Vitamins and Dietary Supplements Industry Procurement Intelligence Report: Rising Popularity of Plant-based Vitamins and Dietary Supplements to Propel the Growth of Global Industry | Grand View Research, Inc.

SAN FRANCISCO, March 1, 2022 /PRNewswire/ -- The global vitamin and dietary supplements market is expected to exhibit a CAGR of 4.9% from 2020 to 2025 with capsules and tablets being the most consumable dosage form of supplements. Powder is expected to emerge as the fastest-growing dosage form from 2020 to 2025 with a projected CAGR of 6.4% from 2020 to 2025.

Multivitamins have been traditionally used as supplements along with diet to improve nutritional qualities and lower health problems, like osteoporosis and arthritis. With the onset of COVID, there has been a public notion that vitamins could reduce the severity of symptoms (although it is not a cure) for COVID. Manufacturers of multivitamins are capitalizing on this and the demand for multivitamins has increased since 2020. Overall, the vitamins and dietary supplements market is expected to expand at a CAGR of 4.9% from 2020 to 2025. However, as time progresses, these myths have been debunked by several studies. For example, NCBI has published articles stating that CBD-based supplements are not a cure for coronavirus or any other maladies caused due to the infection of coronavirus.

One of the recent trends witnessed in the market is the entrance of vitamin and dietary supplement manufacturers into the food and snacks business. For example, Chinese dietary supplement provider BY-HEALTH is investing in product diversity and is segregating its products between food and snacks with "light" functionalities and supplements with "strong" functionalities. Protein bars have become the choice of snack for such dietary supplement suppliers. The company, by the end of 2020, has received filing approvals for 112 health foods and registration approvals for over 140 health foods.

Vitamins and Dietary Supplements Industry Procurement Intelligence report, by Grand View Research, deep dives into the following insights from the industry:

• The global vitamin and dietary supplements market is driven by the rising popularity of plant-based vitamins and dietary supplements. However, counterfeiting of products remains an area of challenge – North America is currently the highest volume of consumers for vitamins and dietary supplements, occupying ~40% share in the global market. The consumption of vitamins and dietary supplements in the Asian region is poised to grow at the highest rate between 2020 and 2025.
• The global multivitamins market is highly fragmented. The top 5 players barely make up 13% of overall share. Amway, the global leader has only 4% share in the market – The multivitamins market is highly fragmented with several small-scale players operating at regional levels. The top 5 players barely make up 13% share, and the top 10 players collectively occupy ~21% share in the overall market. The largest player, Amway, occupied only a meager 4% share as of 2020.
• Raw materials are the largest cost head for manufacturers. In addition to raw material costs, sizable investments are made in marketing channels for product promotions – The major cost component for a manufacturer is the cost of raw materials. Since several small and medium-scale players invest very little in automation, the cost of labor and personnel is quite high. In fact, raw material cost (~50%) and labor costs (~17%) are two of the largest cost heads.
• While North America is the largest market for vitamins and dietary supplements, Asian countries like China and Singapore are the least cost countries for manufacturing - While North America has the largest consumer base for vitamins and dietary supplements, Asian counties like China, Singapore, and India are still the most cost-effective countries for manufacturing. Most of the manufacturing in these countries is done through contract manufacturers. However, the imports of multivitamins have increased recently and have overtaken the export quantity in China.

Vitamins and Dietary Supplements Market – Cost Intelligence Highlights:

Grand View Research has identified the following key cost components for availing vitamins and dietary supplements manufacturing:

• Raw Materials
• Cost of Machines and Accessories
• Labor
• Cost of Plant and Property /Cost of Outsourcing
• Depreciation
• Tax
• R&D and Other Costs
• Profits

Vitamins and Dietary Supplements Industry – Supplier Intelligence – Capability based ranking & selection criteria with weightage:

Operational Capabilities –

• Years in Service (15%)
• Geographical Service Presence (30%)
• Employee Strength (5%)
• Revenue Generated (10%)
• Key Clients (10%)
• Certifications/Marketing (30%)

Functional Capabilities –

• By Form (45%)
• Capsules
• Tablets
• Liquid
• Powder
• Gel
• Others
• By manufacturer type (35%)
• In-house
• Through CDMOs
• Other services offered by manufacturer (20%)

List of Key Suppliers in the Vitamins and Dietary Supplements industry:

• Amway
• Nature's Bounty
• KT&G
• Bayer
• ByHealth
• Herbalife Nutrition
• GSK
• Infinitus
• Abbott

Addon Services offered by Grand View Research:

• Should Cost Analysis – In the vitamins and dietary supplements procurement intelligence study, we have estimated and forecasted pricing for the key cost components. Raw materials are the largest cost component of vitamin and dietary supplements manufacturing cost. It accounted for more than 50% of the share in the overall cost of manufacturing. Raw materials include the combination of Vitamin A to Vitamin K. Among these, Vitamin A and Beta Carotene hold the major cost share of 9% and 7% respectively. The price of Vitamin A is expected to fluctuate during the period of forecast, continuing its trend from 2015. Whereas, Beta Carotene price is expected to remain stable in the next five years.
• Rate Benchmarking – The dosage form is one of the most important aspects while analyzing the rate benchmarking of multivitamins and supplements. In our research, we have analyzed the rates of vitamin A in three major types of the dosage form; solid (Tablets and capsules), liquids and powders. By using rate benchmarking analysis, we found that solid forms of multivitamins are ~50% more cost-effective than liquid and powders. Solid forms also have longer shelf life than the other two dosage forms. Therefore, most of the multivitamin and supplements manufacturers allotted more than 60% of the overall production capacity to produce multivitamin tablets and capsules. Only 20% of the production line is used for liquid and powder supplements production.
• Salary Benchmarking – Labor is one of the key cost components incurred while offering a product or service. Understanding the pricing structure of salary is important for organizations in selecting the appropriate supplier and to build a good negotiation strategy. It is also an important factor in determining whether the category under focus should be outsourced or built in-house.
• Supplier Newsletter – It is cumbersome for any organization to continuously track the latest developments in their supplier landscape. Our newsletter service helps them remain updated, to avoid any supply chain disruption which they may face and keep a track of the latest innovations from the suppliers. Outsourcing such activities help clients focus on their core offerings.

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain which helps in efficient procurement decisions.

Our services include (not limited to):

• Market Intelligence involving – market size and forecast, growth factors, and driving trends
• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions

Browse through Grand View Research's collection of procurement intelligence studies:

• Contract Research Organization Market Procurement Intelligence - The global CRO market is expected to witness sustainable growth (CAGR of 6.4%) from 2020 to 2025 due to the increasing global need for drug development and investments by pharma giants in R&D, owing to the patent expiration of blockbuster drugs.
• Sugar Processing Market Procurement Intelligence - The global sugar processing market was valued at 166 million MT in 2020 and it is expected to grow at a CAGR of ~2% from 2021 to 2027 to cross 200 million MT in terms of volume in 2027. The growth of the market is majorly driven by the high demand generated from the food and beverages industry.

About Grand View Research

Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.

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