GENERAL TRENDS
Nutrition & Wellness Overview
The global dietary supplements market, currently valued at $155.2B, is estimated to grow at a CAGR of 8.9% from 2022 - 2030, with growth driven by a fundamental shift among consumers toward preventive healthcare and holistic wellness
Growth in the sector continues to be driven by both the COVID-19 pandemic and increasing health awareness among consumers, with supplement sales increasing by over 23% above the 2019 market
While total market growth has normalized to 7.5%, it still exceeds the 5.3% growth projection that the Nutrition Business Journal had predicted, reaffirming the persistent trends developed during the pandemic
Consumer commitment to health is expected to continue trending upward, fueling the boom in the supplement industry with an anticipated conservative growth of $1.8B yearly
The pandemic coupled with declining consumer health satisfaction has intensified the need for consumers to seek out supplementation to boost general immunity and health
The growth and adoption of tech-oriented solutions for health and wellness to keep up with the increasing consumer demand for nutritional supplements comes with its own growing pains
While e-commerce sales have grown four times that of total industry growth, “economic adulteration” of ingredients continues to persist and has prompted the need for high-quality and ethical sourcing for consumers
The limited resources for regulating dietary supplements have presented a challenge for mitigating reports of “adulteration, misbranding, and misleading claims”, with one study finding inaccurate labels for over 50% of the products tested
As e-commerce sales continue to outperform other channels growth-wise, the need for stricter FDA oversight and enforcement to ensure proper labeling and quality control grows in tandem
Increasing consumer value in holistic wellness has driven the emergence of other product categories within the nutraceutical and supplement industries as consumer interest and demands continue to evolve
While multivitamins continue to remain popular, supplements like Irish moss and mushroom coffee that can address needs across a myriad of different wellness verticals (nutrition, beauty, fitness, health, appearance, and mindfulness) are rising in popularity
Herbs and botanicals have quickly grown to become the second largest vitamin category, becoming desired “natural” alternatives to over-the-counter supplements for consumers to manage their health concerns
Consumers are progressively seeking personalized and data-oriented solutions to guide their individual health needs, with an expected CAGR of 9.6% in the personalized nutrition market
Growing disposable income across an increasingly educated and health-oriented consumer market has fueled demand and interest in personalized, sustainable, and holistic supplementation
The rising trend of reduced meat consumption and promoting environmental sustainability has directly impacted the growth surge in plant-based protein supplements, with a continued 6.7% year-over-year growth and a projected CAGR of 5.5% over the next 6 years
Personalized vitamins and nutrition is becoming an increasingly differentiated market as consumer interest in satisfying multiple wellness verticals continues to grow, with some brands like HUM Nutrition and Vous Vitamins seeing triple-digit growth over the past 2 years
Preventive Health: Healthcare + Consumer
With the COVID-19 pandemic nearing the endemic stage, preventive health remains a key determinant of growth within the nutrition and wellness industry as consumers continue to prioritize addressing potential health risks before they occur
Supplements have become a way for consumers to easily access a variety of health and immunity solutions, without the time and coordination needed to consult professionals
The astronomical growth in the wellness industry and the abundance of supplements on the market necessitates more FDA regulation and manufacturer transparency to certify advertised health claims and high-quality ingredients
In the face of the pandemic, e-commerce and tech-enabled solutions, like telehealth, have risen in popularity to meet the growing demand for dietary supplements and streamlined access to professional healthcare recommendations
The tremendous growth within the wellness industry has resulted in an integration between technology, consumer goods, and healthcare that has transformed the way that consumers choose to approach health. Both holistic wellness and tech-oriented solutions offer consumers alternatives outside of traditional healthcare.
M&A ACTIVITY
North American Healthy Living Deal Activity
DEAL SPOTLIGHT
•Nutrawise is a leading innovator, manufacturer and marketer of premium supplements under the Youtheory brand in the United States and other international markets
•This provides Jamieson with a strong platform to expand in the U.S Vitamins and Supplements market
Date: 7/19/2022
Target: Nutrawise
Buyer: Jamieson Wellness
Transaction Value: $210 million
•Clif is a U.S. maker of nutritious energy bars with organic ingredients
•This transaction will build on Mondelez International’s continued prioritization of fast-growing snacking segments and will also complement Mondelez’s performance nutrition business
Date: 8/1/2022
Target: Clif Bar
Buyer: Mondelez (NASDAQ: MDLZ)
Transaction Value: $2.9 billion
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The opinions expressed herein are those of 555 Capital Advisors. There is no guarantee that any predictions/projections as to certain market activity or events will come to fruition or past market or transaction performance referenced within will yield the same results as transactions previously conducted by 555 Capital Advisors.
