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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 2012 Industry Report An analysis of non-retail markets, trends, competition and strategy in the U.S. Nutrition Industry. NBJ’s Direct Selling Report 2012 2 www.nutritionbusinessjournal.com ©2012 Penton Media, Inc. Table of Contents 2.1. ACKNOWLEDGEMENTS ................................................................................................................................................... 15 2.2. RESEARCH METHODOLOGY ............................................................................................................................................. 15 2.2.1. Disclaimer ........................................................................................................................................................ 16 2.2.2. Copyright ......................................................................................................................................................... 16 2.3. DEFINITIONS ................................................................................................................................................................. 16 2.3.1. Product Categories .......................................................................................................................................... 16 2.3.2. Sales Channels ................................................................................................................................................. 17 3.1. NUTRITION INDUSTRY OVERVIEW ..................................................................................................................................... 21 3.2. U.S. NUTRITION INDUSTRY RETAIL VS. DIRECT .................................................................................................................... 23 3.3. NUTRITION INDUSTRY DIRECT-TO-CONSUMER SALES ........................................................................................................... 26 3.3.1. Nutrition: Direct Channel Overview ................................................................................................................. 27 3.3.2. Nutrition: Product Category Sales ................................................................................................................... 29 3.3.3. Nutrition: Growth & Forecast .......................................................................................................................... 31 3.4. DIRECT-TO-CONSUMER SUPPLEMENT SALES ....................................................................................................................... 33 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 ................................................................................................................................. 45 3.7. DIRECT-SELLING MANUFACTURER SURVEY ......................................................................................................................... 46 3.8. A BRIEF HISTORY OF SUPPLEMENTS .................................................................................................................................. 50 3.9. DIRECT-SELLING TRENDS ................................................................................................................................................ 60 3.9.1. Brain Space Blossoms with Novel Ingredients & Mature Sales Strategies....................................................... 60 3.9.2. Single-Channel Marketing is Never Enough ..................................................................................................... 63 3.9.3. FTC Regulations Change the Marketing Landscape for Nutrition Direct Sellers .............................................. 64 3.9.4. Direct Marketing Goes Increasingly Mobile..................................................................................................... 67 3.9.5. Amazon.com Opens Door to E-commerce Success for U.S. Nutrition Companies ........................................... 67 3.9.6. Direct Marketing Accelerating as Retailers See Branding Benefits ................................................................. 68 3.9.7. U.S. Animal Nutrition in the Direct Channels ................................................................................................... 69 4.1. NUTRITION INDUSTRY INTERNET SALES .............................................................................................................................. 72 4.1.1. Nutrition: Channel Comparison ....................................................................................................................... 73 4.1.2. Nutrition: Product Sales ................................................................................................................................... 76 4.2. SUPPLEMENT INTERNET SALES ......................................................................................................................................... 78 4.2.1. Supplements: Channel Comparison ................................................................................................................. 79 4.2.2. Supplements: Product Sales ............................................................................................................................. 81 4.2.3. Supplements: Growth and Forecast ................................................................................................................. 83 4.2.4. Top Internet Supplement Companies .............................................................................................................. 85 4.3. INTERNET/E-COMMERCE TRENDS ..................................................................................................................................... 85 4.3.1. Green PolkaDot Box Brings Affordable Organics to Your Doorstep ................................................................. 85 4.3.2. Social Media Roundup ..................................................................................................................................... 87 4.3.3. Is Turbulence in Online Sales of Supplements Truly Bad for Business? ............................................................ 90 ©2012 Penton Media, Inc. www.nutritionbusinessjournal.com 3 NBJ’s Direct Selling Report 2012 4.3.4. Has Online Grocery Reached Its Tipping Point? ............................................................................................... 93 4.3.5. Wellness Websites Work for 80% of Consumers ............................................................................................. 97 4.3.6. FTC Takes Action against Internet Marketers of Acai Weight-Loss Supplements ........................................... 99 4.3.7. Amazon.com Sells Banned Steroids Posing as Supplements, Researchers Find............................................. 100 4.3.8. Jeremy Johnson and I Works Give Internet Marketing a Bad Name.............................................................. 102 4.3.9. The Dark Side of Direct Selling ....................................................................................................................... 103 4.3.10. Internet Proves Useful Tool for Aiding Supplement Sales via Healthcare Practitioners ................................ 103 4.3.11. One-Third of Online Americans Use Social Media for Health ........................................................................ 106 5.1. NUTRITION INDUSTRY MAIL ORDER/DRTV, RADIO SALES .................................................................................................. 111 5.1.1. Nutrition: Channel Comparison ..................................................................................................................... 112 5.1.2. Nutrition: Product Sales ................................................................................................................................. 115 5.2. SUPPLEMENT MAIL ORDER/DRTV, RADIO SALES .............................................................................................................. 116 5.2.1. Supplements: Channel Comparison ............................................................................................................... 117 5.2.2. Supplements: Product Sales ........................................................................................................................... 119 5.2.3. Supplements: Growth and Forecast ............................................................................................................... 121 5.2.4. Top DRTV/Radio Supplement Companies ...................................................................................................... 123 5.2.5. Top Mail Order Supplement Companies ........................................................................................................ 123 5.3. MAIL ORDER/DRTV & RADIO TRENDS ..........................................................................................................................
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