Nestle is exploring a potential exit from its mass-market vitamin business, but shifting consumer preferences are complicating the company’s plans. The Swiss conglomerate, which in July launched a strategic review of low-growth, low-margin brands in the vitamins, minerals, and supplements segment, is now reassessing its ability to fetch a strong price amid rising demand for premium, science-backed products.
Nestle acquired these mass-market vitamin brands in 2021 in what was the third-largest deal in the sector over the past 12 years. Yet, none of these brands currently holds more than 2.1% of the U.S. vitamin market, according to Euromonitor International. With consumers increasingly favoring supplements with clinically tested claims, industry rivals such as Danone and Unilever are focusing on higher-end, tech-led products with clear growth potential. Sources at Unilever noted that any acquisition targets must demonstrate strong science-driven credibility and scalable opportunity.
The supplement market itself is fragmented and regulatory uncertainty is rising. Proposed changes to the U.S. GRAS (Generally Recognized as Safe) pathway could tighten approval for new food additives, adding complexity for mass-market brands. Trade groups such as the Council for Responsible Nutrition have expressed concern, emphasizing the need for enforcement of existing regulations rather than new rules.
Despite these challenges, the global dietary supplement market presents significant growth potential. Valued at $192.7 billion in 2024, it is projected to reach $414.5 billion by 2033, according to Grand View Research. Private equity funds appear to be the most likely buyers for Nestle’s underperforming brands, although valuations may be lower than the 2021 acquisition price due to cost inefficiencies compared with strategic industry players. Analysts suggest that PE investors may pursue the assets selectively, aiming to capitalize on market growth while navigating regulatory and competitive hurdles.
Nestle’s effort to offload its mass-market vitamin portfolio underscores broader shifts in wellness consumption, where consumers are increasingly willing to pay a premium for efficacy and scientific validation.
