The US$206 billion global consumer health market is highly competitive. In 2013, the top ten companies determined just 25% of retail value share, with the next 25% split between more than 80 additional companies. The vitamins and dietary supplements (VDS) market is especially fragmented, with the three leading companies, Amway Corp, Pfizer Inc and NBTY Inc, combining for just 11% of global retail value sales. The growing presence of private label is intensifying the cutthroat competitive nature of the consumer health market. Though particularly strong among over-the-counter remedies (OTC), more consumers are turning to private label VDS. As private label VDS portfolios evolve from bare-bones economy goods to include high quality, value-added products with non-genetically modified organism (GMO), gluten free, organic, and vegetarian and vegan options, they will capture a greater share of the market by appealing to those consumers seeking premium supplements.
Private Label Presence in Consumer Health
Private label continues its rapid growth in consumer health, achieving a CAGR of 8% to reach retail value sales of US$13.9 billion in 2013. Significantly outpacing industry growth, private label accounts for a greater share of consumer health sales each year. While the US is the primary private label market with retail sales of US$11.2 billion in 2013, these products are gaining traction in other regions, particularly Australasia and Western Europe. The extensive retail chains in these developed regions have the infrastructure to outsource manufacturing, distribute, and provide an eye-catching in-store presence for these products. However, private label continues to have by far the strongest presence in the US, holding 19% retail value share in consumer health in 2013, compared to 5% in Western Europe and 3% in Australasia. Private label retail value share is minor in the emerging regions Asia Pacific, Eastern Europe, Latin America and Middle East and Africa with a share below 1%.