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 led to revenue growth over the five-year period, albeit at a slow rate. Industry revenue is expected to grow at an annualised 0.4% over the five years through 2017-18, to $475.0 million. This includes a projected increase of 1.6% increase in 2017-18. Strong sales growth over the past five years from competing pure-play online retailers, supermarkets and pharmacies has constrained industry revenue growth. Industry operators have been forced to reduce prices to retain customers over the five-year more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

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 Investment Chapter

    The Vitamin and Supplement Stores industry exhibits a low level of capital intensity. The industry is highly dependent on labour to conduct tasks such as sales, store maintenance, stocking and sourcing industry products and providing advice to consumers regarding vitamins and supplements. Some vitamin and supplements stores employ dietitians, nutritionists and other health-related professionals to provide advisory and consultative services to consumers. In 2017-18, for every dollar spent on wages, the industry invests $0.10 on capital investment. Over the past five years, capital intensity has been mostly stable as the industry has remained reliant on labour. Wag...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

  • Wide product range
  • 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
  • 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
  • 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
  • Health foods
  • Chart: Vitamin and Supplement Stores Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 31 to 50
  • Consumers aged 51 to 70
  • Consumers aged 19 to 30
  • Consumers aged 71 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
  • Depreciation
  • Rent
  • Other
  • 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
    Govita Distributors Ltd, Grubie Pty Ltd, Healthy Life Holdings Pty Ltd,
  • Table: Govita Distributors Ltd - financial performance
  • Table: Grubie Pty 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
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • 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?

    The Vitamin and Supplement Stores market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
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    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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