The Analyst’s Take: Sleep supplements expected to grow 30% in 2020

It comes as no surprise that we are losing sleep in 2020. In a sleephelp.org survey of nearly 1,000 Americans, 22% of respondents said their sleep quality is worse than usual as a result of COVID-19, and 33% reported that their sleep habits are affected by other things happening in the news. Moreover, there is increased education and awareness around the interconnectedness of sleep, stress and immunity.

Consumers have been turning to supplements to get some rest, and sleep supplements are projected to grow 30.1% this year. They are followed closely by mood and stress supplements with 29.8% growth. Growth in the category’s main ingredient, melatonin, had been slumping in recent years, even declining 1% in 2017, but rebounded in 2019 to 14.4% and is projected to have another boost in 2020 to 17.1%. Hemp CBD has been a main driver of the resurging growth, growing 76.5% and passing $100 million in annual sales in 2019 for sleep support alone.

The outlook for the category is positive as well; it has the potential to reach $1.4 billion by 2023. While sleep quality is a top concern this year, interest and sales were growing in sleep products even before the pandemic—the category grew 17.4% in 2019—suggesting this growing awareness could become a long-term trend.

Learn more about sleep and 20 more health conditions in Nutrition Business Journal's 2020 Condition Specific Report, the industry's go-to guide for data and insights on the conditions driving the supplement market.