COVID Trends and The Growth of Natural Health Products

COVID-19 has changed consumption behaviour drastically in a very short timeline. For instance, panic buying (when consumers buy unusually large amounts of a product in anticipation of a disaster, or in this case, the announcement of a pandemic) has things like toilet paper, hand sanitizer, disinfecting wipes, and flour selling in abnormally high quantities, leaving the shelves of many grocery stores completely barren. The other major trend we are observing through this period is the dramatic increased demand for Natural Health Products (NHPs) in both Canada and the United States. Items like encapsulated echinacea, vitamin C, and even vitamin D, a vitamin typically made by the body when the skin is exposed to sunlight and is used to help sustain healthy bones, have been purchased in large quantities by consumers, from the onset of COVID-19.  In fact, Harvard School of Public Health recommends because of the benefits of maintaining adequate Vitamin D levels, taking supplemental Vitamin D is reasonable for most people to consider. According to Erica Sosnowski, Managing Partner at Sosna + Co, “In 2020 and beyond, we are expecting to see growth trends in consumer staples, including a large increase in demand for natural health products.” 

Sosna + Co released a blog in early 2020 forecasting this trend pre-pandemic. Within it, our team of experts outlined the following trend: the most successful natural product companies are those which understand and embrace changing societal values. Adam Sosnowski, partner of Sosna + Co explained that “the modern customer self-diagnoses, self-medicates, and is better educated on the source of ingredients and the methods used to manufacture the products they consume. It is the job of NHP companies, CDMOs, and material suppliers to ensure that a socially responsible supply chain exists within their organizations. Transparency of supply is a major differentiating factor between companies looking to capitalize on increased NHP sales. This global trend is self-fulfilling as the inter-relationship between sales and transparency with consumers is highly correlated.” That is to say that we expect there to be continued growth within this category for the next few years at a minimum, which suggests further M&A, partnering, and licensing agreements to come.

For companies that are currently involved in NHPs, Sosna + Co can optimize supply and manufacturing for Global markets. Please email Adam Sosnowski for further information.