NBJ’s Supplement Business 2009 Report Ananalysisofmarkets,trends,competitionandstrategyintheU.S. DietarySupplementIndustry NBJ’sSupplementBusinessReport2009 2 www.nutritionbusinessjournal.com ©2009PentonMedia,Inc. TableofContents TABLE OF CONTENTS 1. EXECUTIVE SUMMARY .......................................................................................................................... 19 2. ACKNOWLEDGEMENTS & DEFINITIONS ........................................................................................... 21 2.1. ACKNOWLEDGEMENTS...................................................................................................................................................21 2.2. RESEARCHMETHODOLOGY.............................................................................................................................................21 2.2.1. Disclaimer........................................................................................................................................................22 2.2.2. Copyright.........................................................................................................................................................22 2.3. DEFINITIONS.................................................................................................................................................................22 2.3.1. ProductCategories..........................................................................................................................................22 2.3.2. SalesChannels.................................................................................................................................................24 3. MARKET DATA & OVERVIEW ............................................................................................................... 27 3.1. U.S.NUTRITIONINDUSTRY.............................................................................................................................................27 3.1.1. ProductCategorySales....................................................................................................................................27 3.1.2. ChannelSales...................................................................................................................................................30 3.1.3. Growth&Forecast...........................................................................................................................................33 3.2. U.S.DIETARYSUPPLEMENTS...........................................................................................................................................34 3.2.1. DietarySupplementsvs.U.S.NutritionIndustry..............................................................................................34 3.2.2. ProductCategorySales....................................................................................................................................36 3.2.3. ChannelSales...................................................................................................................................................45 3.2.4. Growth&Forecast...........................................................................................................................................46 3.2.5. ConsumerUsageTrends..................................................................................................................................48 3.3. TRENDS.......................................................................................................................................................................50 3.3.1. Trend:ProductInnovationContinuesButatSlowerPace...............................................................................50 3.3.2. Trend:CostConciousConsumersTurntoSupplements..................................................................................51 3.3.3. Trend:MaterialPricesStabilize.......................................................................................................................52 3.3.4. CaseStudy:HydroxycutDrawsFireforSupplementIndustry..........................................................................52 3.3.1. Trend:WeightLossPillsTakeaHit..................................................................................................................53 3.3.2. Trend:NewFDAEmerging...............................................................................................................................54 3.3.3. Trend:InnovationsinDeliveryModes,FormulationsHelpGrowChildren'sSupplementMarket...................55 3.3.4. Trend:CAMInsuranceCoverageIsUp............................................................................................................58 3.3.1. CaseStudy:WhatdoesthefutureholdforCAMinsurancecoverage?...........................................................60 3.3.2. Trend:HumanSupplementFirmsExtendingBrandstoDogs,CatsandHorses..............................................61 3.3.3. Trend:NanotechnologyandDietarySupplements..........................................................................................65 3.3.4. Trend:AntiAgingMarketExpands..................................................................................................................69 3.3.5. Trend:SupplementFirmsPrepareforFDA'sNextPhaseofGMPAudits.........................................................70 3.3.6. Trend:OTCDrugSupplementComboProductsCaughtinRegulatoryQuagmire...........................................74 3.3.7. CaseStudy:IsCurrentDietarySupplementResearchDoingMoreHarmThanGoodforCompanies?............78 3.3.8. Trend:NutritionalGenomics:FieldIsGrowing,ButCommercialSuccessRemainsElusive.............................82 3.3.9. Trend:ProprietaryIngredientsGrowinPopularity..........................................................................................86 3.4. MERGER&ACQUISITIONSIN2008:ADETAILEDANALYSIS...................................................................................................87 3.4.1. M&AActivity:Nature’sWay,EnzymaticTherapyMergeSalesTeams...........................................................92 4. VITAMINS ................................................................................................................................................ 93 4.1. OVERVIEW...................................................................................................................................................................93 4.1.1. ProductSales...................................................................................................................................................93 4.1.2. ChannelSales...................................................................................................................................................99 4.1.3. Growth&Forecast.........................................................................................................................................100 4.1.1. ConsumerUsageTrends................................................................................................................................100 ©2009PentonMedia,Inc. www.nutritionbusinessjournal.com 3 NBJ’sSupplementBusinessReport2009 4.2. PRODUCTCATEGORIES.................................................................................................................................................102 4.2.1. Multivitamins.................................................................................................................................................102 4.2.2. VitaminC.......................................................................................................................................................104 4.2.3. VitaminE.......................................................................................................................................................105 4.2.4. BVitamins......................................................................................................................................................106 4.2.1. VitaminA.......................................................................................................................................................107 4.2.2. VitaminD.......................................................................................................................................................108 4.2.3. OtherVitamins...............................................................................................................................................110 4.3. TRENDS.....................................................................................................................................................................111 4.3.1. VitaminDMayPreventBoneFracturesinOlderAdults,ManyAmericansStillDDeficient..........................111 4.3.2. Trend:VitaminCategoryOvercomesDisappointingStudyResults...............................................................111 4.3.3. Trend:NewWonderNutrientsEmergingasMainstays................................................................................112 5. HERBS & BOTANICALS ....................................................................................................................... 115 5.1.1. ProductSales.................................................................................................................................................115 5.1.2. ChannelSales.................................................................................................................................................121