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Direct-To-Consumer Selling in the Nutrition Industry Report

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Direct-To-Consumer Selling in the Nutrition Industry Report Direct-to- Consumer Selling in the Nutrition 2010 Industry Report An analysis of non-retail markets, trends, competition and strategy in the U.S. Nutrition Industry. NBJ’s Direct Selling Report 2010 2 www.nutritionbusinessjournal.com ©2010 Penton Media, Inc. Table of Contents 2.1. ACKNOWLEDGEMENTS ................................................................................................................................................... 13 2.2. RESEARCH METHODOLOGY ............................................................................................................................................. 13 2.2.1. Disclaimer ........................................................................................................................................................ 14 2.2.2. Copyright ......................................................................................................................................................... 14 2.3. DEFINITIONS ................................................................................................................................................................. 14 2.3.1. Product Categories .......................................................................................................................................... 14 2.3.2. Sales Channels ................................................................................................................................................. 15 3.1. NUTRITION INDUSTRY OVERVIEW ..................................................................................................................................... 19 3.2. U.S. NUTRITION INDUSTRY RETAIL VS. DIRECT .................................................................................................................... 21 3.3. NUTRITION INDUSTRY DIRECT-TO-CONSUMER SALES ........................................................................................................... 24 3.3.1. Nutrition: Direct Channel Overview ................................................................................................................. 25 3.3.2. Nutrition: Product Category Sales ................................................................................................................... 28 3.3.3. Nutrition: Growth & Forecast .......................................................................................................................... 30 3.4. DIRECT-TO-CONSUMER SUPPLEMENT SALES ....................................................................................................................... 32 3.4.1. Supplements: Direct Channel Overview ........................................................................................................... 35 3.4.2. Supplements: Product Category Sales ............................................................................................................. 38 3.4.3. Supplements: Growth & Forecast .................................................................................................................... 41 3.5. SUPPLEMENTS: TOP DIRECT-SELLING COMPANIES ............................................................................................................... 43 3.6. TOP DIRECT-SELLING SUPPLEMENTS ................................................................................................................................. 44 3.7. NBJ DIRECT-SELLING MANUFACTURER SURVEY .................................................................................................................. 45 3.8. DIRECT-SELLING TRENDS ................................................................................................................................................ 48 3.8.1. Continuity Programs Trigger an Onslaught of Complaints from Supplement Companies ............................... 48 3.8.2. FTC Regulations Change the Marketing Landscape for Nutrition Direct Sellers .............................................. 52 3.8.3. How Dirty Fingernails Lead to Sales................................................................................................................. 55 3.8.4. Amazon.com Opens Door to E-commerce Success for U.S. Nutrition Companies ........................................... 56 3.8.5. Direct Marketing Accelerating as Retailers See Branding Benefits ................................................................. 57 3.8.6. U.S. Animal Nutrition in the Direct Channels ................................................................................................... 58 4.1. NUTRITION INDUSTRY INTERNET SALES .............................................................................................................................. 61 4.1.1. Nutrition: Channel Comparison ....................................................................................................................... 62 4.1.2. Nutrition: Product Sales ................................................................................................................................... 65 4.2. SUPPLEMENT INTERNET SALES ......................................................................................................................................... 67 4.2.1. Supplements: Channel Comparison ................................................................................................................. 68 4.2.2. Supplements: Product Sales ............................................................................................................................. 70 4.2.3. Supplements: Growth and Forecast ................................................................................................................. 72 4.2.4. Top Internet Supplement Companies .............................................................................................................. 74 4.3. INTERNET/E-COMMERCE TRENDS ..................................................................................................................................... 74 4.3.1. The Dark Side of Direct Selling ......................................................................................................................... 74 4.3.2. Internet Proves Useful Tool for Aiding Supplement Sales via Healthcare Practitioners .................................. 75 4.3.3. MyProtein.co.uk Poised to Tackle Germany’s Online Sports Supplement Market ........................................... 77 4.3.4. Element Bars CEO Brings Customized Nutrition to the TV Masses .................................................................. 79 4.3.5. NBJ Summit Extension Illuminates Best Internet Marketing and Sales Practices ............................................ 81 ©2010 Penton Media, Inc. www.nutritionbusinessjournal.com 3 NBJ’s Direct Selling Report 2010 4.3.6. Direct-Selling Supplement Marketer Vows to Stop Using Deceptive Claims and Practices ............................. 82 4.3.7. Natural & Organic Personal Care Products Continue to Emerge Online.......................................................... 82 4.3.8. Using the Internet to Outpace Retail Competition .......................................................................................... 84 4.3.9. Search Engine Marketing Can Be Crucial Component of Successful Online Sales............................................ 88 4.3.10. E-marketing in a Recession .............................................................................................................................. 90 4.3.11. Is Your Search Engine Marketing DSHEA Compliant? ...................................................................................... 94 4.3.12. One-Third of Online Americans Use Social Media for Health .......................................................................... 95 5.1. NUTRITION INDUSTRY MAIL ORDER/DRTV,RADIO SALES ................................................................................................... 100 5.1.1. Nutrition: Channel Comparison ..................................................................................................................... 101 5.1.2. Nutrition: Product Sales ................................................................................................................................. 104 5.2. SUPPLEMENT MAIL ORDER/DRTV, RADIO SALES .............................................................................................................. 106 5.2.1. Supplements: Channel Comparison ............................................................................................................... 107 5.2.2. Supplements: Product Sales ........................................................................................................................... 109 5.2.3. Supplements: Growth and Forecast ............................................................................................................... 111 5.2.4. Top DRTV/Radio Supplement Companies ...................................................................................................... 113 5.2.5. Top Mail Order Supplement Companies ........................................................................................................ 113 5.3. MAIL ORDER/DRTV,RADIO TRENDS .............................................................................................................................. 114 5.3.1. Direct Mail Still Best for Many Nutrition Products ......................................................................................... 114 5.3.2. Understanding
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