The Dietary Supplements Market Outlook: The impact of changes in regulation, demographics and consumer trends

The Dietary Supplements Market Outlook: The impact of changes in regulation, demographics and consumer trends

The dietary supplement market is facing a difficult time with significant shifts in consumer demographics, extensive negative media coverage and legislative changes. In Europe the recent adoption of health claim harmonization via Articles 13 and 14 will significantly impact the ability to market products throughout the region. In the US the recent release of final GMP and AER regulations and a new FDA unit relating to food safety will potentially affect trade both internally and externally. ‘The Dietary Supplements Market Outlook’ is a new management report published by Business Insights analyzing key regulative, demographic and product development changes in the dietary supplements market. This new report also details the results of our proprietary industry survey, industry in-depth interviews and case study analysis including GSK’s MyAlli.

Table of Contents
The Dietary Supplements Market Outlook
Executive Summary 12
Introduction 12
Market drivers and issues 12
The supplements market 13
Innovation and NPD 14
Key and future trends in supplements 15
Industry survey 16
Conclusions 17
Chapter 1 Introduction 20
Summary 20
Introduction 20
Research methodology 21
What is this report about? 21
The supplements market defined 22
Vitamins and minerals 22
Herbs and botanicals 23
Sports and specialty 24
Chapter 2 Market drivers and issues 28
Summary 28
Introduction 28
Factors affecting the growth of the industry 29
Economics 29
Cost of healthcare 29
Exchange rates 30
Demographics and beyond… 30
Regulatory issues – opportunities and threats for manufacturers 31
United States 32
Europe 37
Japan 44
Chapter 3 The supplements market 50
Summary 50
Introduction 50
Sales of supplements 51
United States 51
Vitamin and mineral markets 52
Herbal and botanical markets 55
Sports and specialty 60
Europe 67
Overview of European markets 68
Vitamin and mineral markets 74
Herbal and botanicals 76
Sports and specialty 77
Industry interview – High5 79
Japan 82
Vitamins and minerals 83
Herbals and botanicals 85
Sports and specialty 87
Chapter 4 Innovation and NPD 90
Summary 90
Introduction 90
Innovation and NPD 91
Category analysis 93
Vitamins and minerals 93
Vitamin B6 – the next folic acid? 93
Vitamin C and the common cold 94
Vitamin D – upping intake 94
Vitamin D and metabolic syndrome 95
Vitamin K the cardioprotectant 96
Herbs and botanicals 97
EGCG – Teavigo’s seal of guarantee 97
Botanical fingerprinting and GMP 99
American ginseng 99
Industry interview - Aloecorp 101
Sports and specialty 108
Age still a big driver 108
Whey gets blocked in China…A sign of things to come? 109
Case study – MyAlli 109
Regional analysis 115
United States 117
Obesity still BIG business 117
Microencapsulation 118
Health claims in the US....Is the EFSA influencing the US? 119
Industry interview – insight into North America 121
Europe 126
Innovation stifled by regulation 126
Nanotechnology – big things come in small packages 126
Industry interview – insight into Europe 128
Japan 132
Economic recovery has not guaranteed success for supplement
market 132
Innovation in the hands of weight loss and beauty 133
Soy peptide gets a brake 134
Industry insight – insight into Asia 134
Chapter 5 Key and future trends in
supplements 140
Summary 140
Introduction 141
Personalization 141
Demographic differentiation 142
Emerging markets - the key to growth 143
Immunity gathers momentum 145
Obesity and cross-category-marketing 147
Consumer trends – where is the market headed? 148
Weight loss 149
Male marketing 149
Motherhood revisited 149
Boomers 150
Boomers and pain management 152
Industry interview – consumer insight 153
The meta-analysis – “friend or foe” 159
Visual differentiation through research 161
Industry interview – clinical research 162
Chapter 6 Industry survey 168
Summary 168
Introduction 168
Supplements NPD 169
Target audience 170
Price premiums 171
Regional potential 172
Distribution channels 173
Supplement categories 174
Supplements versus food and drinks 175
Impact of external factors on supplement NPD 176
Launching a dietary supplement 177
Marketing supplements 179
Chapter 7 Conclusions 182
Summary 182
Introduction 182
Growth opportunities and resistance 183
Differentiation 183
Delivery systems 183
Disease prevention and healthcare (self-medication) 184
Development of emerging markets 184
EU and US regulations 184
Personalization 185
Purity and ingredient efficacy 185
Partnerships: making traditional and local insights work 186
The rise of Rx-to-OTC 187
Chapter 8 Appendix 190
References 190
Index 197
List of Figures
Figure 2.1: Regulatory structure in Europe 43
Figure 2.2: Food for Special Dietary Uses (FOSDU) 44
Figure 2.3: Food for Specific Health Uses (FOSHU) 45
Figure 2.4: Overview of Japanese regulatory system of dietary supplements 47
Figure 3.5: Coral Calcium Supreme 54
Figure 3.6: Pfizer’s Zoloft 57
Figure 3.7: Phosphagen Elite from EAS containing Carnosyn beta-alanine 65
Figure 3.8: Advantra-Z (Citrus aurantium) from Nutratech 67
Figure 3.9: Maximuscle products 69
Figure 3.10: Super Carbs from High-5 79
Figure 4.11: Percentage share of supplements launched, by category 2004 and 2007 91
Figure 4.12: Percentage growth of supplements launched, 2004 and 2007 92
Figure 4.13: DSM Nutritionals Teavigo seal of quality 98
Figure 4.14: Wisconsin Ginseng Board seal 100
Figure 4.15: MyAlli starter pack 111
Figure 4.16: MyAlli starter pack with Steven Burton, Vice President of the weight control unit 112
Figure 4.17: Cross channel growth in healthcare products GSK 114
Figure 4.18: Percentage share of supplements launched, by region, 2004 and 2007 116
Figure 4.19: Percentage share of supplements in each region, by category, 2007 117
Figure 4.20: Nutri-Nano CoQ10 from Solgar, US 127
Figure 5.21: Cold-Fx from CV Technologies Inc 146
Figure 5.22: AC-11(R) from Optigenex Inc 147
Figure 5.23: Acomplia from Sanofi-Aventis 147
Figure 5.24: Drivers of dietary change 151
Figure 5.25: Influence of a negative meta-analysis on Avandia 160
Figure 6.26: The importance of key health areas in supplements NPD over the next 5 years 169
Figure 6.27: Demographic groups that will be the most important for the growth of the supplements market over the next 5 years 170
Figure 6.28: Price premium consumers are willing to pay for a particular benefit 171
Figure 6.29: Regional growth potential for supplements manufacturers over the next 5 years 172
Figure 6.30: Sales growth potential in key distribution channels over the next 5 years 173
Figure 6.31: Supplements categories that will offer the most sales growth potential over the next 5 years 174
Figure 6.32: Future sales growth – from supplements or from use in food and drinks 175
Figure 6.33: Impact key factors will have on supplements NPD over the next 5 years 177
Figure 6.34: The importance of key factors for a successful launch of a dietary supplement 178
Figure 6.35: The importance of various forms of marketing for the launch of dietary supplements 179
Figure 7.36: Clarinol, Teavigo and Ocean Nutrition MEG-3 183
List of Tables
Table 3.1: Sales of dietary supplements in the US, $m, 2002-2006 51
Table 3.2: Per capita sales of dietary supplements in the US, $, 2002-2006 52
Table 3.3: Sales of dietary supplements in Europe, $m, 2002-2006 68
Table 3.4: Per capita sales of supplements, $, Europe, 2002-2006 68
Table 3.5: Sales of dietary supplements in Japan, $m, 2002-2006 83
Table 3.6: Per capita sales of supplements, $, Japan, 2002-2006 83