The vitamin & mineral supplement market is projected to register a significant growth rate during the review period. The key factors driving the growth in the market are the increasing consumption of vitamin & mineral supplement in various regions and growing demand for immunity-boosting products among consumers. However, the increasing supply of counterfeit and fake product in the market is hampering the growth of the market during the forecast period. Nevertheless, the significant growth of the geriatric population and the rising e-commerce sales in the dietary supplement industry are expected to create lucrative opportunities for the players in the global market. The growth of market players operating in the market is dependent on market conditions, government support, and industry development.
The key players operating in the vitamin & mineral supplement market include Bayer AG (Germany), Glanbia Plc (Ireland), Abbott (US), Pfizer, Inc (US), Amway Corp (US), GSK Plc. (UK), Herbalife International of America, Inc. (US), Otsuka Pharmaceutical Co., Ltd. (Japan), Nature's Way Brands (US), Nature's Bounty (US), Global Calcium PVT LTD (India), Lehmann&Voss&Co. (Germany), ZINPRO CORP. (US), Novotech Nutraceuticals, Inc. (US), America Alimentos SA de CV (Mexico), and Jost Chemical Co. (US). The players are focused on lowering their environmental footprint and investing in research and development along with strategic growth initiatives such as acquisitions and product launches to strengthen their market position and capture a large consumer base.
The benchmarking is done by assessing the product breadth & price range offered; operating locations globally; strategic partnerships, collaborations, and M&A carried out by the company in the sector; and product and based on the years of experience in the industry.
Threat Of New Entrants
The global vitamin and mineral supplements market are large and highly competitive. The initial investments required are quite low to moderate as a small-scale supplements business can be started with an initial capital of around USD 5,000. The license application and approval, and certifications for exports and imports involve a considerable amount of capital. The technical expertise for procuring the right quality of vitamins, minerals, and encapsulating agents is considerably high which required the hiring of suitable and well-qualified professionals. Owing to the increasing consumer preference for vitamin and mineral supplements is boosting the demand for supplements that are intended or targeted for a particular function including weight loss management, arthritis, sports athletic performance, etc. which required a pool of well-experienced research and development personnel to develop innovative supplements. Further, the vitamin and mineral supplements products are moderately differentiated among their peers based on the nutritional & health claims, the form of supplements, intended function, etc.
Hence, the threat of new entrants in the global vitamin and mineral supplements market is expected to be moderate-to-low.
Bargaining Power Of Suppliers
The raw material suppliers for vitamin and mineral supplements are the manufacturers of mineral salts, vitamins, fillers (including maltodextrin, lactase powder, cellulose powder, etc.), encapsulating agents, etc. The global suppliers in vitamin and mineral supplements are inundated with several players including tier-1, tier-2, and small-scale suppliers of varying quality that provide a competitive advantage for the manufacturers to choose between the wide range of options. As the raw materials pose moderate differentiation in character but are quite minimal, this reduces the manufacturers’ switching costs. Moreover, the market players enter into partnerships and agreements with raw materials producers and suppliers to ensure uninterrupted supply.
Hence, the bargaining power of suppliers in the global vitamin and mineral supplements market is expected to be low to moderate.
Threat Of Substitutes
The potential substitute for vitamin and mineral supplements is a well-balanced diet having whole foods that are rich in micronutrients including foods made of fruits, vegetables, meat, grains, dairy foods, nuts, herbs, and legumes that provide a wide range of vitamins and mineral including vitamin A, Vitamin C, Vitamin D, Vitamin E, Vitamin K, iron, zinc, folate, calcium, and others. However, these alternatives are not effective in reaching all ranges of populations and health conditions. For instance, the geriatric individual won’t be able to meet the daily dietary vitamin and mineral needs in the normal diet and require supplements for better health maintenance. Also, the increasing urbanization and hectic work schedule leaves little room for the essential vitamin and minerals in the regular diet. The above said factors result in a lower propensity to substitute supplements with whole foods.
Hence, the threat of substitutes in the global vitamin and mineral supplements market is expected to be low.
Bargaining Power Of Buyers
Several well-established vitamin and mineral supplements manufacturers in this perfect competition market result in a wider product breadth and availability which ultimately reduces the switching costs for the buyers. There are several buyers of vitamins and minerals in the global market including sportspersons, geriatric people, diabetic patients, pregnant women, obese/overweight individuals, etc. The buyer concentration is high compared to the overall industry concentration. Also, the brand awareness and identification of vitamin and mineral supplements are quite high with the established brands and low with the small and new manufacturers, resulting in moderate brand awareness among consumers. Thus, all these factors are expected to affect the bargaining power of the buyers significantly.
Hence, the bargaining power of buyers in the global vitamin and mineral supplements market is expected to be moderate.
Intensity Of Rivalry
The market is highly competitive, marked by competition among the market players in terms of product quality, form, and pricing. The established players are engaged in expanding their customer base through various initiatives including production facility expansion, acquisition, distribution channel expansion, etc., thus intensifying the competition among the manufacturers. For instance, Pharmavite, a dietary supplement manufacturer in the United States has planned to expand the production capacity in the region accommodating a manufacturing facility of around 200,00 square feet and 250,000 square feet. The facility is dedicated to manufacturing gummy supplements under the Nature Made and MegaFood brands, as the demand for gummy-based vitamin and mineral supplements is increasing. Also, as the industry is expected to grow at a CAGR of 6.57%, the manufacturers are focusing on research & development and strategic partnerships to strengthen their business in the market.
Hence, the intensity of rivalry in the Global vitamin and mineral supplements market is expected to be high.
