Market In-Depth Analysis: Gummy Supplements and CBD Gummy Supplement Manufacturing
“From 2013 to 2017, gummy sales experienced a 73% increase”
Pill fatigue, convenience, and a desire for a sweet treat are just some of the reasons why gummy supplements have gained popularity. Available in a variety of formulas including natural ingredients like CBD, gummy supplements now make up a substantial portion of the market and sales. As a result, this segment of the health product industry has shown great promise and will continue to grow into the future.
An Overview of the U.S. Gummy Supplement Manufacturing Market
In the United States, 75% of adults took a multivitamin in 2017, which means supplement manufacturers produced enough product for an estimated 182 million people. Gummy supplements make up 33% of the multivitamin market and 10% of the total vitamin, mineral, homeopathic ingredient, and supplements sold today.
- Gummy supplement sales had a 12% growth rate in 2018
- Gummy sales reached $51 million in the U.S. in 2018
- 14% of the increase in non-pill form supplement sales is due to pill fatigue
- From 2013 to 2017, gummy sales experienced a 73% increase
- Orange, berry, cherry, fruit, strawberry, and lemon were the most preferred flavors
Market research firms expect the gummy supplement market to have a compound annual growth rate (CAGR) of between 3% and 5.1%. Conservative estimates suggest gummy sales in 2019 could reach more than $53 million and almost $70 million by 2025. One of the most active segments in this industry is the CBD gummy supplement market.
Gummy Supplement Market Drivers
The same societal, age-related, and health motivations that drive all mineral, vitamin, and supplement sales also drive the sales of gummy supplements and the gummy products you chose from a manufacturer should align with market trends. However, there are specific reasons why consumers choose gummies as opposed to other formats:
- Convenience — Consumers find gummy supplements easy to use. In one survey, buyers said they were easier to remember, and they could take them without water.
- Pill fatigue — Many gummy supplement users choose the candy-like format because they’re tired of taking pills. Rather than feeling like they’re taking medications, gummies make them feel like they’re indulging in a sweet treat.
- Healthy treat — They’re a healthy alternative to sugar-rich gummy candies.
- Fun – Gummies come in all kinds of shapes including berries and cubes.
An Overview of the U.S. CBD Gummy Supplement Manufacturing Market
Numbers for this market are a bit unknown. The consensus among many market analysts puts hemp-based CBD product sales at more than $100 million in sales in 2017. Should legislation and legality of these products continue in a positive direction for the industry, sales could easily top $700 million by 2020. Hemp Business Journal places sales estimates at $190 million in 2017 and estimates that sales will reach $646 million by 2022. Some industry analysts suggest sales will easily exceed $3 billion by that time. Regardless of whose numbers you use, however, it’s clear that sales are high and will continue to grow in the next few years.
- In Colorado, the average price per unit sold was $18.80 in 2014 and $18.18 in the period from January to October of 2018.
- Products priced between $30 and $35 experienced the highest growth.
- Edibles are 48% of the CBD market. (Approximately $98.8 million)
- If the country’s gummy market share follows that of California, the CBD gummy market was worth an estimated $26.7 million in 2018.
- In California, gummies were the most popular edible in 2018. They secured 27% of the market compared to 10% of baked goods and 8% for chocolate bars.
- Watermelon was the most popular flavor.
Why Consumers Are Choosing CBD Gummy Products
When asked why they’re taking CBD products, consumers revealed it was to reduce stress (17% increase over the previous year), improve mental health (26% rise) and as a sleep aid (13% increase). Many consumers reported they took gummy CBD supplements before stressful situations like meetings. These same motivations drive the traditional vitamin, mineral, and supplement market.
Gummy Supplement Market
The gummy segment has tons of room for development. For example, Olly reported $12.3 million and 197% growth after they reexamined the gummy vitamin and supplement market. Even Church & Dwight CEO Matthew Farrell noticed the room in this market. He stated Church & Dwight would rely on gummy products for growth going forward. But, what’s currently in the market?
Gummy candy and supplements are generally made using one or two types of thickening agent:
- Gelatin – A meat industry byproduct, collagen hydrolysate (hydrolyzed collagen) gives gummy candy its shape as well as its springy feel, chewiness, and their ability to melt in your mouth. Gelatin-based supplements have a stronger taste, shininess, bright color, and are easier to swallow.
- Pectin – Naturally found in some plants, pectin is a natural thickener traditionally used to make jams and jellies. Unlike animal-based gelatin, however, it doesn’t have a low melting point. It also has a clean, quick taste with no light or chewy texture.
While gelatin can make a tastier candy, it’s often made from pork, which can create complications with halal, kosher, and vegan consumers. Pectin gummies fail to deliver on taste. However, it may be a better option for supplement manufacturers because it has a higher boiling point. Therefore, the candy won’t melt or get sticky during shipping.
Gummy supplements also come in a wide range of different formulas:
- Multivitamins for general health
- Life milestone formulas such as prenatal or for older adults
- Lifestyle combinations such as vitamins for active individuals
- Beauty-focused ingredient mixes for nails, skin, hair, or weight-loss
- Digestive health supplements like probiotics and prebiotics
- Sleep support nutrients and treatments like melatonin and chamomile
- Disease-focused formulas such as heart health or immune system support
- Mental and cognitive supplements like ginseng
- Single-letter supplements like calcium and vitamin B complex
- Natural supplements like ginseng, turmeric, and garlic
It’s important to note that five needs drive 76% of the vitamin, mineral, and supplement market:
- Digestive health and the symptoms of digestive problems
- Sleep and the support of sleep issue remedies
- Memory and cognitive
- Better general overall health
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