What Do Sports Nutrition and Supplements Brands need to know before entering the US Market?
American consumers love their dietary supplements!
That is the most important factor sports nutrition and supplement brands need to know before entering the U.S. market.
More adult Americans take dietary supplements today than they did ten years ago or 20 years ago. The Council for Responsible Nutrition’s 2020 Annual Consumer Survey shows that almost 75 percent of Americans take supplements for the fourth consecutive year.
Americans believe in their dietary supplements. They want their dietary supplements.
Once domestic and international sports nutrition and supplement brands understand the almost unprecedented demand for dietary supplements, they can make informed decisions on how and why they should expand their presence in the U.S. or enter the market for the first time.
Another trend that provides positive feedback to nutritional companies is the increased usage of dietary supplements since the pandemic. Forty-three percent of supplement users changed their routine in the past month, and 91 percent of these consumers increased their purchases of supplements.
Even before COVID-19, Americans had become obsessed with their health, which was driving increased growth for many health and wellness sectors.
Needless to say, the dietary supplement industry is growing. By 2024, Statista.com estimates the U.S. dietary supplement market at more than $56 billion, almost double from 2016. The overall impact of the dietary supplement industry goes far beyond sales numbers. More than three-quarters of a million people are employed by the industry, which generates a $122 billion economic impact, including almost $6 billion in state and local revenue.
The supplement industry is not monolithic. Although vitamins and minerals are the largest segments, sports and weight loss products are also extremely popular.
The dietary supplement industry is a vital cog in our economy, and the consumer demand is why manufacturers are always trying to break into our market.
Is it any surprise the dietary supplement brands are clamoring to sell their products to American consumers?
Sports nutrition and dietary supplement brands have to deal with various challenges:
- Food and Drug Administration labeling guidelines
- S. Customs regulations
- Inventory storage
- Office space
- Support staff
- Knowledge of the consumer market
Even before shipping their product to the U.S., they need to get their product’s ingredients and label approved by the FDA. What is kosher in one country may not be kosher in the United States.
To work with the FDA, these companies will need an experienced Food Scientist to guide them through the approval process.
Once they get FDA approval, the last thing they want to happen when they have their first order from a U.S. retail outlet is for their products to get stuck at the U.S. border. These companies need to understand U.S. Customs regulations when shipping their product from overseas to America.
Once the products arrive in the U.S., they will need to have a warehouse where they can be stored.
Of course, none of this will happen if they don’t have a sales staff selling their products to large and small retail chains. They will also need a marketing department to promote their brand to American retailers and consumers.
Of course, if they do this on your own, they will need office space for their sales team, support staff, and marketing department.
Perhaps the biggest intangible is local knowledge of the consumer market.
Selling brands in different countries requires different outlooks. Strategies that work in one country will fail in another.
In America, the post-pandemic consumer landscape has changed shopping habits forever.
Mckinsey reports several trends that show how American shopping habits have changed:
- Digital shopping is the new normal.
- Millennials and the rich are driving the digital shopping increase.
- Brand loyalty has eroded.
- Product availability is a high priority as well as convenience and value.
- Shoppers want in-person shopping experiences to emphasize health and safety concerns.
One of the major findings by a recent consumer shopping habits study is that consumers seek solutions to improve their quality of life. Health and wellness products have gone mainstream and are no longer a niche market.
To succeed in America or any new market, you have to understand the trends thoroughly. Not only do you need to know the macro outlook, but you also need to recognize the micro factors driving your industry.
If you don’t know the retail landscape in a country, you are doomed to fail. You need to understand the country’s culture, changing demographics, and the latest shopping trends to succeed.
Nutrasciencelabs.com recently came out with three projections for the dietary supplement and sports nutrition industry:
- Nutraceutical demand will continue to increase
- The U.S. will see innovation from brands.
- Probiotics will continue being popular.
You have to stay on top of the trends in your industry. It is hard to keep pace with an ever-changing goal line when you live here. Imagine how difficult it would be if you live in another country.
Many companies attempt to enter the U.S. market on their own. It can cost seven figures to hire everyone you need. By the time they have spent all this money before even one sale, they have sliced their profit margin.
Running a business is difficult and costly in your native country. In a foreign country with different cultures, rules, and regulations, it is more difficult.
This is why a platform like the one Mitch Gould of Nutritional Products International created, “Evolution of Distribution,” helps companies maintain their profit margins and succeed.
At Nutritional Products International, Gould developed the “Evolution of Distribution” system to help international companies enter the U.S. consumer market. I put all the services they need under one roof.
By using NPI, they don’t have to hire a food scientist to get their labels approved. NPI supplies logistical expertise and warehouse facilities. For our clients, we become the American headquarters. We provide the sales staff, support personnel, marketing services, and any other need a health and wellness manufacturer might need.
As mentioned before, perhaps the most important service we offer is our decades of retail experience. We specialize in the health and wellness industry. We have relationships with retail buyers from large and small chains. We stay on top of the latest shopping habits and retail trends in the U.S.
- The sports nutrition and dietary supplement industry in the United States has been growing and will continue with increasing demand.
- Expanding retail distribution in the United States is challenging under the best conditions but can be daunting for foreign companies trying to make a name for themselves in America.
- Selling international brands in the U.S. requires specific knowledge of American culture and governmental regulations, such as FDA labeling guidelines and U.S. Customs regulations.
- Tackling the American market can be so costly it can eat into your profit margin, leaving you with a failed operation. Costs include storage, administrative, sales, marketing, and American website.
But if you partner with an American company, such as NPI, we can guide you through the regulatory maze and provide all the staff and resources you need at a fraction of the cost.
There are many great reasons to bring your sports nutrition and dietary supplements to America, such as strong projected growth in the industry and a large consumer market.
You have to understand the challenges and costs involved in an expansion project. If you work to keep costs down and bring onboard a seasoned sales staff, support personnel, and marketing team that understands America, you have increased your chances of success.
MORE ON NPI AND ITS FOUNDER
NPI is a privately held company specializing in the retail distribution of nutraceuticals, dietary supplements, functional beverages, and skin-care products. NPI offers a unique, proven approach for product manufacturers worldwide seeking to launch or expand their products’ distribution in the U.S. retail market.
Mitch Gould, the founder of NPI, is a third-generation retail distribution and manufacturing professional. Gould developed the “Evolution of Distribution” platform, which provides domestic and international product manufacturers with the sales, marketing, and product distribution expertise required to succeed in the world’s largest market — the United States. Gould, known as a global marketing guru, also has represented icons from the sports and entertainment worlds such as Steven Seagal, Hulk Hogan, Ronnie Coleman, Roberto Clemente Jr., Chuck Liddell, and Wayne Gretzky.
For more information, visit www.nutricompany.com.