Companies in this industry develop and manufacture vitamins, nutritional supplements, herbal remedies, and other natural health products. Major companies include Herbalife, Nature's Sunshine, Nature's Bounty (formerly NBTY), and USANA (based in the US), as well as Arkopharma (France), Nelsons (UK), and Tongrentang (China).
Demand for vitamins and nutritional supplements is driven by demographics, acceptance of natural medicines, and the desire to maintain long-term health. The profitability of individual companies depends on the ability to develop superior products. Large companies benefit from economies of scale of manufacturing, research, and marketing. Small companies can compete effectively by specializing in niche nutritional products, or through advanced product development efforts. The US industry is highly concentrated: the top 50 companies account for more than 80% of revenue.
Products, Operations & Technology
Medicines made from botanical substances, as well as from organic and inorganic chemicals, are included in the industry. Vitamins are used to maintain or improve overall health and reduce the risk of chronic disease, both in humans and in animals, by supplementing the diet. Nutritional and herbal supplements can target specific health issues such as weight management, heart health, and sports performance.