The burgeoning beauty supplement market
The beauty supplement market has grown by close to 12% from 2019 to 2020, according to Kline’s Beauty Nutrition: U.S. Market Brief report. Coherent Market Insights Pvt. Ltd. expects it to reach US $3,721.6 million by 2027 with 4.8% CAGR predicted between 2021 and 2027.
According to the 2021 CRN Consumer Survey on Dietary Supplements, supplements meant to improve skin, hair, and nails are up 4% from 2020, moving ahead of heart health supplements on the list of popular supplement uses. Improving hair, skin, and nails was the fifth-most popular response of supplement users as the reason they take supplements.
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Skin, hair, and nails beauty supplements are used by 26% of overall supplement users (33% female, 18% male). The survey covered ingredient use as well, including collagen and biotin – ingredients touted to improve the appearance of skin and more. Collagen is the fifth-most popular ingredient in the Specialty Supplements category. Collagen supplements are used overall by 8% of supplement users (9% female, 6% male). Biotin is used by 11% of overall supplement users (15% female, 6% male), but has not seen growth over the past few years.
Although beauty supplements have been in Ulta Beauty’s assortment for years, in May 2021 they introduced The Wellness Shop, which has grown to over 450 stores within the brand’s 1,300+ retail footprint since launching to serve customer needs with more dedicated space. Penny Coy, vice president of merchandising at Ulta Beauty, said this is a product group that appeals to and is used by all demographic groups within their customer base. “65% of our beauty enthusiasts believe there’s a distinct link between beauty and wellness. Self-care at its highest form makes everyone feel good inside and out.”
There are five key segments in The Wellness Shop at Ulta Beauty: Everyday Care, Supplements & Ingestibles, Relax & Renew, Down There Care, and Spa At Home. In-store, they carry 10 brands and 40 beauty supplement product SKUs, while online there are 20 brands and 65 SKUs.
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According to Coy, Sugarbearhair and Bye Bye Bloat from Love Wellness are popular products. In addition to supplements for hair, skin, and nails, Ulta Beauty also stocks multi-vitamins, digestive health and sleep supplements, powders, and more. In stores that don’t yet have The Wellness Shop, supplements are merchandised near hero brands in related sections. Online, guests can shop The Wellness Shop by visiting the e-commerce platform.
Ulta Beauty expects to bring The Wellness Shop to more stores in 2022 and may add brands based on where there is white space that can be addressed. Coy said they are considering offering private label beauty supplements as well.
In addition to up-and-coming brands offering beauty supplements, traditional supplement manufacturers have also broadened their offering to meet the growing demand for these product types. One example is Nature’s Bounty, who introduced Hair, Skin & Nails gummies to in 2013, and most recently in a new jelly bean form.
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Chrisie Fong, senior director shopper strategy and category management at Nature’s Bounty, stated, “While all demographics purchase beauty supplements, we find that women are the predominant shoppers. Multiple generations, including millennials, gen X, boomers and more, are consumers of these products.”
“Beauty starts from within, which is an important piece to well-being and overall health and wellness,” Fong said. “We work closely with our retail partners to customize programs that help educate and spark consumer interest for their respective shoppers.”
Nature’s Bounty revamped the packaging for its Optimal Solutions line, to better highlight product benefits, key ingredients, and flavors. All offerings can be found on Amazon and in mass market retailers and grocery stores such as Walmart, CVS, Kroger, and more.
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According to analysis performed by HRG’s category research & analysis team, beauty supplements outperform in chain drug and multi-outlet channels, however, community pharmacy has a wider brand offering than the larger market even though they are not the unit sales leader. Nature’s Bounty is the unit leader in all channels.
Fong noted their brand equity and knowledge sets Nature’s Bounty apart from competitors. She said, “With more than 20 years under our belt and innovation at the forefront, we know what consumers are looking for – trusted products backed by science and made with the purest ingredients.”
Megan Moyer is HRG’s corporate marketing manager. Nature’s Bounty has utilized elements of HRG’s pharmacy communications services. HRG has partnered with CRN on Supplement OWL content.