Something for everyone

Consumers take vitamins and supplements as a proactive measure to maintain health and avoid illness, but that’s not the only reason. Others seek specific outcomes such as more beautiful hair or skin, enhanced energy or improved sleep quality.

Whatever their goals, consumers are supporting a healthy vitamin and supplement market, according to global market research firm Mintel in its September 2015 report, “Vitamins, Minerals and Supplements — US.”

Case in point: Total vitamin sales reached $6.6 billion — 28 percent of which were store brand sales — during the 52-week period ending Nov. 29, 2015, according to Chicago-based market research firm IRI. That total represents a 4.4 percent increase over prior-year sales.

Driving growth in the vitamin and supplement segment are alternative formats such as liquids and gummies, popular supplements such as melatonin and probiotics, and an aging population that takes preventative measures to avoid illness, Mintel reports.

Smooth-running systems

Retailers are moving confidently into the vitamin and supplement segment because they have been building consumer trust in their store brands for years now, observes Tim Swoboda, vice president, sales and marketing for Magno-Humphries Labs, Inc., Tigard, Ore.

“Trust is so important” in this category, Swoboda says. “As more and more people trust your line, it’s going to grow exponentially.”

Swoboda advises retailers to stay current on product trends, for instance — the currently surging probiotics — and to do enough market research to know their customer base and what they need and want.

“Really partner with your manufacturer. Do a lot of research. The lines I’ve seen become really successful [have taken] a lot of time,” Swoboda remarks.

Gary Pigott, president and chief operating officer of Miami Lakes, Fla.-based Mason Vitamins Inc., agrees that staying up to date is vital.

“The better private label programs are cutting in newer trending SKUs every six months versus awaiting the regular planogram review timelines. [Such] retailers are entering into trending SKUs at almost the same time as branded items,” he states.

Regina Flight, private label manager for Bloomingdale, Ill.-based NOW Foods, agrees with Swoboda that digestive aids are hot. Digestive health has been linked to a healthy immune system and is part of leading a healthier lifestyle, and that reality has translated into “huge growth in the supplement category” she says.

Consumers want “pro-health” products, declares Jorge Humphrey sales director for Nartex Labs USA Inc., Austin, Texas.

“People are looking for more natural, healthy green-focused products. [They want] better-flavored natural health solutions in different presentations — liquids, tablets and gels,” he explains.

And as is the case in many other categories, consumers increasingly are seeking organic formulations, Swoboda says.

Emerging category trends reflect current nutritional trends, Humphrey notes, pointing to the increasing popularity of Nartex Lab’s aloe vera and chlorophyll-based supplements.

Turmeric is another product ripe for expansion, Pigott adds.

Although gummy offerings are trending, Pigott notes that they comprise less than 10 percent of the market.

“Tablets and capsules dominate,” he says. “We expect more private label programs to scale back their gummy offerings,” he explains, partially because they have limited shelf life.

Get colorful

More retailers and wholesalers are improving their product presentation each year with more colorful, cleaner labeling, Pigott reports. Some even have colored caps to accent their labeling.

It’s imperative to make the labels stand out, because it’s the first thing the consumer sees, Swoboda says. Many retailers are creating custom bottles and caps, and some use store colors to identify their vitamins and supplements as being under their own brands, he adds.

A sea of white bottles, Swoboda maintains, “can be very overwhelming.”

Remember that many consumers are concerned about the environment and want to do their part to “stay green,” Flight advises.

“We have been getting more inquiries about the type of bottles that we use and if they are recyclable containers,” Flight reports.

Many ways to educate

Consumer education also could do much to promote sales in this category, Swoboda points out. Staffers who can provide health and wellness information can be a great resource.

Providing sell sheets in-store is another effective mechanism, Swoboda adds.

“Education is the most important part of merchandising in supplements. People are really trying to improve their health,” and seek information to help them do so, he says.

When consumers are shown what a product is good for and why, there’s a good chance they will try it, Swoboda says.

Stress quality store personnel endorsement and affordability in that order, Pigott advises.

“Unfortunately, presenting price/affordability could give the consumer a sense of, This is a cheap product that I’m not confident in.’ Create consumer confidence by being involved in community events to provide samples,” he says.

Pigott also suggests that retailers watch the consumers shopping the vitamin aisle and engage them in conversation.

“It’s the best place to have first-hand information on store brand products,” he says.

Retailers will want to promote “hot” products to the consumer via the store or website, Flight says.

“Let your consumers see that these things are as important to you as they are to them,” she advises.

Many successful retailers have been gathering their customers’ e-mail addresses and mobile phone numbers and use them as an inexpensive way to promote their store brand, Flight adds.

Working in tandem with their suppliers, retailers could run demonstrations and cross-promotions. These will give them direct contact with their customers, the opportunity to make their customers aware of their product offerings and direct feedback at the same time, Humphrey points out.

Do partner with suppliers to leverage current vitamin and supplement trends.

Don’t ignore consumers’ desire for natural and organic formulations.

Do get more colorful when it comes to vitamin and supplement packaging.

Don’t stress price over quality and store personnel endorsement.