Originally launched as vitamin edibles for children, gummies have now become a huge sensation among adults as well. What is behind this trend? What are the underlying user preferences that are driving such sustained growth?
Here’s everything you need to know about the growing trends, challenges, and drivers of the international gummy vitamin market.
What Makes Gummy Vitamins So Popular?
The global gummy vitamins market is estimated to be valued at USD 5.9 billion in 2020, and is estimated to climb to USD 10.6 billion by 2025 with a CAGR of 12.5%. Thus, the gummy vitamin market is anticipated to rise at a growth rate of more than 5.5% between 2020 and 2030.
Gummy vitamins basically target consumers who are open to trying newer forms or alternatives of the usual vitamin tablets and capsules available for balancing their nutritional deficiencies or gaps.
People generally prefer these gummies since they are chewable, taste and look better, and are easy to consume, as compared to swallowing a huge tablet. According to a study that appeared in the European Journal of Clinical Pharmacology, more than 30% of people find it difficult to swallow pills, a majority of whom are women and older adults. Hence, the popularity of these vitamin-infused gummies lies mainly in their ease of consumption.
Millennials, in particular, prefer these gummies due to their busier lifestyles, increased awareness about preventive healthcare measures, and recognition of the importance of maintaining a healthier lifestyle.
A Look into the Current Gummy Vitamin Market
One of the main driving forces behind the growth of the gummy vitamin market is the rise in health-conscious individuals who are focusing on nutritional foods and related products that provide all the essential health-boosting ingredients to prevent diseases and infections, and also improve overall physical and psychological well-being.
The increasing elderly population and consumer awareness in developing and developed countries are also significant factors leading to an increase in consumer preference.
Gummy vitamin manufacturers have also witnessed a high growth rate among the geriatric population and children, particularly because they avoid taking dietary supplements, owing to the harsh and unpleasant flavors and uncomfortable sizes.
Other aspects driving the demand for gummy vitamins include a rise in the incidence of vitamin deficiencies, as well as the prevalence of malnourishment and undernourishment in developing and under-developed countries.
Operational hindrances, such as the unavailability of raw materials, often results in the inadequate supply of vitamins A, D, and E. This increases the production cost of the gummy vitamins, resulting in increased prices of end products.
Also, producing a gummy infused with vitamins and nutrients, flavors, and unique color is comparatively complicated and expensive in comparison to formulating capsules or tablets.
In efforts to expand the scope of opportunities for gummy vitamin manufacturers, and also to increase their acceptance and attract the public, companies have started developing new and exotic flavors, such as cherry, peach, cola, and raspberry. Even though some gummies include artificial colors and flavors, consumers prefer buying gummies that are organic and have a natural flavor and color due to the health benefits of consuming natural products.
Moreover, the advent of vegan and sugar-free gummies is anticipated to bring more intrinsic opportunities for gummy vitamins. Innovative goods, such as hemp-based gummies and pet-targeted gummies have further increased consumer inclination toward these alternative sources of vitamins and nutrients.
How COVID-19 Has Affected the Gummy Vitamin Market
The ongoing COVID-19 pandemic has mildly impacted the supply chain of final products, as well as the availability of raw materials. North America, along with Europe and Asia Pacific, hold pivotal positions in the gummy vitamin market, since the bulk of key players operate in these regions. Due to lockdowns and transport restrictions, the supply and transition of goods from these regions has been highly affected.
The retail sector in many countries, such as India, has completely locked down with zero sales. Another big hit to the supply of gummy vitamins is the failure of authorities to timely deliver necessary supplies.
Despite these circumstances, it is anticipated that there will be a surge in regional consumption, with potentially higher sales across supermarkets and hypermarkets. Moreover, the increased consumption of vitamins, particularly vitamin C and D, due to their immunity-boosting effects, is another key factor that is expected to increase the demand for gummy vitamins.
In addition, increased concerns about human health safety and a rise in awareness about consuming immunity boosters to fight disease, is expected to cause an exponential growth in the demand for vitamin-induced products similar to gummy vitamins.
Vitamin gummies are a natural, safe, and fun substitute to the existing supplements available in the market. Despite a slight decrease in sales due to the ongoing pandemic, the market is expected to bounce back soon.
The regional market of Asia Pacific presents a lucrative investment opportunity for dietary supplement manufacturers, owing to the market being at an emerging stage, along with the potential of increased growth due to the rise in health awareness.