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What is the USA market-size (TAM) for the Electrolyte powders and OTC immunity products industry?
Hello! Thanks for asking Wonder for the USA market-size (TAM) for the Electrolyte powders and OTC immunity products industry.
In short, the US market for hydration drinks is currently at $6.9 billion and is expected to grow to $7.3 billion by 2019, with powders making up an estimated 2.5% of the market. The immune-health OTC market was worth approximately $3.04 billion in 2016 and is expected to grow at a CAGR of 11.4% to reach $5.22 billion by 2021. Below, please find the results of my research, along with my methodology.
METHODOLOGY
I've consulted a variety of market reports and industry articles to gather data relevant to your request. Where specific data was not available, I have triangulated the data based on available numbers.
MARKET SIZE -
Electrolyte/hydration powers tend to fall within the much larger sports nutrition market in terms of market analysis, so I will start with an examination of that market. This market gets looked at from a lot of different perspectives and reports tend to define that market in different ways, which makes finding a definitive number a little challenging. Hydration powders, specifically, don't tend to get called out separately from ready-to-drink (RTD) hydration/electrolyte beverages to any significant degree, offering an additional challenge. But let's plow through some of the numbers to give you a good overview and then dig down a little deeper as we go.
- Global Sports Nutrition Market
For context, according to a 2014 report on the sports nutrition market, the global market was expected to reach $33.6 billion by 2020, based on a 7% CAGR growth rate. Backtracking from that CAGR, that would give us a 2016 market size of $25.63 billion. The North American market holds a 47% share of the market, or $15.792 billion in 2020 and $12 billion in 2016. The Asia Pacific (APAC) market is growing the fastest, at 11.1% and is expected to hold 24% share of the market by 2020.
- US Sports Nutrition Market
Another report shows us that the 2012 sports nutrition market for the US, specifically, was $4.7 billion in 2012, holding 60% of the global market at that time. It also shows a CAGR of 7%. Apparently, there was a slight downward shift in the US domination of this market between 2012 and 2014, though, I have found no data explaining that downturn. Still, with North America holding nearly half the current market, it remains a major player.
A 2015 Euromonitor report puts the overall sports nutrition market in the US at $6.7 billion. It then notes that the energy and nutrition bar category is worth $2.5 billion and the sports drink category is worth $6.9 billion, bringing the grand total for the US market to $16 billion.
Sports drinks are the most popular item in this sector, but supplements remain popular as well. About 37% of overall sales come from athletes, while another 27% comes from recreational users. "Lifestyle users" are an emerging consumer for this market and show the highest growth potential, specifically noting "working mothers, on-the-go business people and outdoor enthusiasts" as key consumers driving growth. The report notes that retail stores are "the primary sales channel for sports drinks, and health clubs and fitness centers as the primary outlet for sports supplements."
HYDRATION DRINKS MARKET
Finding data specifically on electrolyte/hydration powders was difficult. These products seem to get lumped in with the recovery beverage market, as you surmised. The global market for these products was $28 billion in 2016 and is expected to grow at a CAGR of 10.9% to reach $50 billion by 2020. North America holds 36% of the market, which would equal about $10 billion. Asia-Pacific follows at 34%. The aforementioned Euromonitor reports puts the US market, specifically, at $6.9 billion and is expected to grow to $7.3 billion by 2019.
While an exhaustive search did not turn up a specific number for hydration powders, a chart provided by Nutra Ingredients suggests that the "Health & Recovery - Recovery Mixes & Powders" segment of the market makes up about 2.5% of the overall Health & Recovery product market. However, powders and supplements are also named in a larger category, so the percentage may be a little higher. The chart does not provide specific numbers, so I had to judge the percentage based on the visuals on the charts. Assuming, conservatively, that 2.5% is correct, then the mixes and powders market would be worth approximately $172.5 million. Sports drinks and RTD versions of powdered supplements are the most dynamic segment of the market.
- Target market
Fully 60% of US adults drink sports beverages. Athletes and sports-oriented people make up 58% of end users, while recreational/casual users make up another 20%. An article at Natural Products Insider notes that Americans spend over "$1 billion per year on electrolyte replacement drinks" and reiterates the prominence of athletes and sports enthusiasts as the target market for this market.
- Sport nutrition powders
In 2015, the sports nutrition powder category was expected to reach $7.7 billion, up 10.4% from the previous year, while protein powders specifically were expected to hit $2.7 billion, up 11.3% from 2014. This report did not call out hydration powders, specifically, but I wanted to offer this data for some additional context.
- Major players in the hydration drink market
The major players in the recovery drinks market include "Abbott Nutrition, PepsiCo, Red bull GMBH, GlaxoSmithKline PLC and Fluid Sports Nutrition."
- Organic trend
As a side note, Organic Hydration powders, launched by Orgain in 2015, is banking on current consumer demand for clean ingredients, calling its product the “first-ever USDA Organic hydration powder.”
MARKET SIZE OF OTC IMMUNE-HEALTH PRODUCTS
According to Nutrition Business Journal, the US immune supplement market stood at $2.3 billion in 2013 with sales expected to grow to $2.45 billion in 2014. The overall OTC market stood at $6 billion
The natural immune-health OTC market makes up about 40% of the overall natural OTC market. Furthermore, the natural OTC market grows at a more rapid pace (11.4%) than the overall OTC market, which grew at 4.2% in 2015. The full report from which these number came can be purchases here.
Starting with the 2014 figure and using the growth rate of 11.4%, the projected market for immune-health OTC products would be:
• 2015: $2.73 billion
• 2016: $3.04 billion
• 2017: $3.39 billion
• 2018: $3.78 billion
• 2019: $4.21 billion
• 2020: $4.69 billion
• 2021: $5.22 billion
- Major players in the OTC immune-health market
Major players in this market include Emergen-C, Zarbee's Naturals, Zicam, The Honest Company, Hyland's, Boiron, and Similasan. In the US, Airborne and Emergen-C dominate the market. Airborne was acquired by Schiff, which was ultimately acquired by Reckitt Benckiser for around $1.3 billion in 2012. Pfizer acquired Emergen-C for around $350 million in the same year.
SUMMARY
To sum up, the US hydration drinks market is worth $6.9 billion with expected growth reaching $7.3 billion by 2019. A conservative estimate puts powders at an estimated 2.5% of the market or $172.5 million. The immune-health OTC market was worth about $3.04 billion in 2016 and is expected to reach $5.22 billion by 2021.
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