Over the last decade, sales of vitamins, minerals, and nutritional and herbal supplements (VMHS) have surged, and many new companies have entered the market space. Globally, the market is now valued at $82 billion, with roughly 28 percent of that in the U.S., where sales increased by approximately $6 billion between 2007 and 2012. Growth is expected to remain strong through 2017—between 5 and 6 percent a year both globally and in the U.S.
The vitamin and mineral supplement market is vast, and, in our opinion, poorly organized. It is driven by the widely-held belief that dietary intake is deficient in important nutrients. This belief creates fear and uncertainty, and this fear and uncertainty motivates people to buy nutritional supplements they may or may not need. Most products fail to quench this fear and uncertainty because few people know what is deficient in their diet and few products confirm the correction of deficiencies.
We see a vast, unmet need in this market resulting from the failure of current products to resolve this fear and uncertainty. People want to know what their nutritional deficits are, and they want to know that those deficits are being met. The vastness of the market underlies strong demand for satisfaction of these needs—real or perceived. We believe something is needed to close the feedback loop and satisfy these unmet needs. Significant opportunities exist to create products that accomplish this purpose. The market needs a closed feedback cycle to assess deficiency, formulate customized nutrients, assess the effect of the nutrients, and then reformulate until deficiencies are resolved. The major obstacle that we see to such a closed feedback cycle is affordability of tests to evaluate deficiency. Such blood tests typically cost hundreds of dollars, making them unaffordable for many people. Wellspring is developing an affordable blood testing process to be 1) ultra-convenient—a blood sample can be drawn at home from a simple finger prick, 2) ultra-affordable—the cost is pennies per test, and 3) ultra-precise—it uses mass spectrometry detection. We think Wellspring’s blood test will make a closed feedback cycle affordable for all.
In January of 2016, we surveyed 558 people distributed throughout the United States about their attitudes toward the KalibrateV multivitamin system. The results were favorable and showed that nearly 20 percent of the US market (estimated at $12.2 billion in 2017) is “extremely likely” and “very likely” to adopt a product like the KalibrateV system.
For the segment that currently use vitamins, 22 percent are either “extremely likely” or “very likely” to use KalibrateV. Strikingly, for the segment that currently do not use vitamins, 16 percent are either “extremely likely” or “very likely” to use KalibrateV.
The survey also shows that 34 percent of all respondents believe that this multi-vitamin system is something that they need.