The dietary supplement industry has proven to be not only essential in helping people stay healthy but also a significant economic engine, creating jobs, providing wages, and contributing billions in taxes to U.S. state governments and congressional districts.
According to a recent Economic Impact Study (EIS) released by the Council for Responsible Nutrition (CRN), a major trade association for the dietary supplement and functional food industry, the supplement industry contributed a whopping $158.6 billion to the U.S economy in 2023 alone. This reflects a 23% increase from $121.6 billion reported in 2016.
The report also indicated the industry directly contributed a total of $20 billion to the government in 2023 through taxes, as well as over $19 billion in wages paid to individuals directly employed by supplement companies, including through dietary supplement contract manufacturing, and $45 billion in wages earned through indirect employments.
CRN President and CEO Steve Mister noted in the report that the supplementary industry’s footprint has grown in the past eight years since the last report in 2016, subsequently increasing its contribution to the growth of local, state, and national economies.
“In some suburban or rural areas, they are among the largest employers and taxpayers, if not the largest, and provide needed jobs and revenue,” Mister said in the report.
According to an independent analysis compiled by John Dunham and Associates (JDA), a consulting firm that was funded by CRN, the dietary supplement industry has provided over 615,000 well-paying jobs to the American population.
This generates $10 billion in federal taxes, alongside $6.76 billion in tax revenues to state and local governments, helping build and maintain schools, roadways, police, and fire departments, among other projects.
Much of this growth is attributed to the increasing consumer demands for health and wellness products every year, signaling a brighter future for the industry.
Why is the Report So Significant?
The significance of the Economic Impact Study (EIS) cannot be overlooked. It provides a comprehensive analysis of the various fiscal benefits of the industry to the U.S. economy, offering vital information that can inform new legislation and shape existing ones across all 50 U.S. states, as well as congressional districts.
The EIS is also a vital part of the industry’s modern advocacy efforts due to its critical role in influencing the type and nature of legislations across the U.S.
By understanding the positive financial contributions of the dietary supplement companies in each state and individual legislative district, congressional leaders can consider the impact of new or revised laws on those businesses.
“This report helps us clearly quantify that impact in specific and tangible terms,” Mister concluded.
The CRN report also highlighted the top 10 states with a well-established dietary supplement industry, with California, New Jersey, New York, Texas, and Illinois leading the way, followed by Florida, Utah, Pennsylvania, Minnesota, and Michigan, respectively.
With the soaring demand for health and wellness supplements across the U.S, the impact of the dietary supplements industry is only expected to grow in the coming years.
