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What dollar amount in Research & Development or scientific advancement spending is applied towards the Nutrition & Supplements or nutritional supplement products industry?
Hello and thank you for asking Wonder! I understand that you are needing the amount that the nutrition and supplements or nutritional supplement products industry spends on research and development or scientific advancement. In short, after extensive research into a number of market reports, press releases, articles, and more, I found that information to this level of granularity is not made publicly available. However, I did find one company in the industry that provides data showing that they spend less than 3% of their sales on R&D efforts.
METHODOLOGY
During my research, I found that these figures are not made readily available. There is some data made available, but usually not to this level of granularity. There are a number of paid reports on the topic, though they do not make it clear if they specifically address R&D spending on an industry level. There are public companies within the industry but, in reviewing their annual reports, they also did not provide a breakdown to this level. Many of the companies operate in a number of industries, so, even with R&D spending provided, it was not specific to nutritional supplements. Some of the sources with the most specific information were reporting data that is nearly a decade old, so those have not been included. The data that was made readily available has been provided below.
R&D SPENDING TRENDS
There are trends within the nutritional supplement industry that are contributing towards R&D or scientific advancement spending within the industry. One major trend is the fact that people are turning away from pharmaceuticals and are looking at other means to stay healthy, such as through the use of nutritional supplements. When people are looking for nutritional supplements, there is an increasing interest in personalized supplements, based upon a person's individual needs and for certain ailments. Not only is there a rising consumer interest in this area, but it is something that is becoming an expectation from consumers. This personalization requires additional research, which is expected to result in new types of supplements.
The market for nutritional supplements has been increasing, with more consumers increasing their spending in this area, at a CAGR around 7%. This is directly related to rising incomes, allowing for people to put more money towards these purchases. Due to this, a rise in the spending for R&D is being seen in the industry.
R&D in the nutritional supplement industry is being seen at a brand level. Nestle, specifically, is outlined as having over 30 R&D centers for this industry, which use up 60% of their overall R&D budget. Unfortunately, these figures were not provided in their annual report, in order to have a better understanding of the context behind these figures.
There was one company that did provide additional information about their R&D costs, which was DSM. In 2015, in their nutrition segment, they spent €123 million on R&D. For further context, this was 2.5% of sales for this segment and 1.4% of total sales for the business.
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Overall, there is very little specific data given on what the nutritional supplement industry spends on R&D or scientific advancement. However, the data that is available shows that there are trends in the industry leading to increased R&D spending by companies.
Thank you for asking Wonder! Please let us know if we can help you with anything else!