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Health Stores in the US Industry Market Research Report from IBISWorld Has Been Updated
Date:9/16/2013

Los Angeles, California (PRWEB) September 16, 2013

Despite struggles across the entire retail sector, the high-growth Health Stores industry has performed well over the five years to 2013. Revenue is expected to rise at an average annual rate of 3.3% to $17.5 billion during the period, including an estimated 3.6% increase in 2013 alone. The aging population, accelerating trends toward healthy living, improving per capita disposable income and escalating healthcare costs are contributing to the industry's growth. In particular, changing attitudes toward personal healthcare are driving demand for natural and anti-aging products.

While sales slowed during the recession, a decrease in private health insurance coverage due to rising unemployment benefited the industry. Reduced coverage caused out-of-pocket healthcare costs to increase, which encouraged consumers to seek out preventive care from health stores. At the same time, however, these factors also bolstered demand for health products sold by mass merchandisers like Walmart and Target and online retailers like Amazon. These alternative retailers often benefit from lower operating costs and can therefore offer lower prices to customers. To compete, industry operators have been developing their economies of scale to better negotiate with suppliers and reduce costs. Accordingly, the number of operators is expected to slowly increase at an average rate of 1.1% annually to reach 63,984 over the five years to 2013.

Moderate growth is forecast to continue through 2018, with the number of companies projected to rise during the five-year period. Despite cost-reduction efforts, IBISWorld estimates that profit margins will fall over the next five years as competition from new market entrants, mass merchandisers and on
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