Normal 0 false false false EN-US X-NONE X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin-top:0cm; mso-para-margin-right:0cm; mso-para-margin-bottom:8.0pt; mso-para-margin-left:0cm; line-height:107%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Roboto Condensed"; mso-ascii-font-family:"Roboto Condensed"; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:"Roboto Condensed"; mso-hansi-theme-font:minor-latin; mso-ansi-language:EN-US; mso-fareast-language:EN-US;} The global dietary supplements market is projected to register a CAGR of 6.85% during the review period. The growth of the market can be attributed to the increasing health awareness among consumers and adoption of natural plant-based supplements. Market players are expected to witness profitable growth opportunities in the global market due the growing demand for herbal dietary supplements.
The key players operating in the global dietary supplements market include Bayer AG (Germany), The Nature's Bounty Co. (US), Glanbia plc (Ireland), Herbalife Nutrition Ltd. (US), GlaxoSmithKline plc (UK), Abbott Laboratories (US), Amway Corp (US), Otsuka Holdings Co., Ltd (Japan), Nature's Way Products, LLC (US), and Living Essentials Marketing, LLC (US). The market comprises tier 1, tier 2, and local players as well. The tier 1 and tier 2 players have a global reach along with diverse product portfolios. Companies such as The Nature's Bounty Co., Glanbia plc, Herbalife Nutrition Ltd., GlaxoSmithKline plc, and Abbott Laboratories dominate the global market due to brand reputation, product differentiation, financial stability, and diversified regional presence.
The players are focused on investing in research and development and adopting strategic growth initiatives such as acquisitions, product launches, and expansions to strengthen their market position and capture a large customer base.
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New entrants in the global dietary supplements market do not face high regulatory barriers with regards to starting a new production facility. The dietary supplements market is highly lucrative with increasing consumer demand for healthy food products. However, the presence of several established players makes it difficult for new entrants to achieve economies of scale. Moreover, the key players dominate the market owing to brand recognition.
Hence, the threat of new entrants in the global dietary supplements market is expected to be moderate.
Bargaining Power of Suppliers
The suppliers in the global dietary supplements market are chemical manufacturers, traders, and laboratories. There are several suppliers readily available in the market and manufacturers have multiple options to procure raw materials. Moreover, the manufacturers tend to enter into long-term contracts with these suppliers to ensure quality and assured supply.
Hence, the bargaining power of suppliers in the global dietary supplements market is expected to be low. Bargaining Power of Buyers
The buyers are the major governing factor of the market. The buyer concentration is high and there are a number of dietary supplement brands available in the market. while there is limited product differentiation, brand loyalty among buyers tends to be high. This reduces the switching costs for the buyers.
Hence, the bargaining power of buyers in the global dietary supplements market is expected to be moderate.
Threat of Substitutes
There are no direct substitutes for dietary supplements. However, there is a high degree of internal substitution between various types of dietary supplements.
Hence, the threat of substitutes in the global dietary supplements market is expected to be low. Intensity of Rivalry
The global dietary supplements market is marked by a high intensity of rivalry. The established players in the market are targeting competitors in terms of quality and price, thus making the industry competitive and reducing profit potential for the existing firms. The key players invest in research and development to bring about innovation in their product lines and make product development a priority to meet changing consumer preferences. Also, there are various small- and medium-sized players operating in the market and an increase in consumer demand owing to rising health consciousness is driving competition.
Hence, the intensity of rivalry in the global dietary supplements market is expected to be high.
