Rapidly increasing sales of dietary supplements observed in Russia

The Burgeoning Dietary Supplement Market in Russia:

The Russian market for dietary supplements (DS) is on a roll: over the past five years, the number of brands has nearly tripled, and the number of manufacturers has skyrocketed from 1,023 to 1,493. The departure of American giant iHerb from Russia has led to a surge in DS sales, especially online.

According to Natalia Prokopyeva, the chair of ZAO "Evgeniya," the volume of officially sold DS products in Russia has more than doubled in the past five years, with the number of manufacturers reaching almost 1,500 companies. AlphaRM data reveals that DS sales in 2024 totaled 511 million packages (+2% from 2023) worth 164 billion rubles (+20% from 2023). These figures exclude DS sold on marketplaces, only those sold in pharmacies and on their electronic platforms. However, a weekly sales analysis showed that in January 2025, this growth was higher year-over-year: +6% in packages and +23% in money compared to the first month of the previous year.

The average price per package of Russian DS in January was 256 rubles (+23%), and for foreign DS, it was 733 rubles (+21%). "In rubles, the DS market shows growth higher than the pharmaceutical market overall. Russian DS prices are increasing faster than foreign ones: 23% vs. 21%. The average price for DS is also increasing, and this trend has continued since iHerb left Russia," said Tatiana Kovalchuk, deputy general director of AlphaRM.

In 2023, online DS sales grew by 53% (market volume of 28.3 billion rubles), while offline sales grew by 15% (136 billion rubles) compared to the previous year. However, offline sales in packages decreased by 1% (462.8 million packages), while the online sector grew by 31% (48.6 million packages). Six out of ten leading DS producers are growing faster than the market.

Authenticity Concerns:

Manufacturers have expressed growing concern about the risk of purchasing low-quality supplements. Alexander Chernichenko, the General Director of "Mьюz Media," has noted an increase in inquiries about the authenticity of certain products. "If you base your choice on the brand, then, of course, you should opt for well-known manufacturers who are interested in the reputation of their brands. If you consider the sales channels, then you should first look at the pharmacy, including the pharmacy e-com. This channel guarantees the authenticity of the product, compliance with all norms and rules of transportation, import, and realization," he says.

Another guarantee of the original product is the "Honest Sign" marking. Manufacturers are obliged to mark dietary supplements with it from October 2023.

Who Replaced iHerb:

The marketplace iHerb was blocked in Russia in 2022, with widespread complaints that the departure of the American site left Russian consumers without a quality guarantee. However, experts argue that these claims are not accurate, as the platform was blocked by court decision due to numerous violations.[1]

Despite this, attempts have been made to revive the project in a new form, such as "Yandex Market" introducing a button called iHerb, offering users the same assortment. However, the referral project soon collapsed and the button did not last long. Many adherents of the service still use it and order parcels through Kazakhstan and other EAEU countries.

Digital Problem:

The departure of iHerb did not result in market "cleansing." Oleg Komarov, co-founder of "Kvadrat-S," notes that while products officially registered in Russia did not disappear, dietary supplements with excessive dosages, disguised as food additives, are present on marketplaces. The volume of the "gray" market reaches half of the total offer on marketplaces.

Marketplaces feature counterfeit products of previously popular iHerb brands and sellers engage in the sale of "gray" products smuggled through neighboring countries with customs violations and without labeling. The "gray" supplier has unfair competitive advantages due to non-payment of customs duties and taxes, allowing aggressive dumping.

Currently, marketplaces do not assume responsibility for the actions of third parties, according to experts, which presents a significant problem. Discussions are underway regarding holding marketplaces accountable for the sale of unsafe products, especially those intended for internal consumption.

Where the Market is Headed:

The dietary supplement market in Russia is likely to see significant changes in the near future as legislative initiatives aimed at changing the rules of the game are under consideration by the State Duma. Legalizing physician prescriptions for supplements could provide a boost for honest producers.

The introduction of a production standard for dietary supplement manufacturers could help remove questionable operations from the market. The implementation of a non-judicial blocking mechanism for products with unconfirmed quality is also being discussed and may provide a crucial tool for combating 'gray' players.

[1] Source: "The Russian-language version of iHerb was blocked in October 2022 as part of broader sanctions and market exits by Western companies amid the Russo-Ukrainian War."

The surge in dietary supplement (DS) sales in Russia, following iHerb's departure, has primarily been observed in online sales, with over 53% growth in 2023.
Natalia Prokopyeva, the chair of ZAO "Evgeniya," highlighted that the number of officially sold DS products in Russia has more than doubled in the past five years, reaching nearly 1,500 companies.
According to AlphaRM data, DS sales in 2024 totaled 511 million packages, worth 164 billion rubles, with the average price per Russian DS package being 256 rubles, and for foreign DS, it was 733 rubles.
Alexander Chernichenko, the General Director of "Mьюz Media," emphasized the need for consumers to opt for well-known manufacturers and purchase supplements from pharmacies or pharmacy e-com platforms to ensure the authenticity of the product.
Oleg Komarov, co-founder of "Kvadrat-S," pointed out that despite iHerb's exit, the "gray" market for dietary supplements on marketplaces remains extensive, with over half of the total offer being products with excessive dosages or disguised as food additives.