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Vitamins and Multivitamins

Vitamins and Multivitamins: Innovative Formulations and Clean Labels on the Rise

by Karen Morse | June 1, 2016

Millennials, Gen Xers and Boomers are all driving vitamin and multivitamin sales—but are they looking to buy the same products?

The state of the market for vitamins and multivitamins is strong and growing, primarily because more consumers realize they aren’t getting all of the vitamins and minerals they need for optimal health from their diets alone.

According to Jennifer Bradley Weinhardt, BS, MS, research and development specialist at Bluebonnet Nutrition Corporation in Texas, “Multivitamin and mineral formulas are a staple in the dietary supplement industry. It is no surprise that in 2014, 138.9 million adults took a vitamin/mineral supplement and 67 percent of these took a multivitamin according to the 2014 Gallup Study of the U.S. Market for Vitamins & Other Dietary Supplements.”

Marci Clow, MS, RDN, senior nutritionist at Rainbow Light in California, agreed. “My opinion is that many people who fall into the Baby Boomer or Generation X (Gen X) customer group are looking for products that could support maintaining their health and are willing to continue to invest in vitamins and multis as insurance.”

Potential for Growth

Rainbow Light expects that the market for vitamins and multivitamins will continue to grow. Clow pointed to data from Nutrition Business Journal (2015) that showed the vitamin category up by 5 percent, mineral sales up by 4.8 percent, and $39 billion total in consumer sales across the supplement category in 2015. “Additionally, sales are forecasted to grow at 5.8 percent per year through 2020,” she reported.

“One of the top trends for 2016 is that people are looking for clean and more natural products, along with transparent business and environmental practices,” Clow noted. “This has greatly impacted the market as there are many mainstream shoppers who are crossing over to the natural products industry to find brands that are on pulse with this trend.”

Rafael Avila, director of research and development at New York-based Nature’s Plus, stated that the trend toward certified organic is leading the way. “For a couple of years, consumers were lured in by the low cost and natural sounding appeal of non-GMO (genetically modified organism) products. Indeed, it is essential to avoid genetically modified ingredients, but consumers have become aware that non-GMO does not mean natural.”

Avila also noted that consumers are now turning to “certified organic” and the USDA (U.S. Department of Agriculture) organic logo on their supplements as a true indicator of the product’s quality.

Weinhardt added that clean label initiatives are one of the biggest contributors in the industry today, with the primary focus for clean label including: natural or naturally sourced, free of artificial colors, flavors and sweeteners, organic certified, allergen-free, vegetarian/vegan, kosher certified and whole food-based. “We at Bluebonnet have noticed the consumer demand for whole food-based products as well as non-GMO and organic certified ingredients has increased tremendously in the past few years,” she noted.

People are also beginning to take supplements at a much younger age, observed brand manger Michelle Baron of California-based Natrol. “This may suggest their interest in taking a more natural or holistic approach to managing their health before relying on drugs,” she added.

Delivery System Options

When it comes to choosing a delivery system for vitamins and multivitamins, consumers have a multitude of choices. In addition to common pill forms such as capsules, tablets and gelcaps, the market is flooded with other delivery system choices such as gummies, powders, chewables, softchews and drinks.

Lifestyle seems to have a lot to do with a consumer’s preferred delivery system. “Natrol understands the on-the-go lifestyle and has answered the need with our fast-dissolve technology that allows the consumer to take their supplement anywhere, anytime with no water needed,” said Baron. “This appeals to consumers who don’t always have water on hand, are not a fan of swallowing pills or want something tasty on their tongue.”

Nature’s Plus is a leader in liquid supplements, and Avila points out that this form has many benefits. “They are delicious and easy to swallow since there are no pills involved,” he stated, “and because all the nutrients are already dissolved in liquid, there’s no worry that insufficient digestion is inhibiting your body from absorbing all of the nutritional benefits from a supplement. With the over-60 age group population increasing exponentially, the demand for liquid whole food multivitamin products is skyrocketing.”

And its not just liquids that are appealing to Boomers. “You’d probably be surprised to know that the main consumer of gummies is someone over 55 years old,” Clow shared. “In fact, the sales of adult gummies have surpassed those for children.”

Clow pointed to National Marketing Institute (NMI) data that still listed tablets and capsules as the preferred choice for all demographics combined. With supplement use in millennials on the rise, that statistic could change. “Millennials appear to indicate that pills/tablets/capsules are for ‘old’ people and prefer to take their supplements via other deliver forms such as liquids, drinks, mints, gels and gummies.”

Retailer Shannan Daetwiler, owner of Simply Nutrition in Lincoln, PA, added that while pill formulations such as softgels and capsules tend to be preferred, if a chewable is available in the particular vitamin supplement a consumer is looking to purchase, there is a tendency to go with that option. Retailer Tim Hitt, supplement manager with Fiesta Nutrition Center in Monroe, LA agreed. “Liquids and sublinguals are wildly popular in the B12 and D categories,” he said.

The Customer Base

In addition to bridging the nutritional gaps in our diets, Weinhardt explained that different life stages are a driver for consumers seeking out more of a certain micronutrient.

“Women continue to dominate the category as they tend to invest more proactively in their health and take a variety of supplements to meet a range of needs,” said Baron. “They are also the primary shopper for their households and are therefore a key decision maker in the products their family uses. However, recent research suggests more men are shopping within the category.”

“The growing elderly population is a key consumer group for dietary supplements and vitamins,” stated Derek J. Archambault, director of marketing at FoodScience Corporation of Vermont. The percent of supplement use in Boomers increased from 69 percent in 2009 to 75 percent in 2013 and in “Matures,” the increase went from 75-83 percent added Clow. This group of consumers uses dietary supplements and vitamins for preventative and chronic diseases, to delay aging and for support of overall well-being, Archambault said.

People are also reaching for vitamins and multis as a much earlier age to support a more natural healthy aging process. Clow noted that according to a 2013 NMI report, supplement use amongst Millennials grew from 50 percent in 2009 to 68 percent in 2013. Similarly, 70 percent of Gen Xers used supplements in 2013, while only 55 percent reported using them in 2009.

Archambault agreed. “Millenials are in general more open to alternative health care and are more willing to educate themselves about these types of products,” he stated.

“There’s no doubt today’s customer is more educated,” said retailer Hitt. “The majority of them know what they are basically looking for but need some fine tuning from an educated staff.”

New Products

FoodScience of Vermont recently launched five new liposomal products, including Liposomal C for enhanced immunity and Liposomal D for bone health. Liposomes are described as an innovative delivery system that allows for a much higher nutrient absorption rate. As they pass through the digestive system, they are protected from the harsh conditions due to their encapsulation, allowing the nutrients to be absorbed directly to the bloodstream.

At Rainbow Light, Clow said, the company recently introduced three multivitamin gummy formulations—one for men, one for women, and one for teens. “The age and gender specific nutrient formulations focus on energizing B vitamins to promote natural energy production, mental focus and maintain a healthy stress response,” she shared. The gummies come in convenient grab-and-go packets.

Bluebonnet launched Super Earth SingleDaily Multiple in both iron and iron-free formulas. “Unlike ordinary multiples,” explained Weinhardt, “whole food based multiples like Bluebonnet’s Super Earth SingleDaily Multiple provides a cornucopia of plant super foods with all the essential vitamins, minerals and nutrients necessary for complete and balanced nutrition.”

In May, Natrol launched a new skin, hair, and nails supplement including lutein and biotin. “New clinical research has found that the daily intake of 10 mg of lutein will improve skin hydration and elasticity,” revealed Baron, adding that biotin supports healthy hair and strong nails. “To fully round out the quality and value of this product,” she continued, “vitamins A, C, D, B12, B6, copper and zinc, alpha-lipoic acid and horsetail have been added to help improve overall health of skin, hair and nails.”

The newest from Nature’s Plus is the Source of Life Certified Organic Multi line, which carries the USDA organic logo. The line includes a women’s multi, a women’s once daily, a men’s multi, a men’s once daily and a prenatal multi.

Sales Suggestions

The vitamins and multivitamins category can be confusing for consumers, and marketing can be challenging because retailers are limited to what they can say about products. According to Clow, some of the challenges can be eliminated by using merchandising displays with samples and education collateral as well as demos and sampling, store-level education programs, and promotional support. Labels designed to accurately describe product benefits can also help the consumer with the decision-making process, she added.

Shari Allen, vice president of sales at Nature’s Plus, noted that retailers need to call attention to the shelf and to the particular item they want to feature. She suggested taking a current product of interest in the general market such as magnesium and deciding what brand will be featured.

“Use a large quantity to convey that this is a ‘best seller’ and high volume item, and signage like shelf talkers, danglers, overhead mobile and customized information,” she explained. “Excitement sells.”

But more important than the merchandising and promotional material is the expertise of the sales representatives in the field. “They can assess the challenges of each individual retailer and arrange for customized merchandising solutions and conduct in-store demos and educational training for customers,” Allen suggested.

Clow added that with both positive and negative studies regularly emerging in the media, even the savviest consumer may have trouble knowing what to believe. “While a retailer may feel enthusiastic about a particular supplement, it is essential to remember when selling supplements, eagerness must be limited to what you can say under the law,” she noted. “The verbal interface at the point of sale is an important exchange because it helps guide consumers to the supplement products that are well suited for their individual needs. It is essential that discussions of these products is accurate and legal.” For more information, she suggested that retailers view Roadmap for Retailers on the Council for Responsible Nutrition’s website.

One of the keys to becoming a true retail partner is building strong relationships, according to Weinhardt. “As a family-run business, our strength is that we understand what many of our health food store partners are going through since we often experience similar challenges. Shared principals, passion, mission and loyalty between us and our retails partners is a big part of our success. But it’s our customer-centric culture—placing the specialty retailer’s business needs front and center—which has allowed our business to not only grow but flourish.” VR

For More Information:
Bluebonnet Nutrition Corporation, (281) 240-3332
FoodScience Corporation, (800) 874-9444
Natrol, LLC, (818) 739-6000
Nature’s Plus, (631) 293-0030
Rainbow Light, (800) 635-1233

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