by Matt Weik BS, CSCS, CPT, CSN
The looming TikTok ban in the United States, scheduled for January 19, could shake up the dietary supplement industry in ways we’ve never seen before. As a platform that’s become a powerhouse for social commerce and consumer engagement, TikTok has been a game-changer for reaching younger, health-conscious audiences.
A potential TikTok ban and removal from U.S. app stores puts direct-to-consumer (DTC) sales and brand visibility at risk, forcing some supplement brands to rethink their strategies.
The Background: Why a TikTok Ban May Happen
TikTok’s troubles started escalating when the DC Circuit Court of Appeals upheld a federal law requiring ByteDance, TikTok’s Beijing-based parent company, to sell its U.S. operations to a non-Chinese entity due to national security concerns. TikTok’s request for a temporary block on the ban was rejected.
Truthfully, and this is just my opinion, but I don’t use TikTok because I don’t trust all my information and data being sent over to China. But then again, I guess most of our information online is already going to them, unfortunately. But overall, a TikTok ban wouldn’t affect me (personally) one bit.
While the Supreme Court could still step in, legal experts aren’t holding their breath. “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.
Interestingly, President-elect Trump, who takes office the day after the potential ban, could still impact the situation. “We’ll take a look at TikTok. You know, I have a warm spot in my heart for TikTok,” Trump remarked during a speech at Mar-a-Lago.
TikTok’s Impact on the Supplement Industry
TikTok Shop has become a vital channel for brands aiming to reach Gen Z consumers, according to Madhav Pitaliya, an analyst at Coresight Research.
“The loss of TikTok Shop represents a significant challenge for small and mid-sized nutrition and dietary supplement manufacturers,” he explained. For these brands, TikTok was more than just a sales platform; it was a lifeline for building awareness, trust, and revenue.
Consider this: 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.
Health products were among the top-performing categories on TikTok, making its potential disappearance due to a TikTok ban a significant blow.
What Happens to Brands Relying on TikTok?
Brands like Goli Nutrition and several other supplement brands, which have seen significant sales through TikTok Shop, may need to pivot quickly to other platforms.
For smaller companies, TikTok’s unique blend of influencer-driven content and instant purchasing created a cost-effective way to acquire and engage customers. Losing this platform means not just a loss of revenue but also a crucial avenue for customer acquisition.
Adapting to a TikTok-Free Future
To offset the potential disruption of a TikTok ban, supplement brands will need to reevaluate their digital strategies. Some supplement brand adjustments may include:
- Invest in Owned DTC Channels: Strengthening your website and email marketing efforts can help you regain control over customer relationships.
- Expand to Other Social Platforms: Platforms like Instagram, Facebook, and YouTube offer shopping features that can fill the gap left by TikTok.
- Optimize Marketplace Visibility: Ensure your products are easy to find and purchase on platforms like Amazon and Walmart.
Kelly Bonner of Duane Morris, LLP, adds another layer of advice: “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.”
Transparency in influencer partnerships and compliance with federal guidelines will remain critical as brands navigate these changes.
Opportunities Beyond a TikTok Ban for Brands
TikTok’s absence could also open doors for innovation and partnerships with larger platforms. Companies like Amazon and Walmart are well-positioned to enhance their live shopping and influencer-driven marketing capabilities, potentially mimicking TikTok Shop’s functionality.
Additionally, health-focused apps like MyFitnessPal or personalized AI-driven recommendation tools could help brands replicate TikTok’s algorithmic discovery benefits.
The Uncertain Future Following a TikTok Ban
While TikTok has filed for another appeal, its future remains in jeopardy. ByteDance has stated that 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 no plans have been announced.
Gautam Hans, a professor at Cornell Law School, commented, “The Supreme Court may decide not to review the case at all, in which case TikTok is out of luck.” Without new downloads or updates, TikTok would become “eventually” unusable, according to the Justice Department.
The Time to Prepare for the Unknown is NOW
The dietary supplement industry is staring down a massive shift if a TikTok ban happens. While this potential ban presents challenges, it’s also an opportunity to innovate and diversify.
By strengthening owned channels, expanding to other platforms, and embracing new technologies, brands can adapt to this rapidly evolving digital landscape. The key will be staying agile and prepared for whatever comes next.
