It is no secret that many people eat unhealthy food. That often results in vitamin and mineral deficiencies. That’s why retail and wholesale supplements sales have increased significantly in recent years. These goods have become one of the high-demand products on the market. Retailers that sell supplements usually find suppliers that can offer a wide array of products. Some distributors might offer different types of medical supplies as well. In this article, we’ll share more details on the opportunities in the wholesale supplements market as well as tips for how to scale their business and maximize revenue.
Key takeaway: The supplements market is driven by the aging population and the unhealthy habits many people have in developed countries. Vitamins are the most common supplement type. Online sales of supplements are rapidly growing and there are constantly new eCommerce websites that sell these products.
Business Opportunities in the Wholesale Supplements Niche
There are many ways for businesses to profit from the increasing popularity of dietary supplements. Let’s examine some of them.
Starting a Supplement Business
As the trend of increased sales for retail and wholesale supplements is likely to continue its growth in the next decades, you can start a business in that niche. Here are some profitable ideas.
- Physical or eCommerce store for supplements. The main reason why a lot of people still prefer brick-and-mortar stores is that they get better customer service. That’s very important when buying supplements. Customers often need consultation on what are the optimal supplements for their specific needs and goals.
The main advantage of online stores is that it’s easy to scale them. Keep in mind that there might be some restrictions on social media ads for supplements. Check out our guide on how to start a dropshipping business if you’re interested in that model. - Supplements blog or vlog. If you have good knowledge in the field of dietary supplements, you can start a YouTube channel or a blog on the topic. These platforms can be monetized in multiple ways. Ads are the simplest ones. Sponsorships and affiliate marketing are also excellent options to monetize such informational content.
- Workshops and seminars. Such a business can be in partnership with gyms or other businesses that attract health-conscious customers. These seminars can be related to healthy eating, alternatives to supplements, or the ways different supplements help us.
Partnerships with Other Businesses
If you’re a distributor in the field of wholesale vitamins and supplements, you can significantly increase your revenue and brand awareness by partnering with other businesses and influencers. They can bring leads to your business or become your customers. Gyms are the most obvious example of potential partners. Fitness influencers on Instagram and YouTube can be an excellent channel for you. They are watched not only by health-conscious people but also by business owners who wish to know more about the latest trends in the field of supplements.
White-Label Products
Whether you’re in the business of supplements wholesale distribution, have an eCommerce store, or own another business in the field, you should consider starting your own series of supplements. White labeling is the easiest way to do so. Through this business model, you can partner with a manufacturer of supplements who can produce them with your brand and labeling.
The Retail and Wholesale Supplements Market
Current State of the Market
The size of the global supplements market is estimated to be 177.50 billion dollars. Estimates show that it’s expected to grow by more than 9 percent annually in the next few years. This means there are multiple vitamin business opportunities. Currently, B2C sales dominate the market. Businesses that buy wholesale supplements include pharmacies, health stores, and other retailers. They purchase a wide range of these products at wholesale prices and sell them at retail prices with a profit margin between 20 and 50 percent, depending on the product.
Vitamin supplements have a market share of around 30%. Protein supplements also have a significant market share. They are among the fastest-growing subcategories in the supplements niche market.
In the US, the market size is estimated to be around 40 billion dollars.
Tips for Wholesale Supplements Distributors
If you’re a supplier of vitamins and supplements, there are multiple things you can do to grow your business and make it more profitable. Let’s examine some of them.
- Invest in automation and software. Tools like BlueCart help businesses automate various tasks. They can streamline a lot of the important processes in wholesale businesses.
- Innovations are key. There are constantly new dietary supplement products on the market. Make sure you work with manufacturers who invest in R&D. That way, you won’t fall behind the trend.
- Be flexible. Having a very high MOQ or other barriers to partnership is not recommended. As eCommerce trade is still gaining momentum, there are a lot of new and small players on the market. Your wholesale supplements company can be the right partner for them.
- Expand and adapt. Although specializing in a certain category leads to less operational work, it can also lead to lower profits. Even if you sell primarily wholesale supplements, you can scale the business to include other categories as well.
If you need more tips on the topic, check out our guide on how to manage a wholesale business.
Frequently Asked Questions about Wholesale Supplements
Although supplements have been around for decades, there’s still a lot people don’t know about them. The same is true for the wholesale supplements niche. Below you can find some commonly asked business-related questions regarding supplements.
What Are the Main Types of Supplements?
Multivitamins are undoubtedly the most common type of supplements. In addition to them, there are many other varieties in this niche market. Here are the most common ones.
- Multivitamins. There are dozens of combinations available. A lot of them include not only vitamins but also minerals such as zinc or iron.
- Standalone vitamins. Consumers might search for vitamin C or vitamin D supplements. Products that include only individual vitamins or minerals are popular because they better address certain conditions and deficiencies.
- Mineral supplements. Zinc, iron, magnesium, and calcium are the common elements in these products.
- Fatty acids. Omega-3 are the popular ones in this subcategory. They help with heart health and brain function.
- Probiotics. These supplements help gut health and are often prescribed alongside antibiotics. If you are looking for organic alternatives, check out our post on different types of yogurt.
Do You Need a License to Sell Supplements?
Yes, whether you sell retail or wholesale supplements, you need a couple of licenses. As with other companies, you need to have a business license. If you plan to sell these goods to other businesses in large quantities, you’ll also need to get a wholesale license. There are other licenses that are needed in order to comply with regulations related to manufacturing or selling supplements.
- Dietary supplement manufacturing license. It is required for businesses that make supplements.
- Product registration. It is required to ensure that nutritional supplements are legally recognized and safe.
- Labeling requirements. Supplements need to meet requirements related to the labeling of the products.
- Other federal or state licenses. Depending on the type of supplements sold by the business, additional licenses may be required. Sales of supplements on eCommerce websites are also regulated.
Is Selling Supplements Profitable?
The standard profit margin of retail supplement sales is between 30 and 50 percent. The margins in wholesale supplements trade are lower. The profit margin largely depends on the type of supplements. The most common ones (like multivitamins) might have lower profit margins compared to less common products.
Another reason why selling supplements is profitable is that these products are increasingly popular among consumers in the US. As new innovations hit the market constantly, sellers of vitamins and supplements have multiple opportunities to grow their business and maximize profits.