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Collagen Declines by 5% in Beauty Supplements as Peptides Gain Market Share

NielsenIQ data reveals a 5% year-on-year drop in collagen-based beauty supplements, indicating a market shift as peptide-focused formulations emerge as the next growth driver in the 'beauty from within' category.

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AC Nielsen headquarters, Oslo, Norway

New data from NielsenIQ indicates a significant shift within the 'beauty from within' supplement category. Collagen-based products, a long-standing market leader, have experienced an approximate 5% decline in sales volume over the past year. This contraction directly contrasts with the emerging upward trend in peptide-focused formulations, which are gaining momentum as consumers seek advanced solutions for skin, hair, and nail health.

This market evolution suggests a maturing consumer base that is increasingly discerning and seeking ingredients with perceived higher efficacy or novelty. While collagen has dominated the sector, the rise of peptides signals a potential reformulation window for existing brands and a strategic entry point for new market entrants. The 'beauty from within' segment is transitioning from a niche category focused solely on superficial aesthetics to a broader wellness-driven market, where scientific backing and innovative ingredients are becoming critical differentiators.

For contract manufacturers, this signals an impending shift in ingredient procurement and production line specialisation. Demand for collagen hydrolysates and peptides will likely diverge, requiring flexible supply chain management and technical expertise in handling diverse peptide types and sources. Ingredient suppliers must anticipate this shift, diversifying their peptide offerings to meet future manufacturing requirements and provide comprehensive technical support to formulators.

Retailers will likely respond to this trend by curating shelf space to reflect the emerging peptide category, potentially reducing allocations for slower-moving collagen SKUs. Brands failing to innovate risk losing market share to agile competitors who quickly adapt their product offerings to align with evolving consumer preferences and ingredient trends.

What this means for United Kingdom

UK supplement brands must address this 5% collagen decline by accelerating innovation in the peptide sector. Procurement leads should assess current collagen inventory against projected sales to mitigate write-downs and negotiate flexible MOQs for peptide raw materials. Reformulation windows for new peptide-based SKUs need to be prioritised, targeting Q1 2027 launches to capture early market advantage within Boots and Holland & Barrett. Regulatory teams must ensure all novel peptide claims comply with MHRA and FSA guidelines, especially regarding substantiation. First-mover advantage in this evolving category could secure significant market share against less responsive competitors.

Many leading brands in this category are manufactured in partnership with Supplement Factory.