Nutritional Supplements are a Still Booming Sales Segment
One very bright sector in the food products segment is nutritional supplements. Research is spawning new, customized and much desired products in the consumers market.
These are the main categories of supplements:
- Vitamin and mineral supplements
- Bodybuilding supplements
- Sports recovery supplements
- Toxicity and recovery supplements
- Herbal/homeopathic supplements
Growth in vitamins and dietary supplements was tempered marginally from the relatively high growth in previous years (3% in 2012), to 2% in 2013.
The ageing of the population in Canada has been one of the key drivers of growth in this category for some years. Between 2007 and 2012, the percentage of Canadians aged over 65 increased from 14% to 15% of the total population.
Canadians are increasingly resorting to vitamins and dietary supplements for benefits including strengthening the immune system, adding supplements which are not easily processed due to ageing, and reducing health risks by lowing cholesterol. From Euromonitor’s report: Vitamins and Dietary Supplements in Canada, published May, 2014.
Exciting new products are coming out continuously and that should spawn a new generation of POP design, primary packaging, and in-store and ecommerce promotion strategies.
One of the Brightest Markets Today
Whether you believe in supplements or not, the market for them is strong and should remain so, even if particular supplements fall from favour.
If you’re a manufacturer or small upstart brand, your Point of Purchase promotional expenditures should be fruitful. Consumers are making decisions instore, so being in the store somewhere, gets you at the right place and time. Those marketing beauty products such as shampoos, soaps, and skin care products would be wise to keep up on supplement marketer’s strategy.
The challenge many supplement manufacturers have are:
1) getting shelf placement and distribution and 2) consumer awareness of their products/brand. Internet marketing is powerful yet very tough in the midst of strong competition on the web and social media space. Retail packaging is a space that deserves a close look.
In viewing many nutritional products at retail locations, you get the impression that packaging design takes a back seat and that POP promotion is not often thought of.
But we know from the survey material we view on Popon.net, here on our packaging tips blog, and other packaging sites that consumers are making their purchase decisions right in the aisles. Manufacturers are losing out on sales if they don’t optimize their packaging and take advantage of impulse buying habits. Smart marketers are putting their promotion dollars as close to the consumer as possible.
And packaging can be a significant value-added element in your marketing and value proposition. The lack of POP promotion done in aisles now is alarming. Win the battle at the point of purchase decision and all of your competitor’s digital, print and TV advertising goes to waste.
And let’s not forget that experimenting with packaging design, copy, and promotional strategies can create a tremendous amount of data on consumer preference and help you optimize your own sales efforts. Packaging is a vital sales tool.
They’re Making Buying Decisions Right at the Shelf
How many time have you shopped and did not buy the product you had in mind, and instead bought the next one on the shelf? Yes, it happens a lot, because we forget the manufacturer’s unique value proposition and buy the other cheaper product because we felt it gave the same benefits for less.
Nutritional Supplements in the U.S., 6th Edition is a recent report on the state of supplement sales in the US market. It offers extensive sales data on the U.S. dietary supplement market. It includes an historical (2009–2013) and forecasted (2014–2018) retail sales data.
The report suggests the US nutritional supplement market will continue to grow at a strong 6% or higher rate through 2018. The aging US population, rising interest in anti-aging and personal health, and a growing rate of personalization for all services and products appear to be behind the growing demand.
If you are investing a lot of money in the production and marketing of a supplement product, you should take a look at the executive summary of the report. The report itself is $3750, but consider it an investment in the future of any supplement product you might be marketing in the future.
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