Gregory Stephens, RD11.01.11
With continuing concern over the economic forecast, specifically fueled by the situation in the EU and Asia, it’s surprising that dietary supplement sales seem to be holding their own. News stories and retail sales data support continued modest increases in sales and usage. Despite the troubled economy, supplement sales grew 6% in 2010. As impressive, they rose 10% in the food/drug/mass market, according to Nutrition Business Journal. During this same period, sales in the healthcare practitioner channel showed growth near 15%, highlighting the strength and importance of physician recommendations.
Regardless of the effects of the economy on disposable income and the seemingly endless negative media attention on the industry, trust and use of supplements are steady. In fact, according to a 2009 Council for Responsible Nutrition (CRN)-sponsored survey, more than half of dietary supplement users indicated that the economy has not affected their use of supplements. Although, some admit they are taking less supplements, and many are looking for greater value in their purchases and less costly alternatives. The result is more competitive shopping for trusted brands and switching to less costly private label or store brands. It is noteworthy that most consumers report that when the economy improves they will likely stay with the lower cost alternatives.
Why Supplements Now?
In these tough economic times, why are more consumers using supplements and existing users sticking to their health plan? The typical answer is many have lost their jobs and hence their health insurance. As a result, consumers are taking preventative action to avoid illness. And when they do get ill, many are looking toward supplements as a lower cost alternative to Rx or OTC drugs. There is certainly research to support this among some consumer segments; however, I believe we are oversimplifying a broader set of dynamics.
From a business perspective, it is important to understand these dynamics before investing in new product launches or funding programs for existing products. Even though well over half of the U.S. adult population reports using dietary supplements—a number that market researchers tell us is increasing annually—speculation of the long-term effect of the economy on supplement sales is not unfounded.
Key Demographics
So, if it’s not the unemployed, uninsured consumers who are driving sales, who is and what dynamics are in play? Let’s look at a key demographic shift and several changes in consumer and healthcare professional attitudes and behaviors.
A broad base of consumers is far more educated on nutritional health and is taking responsibility for healthcare decisions for themselves and their families. An obvious segment is the Baby Boomers, but let’s not forget the younger population. Research shows that Gen X and Millennials are very interested in their health and are knowledgeable of the benefits of supplements. Their needs, however, differ from the older population in many ways. For example, from a cognitive standpoint many Boomers take supplements to delay or reverse memory decline, whereas younger users are concerned about mental focus and concentration.
Boomers themselves represent a significant demographic fueling interest in supplements. This is a huge population with numerous health and wellness issues. They are educated, financially stable and differ from their parents in that they expect to remain healthy and physically active throughout their lives. As physicians often comment, “When Boomers feel pains, muscle pulls or lack of energy they won’t accept the prognosis that this is to be expected with age. They want and expect a solution and most are open to the benefits of supplements.”
The Physician Factor
These trends are putting additional pressures on physicians and other healthcare professionals, most of whom were given little nutritional education beyond biochemistry. In the 1990s, I conducted considerable market research with physicians on new medical foods and dietary supplements. At that time, we found little physician support, largely due to lack of training in the science of nutrition. Medical school curriculums just do not have time for nutritional education, beyond the nominal elective.
A few physicians indicated they relied on registered dietitians for advice on supplements. However, as comprehensive as a dietitian’s education is at the cellular level of metabolism, most did not see value in supplementation. During the era of increasing state licensure for nutritional counseling, this industry did not seem to be embracing dietitians either.
With this as background, all we realistically hoped for when detailing traditional physicians was educated indifference—i.e., assuring patients that the supplements they were taking were doing no harm. Fortunately, due to emerging scientific research and education programs by the dietary supplement industry this attitude has changed quite dramatically.
Healthcare professionals have become more knowledgeable on the importance of nutritional supplements and more supportive of their use. While this endorsement is often limited to those supplements with unquestionable safety and efficacy like omega 3s, probiotics, vitamins and minerals, with continued investment in clinical research this list will continue to grow.
Safety & Efficacy Are Today’s Key Product Attributes
Two other important product attributes supporting growth in the supplement market are safety and efficacy. In fact, consumers report safety as the #1 product attribute they look for in a supplement. The good news is, according to CRN’s survey, 84% of respondents remain confident in the safety, quality and effectiveness of dietary supplements, representing the highest rating in confidence in the 10 years the survey has been conducted. The perception of safety is critical to initiate trial in new users and to minimize alienation among current users. In the short-term, continued media messaging of implementation of Good Manufacturing Practices and the Adverse Event Reporting system are examples of important industry activities helping ensure consumer confidence.
As for substantiation, products supported by strong science are the ones showing continued growth among mainstream users. “The story” alone is not adequately compelling to this audience. Products should be “on trend” but not “trendy.” For example, products such as some of the superfruits that reportedly provide “super” health benefits have not received the investment in human clinical trials to support their claims. On the other hand, omega 3s, probiotics and vitamins D and K, to name a few, will continue their growth in the mass market due to increasing research supporting their benefits.
Regardless of the effects of the economy on disposable income and the seemingly endless negative media attention on the industry, trust and use of supplements are steady. In fact, according to a 2009 Council for Responsible Nutrition (CRN)-sponsored survey, more than half of dietary supplement users indicated that the economy has not affected their use of supplements. Although, some admit they are taking less supplements, and many are looking for greater value in their purchases and less costly alternatives. The result is more competitive shopping for trusted brands and switching to less costly private label or store brands. It is noteworthy that most consumers report that when the economy improves they will likely stay with the lower cost alternatives.
Why Supplements Now?
In these tough economic times, why are more consumers using supplements and existing users sticking to their health plan? The typical answer is many have lost their jobs and hence their health insurance. As a result, consumers are taking preventative action to avoid illness. And when they do get ill, many are looking toward supplements as a lower cost alternative to Rx or OTC drugs. There is certainly research to support this among some consumer segments; however, I believe we are oversimplifying a broader set of dynamics.
From a business perspective, it is important to understand these dynamics before investing in new product launches or funding programs for existing products. Even though well over half of the U.S. adult population reports using dietary supplements—a number that market researchers tell us is increasing annually—speculation of the long-term effect of the economy on supplement sales is not unfounded.
Key Demographics
So, if it’s not the unemployed, uninsured consumers who are driving sales, who is and what dynamics are in play? Let’s look at a key demographic shift and several changes in consumer and healthcare professional attitudes and behaviors.
A broad base of consumers is far more educated on nutritional health and is taking responsibility for healthcare decisions for themselves and their families. An obvious segment is the Baby Boomers, but let’s not forget the younger population. Research shows that Gen X and Millennials are very interested in their health and are knowledgeable of the benefits of supplements. Their needs, however, differ from the older population in many ways. For example, from a cognitive standpoint many Boomers take supplements to delay or reverse memory decline, whereas younger users are concerned about mental focus and concentration.
Boomers themselves represent a significant demographic fueling interest in supplements. This is a huge population with numerous health and wellness issues. They are educated, financially stable and differ from their parents in that they expect to remain healthy and physically active throughout their lives. As physicians often comment, “When Boomers feel pains, muscle pulls or lack of energy they won’t accept the prognosis that this is to be expected with age. They want and expect a solution and most are open to the benefits of supplements.”
The Physician Factor
These trends are putting additional pressures on physicians and other healthcare professionals, most of whom were given little nutritional education beyond biochemistry. In the 1990s, I conducted considerable market research with physicians on new medical foods and dietary supplements. At that time, we found little physician support, largely due to lack of training in the science of nutrition. Medical school curriculums just do not have time for nutritional education, beyond the nominal elective.
A few physicians indicated they relied on registered dietitians for advice on supplements. However, as comprehensive as a dietitian’s education is at the cellular level of metabolism, most did not see value in supplementation. During the era of increasing state licensure for nutritional counseling, this industry did not seem to be embracing dietitians either.
With this as background, all we realistically hoped for when detailing traditional physicians was educated indifference—i.e., assuring patients that the supplements they were taking were doing no harm. Fortunately, due to emerging scientific research and education programs by the dietary supplement industry this attitude has changed quite dramatically.
Healthcare professionals have become more knowledgeable on the importance of nutritional supplements and more supportive of their use. While this endorsement is often limited to those supplements with unquestionable safety and efficacy like omega 3s, probiotics, vitamins and minerals, with continued investment in clinical research this list will continue to grow.
Safety & Efficacy Are Today’s Key Product Attributes
Two other important product attributes supporting growth in the supplement market are safety and efficacy. In fact, consumers report safety as the #1 product attribute they look for in a supplement. The good news is, according to CRN’s survey, 84% of respondents remain confident in the safety, quality and effectiveness of dietary supplements, representing the highest rating in confidence in the 10 years the survey has been conducted. The perception of safety is critical to initiate trial in new users and to minimize alienation among current users. In the short-term, continued media messaging of implementation of Good Manufacturing Practices and the Adverse Event Reporting system are examples of important industry activities helping ensure consumer confidence.
As for substantiation, products supported by strong science are the ones showing continued growth among mainstream users. “The story” alone is not adequately compelling to this audience. Products should be “on trend” but not “trendy.” For example, products such as some of the superfruits that reportedly provide “super” health benefits have not received the investment in human clinical trials to support their claims. On the other hand, omega 3s, probiotics and vitamins D and K, to name a few, will continue their growth in the mass market due to increasing research supporting their benefits.
