New report highlights $158 billion U.S. economic impact of supplement companies

By Claudia Adrien

- Last updated on GMT

For some suburban and rural areas, the dietary supplement industry is the largest employer and taxpayer. @ J Studios/Getty Images
For some suburban and rural areas, the dietary supplement industry is the largest employer and taxpayer. @ J Studios/Getty Images

Related tags economic analysis Economic growth

The dietary supplement industry’s total economic contribution to the U.S. economy in 2023 was more than $158 billion, or about .57% of gross domestic product, according to a recently released report by the Council for Responsible Nutrition (CRN). This represents a 23% increase ($121.6 billion) from 2016 when CRN issued its previous economic impact report.

Dietary supplement manufacturers, ingredient suppliers, wholesalers, direct sellers and retailers employed 266,342 Americans in 2023. Wages earned by employees directly working for supplement companies totaled more than $19 billion. For individuals employed indirectly by the industry, those wages came to nearly $45 billion.

“In the eight years since our last report, the industry’s footprint and subsequent impact to 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,” Steve Mister, president and CEO at CRN, said in a statement accompanying the report.

Top states

For some suburban and rural areas, the industry is the largest employer and taxpayer. Along with the report, CRN includes an interactive U.S. map​ plotting the economic influence of supplement companies by congressional districts. The Council has already shared the report with members of the U.S. House and Senate.

The findings showed that every state is influenced by the dietary supplement industry, although California has the largest segment of the industry, followed by New Jersey and New York.

“I would say the general overarching message is that this is a robust industry that impacts the entire country,” Michael Meirovitz, senior director of government relations at CRN, told NutraIngredients-USA. “What we're really trying to take away from this is to show what our industry does in terms of the American worker, creating American jobs, wages, tax revenue and overall economic output.”

The industry contributed more than $20 billion in sales and business taxes. However, the report’s authors said they were not able to account for local tax revenue because it is difficult to determine exactly where supplements are sold and track the 11,000 local jurisdictions that would impose those taxes. The report accounts for only state level sales taxes, which totaled nearly $3 billion last year.

Three out of four consumers

This economic impact analysis was developed by economic research firm John Dunham and Associates (JDA) using data provided by CRN, the Direct Selling Association, Data Axle​ and federal and state governments.

Information regarding employment totals were entered into Implan, a tool that processes information published by the US Bureau of Economic Analysis at the Department of Commerce and is one of the standard models used to calculate economic impact figures.

Meirovitz said it is not surprising the researchers found a double-digit increase in economic contributions.

“The industry creates an amazing impact for this country,” he said. “And again, we already know that consumers take supplements. Three out of four American consumers are using these products. And it's not just helpful from a health standpoint, but from an economic standpoint as well. And we would encourage readers to look at [the findings].”

Meirovitz added that the report is an advocacy tool not only for policymakers but for the American public as well.

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