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VMS sales to continue upward trajectory

1/6/2016

Sales of dietary supplements and meal replacement bars were up pretty significantly for the 52 weeks ended Nov. 1, 2015, according to the latest IRI data. VMS sales were up 4.1% to $6.6 billion across total U.S. multi-outlets, and sales of bars were up 9.3% to $2.2 billion.


(To view the full Category Review, click here.)



Heading into 2016, that sales trend will continue on an upward trajectory of between 5% and 6%, according to several category analysts. That sales trajectory will be fed not only by traditional drivers like the aging of the baby boomers, but other macroeconomic factors like the continued migration of healthcare costs to consumers.



“Preventive is going to be as important as [acute care],” said Andrew Archambault, NBTY chief customer officer, and that’s placing a greater emphasis on education on shelf. “[Create] a compelling education section in categories that consumers want to enter but don’t have the info — when you do that, ... more and more households take the product. That’s proving out.” Clearing sales-per-square-inch hurdles are still important, Archambault added, but there’s more insight today that it can be accomplished through signage.



That’s because the entryway for new consumers to the supplement category is through brick-and-mortar. Retailers who place a greater emphasis on successful planogramming and shelf education will be positioned well.



“There is usually an ingredient or product, for example lately probiotics, that tends to bring in people into the category,” Kurt Jetta, CEO Tabs Group, said. “That speaks to the importance of innovation and just keeping an eye on what’s emerging as far as brands and manufacturers. For vitamins in particular, the drug channel has done a good job of making sure they’re well represented with some of the niche players.”


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