Jamieson Wellness: Growth Areas & Challenges
Jamieson Wellness' focus on aging populations as well as its recent acquisition of Body Plus, a sports nutrition company, point to challenges and opportunities for potential growth. Two challenges facing Jamieson Wellness involve a) its dependence on a rising aging population while supplement consumption is also high among younger demographics and b) competition from personalized, subscription services that appeal to those younger markets. Two opportunities for growth involve a) Nootropics and their possible appeal to the sports market and b) significantly boosting Jamieson's Instagram presence.
1. Aging Populations & "Anti-Aging"
- Jamieson Wellness is relying on an aging population to drive its expansion over the next five years.
- However, the term “anti-aging” is losing steam among Baby Boomers and seniors who are more attracted to positive, empowering aging terms, like "healthy aging."
- Moreover, while supplements are popular among older populations, with 78 percent of adults over 55 taking them, younger demographic groups are catching up. "In 2018, 69 percent of adults 18-34 were taking supplements."
2. Competition from Personalized, Subscription Services
- Vitamin start-ups are providing a flurry of competition.
- These companies are focusing on personalized vitamin combinations, affordable subscription services, and moving away from "boring" and/or "ugly" packaging to something more aesthetically exciting, "shareable," and on the self-care trend.
1. Nootropics and Sports
- Nootropics, a trend to watch in 2019, refers to a wide range of products that may enhance cognitive function.
- Nootropics may appeal to athletes to support better decision-making. This may be of particular relevance to Jamieson, given its acquisition of Body Plus, a sports nutrition company.
- While the traditional sports market may be an obvious target, the less-obvious e-sports market is brimming with untapped potential, having hit a landmark year in 2018.
- According to Reuters, "the total audience - comprised of both enthusiasts and occasional viewers - is expected to grow 15 percent to 454 million."
- Companies offering adjacent services, like male grooming, are poised to benefit from e-sport industry growth.
- While caffeine and energy drinks have dominated the e-sports industry, there may be an opportunity to market Nootropics, which boost concentration and focus among other benefits, as an adjacent service.
- However, like many supplements, there is not strong evidence to support the claim that Nootropics improve cognitive function.
- Jamieson's Instagram account has only 1,834 followers, a number which seems very low for a company that promotes itself as "Canada's Most Trusted Brand of Vitamins." The company has only been posting since February 2019, so it seems like there is a lot of potential for focus and growth here, with an opportunity for analyzing engagement data from likes, shares, and other Instagram Business Account analytics.
- Many personalized, subscription competitors have a strong Instagram presence and high follower count. Care/of, for example, has attracted 157,000 followers! "The Care/of packets are designed for Instagram in that they have a hashtag and a handle printed on them."
- As Jamieson sells its own branded products, the company may consider a line of packaging that is more visually appealing and "shareable" to reach the 69 percent of people aged 18-34 who take supplements.
We first identified two specific areas of interest that Jamieson announced publicly: its reliance on an aging population to drive its 5-year plan and its acquisition of Body Plus, a sports nutrition company. We then researched projected trends in the wellness market that might be relevant to those two areas of interest in order to identify areas of potential challenge and growth. A lack in popularity of "anti-aging" terms in favor of age-positive branding and competition from personalized, subscription services that appeal to younger consumers stood out as potential challenges given Jamieson's reliance on older demographics. Related, Jamieson lacks a strong Instagram presence, which seems like an untapped opportunity to reach a younger demographic. Finally, the rise in popularity of cognitive-enhancing Nootropics coinciding with a peak in the e-sports industry seems to provide a unique opportunity for early entry into sports-related marketing.