Supplements Company

How Profitable Is A Supplements Company? (Updated for 2024)

Pat Walls

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Updated: October 5th, 2024

How Profitable Is A Supplements Company? (Updated for 2024)

So you want to start a supplements company?

And the first question that came to your mind was, “well, are supplements companies actually profitable?”

Especially considering:

You could start a supplements company with as low as $500
Based on our data, supplements companies generate an average of $4.71M per year
You could see gross margins as high as 40% with supplements companies

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a supplements company.

Let’s dive in!

Is a supplements company profitable?

Yes, a supplements company is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $4.71M per year with an estimated gross margin of 25%, you could expect to recover your investment within 14 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your supplements company.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your supplements company is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a supplements company worth it?

If you’re wondering if a supplements company is worth it, the answer is a big YES. With supplements companies, you have the potential to earn $4.71M per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a supplements company to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful supplements companies case studies.

Examples Of Profitable Supplements Companies

Here are a few examples of profitable supplements companies, and a few more details about them:

1. Lost Empire Herbs ($3.84M/year)

Logan Christopher and his brothers started Lost Empire Herbs after being introduced to the benefits of herbs, particularly Pine Pollen. They began by buying pre-packaged products from Alibaba and re-selling them, learning along the way and eventually growing the business to mid-seven figures in revenue. They focused on email and content marketing, as well as affiliate marketing, to attract and retain customers.

Is it profitable? Yes
What's the gross margin? 40%
How much money it makes: $3.84M/year
How much did it cost to start: $1K

How I Started A Seven-Figure Supplements Business

Lost Empire Herbs co-founder and CEO Logan Christopher shares how he built an ecommerce business specializing in high-quality, phyto-androgenic herbs that support hormone systems, going from zero to mid-seven figures in revenue, and discusses strategies including affiliate marketing and email-and-content marketing.

Read this case study

Read by 15,964 founders

2. Jigsaw Health ($12M/year)

Patrick Sullivan Jr., along with his father, founded Jigsaw Health in 2005 after his dad struggled with health challenges for years. The idea for their dietary supplement business came when they realized the need for a magnesium supplement that didn't act as a laxative, and they created MagSRT. Now, Jigsaw Health has grown 181% in the past 5 years, with over 80% of revenue coming from direct-to-consumer sales.

Is it profitable? Yes
How much money it makes: $12M/year

How This Father-Son Combo Built A $9M/Year Dietary Supplement

This case study follows the journey of Jigsaw Health, a dietary supplement company that grew 181% in the past 5 years, with 80% of revenue coming direct-to-consumer, bridging the gap between health and entertainment.

Read this case study

Read by 11,456 founders

3. Bey Moss ($1.2M/year)

Nick Bey, the founder of Bey Moss, came up with the idea for his business after hearing about the health benefits of sea moss from rapper Nipsey Hussle. He decided to sell sea moss products to his wife's large social media following and quickly sold out of his first batch, validating the demand for the product. With his background in computer programming and his wife's sales expertise, they were able to build Bey Moss into a successful e-commerce business, making over $800,000 in revenue to date.

Is it profitable? Yes
How much money it makes: $1.2M/year
How much did it cost to start: $500

How This Couple Started A $100K/Month Sea Moss Infused Health Supplements Brand

Bey Moss, an e-commerce platform selling sea moss-infused health and wellness products, made over $800,000 to-date with less than $10,000 overall in ads after validating the product idea through reviews and feedback and leveraging their social media following to build a Bey Moss community.

Read this case study

Read by 30,082 founders

Learn more about starting a supplements company:

Where to start?

-> How much does it cost to start a supplements company?
-> Pros and cons of a supplements company

Need inspiration?

-> Other supplements company success stories
-> Marketing ideas for a supplements company
-> Supplements company slogans
-> Supplements company names

Other resources

-> Supplements company tips

How much can you make with a supplements company?

With a supplements company, you can make an average of $4.71M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $500. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 14 months.

How much does a supplements company make a week?

Based on our data, average weekly revenue for a supplements company ranges around $98.1K. As such, you could see monthly revenues of $392K.

To know if your supplements company achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your supplements company.

How much do supplements companies owners make?

The income of a supplements company owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established supplements company is about $98.1K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a supplements company owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Supplements Company Profit Margins

Generally speaking, a supplements company can expect profit margin of around 25%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a supplements company, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, supplements company owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, supplements company owners can ensure long-term sustainability and profitability for their business.

Supplements company owner salary

The salary of a supplements company owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established supplements company, in a prime position, might see an average weekly salary around the ballpark of $24.5K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a supplements company may be a promising business to start - but the success of your supplements company mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable supplements company.

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Starting A Supplements Company: Everything You Need To Know

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