USANA Health Sciences, Inc. (USANA) operates as a global direct selling and direct-to-consumer nutrition, personal health and wellness company.
The company has operations in 25 geographic markets worldwide. In December 2024, the company acquired a 78.85% ownership interest in Hiya Health Products, LLC (‘Hiya’), a direct-to-consumer provider of high-quality children's health and wellness products (the ‘Hiya Acquisition). The company operates and sells products through both direct selling and dir...
USANA Health Sciences, Inc. (USANA) operates as a global direct selling and direct-to-consumer nutrition, personal health and wellness company.
The company has operations in 25 geographic markets worldwide. In December 2024, the company acquired a 78.85% ownership interest in Hiya Health Products, LLC (‘Hiya’), a direct-to-consumer provider of high-quality children's health and wellness products (the ‘Hiya Acquisition). The company operates and sells products through both direct selling and direct-to-consumer channels. Mainland China (‘China’) is the company’s largest market and single largest source of revenue.
Segments
The company operates through Direct Selling and Hiya Direct-To-Consumer segments.
Direct Selling
This segment develops and manufactures high quality, science-based nutritional, personal care and skincare products with a primary focus on promoting long-term health and wellness in various geographic markets worldwide that are distributed through the direct selling channel. The customer base for the company’s direct selling segment is primarily consist of two types of customers ‘Associates’ and ‘Preferred Customers’ referred to collectively as ‘active Customers.’ The company’s Associates also sell its products to retail customers. In 2023, the company launched its Affiliate program in the United States, Canada, and Mexico and are evaluating introducing the program in other markets. This program offers another sales and compensation opportunity to individuals who are interested in selling USANA products. Affiliates are discussed and reported in this report as part of the company’s Associates. Preferred Customers purchase the company’s products strictly for personal use and are not permitted to resell or to distribute the products. The company only counts as active Customers those Associates and Preferred Customers who have purchased from it at any time during the most recent three-month period.
Hiya Direct-To-Consumer
This segment primarily consists of customers purchasing Hiya products for personal use through a subscription model, which is intended to provide a steady, predictable income stream. The ongoing nature of subscriptions fosters stronger relationships with customers by making it easier for them to receive products regularly, which leads to strong retention and loyalty. Hiya's subscription model also provides rich data on customer preferences and behaviors, which enables personalized offerings, efficient marketing and data-driven innovation insights.
Other
The customer base for the company’s ‘other’ category consists of customers of Rise Bar Wellness, Inc. (‘Rise’) and Oola Global, LLC (‘Oola’), which are both businesses it acquired in 2022. Rise manufactures and sells high-quality protein bars and powdered drinks that are formulated to help customers achieve their health goals through clean and simple ingredients. Oola is a direct selling company that offers a personal development framework and nutritional products that helps individuals create a life of balance, growth, and purpose.
Growth Strategy
In 2025, the company will continue executing on its global Associate-first growth strategy with a strong focus on increasing the number of active customers in each of its markets. The company’s key priorities include enhancing the earning opportunity of its Associates by refining its compensation plan to prioritize sales, customer growth, and team building; accelerating the launch of new and upgraded products while driving innovative product development; strengthening its brand messaging to create a more compelling and consistent market presence; deepening engagement with its Associates through both in-person and digital initiatives around the world; focuses on China while also implementing more tailored, decentralized solutions to meet the unique needs of each region; and supporting and expanding its acquired businesses, including the growth of the company’s Hiya direct-to-consumer business.
Products
USANA Nutritionals Optimizers consists of targeted supplements designed to meet individual health and nutritional needs. These products support needs, such as cardiovascular health, skeletal/structural health, and digestive health and are intended to be used in conjunction with the Essentials/CellSentials.
Essentials/CellSentials includes core vitamin and mineral supplements that provide a foundation of advanced total body nutrition for every age group beginning with children 13 months of age.
Foods includes meal replacement shakes, snack bars, and other related products that promote healthy weight management, digestive health, energy and hydration through a holistic approach. These products can be used along with Essentials and Optimizers to provide a complete and healthy diet and sustained energy throughout the day.
Personal care and Skincare include the company’s premium science-based personal care products and Celavive, its innovative skincare system formulated with the company’s USANA InCelligence Technology. Celavive offers a comprehensive skincare regimen benefiting multiple skincare types and ethnicities, upgraded science, and more noticeable user benefits.
All Other includes materials and online tools that are designed to assist the company’s Associates in building their businesses and in marketing its products.
In addition to the products, the company offers products designed specifically for prenatal, infant, and young-child age groups in China. As the company continue to focus on innovation, it will look for innovative product opportunities such as the company’s Celavive and Active Nutrition product lines.
Other top-selling products include the company’s Hepasil, Soy Lecithin, and HealthPak.
Geographic Presence
The company has ongoing operations in the following direct selling markets, which are presented in two geographic regions: the Asia Pacific, and Americas and Europe. The Asia Pacific is further divided into three sub-regions: Greater China, Southeast Asia Pacific, and North Asia. The countries included in these regions and sub-regions are:
Asia Pacific
Asia Pacific is organized into three sub-regions: Greater China, Southeast Asia Pacific, and North Asia. Markets included in each of these sub-regions are as follows:
Greater China: Hong Kong, Taiwan, and China. The company’s business in China is conducted by BabyCare.
Southeast Asia Pacific: Australia, New Zealand, Singapore, Malaysia, the Philippines, Thailand, Indonesia, and India.
North Asia: Japan and South Korea.
Americas and Europe
Americas and Europe: United States, Canada, Mexico, Colombia, and Europe (the United Kingdom, France, Germany, Spain, Italy, Romania, Belgium, and the Netherlands).
Manufacturing
The company’s Salt Lake City, Utah, manufacturing facilities are registered, as required, with the FDA, Health Canada Natural Health Products Directorate, the Australian Therapeutic Goods Administration (‘TGA’), and other governmental agencies. These and other various organizations and government agencies regularly audit this facility to assess, among other things, compliance with Good Manufacturing Practices (‘GMPs’) and with labeling claims. Additionally, the company’s Salt Lake City, Utah manufacturing facilities are certified, through inspection and audits, with the Islamic Foods and Nutrition Counsel of America in compliance with Halal, The Organized Kashrus Laboratories in compliance with Kosher, NSF International in compliance with product testing and GMPs, and the TGA in compliance with the Therapeutic Goods Act in Australia.
The company is audited by the FDA, specifically for dietary supplements, and have historically been found to be in compliance with GMPs for dietary supplements. The company voluntarily maintains compliance with the guidance established by the FDA and the Personal Care Products Council.
The company’s Beijing, China manufacturing facility is registered with State Administration of Market Regulation (‘SAMR’), which includes the China Food and Drug Administration. The company’s facility in Beijing is audited regularly by various organizations and government agencies to assess, among other things, compliance with applicable GMPs, and with labeling claims.
Distribution and Marketing
The company distributes its products internationally primarily through direct selling, which entails person-to-person marketing and selling of products.
Direct Selling Program
The company operates its business in China through BabyCare. Outside of China, a person who wishes to sell USANA products must join the company’s independent sales force as an Associate.
The company also sells products directly to Preferred Customers and retail customers who purchase the products only for their personal use. Preferred Customers enroll with USANA, generally through an introduction by an Associate, and purchase product directly from the company. Retail customers, however, generally purchase directly from Associates. To sell USANA products, a Preferred Customer or retail customer must become an Associate.
BabyCare sells products in China through a variety of methods, including online through its website; at physical branch retail locations; through direct sellers in provinces and municipalities where BabyCare has received a direct selling license granted by the local provincial government; and through independent distributors who are considered independent business owners under Chinese law.
Competition
The company competes with manufacturers, distributors, and retailers of nutritional products in many channels, including global direct selling, direct-to-consumer, specialty retail stores, wholesale stores, e-commerce businesses, such as Amazon, and the internet generally. The company also competes with other public and privately owned global network marketers for distributor talent, including for example Amway, Herbalife, and Nu Skin.
Major Customers
The company sells product to independent Associates, Preferred Customers, and retail customers.
Intellectual Property
Trademarks
The company owns 30 trademarks that are registered with the U.S. Patent and Trademark Office.
Patent
The company owns U.S. Patent 10,632,101 for its InCelligence complex formula. This patent was issued in 2020.
Seasonality
The company experiences variations in the activity of its direct selling customers in many of the company’s markets in the first and fourth quarters around major cultural events such as Lunar New Year and Christmas (year ended December 2024).
Research and Development
In the year ended December 2024, the company expended $11.6 million on product research and development activities.
Regulatory Matters
The company’s largest selling product group includes products that are regulated as dietary supplements under the Food, Drug, and Cosmetic Act (FDCA). Some of the company’s powdered drink, food bar, and other nutrition products are regulated as foods under the Nutrition Labeling and Education Act of 1990, as amended (‘NLEA’). The company is audited annually by the FDA, specifically for dietary supplements, and has been found in compliance with GMPs for dietary supplements. Advertising of the company’s products in the United States is subject to regulation by the Federal Trade Commission (FTC) under the FTC Act.
History
USANA Health Sciences, Inc. was founded in 1992. The company was incorporated in 1992.
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