Time to take up SARMs? Why sport supplements could be a new investment opportunity
The global sports nutrition and supplements market is huge – currently estimated at almost $17.5 billion – and is projected to have grown by a cool billion dollars since the start of the COVID-19 pandemic. One of the recent success stories has been the rise in popularity of SARMs – and there are other products that could be about to explode in the same way.
What are SARMs and what do they do?
SARMs – or Selective Androgen Receptor Modulators – are a legitimate, legal alternative to anabolic steroids, with various extra health benefits. Unlike anabolic steroids, they are selective in targeting androgen receptors that are specific to skeletal muscles, and are effective in the treatment of medical conditions such as osteoporosis as well as in muscle building (the core audience).
Perhaps most importantly, the growing confidence in SARMs within the fitness market shows that a sense of trust has built around the product. So what could be next? Nutrition Adviser recently noted a similar boom in collagen peptides. A structural protein that acts as a building block in developing healthy bones, muscles, connective tissues, joints and skin, collagen is particularly interesting because the audience has grown from its traditional ‘fitness’ space for food and drink supplements into the general health market (many products are co-branded as antioxidants too).
According to a report by consumer insights firm Spins, collagen products saw a 123% rise in sales in the 12 months up to October 2019 in the US – growing from $66 million to $147 million. Certainly another space to watch. Meanwhile, other steroid alternatives include more traditional options such as creatine and BCAAs (Branch-Chain Amino Acids) – both of which help to increase muscle growth and recovery, enhance strength and improve exercise performance.
How has COVID-19 impacted the industry?
With gyms and fitness centres currently closed during the lockdown, savvy exercisers are having to find alternative ways to stay fit and toned – while online orders have seen a sharp increase as non-essential stores have been shuttered. But the pandemic has had a more direct impact on the market too, with an increase in sports nutrient products that can improve the immune system as well as raising our general health and wellbeing. Again, the emphasis on health benefits beyond the core sports and gym-based audience has been a key factor in the current boom.
Of course, with no gyms to visit, the other growth area has been in fitness apps and virtual workouts (be they live-streamed from gyms, personal trainers like Joe Wicks – or through platforms such as Mindbody and Peloton). Indeed, in a recent survey, 23% of Mindbody app users in the US say they are now working out daily – up from just 5% in 2019, while Peloton has reported triple-digit increases in fitness subscriptions and revenue for Q4 2020 – with total revenue for the fiscal year topping $1.8 billion (a 100% increase year-on-year).
As ever, if you are interested in investigating this rapidly-developing market, we are always happy to discuss your payment requirements. Get in touch today to find out more about how Zion Payments can help your business.