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Nutritional Supplements in the U.S., 4th Edition

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  • 1. Get more info on this report!Nutritional Supplements in the U.S., 4th EditionSeptember 1, 2010Fears about the recession dampening the nutritional supplement business have notbeen realized. Indeed, if anything, the market appears to have benefited from theeconomic uncertainty, since supplements stack up well against expensive prescriptionmedications and possibly preventable medical procedures, especially as healthcarecosts continue to soar. Accordingly, consumers are turning to supplements as a moreaffordable way to stay healthy, and even cash-strapped consumers used to takingsupplements have been reluctant to eliminate them from their lifestyle regimens. At thesame time, older Americans are significantly more likely to integrate supplements intotheir daily lives, and as the massive Baby Boomer population ages the supplementindustry continues to widen its customer base. With these favorable winds at its back,the market has progressed steadily from 5.5% annual growth in 2007 to 6.5% in 2008 to7.5% in 2009, bringing U.S. retail sales to $9.4 billion in 2009.This fully updated Packaged Facts report examines the U.S. market for nutritionalsupplements sold to consumers through the full retail spectrum, including vitamins,minerals, herbals, homeopathics and combination products. The report providesextensive retail sales breakouts, past and future, along with a thorough examination ofmarket drivers, the competitive situation, marketer and brand shares, marketing trends,and consumer trends. Special features include a discussion of competition fromnutraceutical foods and beverages based in part on Packaged Facts’ own consumerpolling, and in-depth coverage of condition-specific products in myriad segmentsincluding joint, calcium, children’s, eye, energy, heart, men’s, women’s, brain, digestiveand cosmetic.Using SymphonyIRI Group data, the report quantifies sales and marketer/brand sharesacross four categories (General Supplements, Multivitamins, 1 & 2 Letter Vitamins, andLiquid Vitamins), while Experian Simmons national survey data for 2010 form the basisof a thorough examination of product and brand penetration levels, while also exploringconsumer attitudes toward nutritional supplements vis-à-vis related trends such aspreventive healthcare and healthy eating. The report also quantifies new productintroductions using data from Datamonitor’s Product Launch Analytics service, detailstrends in private label, and pinpoints key competitive thrusts among myriad marketplayers.
  • 2. Additional InformationMarket Insights: A Selection From The ReportWalmart Draws the Most Supplement ShoppersWalmart, the unavoidable behemoth of the consumer packaged goods retail landscape,practically exists as its own channel, and as such, more consumers buy theirsupplements from the Arkansas-based retailer than any other single channel. APackaged Facts Internet survey conducted in May and June 2010 found that 63% of the1,881 adults polled had taken nutritional supplements in the last 12 months, and of thatgroup, 43% had purchased supplements at Walmart. Meanwhile, 18% of shopperschose to purchase supplements at a warehouse store like Sam’s Club (owned byWalmart), Costco, or BJ’s Wholesale; while the other major mass merchandisers—Target, Meijer and Kmart—collectively attracted 17% of supplement shoppers.Direct and Online Sales Enticing Supplement SellersAccording to Packaged Facts’ May/June 2010 online consumer poll, 26% of supplementusers have purchased vitamin, mineral, or supplement products online in the last 12months. And while only 4% of consumers bought supplements through the practitionerchannel and 3% bought them from a multi-level marketing salesperson, the importanceof these channels should not be overlooked. The combined nutrition industry direct-sales channels—which include Internet sales, catalog sales, TV-based sales, sales frommulti-level marketers, and others—increased 7% per year on average during the 10-year period between 1999 and 2008, according to the Nutrition Business Journal.Because of the promise of a wider audience, direct-sales channels are looking enticingto nutritional supplement makers who sell through retail channels. These makers alsooften chafe at the limitations big-box retailers place on their businesses, such as pricingand distribution arrangements, in accepting and carrying their products.Multivitamins Category a Two-Horse RaceThe multivitamins category is pretty much a two-horse race in SymphonyIRI-trackedoutlets, with Wyeth (Centrum) and Bayer (One-A-Day) continuing to run way out front.In years past, Wyeth had a comfortable lead over Bayer. But as of April 2008 that leadhad dwindled to a few percentage points, with Wyeth at a 26.0% share of categorysales ($185 million) and Bayer having climbed to a 22.4% share ($159 million),according to Packaged Facts’ 2008 edition of this report (which presented mid-yeardata). During full-year 2009, that lead narrowed even more, with Wyeth at a 25.0%
  • 3. market share ($194.3 million) and Bayer just one percentage point behind, at 24.0%($186.4 million).Wyeth’s Centrum lineup includes one double-digit market share product, Centrum Silver(13.9%), whose sales increased 9.5% during 2009. But none of its other major offeringsdid well in the year and most lost ground, including the Dora the Explorer version ofCentrum Kids, which dropped 54.0%.In the News Boomers and Health Conscious Consumers Sustain U.S. Market for Nutritional SupplementsNew York, August 30, 2010 — Whereas the world’s economic problems have hit manyindustries hard, the nutritional supplement business has proved resilient on the strengthof spending by the aging Baby Boomer population and other health consciousconsumer cohorts who favor supplements as an affordable way to stay healthycompared to costly prescription drugs and preventable medical procedures, accordingto Nutritional Supplements in the U.S., 4th Edition by market research publisherPackaged Facts.“Part of the resiliency of nutritional supplements during this trying economic periodstems from the fact that Americans are losing confidence in their ability to pay forhealthcare, even as the economy shows signs of turning around,” says Don Montuori,publisher of Packaged Facts. “Compared to doctors visits, hospital stays, andprescription drugs, nutritional supplements can be a bargain.”Packaged Facts estimates U.S. retail sales of nutritional supplements exceeded $9billion in 2009, up 8% over 2008 sales. From 2005 to 2009, the market grew by a totalof 26%, fueled by growing consumer awareness about health maintenance, in additionto pressure by the media and government to enforce product accountability.This shift toward an increasingly health conscious attitude, along with the supplementindustry’s move towards more science-based claims and various other efforts to shoreup its credibility, will help push nutritional products further into the mainstream. Despitethe weak economy, the prevailing needs of Boomers and seniors should also help toprotect the market from any serious downturn. As a result, Packaged Facts forecastsannual sales growth in nutritional supplements will gradually improve over the new fewyears and sales will exceed $13 billion in 2014, yielding a compound annual growth rateof 7%.Nutritional Supplements in the U.S., 4th Edition examines the U.S. market for nutritionalsupplements sold to consumers through the full retail spectrum, including vitamins,minerals, herbals, homeopathics and combination products. The report providesextensive retail sales breakouts, past and future, along with a thorough examination of
  • 4. market drivers, the competitive situation, marketer and brand shares, marketing trends,and consumer trends. Special features include a discussion of competition fromnutraceutical foods and beverages based in part on Packaged Facts’ own consumerpolling, and in-depth coverage of condition-specific products in myriad segmentsincluding joint, calcium, children’s, eye, energy, heart, men’s, women’s, brain, digestiveand cosmetic.About Packaged Facts - Packaged Facts, a division of MarketResearch.com, publishesmarket intelligence on a wide range of consumer market topics, including consumergoods and retailing, foods and beverages, demographics, pet products and services,and financial products. Packaged Facts also offers a full range of custom researchservices.Table of ContentsChapter 1: Executive Summary Scope & Methodology Scope of Report Mass-Market Product Classifications Report Methodology The Market U.S. Retail Sales on the Ups Figure 1-1: U.S. Retail Sales of Nutritional Supplements, 2005, 2009, 2014 (in millions of dollars) Mass-Market Sales Accelerate General Supplements Dominate Mass-Market Sales Modest Growth in Condition-Specific Products Supercenters/Mass Merchandisers Lead in Supplement Sales Macro Trends Consumers Sticking with Nutritional Supplements The Marketers Competitive Overview Natural Product Marketers Direct Marketing Companies Multi-Level Marketers Practitioner Channel on the Rise Private-label Share Stagnant Pharmavite and NBTY Lead the Market New Product Trends Supplement Introductions Bouncing Back Dietary Themes Sell Supplements Market Leaders in New Product Entries Macro Trends Consumer Trends
  • 5. Between 57% and 63% of Adults Use Supplements Figure 1-2: Percent of Adults Using Nutritional Supplements, 2006-2010 (U.S. adults) Vitamin D Riding High Top Brand Lines Are Multivitamins Faith and Doubt on Supplement Efficacy Forgetting to Take Their Pills Age Is Leading Demographic Indicator The Gender Gap Supplement Socio-EconomicsChapter 2: Introduction Market Definition Scope of Report Product Categories and Classifications Vitamins Minerals Supplements Mass-Market Product Classifications Combination Formulas Other Product Classifications Single-Element vs. Multivitamin/Mineral Synthetic vs. Natural Demographic Segmentation Delivery Systems Industry Regulation FDA and DSHEA Oversee Supplements Industry The Nutrition Labeling and Education Act (NLEA) Qualified Health Claims RDAs, RDIs, DRVs and DVs Congress Passes Adverse Event Reports (AER) Bill The Dietary Supplement Health and Education Act DSHEA Remains FDA Focus, Evolves FDA Enforces Good Manufacturing Practices for Dietary Supplements More Regulation on the Horizon CRN Spearheading Industry Self-RegulationChapter 3: The Market Market Size and Growth U.S. Retail Sales Top $9 Billion in 2009 Table 3-1: U.S. Retail Sales of Nutritional Supplements, 2005-2009 (in millions of dollars) Mass-Market Sales Accelerate Table 3-2: SymphonyIRI-Tracked Sales of Nutritional Supplements, 2008-2009 (in millions of dollars) Liquid Supplements Provide a Jolt, General Supplements a Baseline Table 3-3: SymphonyIRI-Tracked Sales of Nutritional Supplements: By Product Category, 2008-2009 (in millions of dollars)
  • 6. Table 3-4: Annual Dollar Growth/Decline in SymphonyIRITracked Sales ofNutritional Supplements: By Product Category, 2008-2009 (in millions of dollars)Table 3-5: Annual Percentage Growth/Decline in SymphonyIRI-Tracked Sales ofNutritional Supplements: By Product Category, 2008-2009 (percent)Market CompositionGeneral Supplements Dominate Mass-Market SalesFigure 3-1: SymphonyIRI-Tracked Sales of Nutritional Supplements: By ProductCategory, 2008-2009 (in millions of dollars)Modest Growth in Condition-Specific ProductsTable 3-6: Condition-Specific Supplement Share of SymphonyIRI-Tracked Sales,2008-2009 (in millions of dollars and percent)Calcium and Joint Supplements FallingChildren’s Supplements RobustHealthy Eyes and Healthy HeartsWomen’s Supplements Gaining on Men’sBrain and Energy Supplements Losing VigorDigestive Gains Big While Cosmetic Supplements SlipTable 3-7: SymphonyIRI-Tracked Sales of Condition-Specific Supplements: ByType, 2008-2009 (in millions of dollars)Table 3-8: Share of SymphonyIRI-Tracked Sales of Condition-SpecificSupplements: By Type, 2008-2009 (percent)Another Look at Nutritional Supplement Category SalesHerbal Supplements Going StrongSupercenters/Mass Merchandisers Lead in Supplement SalesFigure 3-2: Share of U.S. Nutritional Supplement Sales by Retail Outlet Type,2010 (percent)Walmart Draws the Most Supplement ShoppersTable 3-9: Percentage of Consumers Purchasing Vitamin/Mineral/SupplementProducts by Channel, May/June 2010 (percent)Market OutlookMacro TrendsConsumers Sticking with Nutritional SupplementsA Supplement a Day Keeps the Doctor AwaySupplements’ Public Image Always an IssueA Growing Part of the EconomyTable 3-10: U.S. Out-of-Pocket Costs for Complementary and AlternativeMedicine, 2007 (adults age 18 and over; in billions of dollar and percent)Competition from Functional FoodsFigure 3-3: Level of Agreement with Statement, “Rather ThanVitamin/Supplement Pills, I Prefer to Buy Foods or Beverages with SpecificNutritional Benefits,” February 2009 (percent)Figure 3-4: Level of Agreement with Statement, “I Frequently Choose Foods andBeverages Because They Are Naturally Rich in Specific Nutrients,” May/June2010 (percent)The Natural/Organic ConnectionAging Baby Boomers an Underpinning Market Force
  • 7. Figure 3-5: Percent of U.S. Adults Using Nutritional Supplements: By Age Bracket, 2010 (U.S. adults) Table 3-11: Number of Adults Using Nutritional Supplements: By Generational Cohort, 2010 (percent of total U.S. adult users) Table 3-12: Projected U.S. Population by Age Bracket, 2010-2020 (in thousands) Looking Ahead Nutritional Supplements Not Immune to Economy Table 3-13: New Vitamin and Mineral SKUs, 2005-2009 Projected Market Growth Table 3-14: Projected U.S. Retail Sales of Nutritional Supplements, 2009-2014 (in millions of dollars) Healthcare Bill Expected to Help Industry Science Pushing Out Snake Oil Integrative Pharmacies: A New Type of Supplement RetailerChapter 4: The Marketers Competitive Overview Recent Mergers & Acquisitions Carlyle Group Purchases NBTY Sanofi-Aventis Purchases Chattem Atrium Takes Over Garden of Life Practitioner Marketer Makes for Appealing Acquisition Supplement Companies Help Relieve IPO Drought Natural Product Marketers Direct Marketing Companies Direct and Online Sales Enticing Supplement Sellers Online Sales at 3% of Revenue for GNC Direct Mail Works for Nutritional Supplements Ups and Downs of Multi-Level Marketers Practitioner Channel on the Rise Retailers Benefit from Private-Label Offerings Private-label Share Stagnant Figure 4-1: Private-Label Share of Mass-Market Sales of Nutritional Supplements by Category: 2007 vs. 2009 (percent) Table 4-1: SymphonyIRI-Tracked Sales of Private-Label Nutritional Supplements by Category: 2007 vs. 2009 (in millions of dollars) Category Cross-Over and Line Extensions Consumer Advertising Themes and Promotions Eco-Credibility Traceability Celebrity Endorsements Web 2.0 Trade Support The Retail Channel Classroom Natural Grocers Continue to Extend Reach GNC and Vitamin Shoppe Coming on Strong
  • 8. Table 4-2: The U.S. Market for Nutritional Supplements: Selected LeadingMarketers and Brands, 2009Marketer and Brand SharesMethodologyPharmavite and NBTY Lead the MarketNBTY Leads in General SupplementsMultivitamins Category a Two-Horse RacePharmavite, Private Label Dominate in 1 & 2 Letter VitaminsLiquid Supplements Category Highly FragmentedTable 4-3: Top Twenty Marketers of Nutritional Supplements by SymphonyIRI-Tracked Dollar Sales and Market Share, 2008-2009 (in millions of dollars andpercent)Table 4-4: Top Fifteen Nutritional Supplement Brands by SymphonyIRI-TrackedDollar Sales and Market Share, 2008-2009 (in millions of dollars and percent)Table 4-5: Top Marketers and Brands of General Supplements by SymphonyIRI-Tracked Dollar Sales and Market Share, 2008-2009 (in millions of dollars andpercent)Table 4-6: Top Marketers and Brands of Multivitamins by SymphonyIRI-TrackedDollar Sales and Market Share, 2008-2009 (in millions of dollars and percent)Table 4-7: Top Marketers and Brands of 1 & 2 Letter Vitamins by SymphonyIRI-Tracked Dollar Sales and Market Share, 2008-2009 (in millions of dollars andpercent)Table 4-8: Top Marketers and Brands of Liquid Vitamins by SymphonyIRI-Tracked Dollar Sales and Market Share, 2008-2009 (in millions of dollars andpercent)Focus on Condition-Specific ProductsCondition-Specific Products Charting Healthy GrowthTable 4-9: SymphonyIRI-Tracked Dollar Sales and Market Share of Condition-Specific Products by Type, 2008-2009 (in millions of dollars and percent)Osteo Bi-Flex on Top in Joint Health SupplementsTable 4-10: Joint Supplements: SymphonyIRI-Tracked Sales and SegmentShare, 2008-2009 (in millions of dollars and percent)Citracal No. 1 in Calcium SupplementsTable 4-11: Calcium Supplements: SymphonyIRI-Tracked Sales and SegmentShare, 2008-2009 (in millions of dollars and percent)Children’s Supplements Led by Bayer’s FlintstonesBausch & Lomb Dominates in Eye Care SupplementsTable 4-12: Children’s Supplements: SymphonyIRI-Tracked Sales and SegmentShare, 2008-2009 (in millions of dollars and percent)Table 4-13: Eye Supplements: SymphonyIRI-Tracked Sales and Segment Share,2008-2009 (in millions of dollars and percent)NBTY’s Q-Sorb Out Front in Heart Health SupplementsTable 4-14: Heart Supplements: SymphonyIRI-Tracked Sales and SegmentShare, 2008-2009 (in millions of dollars and percent)One-A-Day a Strong No. 1 in Men’s Supplements
  • 9. Table 4-15: Men’s Supplements: SymphonyIRI-Tracked Sales and Segment Share, 2008-2009 (in millions of dollars and percent) Women’s Supplements Target Menopausal and Prenatal Health Table 4-16: Women’s Supplements: SymphonyIRI-Tracked Sales and Segment Share, 2008-2009 (in millions of dollars and percent) Consumers Aren’t Looking for Energy in Supplements Table 4-17: Energy Supplements: SymphonyIRI-Tracked Sales and Segment Share, 2008-2009 (in millions of dollars and percent) Digestive Health Supplements Going Strong Table 4-18: Digestive Supplements: SymphonyIRI-Tracked Sales and Segment Share, 2008-2009 (in millions of dollars and percent) Cosmetic Supplements Down Table 4-19: Cosmetic Supplements: SymphonyIRI-Tracked Sales and Segment Share, 2008-2009 (in millions of dollars and percent) Sales Trending Down in Brain Health Segment Table 4-20: Brain Supplements: SymphonyIRI-Tracked Sales and Segment Share, 2008-2009 (in millions of dollars and percent)Chapter 5: New Product Trends Supplement Introductions Bouncing Back Table 5-1: Number of Vitamin and Mineral New Product Reports and SKUs, 2005-2010 Dietary Themes Sell Supplements Table 5-2: Top Package Tags/Claims for New Vitamin and Mineral Products, 2005-2009 (number) Table 5-3: High-Growth Nutritional Supplement Package Tags/Claims: 2009 vs. 2005 Increase (number) Market Leaders in New Product Entries Table 5-4: Number of Nutritional Supplement Launches by Company, 2008-2010 Macro Trends Trends in Joint Supplements Heart Health Supplements Going Strong Aiming for the Gut Omega-3s Still Have Mileage Brain Boosters Eye Care Supplements Lean on Scientific Support The Oral Angle Seeking Immunity Supplements for Sleep Targeting Specific Diseases and Conditions Diabetes Bariatric Patients Tinnitus ADHD “Beauty from Within” Seeming Homely Alternate Delivery Systems Tout Efficacy, Novelty Powdered Supplements
  • 10. Gummies and Gels Oral Strips Lip Balm Up-and-Coming Ingredients Vitamin D Resveratrol SuperfruitsChapter 6: Consumer Trends Introduction Notes on Experian Simmons Data Between 57% and 63% of Adults Use Supplements Figure 6-1: Percent of Adults Using Nutritional Supplements, 2006-2010 (U.S. adults) Vitamin D Riding High Figure 6-2: Selected Leading Types of Nutritional Supplement by Usage Rates, 2006 vs. 2010 (percent of U.S. adults) Top Brand Lines Are Multivitamins Figure 6-3: Top Nutritional Supplement Brand Lines by Usage Rates, 2006 vs. 2010 (percent of U.S. adults) Table 6-1: Overview of Nutritional Supplement Usage, 2010 (percent and number of U.S. adults) Consumer Psychographics Faith and Doubt on Supplement Efficacy Forgetting to Take Their Pills Figure 6-4: Top Reasons Consumers Do Not Take Supplements, 2010 (percent) Supplement Users Proactive About Healthcare Stronger Skews for Specialized Products A Taste for Alternatives Branded vs. Private Label Table 6-2: Psychographic Indicators for Nutritional Supplement Users, 2010 (percent and index of U.S. adults) Table 6-3: Attitudes Toward Product Efficacy Among Nutritional Supplement Users, 2010 (percent of U.S. adults) Table 6-4: Overall Psychographic Indicators for Daily Users of Nutritional Supplements, 2010 (number and percent of U.S. adults) Table 6-5: Top Psychographic Indicators for Nutritional Supplement Usage by Product Type, 2010 (index of U.S. adults) Table 6-6: Top Psychographic Indicators for Nutritional Supplement Usage by Brand, 2010 (index of U.S. adults) Consumer Demographics Age Is Leading Demographic Indicator Figure 6-5: Percent of U.S. Adults Using Nutritional Supplements: By Age Bracket, 2010 (U.S. adults) 40% of Supplement Users Are Boomers Figure 6-6: Number of Adults Using Nutritional Supplements: By Generational Cohort, 2010 (percent of total U.S. adult users and number in millions)
  • 11. Usage Edges Up in Age Brackets The Gender Gap Supplement Socio-Economics Patterns by Product Type Patterns by Brand Line Table 6-7: Nutritional Supplement Usage: Overall Demographic Patterns, 2010 (percent, number and index of U.S. adults) Table 6-8: Percentage of Adults Using Nutritional Supplements: By Age Bracket, 2006 vs. 2010 (U.S. adults) Table 6-9: Percentage of Adults Using Nutritional Supplements: By Age Bracket, Men vs. Women, 2010 (U.S. adults) Table 6-10: Indices for Adult Use of Nutritional Supplements: By Educational Attainment and Household Income, 2006 vs. 2010 (U.S. adults) Table 6-11: Demographics of Those Using Nutritional Supplements Once or More Daily, 2010 (percent, number and index of U.S. adults) Table 6-12: Top Demographic Indicators for Nutritional Supplement Usage by Product Type, 2010 (percent and index of U.S. adults) Table 6-13: Demographic Indicators for Nutritional Supplement Usage by Brand or Brand Line, 2010 (percent and index of U.S. adults)Available immediately for Online Download athttp://www.marketresearch.com/product/display.asp?productid=2642045US: 800.298.5699UK +44.207.256.3920Intl: +1.240.747.3093Fax: 240.747.3004