Supplement Industry Transparency Goes Beyond “Prop Blends”
If you mention proprietary blends (aka prop blends) within the various supplement industry online communities, it tends to cause a visceral reaction that’s almost always negative. It’s pretty unique to that space, mostly because a prop blend in any other CPG category is considered a trade secret…
Do you know what goes into a can of Coca-Cola?
How about the certificate of composition for a pint of Ben and Jerry’s Ice Cream? Revlon Foundation? Old Spice Body Wash?
The list could go on and on, but you get the point. Those proprietary recipes or formulas are a central part of what makes these billion-dollar CPG products.
Which side is right? “Sally from Iowa” that drinks her Diet Coke without a care in the world what’s exactly in it to the milligrams of artificial sweetener or “Matty Meathead” that thinks not knowing the exact milligrams of beta alanine will ruin his chances at finishing a marathon? The fact is that all consumers care about transparency at some level, but there are driving forces that make this topic many shades of grey instead of black/white.
Intent of Purchase
Does the intent behind purchasing supplements change the expected level of product transparency? The purchase intent around supplements usually goes well beyond fulfilling the lowest level of Maslow’s Hierarchy of Needs, right? You buy supplements because it’s a portion of a larger integrated plan to reach a health and wellness goal. The purchase is made, in part, because of the product claims on the packaging and marketing communications. That makes supplements closer to pharmaceuticals than Oreo cookies.
Purchase Behavior
More times than not…what a consumer says about their purchasing motivations and what that consumer actually purchases doesn’t align. Take a look at the top selling pre-workout powders, weight management capsules, and/or testosterone boosting pills…what you’ll see is that many still have some portion of their formulas locked away behind a prop blend within the supplement facts panel. This market activity does not incentivize leading supplement brands to make the change towards greater levels of transparency because consumers are still purchasing products that contain prop blends.
If supplement consumers say they want more transparency, why do they still purchase prop blends?
Asymmetric Knowledge = the majority of consumers are not well educated on supplements
Laziness = despite living in the age of information, supplement consumers don’t want to close the knowledge gap
Low-Cost = while not always truth, prop blends allow for easier cost optimization to compete for the economical consumer cohort
Market Sentiment
Most major media publications paint the supplement industry as an unregulated Wild Wild West that’s packed with a bunch of snake oil salesmen. While that’s the furthest thing from the truth, “fake news” does have a direct relation to consumer’s opinion. Somewhere along the way…media outlets started pointing towards prop blends as a variable that causes supplement industry mistrust. I’m not saying that prop blends are the central reason for negative categorical consumer sentiment, but it does play a role in it. Despite the negative media onslaught, the supplement industry has sustained strong growth, but how much faster would it be without that challenge?
Not Just About Product Transparency
Transparency is an evolutionary subject. It seems every time a new standard is reached, expectations around that standard change from “nice to have” to “must-have” with consumers. Don’t forget that it was only a decade ago when having a transparent supplement facts panel was a huge market differentiation!
Product transparency is great, but there’s many more aspects of transparency…
What are your company’s core values? Do you communicate them to the consumer market regularly and create a standard to judge against?
What role does your brand play in a consumer’s life? Does your brand align with specific societal causes? Do you provide a way that consumer’s can check out if you’re walking the walk?
Does brand leadership’s words, values, and actions align? You can’t hide forever from the social media mob.
Are there any noticeable misalignments that give consumers red flags? Remember…authenticity matters A LOT in a world that’s moving closer to radical transparency.