Booming Dietary Supplement Market Causing Major Acquisitions
The dietary supplement market has seen some major moves recently, moves which haven’t gone unnoticed by the experts at Macromark. Big companies are taking note of the rising market and either making major acquisitions or partnering with companies in hopes of better positioning themselves to take advantage of what is a booming sector.
The U.S. remains the top market in the world in terms of value and global trends are increasing at a rate of four percent annually. With current sales of dietary supplements at $50.0 billion, the strategic maneuvering is expected to continue.
Protein seems to be the most profitable of all the supplements, with companies dishing out billions of dollars to keep their grip on the market. Tyson Foods paid $7.7 billion for packaged meat producer Hillshire Farms, Post Holdings dished out $2.5 billion for egg and milk producer Michael Foods, and China’s WH Group purchased Smithfield Foods for $4.7 billion. All of these transactions have taken place over the past year.
In a more subtle move, Trident Brands has partnered with Continental Ingredients to have them develop, manufacture, and supply exclusive nutritional Trident products. The contract will last five years and the products will be launched under the Everlast Worldwide brand, of whom Trident has the rights to market and sell nutritional products.
These figures are astounding and show that the massive interest in the dietary market is not only stable, but rising globally year after year, with the U.S. leading the way as the top market in the world. As direct-to-consumer sales remain the most used medium in this sector for reaching consumers, Macromark sees immense opportunity for our own growth within this industry.
Macromark is constantly adding lists to our database so we can continue to provide businesses with a broad spectrum from which to choose. The dietary supplement market is one in which we are very familiar and know how to operate. Many of our clients are from this industry and come to us because we deliver lists that match their direct mail marketing goals, and because our experience in this industry allows us to help them better execute their campaigns.
The importance of direct mail to the dietary supplement sector is crucial and Macromark will continue to facilitate lists to ensure the success of our clients and their direct mail marketing campaigns.
Harrison-Dunn, A., “A Global Look at Supplements on the Rise,” NutraIngredients.com, March 10, 2014; http://www.nutraingredients.com/Industry/A-global-look-at-supplements-on-the-rise.
Duprey, R., “Hormel Foods Muscles in on Protein Supplements Business,” Fool.com, July 3, 2014; http://www.fool.com/investing/general/2014/07/03/hormel-foods-muscles-in-on-protein-supplements-bus.aspx.
“Trident Brands Enters Exclusive Product Supply Agreement with Continental Ingredients,” Stockhouse.com, July 3, 2014; http://www.stockhouse.com/news/press-releases/2014/07/03/trident-brands-enters-exclusive-product-supply-agreement-with-continental.