Branded ingredients in high demand as consumers drive premiumization trend, Kyowa Hakko spotlights

16 Dec 2021 --- The premiumization trend observed across industry is well poised to follow into the new year after Kyowa Hakko highlighted survey results showing 63% of supplement users are willing to pay a higher price when it comes to supplements with branded ingredients.

Notably, Kyowa Hakko reports that 77% of people aged 18-34 and 74% of those aged 35-54 are more likely to have confidence in supplements with branded ingredients than those with generic ones. This is according to the 2021 Council for Responsible Nutrition (CRN) Consumer Survey on Dietary Supplements and the Ingredient Transparency Center 2021 Consumer Supplements Survey.

“There will continue to be a demand for scientifically proven and clinically safe ingredients to attract and build trust with supplement users. Consumers are looking to ensure they are getting the necessary ingredients to fortify and manage their health,” Maria Stanieich, marketing manager at Kyowa Hakko USA, tells NutritionInsight.

Experts across industry have observed premiumization is a quickly growing trend, where consumers are willing to pay more for better quality ingredients.Around 80% of people in the US are taking supplements, a figure steadily growing every year.

Branded ingredients going strong
The survey included a national sample of 3,089 adults living in the US, including 2,421 adults who consume dietary supplements seasonally, occasionally or regularly.

“Studies that contribute to the growing body of evidence that demonstrates the clear value of branded ingredients will continue to attract consumers,” Stanieich notes. The findings of the 2021 survey reflect those carried out in 2020, which revealed supplement users prefer branded ingredients two times more than generic ingredients.

“Brain supplement users were highly encouraged to take a supplement more frequently if the products featured branded ingredients identified on the label (57%) or in marketing materials (53%),” the findings reveal. Industry experts have previously flagged that brain-boosting ingredients are rising fast as COVID-19 has put extra stress on consumers’ mental health and well-being.

Where antioxidant supplement use was concerned, 49% of antioxidant users’ purchasing decisions were significantly impacted by branded ingredients. When deciding which antioxidant supplements to purchase, over 80% of regular glutathione users reported that branded ingredient logos on the package significantly impacted their decisions.

“Consumers are becoming very savvy in educating themselves and doing research as they consume supplements. They also make themselves heard via reviews and word of mouth,” Stanieich says.

Immunity stronghold
Immunity supplement users make up around 80% of all supplement users in the US, the survey reveals.

“Supplement usage among Americans has steadily increased in the more than 20 years CRN has conducted the survey,” notes Brian Wommack, CRN’s senior vice president of communications.Branded ingredients are highly sought after, as consumers seek quality products.  

“With 80% of Americans now using supplements, these products are now mainstream and broadly accepted by the American public. Just as important, 79% of Americans believe the dietary supplement industry is trustworthy, a jump of 5 percentage points from 2020.” 

The survey revealed there was a significant increase in the use of vitamin D, zinc and vitamin C, reaching 52%, 22% and 40%, respectively.

COVID-19 impact
The increased uptake of immunity-related supplements is linked to consumer concern with the COVID-19 pandemic, states Stanieich.

“Consumers have doubled down on self-care and have attempted to develop new healthy habits that they plan to keep up. The cognitive health market and immune health market have several opportunities for expansion as dynamics surrounding brain health and immunity can provide whole product solutions.”

“They are complementary for other dual-action ingredients including sleep and stress management to meet consumer needs.” 

The COVID-19 pandemic has caused a surge in demand for products linked to immunity and stress management as people across the globe dealt with lockdowns and lifestyle changes.

By Andria Kades

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