Vitamin, Nutritional Supplement & Other Health-Related Product Manufacturing
Companies in this industry develop and manufacture vitamins, nutritional supplements, herbal remedies, and other natural health products. Major companies include Amway, Herbalife Nutrition, Nature's Bounty, and USANA (all based in the US), as well as Arkopharma (France), Nelsons (UK), Tong Ren Tang (China), and divisions of companies such as Pfizer and Procter & Gamble (both based in the US).
The global market size of dietary supplements is expected to reach about $310 billion by 2028, according to Facts and Factors. The Asia Pacific is expected to dominate the global dietary supplement market as the demand for supplements has expanded in recent years in countries such as China, India, and Japan due to a large elderly population.
The US medicinal and botanical manufacturing industry includes about 500 establishments with combined annual revenue of about $11 billion.
Competitive Landscape
Demand for vitamins and nutritional supplements is driven by demographics, acceptance of natural medicines, and the desire to maintain long-term health. The profitability of individual companies depends on the ability to develop superior products. Large companies benefit from economies of scale of manufacturing, research, and marketing. Small companies can compete effectively by specializing in niche nutritional products, or through advanced product development efforts. The US industry is concentrated: the top 50 companies account for over 75% of revenue.
Exports account for about 20% of US production. Major export markets for US vitamins include Canada, Mexico, the Netherlands, China, and France. Imports of vitamins and nutritionals to the US, partly from foreign manufacturing plants of US companies, and partly from foreign drug companies, account for about 55% of the US market. Among the leading sources of vitamin and nutritional supplement imports to the US are Ireland, China, the UK, Switzerland, and Belgium.
While the industry is less dependent on scientific discovery than its sister pharmaceutical manufacturing and biotechnology industries, supplement makers use research and development processes to gain a competitive advantage in areas including safety, purity, potency, efficacy, and innovation.
Products, Operations & Technology
Medicines made from botanical substances, as well as from organic and inorganic chemicals, are included in the industry. Vitamins are used to maintain
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