Increased health consciousness and participation in sport and fitness is driving industry revenue
Melbourne, Australia (PRWEB) July 03, 2013
The Vitamin and Supplement Stores industry has toughened up after lacklustre growth during the post-financial crisis years. Over this period, consumer expenditure on vitamins and supplements fell, amid low sentiment and increased levels of savings. Consumers seeking vitamins and supplements shifted to cheaper, low value-added varieties sold through supermarkets, grocery stores and pharmacies. However, as the economy picked up, consumers again returned to specialist vitamin and supplement stores. The industry has been further assisted by recovering consumer confidence and growing health consciousness. IBISWorld industry analyst Ryan Lin states, “employee product knowledge has been a key area of industry growth, with customers willing to pay extra for advice on healthy eating and suitable dietary supplements.” Events, such as the 2012 London Olympics, also help to raise awareness on health and physical wellbeing. Australians are expected to exercise more in 2013-14 than they did five years ago. Over the five years through 2013-14, industry revenue is expected to grow at an annualised 3.9% to total $458.4 million. These favourable trends have helped the industry grow by 5.8% in 2013-14.
Over the five years through 2018-19, the Vitamin and Supplement Stores industry is expected continue to grow, although at a slower rate. According to Lin, “competition from supermarkets, grocery stores and pharmacies is forecast to build up demand side pressures as consumers turn towards lower cost products on offer.” The convenience of online shopping has prompted consumers to source their vitamins and supplements from online distributors. Nevertheless, the industry remains resilient, with value-added services continuing to be a key growth driver. Vitamin and supplement stores are anticipated to begin employing in-store health professionals, such as nutritionists, dietitians and fitness trainers, to provide engaging and specialised knowledge in product selection and overall health.
The Vitamin and Supplement Stores industry operates with a low level of market share concentration. The industry’s only major company, Healthy Life, has the highest number of franchised stores in the market. Over the next five years, a greater number of vitamin and supplement stores are expected to enter the market and capitalise on the growing demand for health products. These will include both franchised and independently owned stores. For more information, visit IBISWorld’s Vitamin and Supplement Stores report in Australia industry page.
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IBISWorld Industry Report Key Topics
This industry consists of physical stores that mainly sell vitamins and supplements, together with related health foods.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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