2011 Sample Issue | To subscribe or learn more, go to nutritionbusinessjournal.com Sales Growth Sputters $108 Billion U.S. Nutrition Industry Consumer Sales in 2009 in Every Nutrition Category Network N&OPC and Marketing Functional Natural & Household Mail 7% Foods Order/DRTV, Specialty as Economy Takes its Toll 10% 34% Radio Retail Supplements outperform food and 2% 30% personal care, but companies across the board still struggle to expand Practitioner ttempting to encapsulate in sev- 3% eral thousand words how a $108 Internet Abillion industry fared over the 2% course of a year is never easy, but the Supplements task is made that much more diffi cult 25% Natural & Mass Market when you’re talking about a year like Organic Retail 2009 and a market as diverse as the U.S. Foods 56% nutrition industry. Like much of the rest 31% of the U.S. economy, many nutrition Source: Nutrition Business Journal estimates (consumer sales) companies struggled to grow last year in the face of soaring unemployment, plummeting consumer confi dence and product categories and sales channels. An Industry Under Attack According to NBJ estimates, U.S. con- a near-frozen lending environment. It wasn’t just the economy that attempt- sumer sales of nutrition products— ed to rough up the U.S. nutrition indus- which we defi ne as dietary supplements, “The year past was the fi rst time we try in 2009, though. Numerous other natural & organic foods and beverages, ever experienced a drop in sales,” Na- forces—including emboldened regula- functional foods and beverages, and nat- ture’s Path Foods Founder and CEO tors, resolute critics and litigious con- ural & organic personal care (N&OPC) Arran Stephens told Nutrition Busi- sumer advocacy groups—took swipes and household products—moved up ness Journal. “While 2008 was a great at nutrition companies. Some of these 4.4% to $108.3 billion in 2009. year, 2009 was a tough year for us and attacks were legitimate, others less so. for the industry,” echoed Tony Harnack Their attempts to single out whom they While any level of growth during the II, president of Wellington Foods, a believe to be the industry’s “bad actors” worst economic downturn since the contract manufacturer of liquid and are viewed by many as welcome clean- Great Depression should be viewed as powder supplements. Others, however, up measures. Still, others fear that the a positive, the industry’s expansion rate were able to keep their growth engines resulting bad press, regulatory scrutiny last year was the lowest it’s been since running at a healthy pace—despite the and lawsuit onslaught will turn respon- NBJ began tracking nutrition product dour economy. “Standard Process sible companies into collateral damage. fared very well in 2009, breaking a com- sales in 1996. Growth was even signifi - cantly down from 2008, when industry pany sales record by hitting more than On the regulatory front, the U.S. nutri- sales expanded 8.8%—despite the near $100 million in sales,” said National Di- tion industry withstood numerous chal- collapse of the mortgage and banking rector of Sales Mike Scamarcia. lenges over the last 12 months, including industries and retailer inventory clamp- an uptick in U.S. Food and Drug Ad- downs experienced in the fourth quar- Overall, the U.S. nutrition industry kept ministration (FDA) warning letters, ter of that year. on growing last year—at least in most an FDA crackdown on steroid products continued on page 4 NBJ 2011 Sample Issue Nutrition Business Journal (ISSN 1548- Inside NBJ 6168) is published 12 times a year in 10 editions (8 single and 2 double issues) 2010 Nutrition Industry Overview: Growth rates decline across the industry as total nutrition by New Hope Natural Media, a division sales reach $108 billion. Regulatory scrutiny is on the rise for supplements, but product develop- of Penton Media Inc., 1401 Pearl St., ment is fi nally picking up some steam. We review sales and growth estimates, trends and impor- Suite 200, Boulder, CO 80302. ©2010 tant news events for each major industry category....................................................................1-12 Penton Media Inc. All rights reserved. U.S. sales top $750 million as Lovaza launches ambitious advertising campaign and points This publication may not be duplicated toward more pharmaceutical creep into supplements........................................................13-14 or reproduced without written permis- Recent consent decrees from FTC raise the bar for claims substantiation and raise the sion. To order, call (303) 998-9263 or fax threat of two human clinical studies as a new standard..................................................15-16 (303) 385-0046. Annual subscription rate EU’s health claims legislation sets the global functional food and beverage industry on is $1,195 in the United States and the edge, as companies attempt to pass EFSA’s rigorous approval bar...................................17-18 Americas, $1,245 in Europe and Asia. Network marketers were hampered by currency exchange and soft consumer spending www.nutritionbusinessjournal.com in 2009, causing a drop in U.S. sales. Global opportunities emerged, however, and industry [email protected] leaders Nu Skin and Herbalife posted record revenues......................................................19-21 Publisher Patrick Rea Gaia Herbs and Ascenta Health set the standard for ingredient traceability with online Editor Marc Brush transparency tools......................................................................................................................22-23 Associate Editor Connor Link Contributing Writers Lisa Marshall Company Index Laurie Budgar Karen Raterman Amarin ....................................................14 InterHealth Nutraceuticals ................12 Pronova Biopharma .............................13 Rachel Cernansky Ascenta Health......................................22 Iovate Health Sciences ........................15 Provexis ..................................................17 Isocell North America ............................8 Pure Encapsulations ............................14 Research Director Carla Ooyen BI Nutraceuticals ...................................4 Biothera ..................................................20 Jarrow Formulas .....................................4 Racconto...................................................5 Marketing Manager Chris Lasonde Brigham & Women’s Hospital .............14 Jigsaw Health ..........................................8 Rainbow Light .................................. 8, 11 Subscriber Services Maggie Skille Capsugel .................................................11 Johnson Nutrition Solutions ......... 5, 18 Reliant Pharmaceuticals .....................13 Ceres Consulting ...................................14 Kellog ......................................................18 Resolvyx Pharmaceuticals ..................14 NBJ Editorial Advisory Board Council for Responsible Nutrition .....23 LaneLabs ................................................16 Rite Aid ...................................................10 Tom Aarts CSPI ........................................................18 Los Angeles Galaxy ...............................20 Sabinsa .....................................................8 NBJ Co-Founder and EAB Chairman CVS ................................................... 10, 13 MonaVie..................................................20 Schwabe North America .......................7 Steve Allen Dean Foods ..............................................6 Multiple Marketing ..............................18 Scientifi c Food Solutions ......................8 Retired Nestlé Executive Dole ...........................................................5 National Enzyme ..................................11 Shelton Group .........................................6 Anthony Almada EFSA .......................................................17 National Starch Food Innovations ......5 Solgar ............................................... 10, 13 President & CEO, GENR8 Inc. Emerson Ecologics ...............................14 Natural Products Association...............5 Standard Process ....................................1 Mark Bartlett FDA ........................................1, 13, 15, 21 Nature’s Path Foods ...............................1 TwinLab ........................................... 10, 13 FTC ..........................................................15 Nestle ......................................................15 Ullman, Shapiro & Ullman ....................4 V.P. Global R&D, Pharmanex Gaia Herbs ........................................ 9, 22 New Chapter ..........................................11 University of Texas .................................7 Mark Blumenthal GAO .................................................... 4, 22 Next Pharmaceuticals .........................12 UNPA .......................................................16 Exec. Dir., American Botanical Council General Mills .........................................18 Nordic Naturals.............................. 11, 13 USANA ....................................................21 Josef Brinckmann GlaxoSmithKline ........................... 12, 13 Now Health Group ................................10 Wellington Foods ............................. 1, 11 V.P. R & D, Traditional Medicinals GNC .................................................. 10, 13 Nu Skin ...................................................20 WhiteWave