Beauty Supplements Market

The beauty supplements market is estimated at USD XX billion in 2024 and is projected to reach USD XX billion by 2029, at a CAGR of XX% from 2024 to 2029. Beauty supplements are one of the most rapidly growing markets because of the increasing demand by consumers for wellness products that target beauty from within. A leading driver is the increase in awareness about holistic health approaches and the use of supplements in enhancing skin health, hair growth, and anti-aging. The FDA and USDA report has pointed out the need for dietary supplements in order to meet nutritional gaps, especially among the elderly (updated guidelines of January 2024).

Social media marketing and influencer marketing have deeply impacted the behavior of consumers with respect to purchasing products such as collagen peptides and vitamins for skin and hair. The National Institutes of Health has also acknowledged that there is merit in using biotin and Vitamin C to strengthen hair and firm up skin, thus fueling the market. E-commerce beauty supplement sales have risen until 2024, with retailers like Amazon experiencing an uptick in searches for personalized solutions in beauty nutrition.

Sustainability and clean-label trends also fuel market growth. Consumers want supplements from organic and sustainably sourced ingredients, in accordance with the USDA's Organic Certification program. Government actions recently aimed at transparency in labeling dietary supplements have inspired consumers to be more trusting and adopting, further contributing to a steady expansion of the market.

Market Dynamics

Drivers: Rising Awareness of Beauty and Wellness

The increased awareness of beauty and wellness is the strongest driver for the growth of the beauty supplements market. Consumers are better educated than ever about how proper internal health can translate to outer beauty. It's no longer just a question of vanity but a complete concern for well-being because people realize that diet, skincare, and beauty are related to each other. These supplements are, for instance, sold as containing collagen, biotin, and even omega-3 fatty acids that supposedly improve the firmness of the skin, hair, and nail's health. The rise of this trend is driven through more information to consumers made available through influencers, media, social media, or lifestyle bloggers. And it happens that, in recent years, several of these brands enjoyed an astonishing growth. This, for instance, is witnessed through the case of Vital Proteins, a well-known brand of collagen, which gained revenue of more than USD 450 million in 2022. The popularity of collagen powder, marketed as a skin-boosting supplement, is a clear sign of how consumers are investing in supplements to enhance their look and appearance. Furthermore, there is growing awareness of clean beauty products, which urges companies to provide organic and plant-based beauty supplements. This increased awareness is expected to further fuel the market as consumers move to beauty from the inside out.

Restraint: High product cost

Premium supplements, especially those marketed as having high-quality ingredients or offering advanced benefits, often come at a premium cost. For instance, a month's supply of Skinade, a popular liquid collagen drink, can cost around USD 150, which is beyond the budget of many consumers. As a result, while the market is growing, the high cost of products limits the reach to only a specific segment of the population. Many potential buyers are reluctant to invest in supplements due to their higher prices, especially when compared to traditional beauty products like lotions or oils. The cost of raw materials, particularly for high-end ingredients like hydrolyzed collagen or vitamins with proven efficacy, contributes to the steep prices. Moreover, beauty supplements often require rigorous testing and certification, which increases manufacturing costs. While premium-priced products are often marketed as more effective, this perception is not always universally shared, and some consumers may prefer more affordable alternatives. To overcome this barrier, companies are focusing on offering smaller, more affordable product sizes or diversifying their range to include budget-friendly options. However, for widespread adoption, the industry must address the cost issue to make beauty supplements accessible to a larger customer base.

Opportunity: Growth in Emerging Markets

There is a great opportunity for the beauty supplements industry in the emerging markets. In India, Brazil, and Southeast Asia, the growth of the disposable income will mean a growing demand for beauty supplements as people spend money to improve their skin, hair, and nails. Nutraceuticals, or beauty supplements, are in huge growth in these markets. This is a massive, untapped market for global beauty supplement brands to enter and expand their footprint. India has a young population and an increasing middle class eager to invest in products promising healthier skin, shiny hair, and overall beauty. Brands like Herbalife and Amway have already started to establish their presence in these markets, offering affordable beauty supplements tailored to the local consumer's preferences. These companies are taking advantage of the growing awareness of wellness and beauty, combined with the availability of natural ingredients that resonate with consumers seeking organic and safe products. E-commerce platforms are also playing a significant role in reaching these markets, given the growth of online shopping, especially among tech-savvy millennials and Gen Z consumers. As the companies introduce localized marketing strategies and adjust product formulations according to regional needs and tastes, this growth in emerging markets is expected to be accelerated further, which is going to fuel the growth of the beauty supplement industry.

Challenge: Regulatory Complexity

Different countries have their own sets of regulations that govern the sale and marketing of beauty supplements, which can create confusion and delays for companies seeking to expand internationally. For instance, in the U.S., the Food and Drug Administration (FDA) regulates beauty supplements under the Dietary Supplement Health and Education Act (DSHEA), which mandates that supplements be safe for consumption and accurately labeled. However, the FDA does not approve these products before marketing them. It is entirely up to the manufacturers to provide safety and compliance. Contrary to this, in the European Union, supplement manufacturers have to provide scientific evidence for health claims that they make. This causes a difference in regulations, and sometimes, the products that adhere to the U.S. standards do not meet European guidelines, and vice versa.

The rapid growth of the beauty supplements market has also led to a surge in the number of non-compliant products. Some of these products have unapproved ingredients or make false claims. In 2023, several companies had their products recalled for non-compliance with labeling regulations in both the U.S. and Europe. This regulatory complexity can delay product launches, increase operational costs, and limit market access for companies that cannot afford the lengthy certification processes. Companies must, therefore, invest in understanding local regulations, working with legal experts, and ensuring that their products meet the necessary standards before entering new markets.

For example, US-based companies like Olay have faced scrutiny over certain ingredient claims. In 2020, Olay was under investigation by the FDA over claims made about the efficacy of its supplements for improving skin health. Similarly, California-based brand, Neocell, which is known for its collagen products, faced challenges with regulatory compliance in certain international markets, particularly when expanding into Europe, where beauty supplement claims require robust scientific backing. These companies encountered delays in launching new products in the EU due to regulatory approvals.

Another example is US-based brand, The Beauty Chef, which faced regulatory pushback in Australia in 2021 for failing to fully comply with local health claims regulations regarding the effectiveness of its probiotics and beauty supplements. In these cases, the challenge was not just about product quality but also ensuring that marketing and health claims adhered to stringent local laws.

Such regulatory issues, whether in the U.S., EU, or Asia-Pacific regions, can delay a company’s ability to quickly introduce products to market and increase operational costs as they navigate local compliance, which often involves lengthy approval processes and additional testing for safety and efficacy. This highlights the complexity of operating in multiple markets and the importance of staying updated on diverse regulatory requirements.

Market Ecosystem

Powder Supplement Type Has a Significant Share in the Market

Powder supplements are currently experiencing rapid growth in terms of market share in the beauty supplement industry because of their convenience, flexibility, and high absorption rate. They can be easily mixed with any drink, whether it is a smoothie, juice, or just water, so they attract consumers who prefer flexibility in their beauty supplements. The powder form also can accommodate more active ingredients for instance collagen, vitamins, and antioxidants necessary for the better health of skin, hair, and nails. The ease of use in combination with other nutrients is leading to growing demand for this type of powder-based beauty supplement.

The growing segment for the powder supplement shall continue growing as more customers show a keen interest in wellness and beauty from the inside. As consumers continue to look for more natural and holistic approaches towards skin care, anti-aging, and hair care, powder supplements will find ample opportunities to fill those demands. Increased demand for personalization of beauty and health routines like customized powders for individuals' needs will also further enhance growth in this market segment. Moreover, this can easily upscale the production scale and embed new ingredients in powders, which makes it a good choice for the manufacturers.

Examples of such brands that will fuel growth in this area are Vital Proteins's collagen powders and The Beauty Chef a probiotic-rich food that promotes a healthy intestine and glowing skin. These brands, amongst others, are cashing on the beauty and wellness blend, highlighting the value of the powder supplements not only to the skin but to well-being overall. With more consumers becoming increasingly informed about the benefits of taking beauty nutrients in the form of powders, the segment is expected to grow phenomenally in the years to come.

Cellulose Has a Significant Share in the Beauty supplements Market

Due to increasing demand for products promising radiant and youthful skin, the market share of the beauty supplements market is significantly held in the skin care segment. A large number of consumers look upon maintaining healthy skin, leading to increased popularity of oral supplements targeting various concerns in the skin, like aging, dryness, acne, and pigmentation. According to a 2023 report from the National Institutes of Health, consumers' interest in non-invasive alternatives to traditional treatments such as topical creams and lotions is growing. The transition towards oral supplements is often motivated by the convenience as well as systemic effects that products provide, addressing skin health from within.

This trend is further backed by scientific breakthroughs about the nature of skin health and aging. The FDA has already identified some ingredients, including collagen and antioxidants, that may provide beneficial effects for rejuvenating and anti-aging in the skin. In 2021, the FDA allowed the general wellness category for certain types of collagen supplements. This recognition has increased consumer confidence and opened the availability of clinically backed skincare supplements. With each new study demonstrating the efficacy of these ingredients, the demand for skin care supplements will likely continue to increase.

Skincare supplements will experience growth in the application as consumers grow in awareness of the interconnection between diet, gut health, and skin conditions. According to a study by NIH in 2022, gut microbiota was associated with the condition of acne and other conditions. With the increase in beauty supplement use that includes probiotics, prebiotics, and vitamins for general skincare, this market is bound to grow rapidly. It also has hyaluronic acid, vitamin C, and biotin in the list of ingredients skin health supplements are using more frequently.

Consumer preferences are shifting toward natural, plant-based, and clean-label products. The trend for "clean beauty" is influencing the types of skin care supplements consumers seek. According to the FDA's guidelines for dietary supplements (updated in 2023), more companies are focusing on organic and sustainably sourced ingredients. Indeed, this trend goes with rising consumer demand for products that are both effective and sustainably sourced as well as transparent about ingredients. Brand offerings like plant-based collagen alternatives or sustainably harvested marine collagen are thus causing the market to fuel such growth.

Asia Pacific Has Seen Steady Growth in the Beauty supplements Market

The beauty supplements market in Asia-Pacific is growing significantly due to diverse factors tied to economic and demographic changes in the region. For instance, increasing disposable incomes in emerging economies like India and Indonesia enable consumers to spend more on premium beauty products. The World Bank’s 2023 findings on rising disposable incomes in developing economies such as India and Indonesia highlight an expanded middle class investing more in premium beauty products. This trend, coupled with increasing consumer awareness of holistic health, is a significant driver of market growth in the Asia-Pacific region.

The aging population in countries such as Japan and South Korea, where supplements targeting anti-aging and collagen regeneration are highly sought after. The United Nations' World Population Aging Report (October 2023) highlights the increasing number of elderly individuals prioritizing wellness and beauty, which further spurs market growth. This demographic shift aligns with consumer preferences for natural and functional ingredients in beauty products.

As per the World Population Aging Report (October 2023), the growing elderly demographic in Japan and South Korea prioritizes anti-aging supplements. This aligns with the rising popularity of collagen and other targeted beauty solutions tailored for mature consumers in the region.

The region's rapid urbanization and digitalization are also pivotal. Growing e-commerce platforms in countries like China make beauty supplements more accessible, supported by marketing strategies that leverage influencer endorsements and social media campaigns. According to a July 2023 report by the Asian Development Bank, the rapid urbanization and digital transformation in Asia-Pacific have significantly boosted the accessibility and demand for beauty supplements. E-commerce platforms in nations like China, combined with effective influencer marketing, have reshaped consumer purchasing habits toward convenience-driven, health-focused products.

Key Market Players

• Vital Proteins (US)
• Neocell (US)
• Herbalife Nutrition (US)
• Collagen Select (Germany)
• Skinade (UK)
• Innospec (US)
• The Beauty Chef (Australia)
• Algenist (US)
• Reserveage Nutrition (US)
• Hum Nutrition (US)
• Nature's Bounty (US)
• Sports Research (US)
• Perricone MD (US)
• Melrose Health (Australia)
• Ancient Nutrition (US)

These market players are focusing on increasing their presence through agreements and collaborations. These companies have a strong presence in North America, Asia Pacific, and Europe. They also have manufacturing facilities along with strong distribution networks across these regions.

Recent Developments

• In January 2024, GNC Holdings launched several new product lines focusing on beauty supplements incorporating advanced ingredients like collagen peptides and biotin, addressing the growing consumer demand for effective solutions that promote skin, hair, and nail health.
• In December 2023, Alo Yoga expanded its offerings by entering the beauty and wellness supplement market, diversifying from its core apparel business to cater to the growing interest in holistic wellness that integrates beauty with overall health.
• In November 2023, Neutrogena partnered with Nourished to introduce personalized skincare supplements using the Skin360 mobile app and 3D-printing technology. The collaboration offers AI-driven, customized formulations tailored to individual skin needs, highlighting the trend toward personalization in beauty supplements.
• In May 2023, Herbalife announced plans to expand its beauty supplement offerings into the Asia-Pacific region, capitalizing on rising disposable incomes and increasing demand for health-focused products in these emerging markets.
• In November 2020, Nature's Bounty launched its Pure Beauty line of supplements, featuring ingredients like hyaluronic acid, biotin, and collagen. The range aligns with the growing consumer demand for natural, clean beauty solutions with transparent ingredient sourcing.

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