GHQ NONFOODS FOR PROFIT
As vitamins and supplements increase in popularity among consumers, grocers must
evaluate the importance of stocking a strong in-store variety. BY ARIELLE SIDRANE
SHOPPERS ARE GOING WILD FOR WELLNESS. Tips and tricks for improving health and staying in the best physical state pos- sible are plastered all over social media, blogs, magazines and more, consistently prodding consumers with reminders to take better care of themselves.
As a result, vitamins and supplements are a large and growing market category. According to the Private Label Manufacturer’s Association
(PLMA) 2016 Private Label Yearbook, store brand vitamins gained 11. 5
percent in unit share over the previous year. The category was in the top
five for private label category share unit gains as well.
When it comes to grocery, private label vitamins and minerals are
an important part of the section. In the quarter ending March 25, 2017,
private label mineral supplements occupied 23.1 percent of the unit
share in the supermarket channel. Unit share for other relevant segments in the same time period includes 8. 6 percent for nutritional supplements, 13. 8 percent for vitamin B complex, 17. 7 percent for children’s
chewable vitamins, 15.2 percent for multi vitamins and 21.2 percent for
the remaining vitamins.
This information alone should be enough to make any retailer take
pause and realize that shoppers certainly are willing to purchase their
vitamins and supplements in the grocery aisles, say industry observers.
One such retailer that is taking notice is Stillwater, Minn.-based
Cub Foods. The chain opened its Oakdale, Minn.-store in the spring of
2016 with a renewed emphasis on upscale health and beauty offerings.
The store features a uniquely circular shaped vitamin and supplement
section. It also features a drive-up pharmacy. These differentiators in
making the store a true one-stop shopping experience can be the factor
driving consumers away from the store across the street and through
San Francisco-based business consulting firm Grand View Research
reported last month that the North American dietary supplements market is expected to reach $68.22 billion by 2025. As more and more consumers begin to put their health first, use of vitamins and supplements
is becoming increasingly prevalent and manufacturers are responding
with an array of new options.
For retailers, the category is a safe one, as it produces consistent sales.
In the recent 26 week period, the category’s sales have grown 3 percent
over the same period last year, according to Tim Toll, executive vice
president, chief customer officer and general manager international
at Pharmavite, based in Northridge, Calif. He adds that in the last 52
weeks, national brands represent 81 percent of the category growth and
private label represents 19 percent.
Toll notes that the most popular items at the moment include probiotics, vitamin C, melatonin, turmeric, vitamin D, women’s non-senior
multi, hair/skin/nail multi, vitamin B- 12 and collagen.
“These growth segments combined represent 85 percent of the vita-
min mineral supplements category’s growth dollars,” Toll says. “The
need states that are contributing the majority of growth to the cate-
gory are led by immunity, which represents 36 percent of the category
growth dollars, followed by digestive, sleep, beauty/anti-aging and chil-
dren’s health. These five need states combined represent 86 percent of
the category growth dollars.”
The convenience of gummy vitamins and supplements is popular
among consumers as well. Toll says, “the gummy delivery form con-
tinues to generate a strong growth contribution for the category in
the current state and its sales trend trajectory is projected to remain
strongly upward in the future.” He adds that the gummy category cur-
rently accounts for 49 percent of the growth of the overall category over
the last year.
Pharmavite brand Nature Made released Adult Gummies for Him
Plus Omega- 3 this spring, a combination of 11 nutrients designed specifically for men. Among them is vitamin D for bone and muscle health,
vitamin A and zinc for immune health and vitamin B12 for energy
metabolism, according to company officials.
The number of available supplements today may seem endless to the