Vitamins & Dietary Supplements Procurement Intelligence
In this Vitamins & Dietary Supplements procurement intelligence report, we have estimated the pricing of the key cost components such as raw materials, labor, technology and equipment, energy and utilities, packaging, labeling, and logistics, and other costs such as R&D, regulatory and compliance, rent, general and administrative, sales and marketing, and finance and taxes.
Vitamins & Dietary Supplements companies often use one of many pricing structures. The cost-plus pricing model is typically used by companies in this category. This model is used to maximize the profit for the manufacturer. It entails adding up all costs associated with the product and adding on a percentage for profit. This model reduces the risk of underpricing or overpricing products. However, this model does not consider the value perceived by the consumer based on benefits, features, and product differentiation. Hence, in certain instances, manufacturers may prefer to use other pricing models, such as competition-based pricing or demand-based pricing. In addition, bundled pricing is also used for complementary products or while selling a group of products.
Few of the key raw materials used in the manufacturing of products in this category include retinol, carotenoids, thiamin, riboflavin, ascorbic acid, cholecalciferol, calcium carbonate, and magnesium aspartate. Prices of active ingredients and excipients witnessed significant fluctuations in 2022 and 2023 due to supply-demand imbalances, geopolitical conflicts, and high inflation. For instance, the prices of ascorbic acid (used in vitamin C supplements) in the U.S. declined during the third quarter of 2023, due to a substantial drop in demand and significant availability of supply during this period. The Cost and Freight (CFR) values of ascorbic acid declined from USD 3700 - USD 3800 per metric ton (mt) in July to USD 3400 - USD 3500 per mt in September.
Order your copy of the Vitamins & Dietary Supplements category procurement intelligence report 2023-2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis
Rate Benchmarking
The rates for this category are structured based on the scope and location of engagement, type of product, and type of pricing model. Additionally, the rates may vary based on the length of the contract. Long-term contracts are beneficial to both parties by providing security, stability, dedicated support, and strong partnerships.
The wholesale prices of vitamins and dietary supplements in the U.S. vary based on the type of product. For instance, in 2023, the wholesale per unit prices of multivitamins were in the range of USD 5 - USD 9, those of mineral supplements were in the range of USD 6 - USD 10, and the rates of liquid vitamins/minerals were in the range of USD 3 - USD 7.
Supplier Newsletter
In December 2023, ADM announced the acquisition of FDL. This acquisition is expected to strengthen ADM’s global capacity in flavored nutritional supplements and thus improve its reputation in nutrition. Moreover, this acquisition will enable ADM to leverage FDL’s capacity of 3 production facilities, 2 consumer innovation centers, and 10,000 patented flavor preparations and thus expand its capabilities in providing nutritional supplements in the UK.
In May 2023, DSM and Firmenich announced a merger to combine and reinvent their global businesses consisting of vital nutrients, fragrances, and flavors. This merger enabled both companies to work together to offer innovative solutions in the category, by leveraging their combined revenue of USD 13.17 billion. The merger is helping the combined business to augment key products such as minerals, vitamins, omega-3 fatty acids, and other such dietary supplements.
In February 2023, Bayer announced an expansion of its key sustainability initiative called as “Nutrient Gap Initiative”, with the goal of improving access to essential minerals and vitamins for more than 50 million individuals in underserved communities by 2030. With this expansion, Bayer aims to address malnutrition caused by deprivation of essential minerals and vitamins in such communities, in addition to improving immunity. Moreover, Bayer is also looking to provide access to prenatal nutrition and provide nutrition education to smallholder farmers under this initiative.
List of Key Suppliers
- Abbott Laboratories
- Amway Corporation
- Archer Daniels Midland Company (ADM)
- BASF SE
- Bayer AG
- DSM Nutritional Products AG
- GSK plc
- Herbalife International, Inc.
- Lonza Group Limited
- Pfizer, Inc.
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Vitamins & Dietary Supplements Procurement Intelligence Report Scope
- Vitamins & Dietary Supplements Category Growth Rate : CAGR of 8.5% from 2023 to 2030
- Pricing Growth Outlook : 5% - 10% increase (Annually)
- Pricing Models : Cost-plus pricing, competition-based pricing, demand-based pricing, bundled pricing
- Supplier Selection Scope : Cost and pricing, past engagements, productivity, geographical presence
- Supplier Selection Criteria : Geographical service provision, revenue generated, key regulatory certifications, years in service, employee strength, clientele, product portfolio, key technologies, distribution channels, application/end-use, customer ratings, and others
- Report Coverage : Revenue forecast, supplier ranking, supplier positioning matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model
Brief about Pipeline by Grand View Research:
A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.
Our services include (not limited to):
- Market Intelligence involving – market size and forecast, growth factors, and driving trends
- Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
- Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
- Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions
