DTC vitamin companies are thriving in response to coronavirus demand - Business Insider

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Supplements and vitamin sales are up 30% in the pandemic. Analysts reveal the companies that will reap the benefits.

Join BI PrimeThere's no treatment to stave off the coronavirus, but the vitamin market is booming as Americans continue to seek out health supplements and immunity boosters like vitamin C, vitamin D, zinc, and elderberries.

Demand for vitamins and supplements has skyrocketed in recent months as Americans beeline to health stores and pharmacies in an effort to fend off the virus. According to a consumer survey conducted by theimmunity supplements and preventative vitamin sales are experiencing a 34% increase in demand, with a forecasted rise of 38% in increased consumption after the pandemic ends.

The increase in demand is proving especially advantageous to buzzy direct-to-consumer companies like Ritual and e-commerce sites like Lucky Vitamin, as Americans seek out alternative ways to get immunity boosters over-the-counter medication. Meanwhile, businesses like GNC, with its large fleet of physical stores and show adaption of digital, found the coronavirus has pushed them further into debt.

Liz Reifsnyder, Ritual's chief operating officer, told Business Insider that despite the increase in demand, the company was well prepared even before the coronavirus for spikes in sales, and thus has not have any major supply chain disruptions. Sean Wolf, vice president of merchandising at Lucky Vitamin, said the company experienced a 200% month-over-month in demand in March, with the strongest growth in products like vitamin C, vitamin D, and elderberry. In an effort to retain both returning and new consumers and build brand loyalty, he said the company has placed added emphasis on customer service.

 

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