Nutritional Health and Wellness Products

A Powerful Retail Channel in the Nutrition Industry: Multi-level Marketing

The U.S. market for nutritional supplements and wellness products is massive and valued at over $30 billion in annual retail sales. This remains an area that elicits strong consumer interest as people seek to preserve and improve their health and avoid illness. Products like digestive enzymes, vitamins and minerals, weight loss and management systems, and energy supplements provide many benefits for consumers, but confusion lingers among consumers due to the number of products available and nebulous product claims.

Mass nutrition brands sold through drug chains, mass merchandisers, health food stores, and specialty retailers account for the lion’s share of the market. However, there are high rates of growth being driven through multi-level marketing (MLM) or relationship marketing channels as consumers increasingly seek the consultative sales approach where they can ask questions, learn about product features, have products customized for their needs, and even develop their own income stream.

Social media plays a huge role as consumers join groups, learn from sales consultants and other customers, and share success stories. Now more than ever consumers want to use products that deliver value, provide quick results and belong to groups that allow them to reach their physical, mental, or financial goals. Facebook groups and Instagram pages are sought after by stay-at-home moms, fitness enthusiasts, baby boomers, and/or people seeking support in their health journeys. Many product users will eventually become sales consultants as this represents a low risk, flexible way to supplement one’s income.

More than 20 million people are involved in direct selling in the United States, and 62% of them do so because the products provide long-term supplemental income. Sixty-two percent sell these products in order to receive a discount, and 65% like MLM because it provides them with flexibility, according to the Direct Selling Association. Isagenix, Shakeology, and Arbonne all have large followings on social media as their messages resonate with consumers. As a result of this word-of-mouth marketing and the personal selling approach these brands take, they are experiencing rapid growth of nutrition and wellness products. All three companies were awarded “Top 20 Companies in 2015” per the Direct Selling Association.

We will examine the ever-growing MLM or relationship marketing channels to provide a comprehensive assessment of today’s MLM companies specifically in the nutrition industry. Nutritional Health and Wellness Products: U.S. Direct Sales Channel Assessment will deliver insights on key trends, growth rates, marketing tactics, social media presence, and new products. This new report will be published in the first quarter of 2017. To learn more, please contact us.

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