ipl-logo

Health Supplement Industry Analysis Paper

1713 Words7 Pages

Health supplement stores, like many other businesses had a sharp decline in 2008 when the recession hit. Since then, this industry has made tremendous strides. For example, in 2008, the revenue growth declined 7.2%. In 2009 it had a 7.5% revenue growth. You can visually see this on the graph to the left (McKenna, 2015).

Currently, the revenue for Food (Health) Supplement Stores is $21.5 Billion with a profit of $1.2 Billion. In just a few short years, the revenue for this industry has gone from $16,143.8 revenue in millions in 2008 to $21,052.1 revenue in millions in 2014. The industry revenue is expected to grow 2.3% in 2015 to $21,534.6 revenue in millions (McKenna, 2015).
In the next five years, to 2020, the Food (Heath) Supplement Stores …show more content…

The rising age population of 50+ years is a major driving force among the socio-cultural forces. This rising population is the reason that this industry is going to continue to grow in the next five years. They are seeking products to maintain their health and to help keep them young.
Another factor that affects the socio-cultural forces is society’s constant changing of preferences. The healthy eating index and growth of the Food (Health) Supplement Stores industry rise together. They compliment each other, eating healthy and this industry, therefore showing a potential opportunity in this industry (McKenna, 2015).
Political Factors
The biggest political factor that would be a driving force would be The Patient Protection and Affordable Care Act of 2010. In the act, it has different sections that prohibit discrimination against anyone who is licensed or certified under state law. This would include alternative medicine practitioners. Because of this inclusion, it could potentially be beneficial for the supplement …show more content…

Companies such as NOW, Burt’s Bees, and Lehi Valley are some of the Food (Health) Supplement distributors. Food (Health) Supplement stores do well to have a wider variety of distributors, though can carry a primary distributor if there is a need and a want of it in the particular community the business is located. These stores also work with local distributors, such as Hanna’s Honey of Salem, Oregon.
Financial Characteristics
In order for a Food (Health) Supplement store to do well, the markup needs to be around 40%-50% (Linda Perkins, 2015). There are some stores that have tried to have competitive prices at just a 20%-30% markup and have found it is inefficient in order for the business to survive. There are no sales commission in this industry, no credit card offers, and no return on sales that have been opened. There are some companies that have a 100% satisfaction guarantee on their products or the customers get their money back, however, this is not always the case. Inventory is constantly rotating in this industry.
Anticipated Changes and Trends in

Show More
Related
147 Words | 1 Pages

The Supermarket: Prime Real Estate Marion Nestle Unhealthy food choices are becoming the number one option for people in America. Unhealthy foods come quick and cheap making it easier to get access to and putting it at many Americans first choice. Cheeseburgers cost a dollar and you get it under two-minute, while apples cost fifty cents more you have to search and find a grocery store which isn’t conveniently placed on every corner.

Read More
159 Words | 1 Pages

In recent years’ consumers have turned their attention to a healthier way of life and the so called “health-related labels” in products. The healthier body effect delivered by organic and natural foods has became a worldwide mission to many consumers and competitive firms. As previously noted this awareness is expected to increase up to 16% by 2020 (Burnaby, 2015). In order to understand the relationship between higher product quality and supply; reflecting in increase in price and the fluctuation, if any in demand, we will analyze revenue growth, sales, customer behaviors and the price elasticity of demand a company like Whole Foods has experienced for the last 5 years. As noted above this The graph below illustrates the total revenue the

Read More
984 Words | 4 Pages

Diversification in raw material suppliers insures that Grandma’s will not be dependent on a single source. Grandma’s utilizes five bonded public warehouses that specialize in food and confectionery storage, selection based on: proximity to customers, ability to provide prompt customer service and efficient and economic delivery. Grandma’s takes the stress of consistency in supplying due to environmental factors off the suppliers through consciously choosing to diversify their supplier network. Grandma’s does not limit the sales of similar products produced by their manufacturer suppliers entirely, these suppliers can still sell to any nation other than the USA. This allows these manufacturer supplies leeway to make additional capital off of excess products produced.

Read More
524 Words | 3 Pages

Short Description As the name says it all, Discount Supplements is all about offering various supplements, protein, creatine, at discounted rates. Discount Supplements is the leading nutritional retailer in the UK, offering essential supplements for health, sport and fitness needs. From protein bars and shakes, to boxing gloves and water bottles, you will find everything in this shop. Whether you are all set out to achieve fitness goals, or need something for your health, get lean and look your very best with your budget-friendly supplement store.

Read More
902 Words | 4 Pages

The yogurt industry obtains tremendous earnings. In 1999, total U.S retail sales of refrigerated yogurt peaked at $1.8 billion. Coincidingly, the total sales volume was over 2.3 billion units. From 1994 to 1999, yogurt sales through supermarkets had grown at an average rate of 3% per year, indicating continuous growth for the future. Likewise, yogurt sales through natural food stores had grown at an average rate of 20% per year.

Read More
947 Words | 4 Pages

Companies who are in the field of competition they don’t really care about human health. Most of the campiness are in the “fight-filed” of the food because every company wants to attracts the people to it in any ways. Each company wants to make the cheapest food to sell for the people. Companies knows that people are interesting in the price of the product more than quality, so companies take advantage of people and wasted their money and their health. What happens now between the companies is like rice.

Read More
1051 Words | 5 Pages

The strategy McNeil chose was to introduce Benecol as a dietary supplement which was the fastest route to the market, but the FSA didn’t approve of it. Qualifying it as a pharmaceutical would have yielded larger value margins as Benecol was shown to have as much, if not more efficacy than the cholesterol reducing drugs in the market. This could however take more time but could be the path they choose for

Read More
671 Words | 3 Pages

3. Natural Meals grew by over 15% per year over the last two years. This was despite little promotions on Natural Meals, as GCP did not want

Read More
542 Words | 3 Pages

The challenge before Natureview is to implement channel expansion by entering supermarket channels without affecting its relationship with current channel members and loyal customers. Based on the growing trends for organics foods consumption, Natureview should expand into supermarket channel with its 6 SKU’s of the 8-Oz into eastern and western supermarket regions. Natureview’s strong brand image, product quality, taste and longer shelf life will help to differentiate it from other competitors in the supermarket channel. Moreover, the data, from exhibits, indicate a strong potential to achieve the company’s revenue targets and reach unexplored market segments via supermarket chains. Entering only two supermarket chains will provide an opportunity

Read More
1120 Words | 5 Pages

In all Trader Joe’s is one of the leading super markets in the U.S., but after careful analysis of their operations I believe there are opportunities that are currently being ignored by the company. The company doesn’t need to act on all the recommendations that I made, however it would be in their best interest to do so. Not only would the company grow at a faster pace, but it will make strides in areas that haven’t been occupied before. Despite these current pitfalls, Trader Joe’s still is a popular option in their

Read More
790 Words | 4 Pages

The price of raw materials is high with low consumer switching cost. However, the increasing demand for healthy and organic food is creating openings for smaller competitors to enter and hide from the pricing

Read More
1823 Words | 8 Pages

The food industry is expected to grow rapidly in the future due to improving lifestyle and rapid urbanization (“Global Fast Food Market”, 2017). With this potential demand created, KHC can easily capitalize the growing foodservice industry and tailor their products to the specific demographic (Bhasin, 2018). Another strong resource KHC can utilize is focusing on nutritious products. As the foodservice industry continues to grow, KHC should further explore on expanding its product portfolio to include healthier options. Natural and organic brands, as well, as small labels buying from local farms, have become an essential part of the consumer lifestyle (Tarkan, 2015).

Read More
1156 Words | 5 Pages

The number of acquisitions is not so high and it depends more upon the organic expansion. • These pharmacies face informative and predictable risk from the variability of “generic conversion” • Inability of the company to keep stride with the growing private labeled brands popularity. • The in-store implementation of the store formats and services is not consistent at every

Read More
1016 Words | 5 Pages

Kiehl 's: It has positioned itself as a skin care place based in natural ingredients. With growing demand from natural products all over the world, this pharmacy can strengthen itself by laying stress on its ‘heritage’ and use of ‘natural ingredients.’ Having penetrated well enough, it would probably focus on product development and develop more products that deliver values such as heritage and natural cure. b. Lancôme:

Read More
1243 Words | 5 Pages

Bus 350 Small Business Planning & Management Diane Ferguson Case Study: The Case of Nutritional Food The Nutritional Foods corporation has grown into a fifty-million-dollar manufacture of healthy foods that is rapidly growing. They have two facilities for processing and canning or bottling all their food. They also have company-owned refrigerated trucks to ensure freshness of their product. Nutritional Foods has implemented necessary production and shipping procedures to ensure freshness quality excellence for their consumers.

Read More

More about Health Supplement Industry Analysis Paper

Related Topics

Open Document