Collagen’s Fountain of Youth Qualities Fuel Category Growth

Collagen comprises up to 30% of the protein in the human body and 80% of the skin. However, it is becoming more well-known that people’s bodies begin reducing the production of collagen as soon as their early 20s. Given this, consumers are viewing collagen products as the new fountain of youth. According to Trust Transparency Center’s ITC 2020 Consumer Insight Survey, most respondents strongly associate “beauty” as the top benefit of taking a collagen supplement.

With beauty as a core component of collagen marketing, and even endorsements from dermatologists and celebrities, the sales of collagen have spiked significantly. The collagen market is also slated to hit $7.5 billion in global sales by the year 2027.

On Amazon alone, collagen collectively generated $292 million in revenue over the past year. That is 21% higher than the $242 million from the year prior.

It is worth noting, however, that total sales fluctuated quite a lot between months in 2020, which cannot necessarily be attributed to seasonality. The most recent MoM jumps in sales were seen consecutively in March with an 12% increase, in April with a 30% increase, and in May with a 16% increase. These surges all greatly exceeded the average MoM rate from the past year, which was 4%. This is likely attributable to the increase in online shopping that arose with the pandemic. 

There are currently 314 brands present in the collagen category on Amazon. Yet, the top 5 leading brands represent 50% of the total sales.

The top three brands include Sports Research, Vital Proteins, and Ancient Nutrition. From Q2 to Q3 2020, two of these brands declined in revenue, and the third brand stayed essentially flat. It is further noteworthy that LiveWell Labs Nutrition, a top 10 seller, skyrocketed in sales in the last quarter, more than doubling in revenue and ranking fifth in collagen sales in Q3. Not only that, but the brand is projected to surpass competitors soon if demand continues at the same rate. It is additionally worth sharing that other smaller brands, like Purify Life, LAC, and PROTIVA have recently experienced even higher QoQ growth rates– another clear signal that there is room for newcomers and growth in this category. 

What Types Collagen Products are Selling, and What Types Are Not?

There are several essential attributes that are associated with collagen products. Powder is the absolute leader in terms of delivery methods, representing about 85% of the total sales on average. Capsule is the runner-up, representing 11% of the total revenue in Q3 2020 and showing the potential for continued growth. Another form that is noteworthy is liquid. Even though it currently has a mere 2% revenue share, it has had steady QoQ growth rates of approximately 23%.

Approximately 74% of the collagen products sold in Q3 2020 were categorized as collagen peptides. Collagen peptides have been the top product type all along over the past years– but revenue of the related products has been declining slightly and slowly at an average rate of 4%. Meanwhile, products labeled as “multi-collagen” took up 16% of the total sales with 11% QoQ growth. Lastly, when it comes to flavor, unflavored collagen products represent 66% of the total sales in the category. It appears to be the top preference for consumers, in contrast to flavored items.

In closing, the collagen category is one with tremendous potential. If you would like to learn more about these category insights, contact us today for a walkthrough of our Market Intelligence platform.