. Pigott says the Moringa leaf is popular in Europe and South America. In the U.S., consumers that research supplements online or that shop at vitamin specialty stores are already familiar with Moringa. “It is one of the most requested herbals in the last six months,” says Pigott. “People are buying Moringa leaf powders and putting them in smoothies.” Retailers can benefit by communicating with suppliers, says Pigott. “We are hearing what they are asking for. We visit a store and talk to the department manager and ask about anything they get requests for, and they say, ‘Oh I heard this.’” Others agree that the supplements category has much opportunity. “My belief is that the combined category is showing slow but steady growth as consumers increasingly take personal responsibility for their health,” says Tara McCrory, brand manager for Wellnx, based in Mississauga, Ont., Canada. McCrory says there are certain trends that are helping the category grow. For example there has been growth in protein supplements, especially in plant-based protein sources as consumers add more nutrient dense options to their diet. In supplements, consumers are seeking naturally functional products, such as natural sources of vitamins, minerals and omega fatty acids, rather than products that have had these added during the production process. “We anticipate the trends will continue to pick up steam and consumers will look increasingly for products that are naturally functional and minimally processed,” says McCrory. Wellnx recently launched several products under the Nature’s Science brand, including Coconut Oil with Omega 3-6-7-9, Avocado Oil, Chia & Hemp Oil, Hemp Seed Oil and Raw Lean High Protein Weight Loss Powder. Another growing area is probiotics, which support digestive and immune systems. Ganeden Biotech, based in Cleveland, manufactures probiotics, which are ingredients in more than 120 foods and beverages. “The category is growing like crazy,” says Michael Bush, senior vice president of Ganeden Biotech. “Probiotics have gained wide acceptance.” People are getting pill fatigue, he says, and they are discovering they can get efficacious doses of probiotics through herbal tea, cereal, chocolate bars and other functional foods that have the company’s patented GanedenBC probiotic as an ingredient. “We see time and time again people who say, ‘I’ve been taking your product in supplement form for years, and now I switched to this other product so I don’t have to take a supplement,’” says Bush. “People forget to take supplements, and compliance is really low.” The products that contain the company’s probiotics have the GanedenBC logo on the packaging. Bush says retailers should merchandise the products somewhere other than the supplement and dairy aisle. “I don’t know if every day of their life people are committed to eating two cups of yogurt but people drink tea every day, or fresh juice.” He adds that stores should have hangtags indicating which products on the shelf contain probiotics. Bush sees a bright future for probiotics, as researchers are discovering that certain strains can be beneficial for cardiac health, kidney health, sports performance and recovery and other issues. “The more we learn what’s going on in the gut, the more we realize what we should and can be doing with probiotic bacteria,” says Bush.