CRN reports that US supplement industry contributes US$159B to economy
30 Jan 2024 --- In a new report, the Council for Responsible Nutrition (CRN) specifies the US supplement industry’s positive impact on jobs, wages, taxes and other financial contributions in all 50 states and congressional districts. In 2023, the industry contributed over US$158.6 billion to the US economy and US$20 billion in tax revenues.
Direct economic impact by the supplement industry, covering manufacturing, ingredients, wholesaling, retail and sales, is estimated at over US$74 billion in 2023.
The remaining economic contributions consist of indirect economic impacts — such as providers of equipment or services needed to produce or regulate supplements — and induced effects — re-spending by industry and supplier employees.
“The report provides tangible evidence of the US dietary supplement industry’s robust impact. It allows us to identify the specific jobs, wages, revenue and economic output associated within any jurisdiction — from a congressional district to a state to the entire country,” Mike Meirovitz, CRN’s senior director of government relations, tells Nutrition Insight.
“This data is a vital tool that we will use when communicating to both elected officials and the general public because it demonstrates that our policy priorities have a profound impact on their communities.”
Economic engine
In 2016, when CRN’s previous economic impact study was released, the supplement industry was estimated to contribute US$121.6 billion to the country’s economy. CRN underscores that the report’s data help instruct Congressional leaders who develop legislation to consider the impact of new or revised laws.
“In the eight years since our last report, the industry’s footprint and subsequent impact on the local, state and national economies has increased dramatically, and we believe it is important for the public and elected officials to know the positive contributions our member companies have on communities all over the country,” adds Steve Mister, CRN president and CEO.
“In some suburban or rural areas, they are among the largest employers and taxpayers, if not the largest, and provide needed jobs and revenue. This report helps us quantify that impact in specific and tangible terms.”
The report determines that the supplement industry employs over 266,000 US citizens directly, earning over US$19 billion. The sector supports another 350,000 full-time jobs and almost US$26 billion in wages when considering indirect and induced economic impact.
The top ten states with the largest supplement industry are California, New Jersey, New York, Texas, Illinois, Florida, Utah, Pennsylvania, Minnesota and Michigan.
Growing consumer demand
While the data-driven report does not examine specific economic factors or drivers of the industry’s growing importance, CRN states that much of this growth has been driven by increased consumer demand for health and wellness products.
“When you consider that, according to CRN’s 2023 annual survey, 74% of American consumers are using dietary supplements, it should not come as a surprise that the industry has seen this type of growth all across the nation,” comments Meirovitz.
Referring to this most recent consumer survey, he adds that “post-pandemic, 92% of respondents believe supplements are essential for maintaining their health.”
The consumer survey reports that over half of US adults are “regular users” of supplements. Consumers also use supplements to fill persisting nutrition gaps and support more active and healthy lifestyles to reach “optimal wellness.”
By Jolanda van Hal
