Sometimes there’s more profit in selling a manufacturing byproduct than the primary product itself. But until the market for the byproduct is discovered, there’s often a period of years and sometimes even decades during which the high-profit-potential product is simply discarded.
This happened in the dairy industry with whey which is a natural byproduct of cheese production that, until the 1980s, was discarded at a significant cost. Now, whey protein is more valuable than the cheese itself. For every pound of cheese, 9 pounds of whey is created.
It’s a similar story with soy producers and how they found their way into the cat litter industry. Every year, Taiwan imports more than 2 million tons of soy per year to make soymilk. Since the 1960s, the leftover pulp has been sold as food to pig and poultry farmers. But in recent years, fear of African swine fever caused many pig farmers to reject soybean dregs.
This became a problem for local soybean processors - they needed to get rid of ~400,000 tons of residual matter every year and, sitting at room temperature, dregs begin to rot in a matter of days.
Eventually, a solution was developed to dehydrate and store dried soybean pulp. Once the water content is less than 10%, it’s suitable as cat litter. Naturally very absorbent, Tofu can grow significantly in size when it gets wet, meaning that until that point, it can be shipped more compactly, and more profitably, than other materials. This has played a key role in tofu cat litter’s rise in popularity.
Within the livestock industry, organs and beef tallow were typically written off as waste until factory farms figured out how to repackage their byproducts into something they could sell. Today, beef and pig organs are being sold for far more per pound than the most expensive cuts of meat.
Ancestral Supplements, like a number of other companies in this growing category, has a unique business: taking the parts of agricultural farm animals that are usually discarded, and selling them for a premium as "Grass Fed Beef Brain Supplements". Their top products, including Beef Organs and Beef Liver, each have thousands of reviews on Amazon.
The brands selling beef liver capsules are also making the most revolting part of back-to-nature, keto/paleo-friendly livers, hearts, and brains less revolting, by packaging it all in pill form. This shift is similar to the evolution seen in nutrition trends like apple cider vinegar. Consumers would sip a bit before meals to reportedly ease their digestion, but the taste prevented mass adoption so it wasn’t until a gummy form factor was brought to market that the supplement went mainstream.
Recovery supplements are designed to help the body recover faster after exercising. They often contain ingredients like protein for muscle repair, electrolytes for hydration, and other nutrients that reduce soreness and replenish energy levels. Recovery supplements are now one of the biggest trends in fitness, showing how consumers increasingly value post-workout recovery as much as the workout itself.
Beauty supplements targeting skin, hair, and nails are quickly becoming one of the most popular trends in the beauty industry, reflecting growing consumer interest in wellness-based beauty solutions.
Given that UTIs - urinary tract infections - are the second leading cause of doctors' visits in the U.S., the opportunity to prevent UTIs is tremendous.
In a win-win for the consumer and the business world, companies like Uqora changed the business model around UTIs. Consumers typically buy antibiotics on a one-off basis after they get a UTI. Now, they're buying supplements on a subscription basis in order to help prevent UTIs.
Brands like Uqora and Utiva sell a supplement powder drink mix that consumers drink after common UTI-inducing activities like sex or even sometimes exercise.
While the supplement business has existed for decades, both the ingredients and the form factors come and go in waves. With apple cider vinegar, for instance, the drink product, pill product, and gummy product each saw their peaks one after the other, in 2017, 2018-19, and 2020 respectively.
The challenge in marketing gummies was overcoming the market perception that they're just for kids. Chewable supplements for kids have existed for decades (Flintstones vitamins, for example, were launched in 1968). Gummies themselves were a niche product for years. In addition to targeting kids, supplement gummies were marketed to pregnant women who had difficulty swallowing pills. Gummies are a good form factor for making a habit consistent: flavorful or sugary products are more habit-forming than bland ones.
The popularity of gummy-based supplements grew in part for a roundabout reason: marijuana legalization. As more states effectively legalized recreational marijuana, the market expanded—but new customers weren't necessarily interested in smoking, so dispensaries started offering other delivery mechanisms, like gummies. Gummies are fairly easy to make, and the sugar and other flavorings can cover up less pleasant tastes. This created a category of gummies that a) had an active ingredient other than sugar, and b) could only be purchased by adults.
Now, gummies are an increasingly common form factor for the latest supplements and vitamin ingredients.
Gut health supplements have quickly become one of the biggest trends in the health & wellness industry, driven by increasing consumer awareness around digestive health. These supplements often include prebiotics—fibers that feed healthy bacteria in the gut—and probiotics, which are live bacteria added directly to boost beneficial microbes.
Sleep-enhancing vitamins have quickly become one of the biggest trends within the sleep industry, reflecting consumer preferences for natural sleep aids.
Using familiar ingredients in supplements, like caffeine in eye creams or eggshells in dietary supplements, has become an effective strategy in marketing health products and is linked to broader consumer shifts in the food & beverage industry.
Brands are aware that consumers are more comfortable with familiar foods than unknown chemicals, which can increase product sales.
Convincing customers about a new ingredient's safety is part of the selling process, which is easier when a known ingredient is added to a new product. This is especially visible in beauty products or supplements that prominently use foods or essential oils as key ingredients, catering to consumers who desire to know exactly what they are applying on their faces.
Fitness wasn’t always popular. The Olympics inspired a running surge in the 1970s. In the 1980s, stationary bikes first started making their way into gyms everywhere. And the release of Jane Fonda’s Workout exercise videos in 1982 is largely credited with kickstarting aerobics’ popularity. In the grand scheme of things, the commercialization of fitness is a relatively recent phenomena.
As the fitness industry boomed, everything from supplements to courses took off and turned into a massive industry. The sports nutrition market alone clocked in at a whopping $16.5B in 2020.
Today, gaming is a massive and growing market - some estimates size the gaming market as even bigger than the movie business and North American sports put together. Another way to look at it: Top-grossing games earn $10B+ while top-grossing movies earn low billions. Many argue too that the gaming industry is still early in its days of commercialization and, as the space gets more commercialized, gamers are increasingly looking for real life powerups.
This has created a growing category of products and brands – everything from finger sleeves which are like sweatbands for gamers’ fingers to emerging brands like GamerSupps, Gamerbulk, and G Fuel which sell what is essentially caffeine for gamers. Sometimes the biggest categories start out as a new take on an old product.
And while the gaming market is bigger – financially speaking – than most people realize, it’s also broader demographically. Women make up 46% of U.S. gamers and almost 40% of gamers are older than 35.
Keyword | Graph - 5 Years | Growth - YoY | Search Volume |
---|---|---|---|
Ninja Mode | 27% | ||
GamerSupps | 10% | ||
Berry Supplement | 14% | ||
Eggshell Powder | 25% | ||
L Threonate | 44% | ||
Magnesium Glycinate Supplement | 33% |