GNC: Supplement Industry Macro Environment Analysis

Author: | Posted in Uncategorized No comments


Macro Analysis of GNC:


The supplement industry is mostly unregulated due to the 1984 supplement act. Politicians in Iowa brought forth this act to ensure the supplement industry (a 27 a year billion dollar industry) would not come across any lawsuits or loss of revenues due to increased safety practices. The nature of this act has in turn brought a lot of criticism to the supplement industry as a whole. Companies are now more concerned about marketing and selling their current products rather then putting funds into research and development for newer, safer products.

Economic Environment

In the current economy people are searching for value. Money is precious and is not wasted. When people are purchasing supplements they want quick, safe and noticeable results. Companies that will thrive in this economy are the ones that sell their products at competitively low prices. Supplements that are most attractive to customers are the ones that require small doses, with potent “designer” ingredients that preach their safeness and effectiveness. Supplement’s in retail stores can range anywhere from twenty to one hundred dollars depending on the ingredients and quantity.


The supplement industry has evolved to become a fast growing industry in the United States. Exotic ingredients from all over the world that have never been heard are popping up in over the counter dietary supplements. Most of these ingredients from exotic plants and extracts from “natural sources” has been the pinnacle of research for many pharmaceutical companies. Unfortunately nobody really knows the long-term effects and proper dosage of many supplements due to the FDA not regulating them. The next step for the industry will be to weed out dangerous products and create an image of safeness and trust for the companies that sell supplements.


People who buy supplements are concerned with their image. Supplement users typically buy products so they can lose weight, put on weight, have increased energy, gain strength or increase vascular. (Blood flow to muscles) Supplements have became so popular due to advertisements with bodybuilders, photo shopped “before and after images” and commercials that promise results. It has been engrained into the minds of potential customers that supplements are necessary for anyone with a fitness goal. In reality, human beings have not changed for millions of years and never needed supplements to fill in nutritional gaps and deficiencies.

For more Information on GNC See: