Is e-commerce boosting SA’s Vitamin market?

Globally, there continues to be a shift to busier, ‘on-the-go’ lifestyles, which often results in neglected health, limited physical activity and unhealthy diets. Moreover, consumers are increasingly seeking more convenient ways to obtain Vitamins in order to maintain their overall health and wellbeing. Based on these key consumer needs, many South African retailers have introduced e-commerce platforms, however, how effective has this distribution channel been in boosting SA market sales?

Insight Survey’s latest SA Vitamins Industry Landscape Report 2020 uncovers the global and local markets based on the latest information and research.  It describes the market drivers and restraints as well as the relevant global and local market trends to present an objective insight into the South African Vitamins industry environment, its market dynamics and its future.

In 2019, the global Vitamins market reached a total of approximately US$29.2 billion in terms of retail sales, as illustrated in the graph below. Regionally, North America represented the largest market in the global Vitamins market, reaching a value of approximately US$12.7 billion in 2019. This was followed by Asia-Pacific and Western Europe, valued at approximately US$8.9 billion and US$2.6 billion, respectively.

Vitamins Report
Vitamins Industry Landscape Report

Source: Euromonitor. Graphics by Insight Survey

Globally, numerous retailers have established online platforms through which consumers can purchase vitamin products, which in turn has increased the visibility of the retailer and driven online sales. For example, Walmart recently integrated its brick-and-mortar stores with its online website, resulting in a significant increase in vitamin and supplement sales.

Moreover, according to a report published by Slice Intelligence, the vitamin and supplement categories are outpacing other e-commerce categories, with online sales growing 12% faster compared to the general e-commerce market in the United States. Interestingly, online retail giant, Amazon, accounts for a massive 77% of all US supplement and vitamin sales made online.

In South Africa, the Vitamins market has grown very strongly, achieving a compound annual growth rate of 7.5% between 2014 and 2019, and is expected to continue to show robust growth over the next few years. One of the key drivers has been the ability to purchase vitamins online, with various retailers introducing e-commerce platforms. The convenience, ease of access to product information, reviews and home-delivery has made online shopping platforms popular amongst South African consumers.

Leading South African pharmaceutical retailers have witnessed an increase in online sales. For example, both Clicks and Dis-Chem have a ‘Click & Collect’ service, which allows customers to order products online and then collect them in store or have the products delivered at their home. Clicks reported that the ‘Click & Collect’ service accounts for 48% of their online sales volumes.

In their recent 2019 annual financial report, Clicks also noted that their online store is their fastest growing channel, however, total online sales are still lower than in-store. Interestingly, the group is expecting the online store sales to surpass in-store sales, in the near future.

In light of this it is clear that online, e-commerce platforms have emerged as a popular distribution channel for the purchase of products, especially vitamin supplements, which has had a positive effect on sales within the global and South African Vitamins market.

The South African Vitamins Industry Landscape Report 2020 (116 pages) provides a dynamic synthesis of industry research, examining the local and global Vitamins  industry from a uniquely holistic perspective, with detailed insights into the entire value chain – from manufacturing to competitor analysis, retailing, to pricing and purchasing trends.

Some key questions the report will help you to answer:

  • What are the current market dynamics of the global Vitamins industry?
  • What are the key global and South African Vitamins industry trends, drivers, and challenges?
  • What are the value and volume trends in the SA Vitamins market (2014-2019) and forecasts (2020-2024)?
  • Who are the key manufacturers, distributors and retail players in the SA Vitamins industry?
  • What are the prices of popular Vitamin brands and products at retail outlets and pharmacies?

Please note that the 116-page report is available for purchase for R27,500.00 (excluding VAT). Alternatively, individual sections can be purchased for R10,000.00 (excluding VAT). For additional information simply contact us at info@insightsurvey.co.za or directly on (021) 045-0202.

For a full brochure please go to: South African Vitamins Industry Landscape Report 2020

About Insight Survey:

Insight Survey is a South African B2B market research company with more than 10 years of heritage, focusing on business-to-business (B2B) and industry research to ensure smarter, more-profitable business decisions are made with reduced investment risk.

We offer market research solutions to help you to successfully improve or expand your business, enter new markets, launch new products or better understand your internal or external environment.

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For more information, go to www.insightsurvey.co.za