| | | | | Inflation cools around the globe but economic anxiety is hard to measure | The United States may be breathing its first full sighs of relief over inflation as it drops close to the Federal Reserve Bank’s target, but inflation’s uneven response to monetary policy international markets and the uncertain impacts on economic activity reveal the always-complicated global supplement market to be even more complicated in the mid 2020s.
In the US, where inflation has dropped to 2.4%, supplement sales are projected to climb from 4.4% in 2023 to a projected 4.9% 2024, but in Western Europe, where inflation fell dramatically to 1.7% as fears of a downturn rise in volume, growth is slowing, dropping to 4.9% from 6.4% in 2023.
Meanwhile in the Australia/New Zealand market, supplement sales growth is predicted to see a modest improvement, rising by .4% from 2023 and to reach 3.6% in 2024, this despite an economy teetering on the brink of recession. Conversely, Latin America and Mexico are both seeing sluggish growth as inflation varies from one country to the next, but supplement sales growth remains robust at a projected 9.2% in both markets.
Looking broadly across the hemispheres, there is room for optimism. In a September report, the Organization for Economic Co-Operation and Development declared that “global growth remains resilient, and inflation has further declined. The OECD stated that inflation had dropped to 3.3%, describing rates as “at, or close, to , central bank targets in many countries.”
For the supplement industry, which experienced both historic growth and a historic slowdown between 2020 and 2022, cooling inflation could mean paying less for materials, but also not having to squeeze margins to meet the price expectations of consumers who are still concerned about higher prices and often looking for bargains. The industry has long had to contend with selling across markets where economic conditions, including inflation, can very from one border to the next, but it’s that lingering inflation reflex varying across countries and cultures that may add an uncertain step to the calculations.
Selling in the international markets has never been simple and just because it’s looking brighter, doesn’t mean it’s any less complex. | | Learn more | | |
|
|
|
| Rick Polito | | As Nutrition Business Journal's editor-in-chief, Rick Polito writes about the trends, deals and developments in the natural nutrition industry, looking for the little companies coming up and the big money coming in. An award-winning journalist, Polito knows that facts and figures never give the complete context and that the story of this industry has always been about people. |
|
|
|
| | | Looking for More Industry-Leading Insights? | | Follow us on LinkedIn for bite-size market stats and exclusive sneak-peeks into our reports and NBJ issues. | | | | The NBJ Analyst's Take is your bi-weekly analyst, delivered directly to your inbox. Sign up to receive these nuggets of wisdom here. | | | | |
|
|
|
|
