Melatonin supplements have gained immense popularity in recent years as a natural remedy for improving quality of sleep. According to a 2020 survey, over 20% of American adults use dietary supplements containing melatonin before bedtime. Busy schedules and stress have led to reduced sleep hours globally. Furthermore, excessive use of smartphones, laptops and television suppresses the natural production of melatonin in the body. This has increased dependency on melatonin supplements. Also, with growing health awareness, people are shifting from prescription sleep aids to natural products like melatonin which have lesser side effects. This growing reliance on melatonin supplements for better sleep is a major trend driving the market growth.

Porter’s Analysis

Threat of new entrants: The melatonin market experiences low threat of new entrants due to established distribution channels and requirements for regulatory approvals. New companies need significant investment to penetrate this market.

Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitute products. However, growing demand for natural products helps companies negotiate on prices.

Bargaining power of suppliers: A few suppliers have significant control over raw material supplies which gives them strong bargaining power over companies. Suppliers can influence prices.

Threat of new substitutes: Threat from substitutes is low as melatonin has limited substitutes for regulating sleep cycles. However, other supplements are used for similar conditions.

Competitive rivalry: Intense competition exists among existing players to expand market share.

SWOT Analysis

Strength: Growing health awareness about benefits of melatonin in managing sleep disorders. Wide availability of product forms like capsules and gummies.

Weakness: Limited clinical data available on long term usage. Strict regulations delay product approvals.

Opportunity: Rising geriatric population suffering from age-related sleep issues. Growing demand for natural sleep aids in developing nations.

Threats: Presence of other sleep supplements. Impact of COVID-19 led economic slowdown on consumer spending.

Key Takeaways

The Global Melatonin Market Size is expected to witness high growth, exhibiting CAGR of 7.2% over the forecast period, due to increasing prevalence of sleep disorders and rising adoption of natural supplements. North America dominated the market in 2023 with over 30% revenue share owing to growing sleep problems among people. Europe was the second largest regional market supported by focus on preventive healthcare.


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