Vitamins & Dietary Supplements Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Every organization and its procurement team look forward to negotiating the best deal while procuring a set of products or subscribing to services. Rate benchmarking involves price/cost comparison of more than one set of products/services to analyze the most efficient combination that can potentially help the procurement team in getting the optimum rate.

The rates for this category are structured based on the scope and location of engagement, type of product, and type of pricing model. Additionally, the rates may vary based on the length of the contract. Long-term contracts are beneficial to both parties by providing security, stability, dedicated support, and strong partnerships.

The wholesale prices of vitamins and dietary supplements in the U.S. vary based on the type of product. For instance, in 2023, the wholesale per unit prices of multivitamins were in the range of USD 5 - USD 9, those of mineral supplements were in the range of USD 6 - USD 10, and the rates of liquid vitamins/minerals were in the range of USD 3 - USD 7.

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Labor cost is one of the key components of the total incurred costs while offering a product or service. Therefore, an organization must decide on whether the focus category should be retained in-house or outsourced if the organization is providing its products or services at competitive prices. If the organization decides in favor of outsourcing, it must understand the difference in the salary structures of suppliers before selecting a supplier and formulating a negotiation strategy.

According to our research, the average salary of Dietary Services Supervisors in the U.S. varies in the range of USD 52,500-USD 85,500. The average salary of Production Operators in the U.S. varies in the range of USD 37,200-USD 58,200. However, the year-on-year increment rate majorly depends on the Key Result Areas (KRAs).

Organizations may find it cumbersome to continuously track all the latest developments in their supplier landscape. Outsourcing the activities related to gathering intelligence allows organizations to focus on their core offerings. At this juncture, our newsletter service can help organizations stay updated with the latest developments and innovations and subsequently assist in preventing disruptions in the supply chain. We have identified the following developments within the Vitamins & Dietary Supplements category over the last two years:

In December 2023, ADM announced the acquisition of FDL. This acquisition is expected to strengthen ADM’s global capacity in flavored nutritional supplements and thus improve its reputation in nutrition. Moreover, this acquisition will enable ADM to leverage FDL’s capacity of 3 production facilities, 2 consumer innovation centers, and 10,000 patented flavor preparations and thus expand its capabilities in providing nutritional supplements in the UK.

In May 2023, DSM and Firmenich announced a merger to combine and reinvent their global businesses consisting of vital nutrients, fragrances, and flavors. This merger enabled both companies to work together to offer innovative solutions in the category, by leveraging their combined revenue of USD 13.17 billion. The merger is helping the combined business to augment key products such as minerals, vitamins, omega-3 fatty acids, and other such dietary supplements.

In February 2023, Bayer announced an expansion of its key sustainability initiative called as “Nutrient Gap Initiative”, with the goal of improving access to essential minerals and vitamins for more than 50 million individuals in underserved communities by 2030. With this expansion, Bayer aims to address malnutrition caused by deprivation of essential minerals and vitamins in such communities, in addition to improving immunity. Moreover, Bayer is also looking to provide access to prenatal nutrition and provide nutrition education to smallholder farmers under this initiative.