Our new COVID-19 insights are highlighted in red throughout the presentation
The ”Wellness Economy” is defined as the active pursuit of activities, choices, and lifestyles that lead to a state of holistic health.
Categories:
Personal Care, Beauty, & Aging - 1083B
Healthy Eating, Nutrition (Supplements), and Weight Loss– 702B
Wellness Tourism – 639B
Fitness & Mind-body – 595B
Preventative & Personalized Medicine and Public Health - 575B
Traditional & Complementary Medicine – 360B
Wellness Real Estate – 134B
Spa Economy – 119B
Workplace Wellness – 48B
Thermal/Mineral Springs – 56B
Healthy eating, nutrition, and weight loss: Includes vitamins and supplements, fortified/functional
foods and nutraceuticals, natural and organic foods, health foods, sports nutrition, nutrition and
dietary services, and weight loss/management products and services.
The global wellness economy is outpacing the economy in growth and represents $4.2 Trillion, annually.
The environments in which we live, work, and travel are critical yet largely underappreciated determinants of our wellness.
Wellness sectors are no longer siloed industries. They will increasingly converge as we integrate wellness into our homes and communities, our work, and our travel. The wellness industry will impact every industry and continue to shape our communities and environments
Source: https://globalwellnessinstitute.org/wp-content/uploads/2019/04/GWIWellnessEconomyMonitor2018_042019.pdf
Currently at 39.3B, the dietary supplement market in the U.S. is projected to be on the rise.
By 2024 the value of the U.S. dietary supplement market is expected to reach 56.7 billion U.S. dollars.
Source: https://www.statista.com/statistics/828481/total-dietary-supplements-market-size-in-the-us/
Supplement purchasing will not be the first purchases consumers are likely to cut during a recession, she adds. “As people dig in more into the recession, they’ll be more likely to cut out other things.” For instance, she says, even prior to the current pandemic, consumers were reducing the amount of money they spend on dining out, health clubs, nail salons, and hair salons. During the recession, she says, “Those could all be argued as discretionary expenses that are no longer on the table.”
https://www.nutritionaloutlook.com/trends-business/dietary-supplement-sales-skyrocket-during-coronavirus-pandemic
https://www.newhope.com/news/pandemic-potential-covid-19-sends-consumers-shopping-supplements
“Supplement brands with immunity SKUs are seeing an unprecedented spike in sales”
OVERALL WELLNESS and DISEASE PREVENTION remains the top reason that consumers are taking dietary supplements
Brands are capitalizing on wellness marketing to entice consumers toward aspirational lifestyles
64% of Americans want to lower their healthcare costs, but don't know how.
Source: https://www.cbinsights.com/research/wellness-trends/
6 in 10 that we surveyed post-pandemic still prefer to get their nutrition from food. There was a very minimal shift in this data point from pre- to post-COVID times.Brands and marketers should encourage a healthy diet and acknowledge how diet and dietary supplements work together.
We asked consumers, before and after the pandemic, which reasons for taking supplements apply to them. We tracked some interesting shifts in rank.The top two reasons remain the same. Consumers are still prioritizing overall wellness and disease prevention and digestive and gut health at #1 and #2.
We did notice a large shift in the immunity category. When we surveyed this back in September, it ranked at #5 and—no surprise—it has moved up in priority to #3. Likewise, better sleep made a huge leap, moving from #9 to #4. On the other side, Joint and Hearth Health each took a dive in rank, despite heart health and blood pressure being one of the comorbidities of COVID-19Pre-pandemic Rank:
1. Disease prevention and overall wellness
2. Digestive/gut health
3. Heart health and blood pressure
4. Joint health/inflammation management
5. Immunity
6. Beauty, hair, and skin
7. Energy and athletic performance
8. Brain health/focus/alertness
9. Better sleep
10. Weight management
11. Reduced anxiety/stress
12. Eye health
13. Multi-vitamin for my child/children
14. Auto-immune disease support
15. Libido/hormones/sexual health
16. Fertility/pre-natal support
Post-pandemic Rank:1. Disease prevention and overall wellness
2. Digestive/gut health
3. Immunity
4. Better sleep
5. Beauty, hair, and skin
6. Joint health/inflammation management
7. Energy and athletic performance
8. Heart health and lower blood pressure
9. Brain health/focus/alertness
10. Reduced anxiety/stress
11. Weight management
12. Multi-vitamin for my child/children
13. Auto-immune disease support
14. Eye health
15. Libido/hormones/sexual health
16. Fertility/pre-natal support
Vitamin D ranks the highest by far at 54%, followed by Vitamin C at 53%.
We’ve also been seeing a rise in hair, skin, and beauty-specific supplement usage in the last 90 days, specifically Biotin.
Among consumers who buy supplements to support immunity:
77% have used pill supplements (72% average)
63% have used gummies (59% average)
68% have purchased Vitamin D (54% average)
67% have purchased Vitamin C (53% average)
47% have purchased probiotics (35% average)
33% have purchased zinc (21% average)
Consumers who buy supplements to support immunity are:
More likely to have changed diet to improve immunity (51% vs. 44% average)
Much more likely to have started consuming more vitamins or mineral supplements (61% vs. 47% average) or fruit (54% vs. 47% average) to improve immunity
In purchases of the last 90 days, we’ve tracked ranking shifts in comparison to September of last year.
Biotin (hair and skin) and Vitamin K2 + D3 (immunity, bones, circulation, overall wellness) are ranking two points higher on the list.Elderberry (immunity) is getting slight rank boost.
Turmeric/curcumin and COQ10 are losing rank.CBD has not shifted in rank.
Since COVID-19 was announced as a pandemic in the U.S., we’ve seen a decline in the purchase of supplements that are formulated specifically for individual consumers.
18% of our survey respondents in 2019 said that they had purchased “a supplement that’s specifically formulated for me” compared to just 5% in the last 90 days.
We suspect this change is due to a focus away from tailored formulations and toward immunity as well as a price-conscious consumer.
Additionally, immunity and sleep support, changing lifestyles, and better diets are changing the formulation considerations for personalized nutrition. We recommend updating the data set for each customer more often through these changing times.
https://time.com/5827315/coronavirus-diet/
Opinions about CBD appear to be fluctuating. Compared to last year, perceptions of efficacy are declining. Nonetheless, a significant portion of supplement consumers hold positive beliefs about cannabidiol. CBD brands must invest in educating their consumers and validating their claims to efficacy. Our newest data found that consumers who buy CBD supplements are:
More likely to consider effectiveness (82% vs. 70% average) and price (72% vs. 63% average) when deciding to purchase a supplement
Even more reason to invest in certifications and informed claims
Price sensitivity may be due to economic conditions
Somewhat more likely to take supplements for:
Disease prevention and overall wellness (42% vs. 37% average)
Digestive/gut health (41% vs. 36% average)
Immunity (38% vs. 33% average)
As reflected in the survey, efficacy and potency are top considerations
Preference for brands perceived as “proven” or having a “track record”
Trust and perceptions of transparency are closely related to the brand itself
We recommend investing in better delivery systems, 3rd-party certified double-blind clinical trials, and 3rd-party lab certifications.
Our newest post-pandemic survey shows an increase in the importance of price to consumers from 53% to 63%.
According to our new data, only 22% of consumers agreed that bioavailability was important when choosing which supplements to purchase.
MenaQ7® is the ONLY clinically supported, patented vitamin K2 on the market today.
MenaQ7® was the Vitamin K2 as MK-7 used in 19+ published clinical trials confirming safety & efficacy, including the ground-breaking studies demonstrating K2 is a cardio-support nutrient. This evidence is why MenaQ7® is the only K2 as MK-7 patented for cardiovascular health.
Branded Ingredients like MenaQ7 will allow you to make claims that generic or commoditized sources cannot.
https://www.nutraceuticalbusinessreview.com/news/article_page/MenaQ7_by_the_numbers/152966
http://menaq7.com/why-menaq7/varieti
https://www.nutraingredients-usa.com/Article/2019/03/08/There-s-a-shift-away-from-commodity-to-branded-ingredients-says-Youtheory-science-chief#
https://www.nutraingredients-usa.com/Product-innovations/MenaQ7-R-K2-Patent-Protection-Confirmed-Benefits
Aronox: Aronox is an extract of aronia that delivers heart health benefits supported by several published peer-reviewed clinical trials, with significant improvements observed within just one month of use.
Genius Caffeine employs NewCaff
NewCaff™ microcapsules can be considered a novel approach for incorporating caffeine by overcoming taste limitations of caffeine and controlling its release along 4 hours as shown in a caffeine release test performed.
AyuFlex: All-natural botanical extract backed by seven clinical studies to promote optimal joint health and reduce chronic discomfort.
OLLY Kids Immunity uses a Branded Ingredient called Wellmune™
M1ND from Novel Ingredients
Terra Origin – “We chose VERISOL ® Bioactive Collagen Peptides because they have numerous double-blind, placebo-controlled studies that have proven their success.”
CLAIMS ABOUT WEIGHT MANAGEMENT AND ATHLETIC PERFORMANCE WERE POLARIZING—
A significant percentage of our sample (30% and 16%) would strongly or mildly object to packages with those claims on them.
https://terraorigin.com/blogs/news/a-look-at-verisol-®-bioactive-collagen-peptides
https://www.gelita.com/en/products/collagen-peptides/verisol
https://www.nutraceuticalsworld.com/issues/2018-07/view_features/branded-ingredient-showcase-713059/
https://magtein.com/
https://www.branded-ingredients.com/health-categories/energy/
https://www.branded-ingredients.com/brands/wellmune/
By belonging to a group, we feel as if we are a part of something bigger and more important than ourselves.
https://www.verywellmind.com/what-is-the-need-to-belong-2795393
https://www.verywellmind.com/what-is-maslows-hierarchy-of-needs-4136760
Also called “Movement Marketing” and crossing over with “Cause Marketing”
When we purchase things, we do not follow the norms of the masses, but the norms of our chosen tribe. More than features, more than benefits, we are driven to become a member in good standing of the tribe. We want to be respected by those we aspire to connect with, we want to know what we ought to do to be part of that circle.
The brands that succeed in their marketplace understand how to connect with and appeal to a certain tribe’s culture and set of rules.
For example, the leader in CBD market share, Charlotte’s Web, released a “Trust the Earth” campaign that is built on their tribes core beliefs that natural is better.
Lululemon sparked a fitness and apparel revolution by building communities and recruiting ambassadors within the various Yoga tribes
https://www.icharlotte.com/trusttheearth
https://shop.lululemon.com/story/20years
In the last 90 days, 20% of our survey respondents said they had purchased a supplement recommended by a friend.
FINDING A TRIBE WITH AN UNDERMET NEED AND MEETING IT IS ONE OF THE BEST BUSINESS STRATEGIES YOU CAN FOLLOW, ESPECIALLY IF YOU HAVE A SMALL MARKETING BUDGET
86% of consumer believe that companies should take a stand for social issues and 64% of those who said it’s ‘extremely important’ for a company to take a stand on a social issue said they were ‘very likely’ to purchase a product…
Nearly 2/3 of millennials and Gen Z express a preference for brands that have a point of view and stand for something
https://engageforgood.com/guides/statistics-every-cause-marketer-should-know/
While pills remain popular, supplement users are trying a variety of formats.
72% of supplement users take pills
59% of supplement users take gummies
34% of supplement users take powders
32% of supplement users use food fortified with vitamins and/or minerals
28% of supplement users use beverages fortified with vitamins and/or minerals
Analysis: Preference for gummies appears to be growing during the pandemic, with more than half (55%) using this format compared to last year (45%). Preference for pills appears to be in decline (72%) compared to last year (89%). However, it remains the most popular format.
While not the top formats, fortified foods and beverages have a niche in the market and may appeal to those consumers who prefer to get their nutrition through diet.
https://bigthink.com/21st-century-spirituality/gummy-vitamins-pill-fatigue
Frunutta: Pure, Perfect Vitamins that quickly dissolve and disperse under the tongue, eliminating the artificial colors, flavors, chemicals and fillers found in other vitamins. They work by the nutrient getting absorbed under the tongue and entering the bloodstream directly without having to go through the gastrointestinal tract.
https://combocap.health/
http://news.mit.edu/2019/pill-deliver-insulin-orally-0207
https://www.psychologytoday.com/us/blog/food-junkie/201810/what-you-need-know-about-sublingual-vitamins
https://www.frunutta.com/
45% of our segment prefer gummies and this segment is shown to be more supplement savvy, likely due to being a group who already uses supplements more frequently.
Many people prefer gummy vitamins to pills due to their fruity flavors and candy-like taste. However, the added and omitted ingredients needed to preserve taste, like sugar, can compromise the efficacy or lead to vitamin overdosing in consumers who enjoy gummies too much.
Nevertheless, with the right formulation, gummies have incredible potential and show promise as a delivery system for new and emergent ingredients and formulations.
Gummy takers are more likely than the average supplement user to take supplements for reduced anxiety (+10%), immunity (+8%), beauty (+12%), libido (6%), weight management (6%), and as a multi-vitamin for kids (+10%)
Gummy supplement users are more likely to be “very familiar” with each of the attributes tested in the survey, in particular, bioavailability (+5%), bioactivity (+5%), clean label (+5%, also +4% somewhat familiar), and sustainability (+5%)
Gummy supplement users were, in general, more likely to strongly agree they'd consider purchasing a product if they saw package claims improving these attributes
Heart Health (+6%)
Mental Performance (+8%)
Energy and Vitality (+10%)
Immunity (+10%)
Athletic Performance (+9%)
Joint Health/Inflammation (+7%)
Hair and Skin (+8%)
Weight Management (+8%)
Gummy users are more likely than the average supplement user to get their information from:
Friends and family (+10%)
Google or other online searches (+9%)
Television (e.g., CNN, Fox News, NBC News, etc.) (+6%)
Print publications or their websites (e.g., The New York Times or nytimes.com) (+7%)
Social media (e.g., Facebook, Pinterest, Instagram, Twitter, etc.) (+7%)
Podcasts and webinars (+6%)
https://www.nytimes.com/2017/02/28/well/eat/vitamins-gone-gummy.html
https://www.wellandgood.com/good-advice/gummy-vitamins-healthy/
https://www.huffpost.com/entry/are-gummy-vitamins-healthy_n_5beb272ae4b044bbb1a9b642
A large number of U.S. supplement consumers (44%) have also turned to diet to boost their immunity during the COVID-19 pandemic.
Question: Which of the following have you started consuming more of in the past 90 days to improve your body’s immune system?
Fruit
47%
Vitamin or mineral supplements
47%
Yogurt
32%
Tea
28%
No answer
17%
Herbal supplements
17%
Ecommerce sales are about 40% higher for the week of May 26-June 1, 2020 as compared to Feb. 24-March 1, 2020.For the first time, Amazon is losing online market share to Walmart.com and Target.com, demonstrating that retail channels that sell online have staying brand power.
A closer analysis of marketing and ecommerce sales across 12 of these brands shows clear results:
Brands that have pulled back on marketing spending (-42% vs. February), whether out of an abundance of caution or necessary cost-cutting in the face of the loss of sales, are seeing their online DTC sales struggle (-40% vs. the same period a year ago).
Those that stayed the course with their marketing (+27% vs. February) have seen online sales weather the storm outside a temporary sales dip during the onset of the crisis (+8% vs. a year ago).
A third group that has aggressively pushed in with marketing and promotions (+95% vs. February) is seeing unprecedented year-over-year sales growth (+70% vs. year ago).
https://www.digitalcommerce360.com/2020/05/14/the-coronavirus-pandemic-exposes-brands-that-were-slow-to-embrace-ecommerce/
https://www.digitalcommerce360.com/article/coronavirus-impact-online-retail/https://www.nytimes.com/interactive/2020/05/13/technology/online-shopping-buying-sales-coronavirus.html
Consumers want to be informed on their health and aware of what they are purchasing and are increasingly seeking diverse sources of information
Similar to last year, physicians, friends, and family remain the most trustworthy sources of information on supplements. Many supplement consumers are also doing their own research via Google or social media.Notably, social media is playing a larger part in people’s lives now than last year.Famous health advisors or health influencers are losing influence over people through these times.Television, podcasts, and webinars rank the lowest.
Personal physician or health advisor
52%
Friends and family
43%
Google or other online searches
34%
Social media (e.g., Facebook, Pinterest, Instagram, Twitter, etc.)
19%
Print publications or their websites (e.g., The New York Times or nytimes.com)
16%
Famous physician/health advisor (e.g., Dr. Oz, Dr. Axe)
15%
Television (e.g., CNN, Fox News, NBC News, etc.)
11%
Podcasts and webinars
10%
Prefer not to answer
3%
DOCTORS ARE THE MOST INFLUENCIAL GROUP, BUT SOMETIMES THE LAST GROUP TO ENDORSE A NEW PRODUCT
Here are some tips
https://thehealthcareblog.com/blog/2012/06/10/the-psychology-of-persuading-physicians/
Introducing, Altru.
A gummy supplement line that is rooted in community, social cause, and public health awareness. It addresses and incorporates the top health concerns and ingredients from our survey.
45% of our survey respondents would consider purchasing Elderberry.
37% of our survey respondents would consider purchasing Apple Cider Vinegar Supplements and 32% have purchased ACV supplements.
Digestive Health + Immunity with Elderberry and Apple Cider Vinegar
Joint Health + Inflammation with Turmeric and Collagen
Vitality + Heart Health with K2, D3 and Greens
Clarity + Calm with CBD and Omega-3
Hair + Skin with Biotin and Collagen
Multi for Kids with Digestive Enzymes
Brand Name: Altruderived from altruistic, speaks to the social causes the brand is aligned with—connotations of purity and efficacy
Instead of selling gummies, this brand (much like Yeti) tells stories. Specifically, Altru tells publishes content that brings awareness to specific social causes for public health (mindfulness, de-stigmatization of mental health issues, medical marijuana, cleaner water, kids with cancer, etc.). Altru aligns with and champions those on the front lines of these movements and tells their stories in a beautiful, simple, transparent way. Consumers support this brand primarily because they want to belong to a movement.
It combines goals of overall wellness + specific health benefits. Consumer can ala cart pick the gummies they want to purchase and take on a daily basis.
Brands with a purpose, set on improving our quality of life, outperform the stock market by 120%
86% of consumer believe that companies should take a stand for social issues and 64% of those who said it’s ‘extremely important’ for a company to take a stand on a social issue said they were ‘very likely’ to purchase a product.
Example Sales Funnel:
Customer is involved in a charity walk that benefits The Special Olympics or some similar deeply community-based cause and gets an Altru sample.
Reads that Altru supports various charities in article.
Reads an article on heart health found through Google on website.
Decides to purchase a bottle of Gummies via Amazon Prime account.
Gets Newsletter about Altru’s involvement in social causes and loves watching the stories
Becomes a loyal customer and donated to various charities via Altru’s website