The looming Jan. 19 ban on TikTok in the United States could have wide-reaching implications for the nutritional and dietary supplement industry, a sector increasingly reliant on the app’s unique combination of social commerce and consumer engagement. With TikTok serving as a key platform for brands targeting younger, health-conscious consumers, its potential removal from U.S. app stores threatens to disrupt direct-to-consumer (DTC) sales strategies and brand visibility.
TikTok’s challenges escalated earlier this month when the DC Circuit Court of Appeals upheld a federal law requiring ByteDance, the app’s Beijing-based parent company, to sell its U.S. operations to a non-Chinese entity due to national security concerns. The court also rejected TikTok’s request for a temporary block on the ban.
As of now, the Supreme Court could still weigh in, but experts believe a reversal is unlikely.
“I have trouble thinking that the conservative force on the Supreme Court would not see this as a (national) security case,” said Josh Schiller, partner at Boies Schiller Flexner, in an interview with CNN.
One potential savior is President-elect Trump, who woud take office the day after the potential band. Speaking at Mar-a-Lago on Monday, Trump said: “We’ll take a look at TikTok. You know, I have a warm spot in my heart for TikTok.”
Impacts on the supplement industry
TikTok Shop has been an essential channel for reaching Gen Z consumers, according to Madhav Pitaliya, an analyst at Coresight Research. As a result, the potential “loss of TikTok Shop represents a significant challenge for small and mid-sized nutrition and dietary supplement manufacturers and suppliers, as it impacts a platform that was becoming a key channel for direct-to-consumer (DTC) sales in the U.S.,” he said.
Coresight Research found that 46.8% of consumers used social media for shopping in the last three months, with TikTok, Instagram and Facebook leading the pack. Moreover, health products were among TikTok’s top-performing categories.
Companies like Goli Nutrition and Micro Ingredients, which have seen significant sales through TikTok Shop, may need to pivot quickly to other platforms to maintain their market presence.
Pitaliya emphasized the importance of the platform for smaller brands.
“TikTok’s integration of influencer-driven content and instant purchasing created a cost-effective channel for building awareness, trust and sales,” he said, adding that its loss “means not just a loss of revenue but also a critical avenue for customer acquisition and engagement.”
Adapting to a changing landscape
To offset the disruption caused by a potential TikTok ban, brands will need to reevaluate their digital strategies. Pitaliya suggested several adjustments, including investing in owned DTC channels, expanding brand presence on alternative social media platforms and optimizing marketplace visibility.
“Brands should broaden their activity on platforms like Facebook, Instagram and YouTube, utilizing their shopping features,” he advised.
Kelly Bonner of Duane Morris, LLP, echoed the need for diversification while highlighting regulatory considerations.
“Brands shifting focus to alternative social media platforms should still familiarize themselves with FTC Endorsement Guides and FDA regulations concerning the promotion of nutritional or wellness supplements,” she advised.
Transparency in influencer partnerships and compliance with federal guidelines will remain critical as brands transition to other platforms.
The role of larger retailers and platforms
TikTok’s absence may spur innovation within the industry and open opportunities for partnerships with larger platforms. Amazon and Walmart, for instance, are well-positioned to support dietary supplement brands by expanding live shopping and influencer-driven marketing features.
“These platforms could develop live shopping or influencer-driven marketing capabilities, mimicking TikTok Shop’s functionality,” Bonner said.
Other opportunities include collaborations with health-focused apps like MyFitnessPal or the creation of personalized AI-driven recommendations, which could help replicate TikTok’s algorithmic discovery benefits.
Will TikTok’s ban be permanent?
While TikTok has filed for another appeal, the path to avoiding the ban is still being determined. ByteDance has indicated it will not sell TikTok despite legislation requiring divestment.
The Biden administration has left the door open for a one-time, 90-day extension, but such plans have yet to be announced. President-elect Donald Trump, who takes office the day after the ban, has expressed support for the app in the past, but his stance remains unpredictable.
In the meantime, brands should prepare for the possibility of a TikTok-less future. Gautam Hans, a professor at Cornell Law School, told CNN, “The Supreme Court may decide not to review the case at all, in which case TikTok is out of luck.”
The Justice Department has clarified that, while existing users could still access the app initially, updates and downloads would no longer be available, rendering TikTok “eventually” unusable.
The nutritional and dietary supplement industry faces uncertainty, with TikTok’s future hanging in the balance. While the potential ban represents a setback for brands that have thrived on the platform, it also forces a reassessment of digital strategies.
By diversifying marketing efforts, investing in new platforms and leveraging emerging technologies, companies can adapt and innovate in a rapidly evolving social commerce landscape.
