Bitter pill: Strong external competition is constraining industry revenue growth

The Vitamin and Supplement Stores industry has performed unevenly over the past five years. Demand for vitamins and supplements has been growing, supported by rising health consciousness among consumers and increased gym memberships. These trends have driven industry growth with revenue expected to grow at an annualised 3.4% over the five years through 2018-19, to $530.0 million. This includes an expected increase of 1.3% in the current year.However, strong sales growth over the past five years from competing pure-play online retailers, pharmacies and supermarkets has constrained industry revenue growth. Industry operators have been forced to reduce prices to retain customers over the five-year period...read more.

Industry Statistics & Market Size
Revenue
$530m
Annual Growth 14-19
3.4%
Forecast Growth 19-24
Profit
Employment
1,854
Businesses
287

Industry Threats & Opportunities

  • Rising health consciousness has supported growing demand for vitamins and supplements
  • Sports nutrition operators have thrived by targeting a niche market over the past five years
  • The industry will likely adjust to external competition from supermarkets and online retailers
  • Industry Report - Industry Locations Chapter

    The spread of vitamin and supplement store locations largely follows the distribution of population across Australia. This is because high pedestrian store traffic is one of the most important elements of store performance, with industry operators actively competing to secure prime locations for their stores. As a result, the majority of stores are located in most populous states: New South Wales, Victoria and Queensland. Together, these three states are estimated to account for just roughly three-quarters of the industry’s total establishments. Successful stores are typically located near gyms and fitness centres in large population centres. Shopping centres are also a popular location due to high pedestrian traffic. Oth...purchase to read more.

    Additional Insights for the Vitamin and Supplement Stores Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Vitamin and Supplement Stores Industry are

  • Provision of a related range of goods/services (‘one stop shop’)
  • Highly trained workforce
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Health consciousness and Real household discretionary income in the Vitamin and Supplement Stores industry impact industry performance..

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    What's in this report

    What is the Vitamin and Supplement Stores Industry?

    The industry includes bricks-and-mortar stores that primarily sell vitamins and supplements, along with related health foods. Online sales are included if the company also operates a bricks-and-mortar store. Pure-play online vitamin and supplement retailers are not included in the industry.

    Industry Products
  • Digestive health and other health foods
  • Health and wellbeing products
  • Sports and active nutrition products
  • Industry Activities
  • Selling vitamins and minerals
  • Selling nutritional supplements
  • Selling sports supplements
  • Selling health foods
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Health consciousness
  • Real household discretionary income
  • Demand from gyms and fitness centres
  • Demand from online shopping

  • Current Performance
  • Intensifying competitive pressures
  • Falling profitability and players
  • Chart: Revenue Growth

  • Industry Outlook
  • Consumer trends and demand
  • Competition
  • Regulation
  • Table: Vitamin and Supplement Stores Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Vitamin and Supplement Stores Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Computer and Software Retailing
  • Pharmaceutical Product Manufacturing
  • Pharmaceuticals Wholesaling
  • Tea, Coffee and Other Food Manufacturing

  • Products & Services
  • Health and wellbeing products
  • Sports and active nutrition products
  • Digestive health and other health foods
  • Chart: Vitamin and Supplement Stores Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 35 to 64
  • Consumers aged 15 to 34
  • Consumers aged 65 and over
  • Chart: Major Market Segmentation for the Vitamin and Supplement Stores Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Rent
  • Depreciation and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Vitamin and Supplement Stores

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Vitamin and Supplement Stores Industry

  • Industry Globalization
    Grubie Pty Ltd, Govita Distributors Ltd, Healthy Life Holdings Pty Ltd,
  • Table: Grubie Pty Ltd - financial performance
  • Table: Govita Distributors Ltd - financial performance
  • Table: Healthy Life Holdings Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Vitamin and Supplement Stores Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Vitamin and Supplement Stores Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Franchisee
  • The party that obtains a franchise license from the franchisor giving them permission to operate under a franchise brand name.
  • Franchisor
  • The entity that allows the franchisee to run a location of their business for an agreed-upon fee.
  • Pure-Play Online Retailers
  • Online retailers that trade purely online, without any physical retail stores.
  • Sports Supplements
  • Sports supplements include a range of liquid and powder-based supplements for use during sports and training for the purpose of muscle gain or weight loss.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Vitamin and Supplement Stores market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Vitamin and Supplement Stores:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Vitamin and Supplement Stores market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Vitamin and Supplement Stores, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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