Where Are Consumers Shopping for Herbal Supplements 2023?
Many brands are unsure how or where to best place and market their product and, because of this, they don’t always attain the sales they wish to see. Choosing the right distribution channel is pivotal to the success of your company. With some market research and a good understanding of your target market, you can easily find where consumers are shopping for herbal supplements and, only then, can you choose the appropriate distribution channels for your own herbal product. Thankfully, we’ve already done that research for you! So, where are consumers shopping for herbal supplements 2023?
Supplement Distribution Channels
There are three types of distribution channels: direct selling, indirect selling and dual distribution. Direct selling, or direct-to-consumer, is when a brand sells their product directly to the end user. Selling your products online and/or in your own retail store are examples of a direct-to-consumer distribution channel. Indirect selling, or selling through intermediaries, means selling wholesale to retailers so they can distribute the product for you. Retailers store your product, display it and employ the sales force to put it into the hands of customers. Lastly, dual distribution is a combination of utilizing both direct and indirect distribution channels.
Where Are Consumers Shopping for Herbal Supplements 2023?
According to various market research reports, including reports from SPINS and Informa’s New Hope Network, the majority of sales in the U.S. for herbal supplement products are distributed throughout three major market channels: mass market, natural/health/specialty markets, and direct channels. Both mass market and natural/health/specialty channels are indirect channels of distribution, whereas direct sales is, obviously, a direct-to-consumer distribution channel. Let’s take a deeper look at each of these markets and see just exactly where consumers are shopping for their herbal supplement products.
Mass Market Retail & Natural Retail Channels
According to a report conducted by Grand View Research, the offline segment dominated the herbal supplement market in 2020 and accounted for approximately 81% of revenue share in 2021. The offline segment includes supermarkets, drug and pharmacy outlets, and clubs and convenience stores, such as Walmart and Costco. Supermarkets and hypermarkets alone accounted for 33.9% of the overall sales of dietary supplement sales in 2021. Likewise, consumers are also scoping out all-natural, health-oriented retail stores to shop for their herbal supplements. These retail outlets include health food stores, vitamin and supplement stores, sports nutrition stores, and herbal shops and apothecaries.
Both the mass market and natural retail channels are expected to experience a steady growth in coming years due to the personalized attention consumers attain from store staff, which of whom provide knowledgeable opinions and advice on choosing the right supplement product. While mass market and natural retail channels are the most prevalent for the purchase of herbal supplement products, and is expected to remain the most prevalent in 2023, consumers are also rapidly turning to online shopping.
Places to Sell Supplements Online
Online retail is a trending distribution channel since it is fast, convenient and offers a variety of products you may not be able to find at your local stores. In fact, businesses in virtually all industries have turned to using an ecommerce platform as a means to sell their product to consumers. According to Nutrition Business Journal, direct sales of herbal supplements, which include online sales, increased by 23.7% in 2020—more than twice the percentage growth of 11.5% seen in 2019. This percentage is guaranteed to climb and is expected to witness the highest growth in the coming years.
How to Get Supplements Into Retail Stores
Getting your herbal supplement products into retail stores can result in a huge payoff, such as big wholesale orders, new customers, and overall more brand exposure. First, it’s important to research potential stores that would be a good fit for your product. Ideally, you would target stores that fall under the mass market and/or natural retail channels, since we know this is where consumers are shopping for their herbal supplement products. After coming up with a list of potential retailers, you can then develop a sales pitch. Click here to read more about the elements of a perfect and compelling sales pitch. Once you’ve gotten your pitch down, you can then figure who the decision-maker is and get into contact with them. It’s best to pitch in person and engage with decision-makers in a creative way.
Conclusion
Market research shows that the majority of consumers are shopping for their herbal supplements in stores (specifically at supermarkets or hypermarkets and health stores) as well as online. If you wish to pursue both of these distribution channels—which many companies do—it’s important to consider whether you have enough product to support both your own ecommerce sales as well as wholesale to retailers. Now that you know where consumers are shopping for their herbal supplement products now and in the coming years, you can focus on making your herbal brand attractive and stand out from competitors, so that when customers see your product sitting on the shelf in their favorite store or online, they will excitingly place it in their cart. And you will excitingly see your sales shoot through the roof.
Sources
“Dietary supplements market size report, 2022-2030G.” Dietary Supplements Market Size Report, 2022-2030, Grand View Research, 2022, https://www.grandviewresearch.com/industry-analysis/dietary-supplements-market.
Smith, Tyler, et al. “Herbal Supplement Sales in US Increase by Record-Breaking 17.3% in 2020 Sales of Immune Health, Stress Relief, and Heart Health Supplements Grow during COVID-19 Pandemic.” Herbal Supplement Sales in US Increase by Record-Breaking 17.3% in 2020 – American Botanical Council, 2021, https://www.herbalgram.org/resources/herbalgram/issues/131/table-of-contents/hg131-mkrpt/.
Written By:
Kaitlyn Cranor
