NBJ’s Supplement 2009 Business Report - lib.store.yahoo.net · NBJ’s Supplement Business Report...

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NBJ’s�Supplement�Business�Report�

�2009�

An�analysis�of�markets,�trends,�competition�and�strategy�in�the�U.S.�Dietary�Supplement�Industry� �

NBJ’s�Supplement�Business�Report�2009��

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2� www.nutritionbusinessjournal.com�� ©2009�Penton�Media,�Inc.�

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Table�of�Contents��

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©2009�Penton�Media,�Inc.� www.nutritionbusinessjournal.com� 3��

TABLE OF CONTENTS 1.� EXECUTIVE SUMMARY .......................................................................................................................... 19�

2.� ACKNOWLEDGEMENTS & DEFINITIONS ........................................................................................... 21�

2.1.� ACKNOWLEDGEMENTS�...................................................................................................................................................�21�2.2.� RESEARCH�METHODOLOGY�.............................................................................................................................................�21�

2.2.1.� Disclaimer�........................................................................................................................................................�22�2.2.2.� Copyright�.........................................................................................................................................................�22�

2.3.� DEFINITIONS�.................................................................................................................................................................�22�2.3.1.� Product�Categories�..........................................................................................................................................�22�2.3.2.� Sales�Channels�.................................................................................................................................................�24�

3.� MARKET DATA & OVERVIEW ............................................................................................................... 27�

3.1.� U.S.�NUTRITION�INDUSTRY�.............................................................................................................................................�27�3.1.1.� Product�Category�Sales�....................................................................................................................................�27�3.1.2.� Channel�Sales�...................................................................................................................................................�30�3.1.3.� Growth�&�Forecast�...........................................................................................................................................�33�

3.2.� U.S.�DIETARY�SUPPLEMENTS�...........................................................................................................................................�34�3.2.1.� Dietary�Supplements�vs.�U.S.�Nutrition�Industry�..............................................................................................�34�3.2.2.� Product�Category�Sales�....................................................................................................................................�36�3.2.3.� Channel�Sales�...................................................................................................................................................�45�3.2.4.� Growth�&�Forecast�...........................................................................................................................................�46�3.2.5.� Consumer�Usage�Trends�..................................................................................................................................�48�

3.3.� TRENDS�.......................................................................................................................................................................�50�3.3.1.� Trend:�Product�Innovation�Continues�But�at�Slower�Pace�...............................................................................�50�3.3.2.� Trend:�Cost�Concious�Consumers�Turn�to�Supplements�..................................................................................�51�3.3.3.� Trend:�Material�Prices�Stabilize�.......................................................................................................................�52�3.3.4.� Case�Study:�Hydroxycut�Draws�Fire�for�Supplement�Industry�..........................................................................�52�3.3.1.� Trend:�Weight�Loss�Pills�Take�a�Hit�..................................................................................................................�53�3.3.2.� Trend:�New�FDA�Emerging�...............................................................................................................................�54�3.3.3.� Trend:�Innovations�in�Delivery�Modes,�Formulations�Help�Grow�Children's�Supplement�Market�...................�55�3.3.4.� Trend:�CAM�Insurance�Coverage�Is�Up�............................................................................................................�58�3.3.1.� Case�Study:�What�does�the�future�hold�for�CAM�insurance�coverage?�...........................................................�60�3.3.2.� Trend:�Human�Supplement�Firms�Extending�Brands�to�Dogs,�Cats�and�Horses�..............................................�61�3.3.3.� Trend:�Nanotechnology�and�Dietary�Supplements�..........................................................................................�65�3.3.4.� Trend:�Anti�Aging�Market�Expands�..................................................................................................................�69�3.3.5.� Trend:�Supplement�Firms�Prepare�for�FDA's�Next�Phase�of�GMP�Audits�.........................................................�70�3.3.6.� Trend:�OTC�Drug�Supplement�Combo�Products�Caught�in�Regulatory�Quagmire�...........................................�74�3.3.7.� Case�Study:�Is�Current�Dietary�Supplement�Research�Doing�More�Harm�Than�Good�for�Companies?�............�78�3.3.8.� Trend:�Nutritional�Genomics:�Field�Is�Growing,�But�Commercial�Success�Remains�Elusive�.............................�82�3.3.9.� Trend:�Proprietary�Ingredients�Grow�in�Popularity�..........................................................................................�86�

3.4.� MERGER�&�ACQUISITIONS�IN�2008:�A�DETAILED�ANALYSIS�...................................................................................................�87�3.4.1.� M&A�Activity:�Nature’s�Way,�Enzymatic�Therapy�Merge�Sales�Teams�...........................................................�92�

4.� VITAMINS ................................................................................................................................................ 93�

4.1.� OVERVIEW�...................................................................................................................................................................�93�4.1.1.� Product�Sales�...................................................................................................................................................�93�4.1.2.� Channel�Sales�...................................................................................................................................................�99�4.1.3.� Growth�&�Forecast�.........................................................................................................................................�100�4.1.1.� Consumer�Usage�Trends�................................................................................................................................�100�


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4.2.� PRODUCT�CATEGORIES�.................................................................................................................................................�102�4.2.1.� Multivitamins�.................................................................................................................................................�102�4.2.2.� Vitamin�C�.......................................................................................................................................................�104�4.2.3.� Vitamin�E�.......................................................................................................................................................�105�4.2.4.� B�Vitamins�......................................................................................................................................................�106�4.2.1.� Vitamin�A�.......................................................................................................................................................�107�4.2.2.� Vitamin�D�.......................................................................................................................................................�108�4.2.3.� Other�Vitamins�...............................................................................................................................................�110�

4.3.� TRENDS�.....................................................................................................................................................................�111�4.3.1.� Vitamin�D�May�Prevent�Bone�Fractures�in�Older�Adults,�Many�Americans�Still�D�Deficient�..........................�111�4.3.2.� Trend:�Vitamin�Category�Overcomes�Disappointing�Study�Results�...............................................................�111�4.3.3.� Trend:�New�Wonder�Nutrients�Emerging�as�Mainstays�................................................................................�112�

5.� HERBS & BOTANICALS ....................................................................................................................... 115�

5.1.1.� Product�Sales�.................................................................................................................................................�115�5.1.2.� Channel�Sales�.................................................................................................................................................�121�5.1.3.� Growth�&�Forecast�.........................................................................................................................................�122�5.1.1.� Consumer�Usage�Trends�................................................................................................................................�123�

5.2.� PRODUCT�CATEGORIES�.................................................................................................................................................�124�5.2.1.� Noni�Juice�.......................................................................................................................................................�124�5.2.2.� Mangosteen�Juice�..........................................................................................................................................�126�5.2.3.� Goji�Juice�........................................................................................................................................................�127�5.2.4.� Green�Tea�......................................................................................................................................................�128�5.2.5.� Echinacea�.......................................................................................................................................................�129�5.2.6.� Garlic..............................................................................................................................................................�131�5.2.7.� Saw�Palmetto�.................................................................................................................................................�132�5.2.8.� Ginkgo�Biloba�.................................................................................................................................................�133�5.2.9.� Milk�Thistle�....................................................................................................................................................�134�5.2.10.� Acai�................................................................................................................................................................�136�5.2.11.� Psyllium�..........................................................................................................................................................�137�5.2.12.� Ginseng�..........................................................................................................................................................�138�5.2.13.� Green�Foods�...................................................................................................................................................�140�

5.3.� TRENDS�.....................................................................................................................................................................�141�5.3.1.� Herbalgram:�Botanical�Crops�Are�Not�Immune�to�Effects�of�Global�Climate�Change�...................................�141�5.3.2.� Trend:�General�Health�and�Immunity�Driving�Herbal�Supplement�Sales�.......................................................�143�5.3.3.� Case�Study:�XanGo,�MonaVie,�TNI�Keep�Squeezing�Sales�Out�of�Super�Fruits�...............................................�144�

6.� SPORTS NUTRITION SUPPLEMENTS ................................................................................................. 149�

6.1.1.� Product�Sales�.................................................................................................................................................�149�6.1.2.� Channel�Sales�.................................................................................................................................................�154�6.1.3.� Growth�&�Forecast�.........................................................................................................................................�156�

6.2.� CONSUMER�USAGE�TRENDS�..........................................................................................................................................�157�6.3.� PRODUCT�CATEGORIES�.................................................................................................................................................�158�

6.3.1.� Powders/Formulas�.........................................................................................................................................�158�6.3.2.� Pills�.................................................................................................................................................................�159�6.3.3.� Hardcore�Drinks�.............................................................................................................................................�159�

6.4.� TRENDS�.....................................................................................................................................................................�160�6.4.1.� Trend:�Web�Driving�Sales�of�Sports�Supplements�..........................................................................................�160�6.4.1.� Trend:�Health�Clubs�and�Gyms�Driving�Sports�Supplement�Sales�..................................................................�163�6.4.2.� Trend:�Health�Clubs�Evolving�into�Wellness�Centers�......................................................................................�166�6.4.3.� Trend:�Gym�and�Club�Channel�Set�to�Grow�....................................................................................................�166�

7.� MINERALS ............................................................................................................................................. 169�


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7.2.� PRODUCT�CATEGORIES�.................................................................................................................................................�177�7.2.1.� Calcium�..........................................................................................................................................................�177�7.2.2.� Magnesium�....................................................................................................................................................�178�7.2.3.� Chromium�......................................................................................................................................................�180�7.2.4.� Zinc�................................................................................................................................................................�181�7.2.1.� Selenium�........................................................................................................................................................�182�7.2.2.� Potassium�......................................................................................................................................................�184�7.2.3.� Iron�................................................................................................................................................................�185�7.2.4.� Other�Minerals�...............................................................................................................................................�186�

7.1.� TRENDS�.....................................................................................................................................................................�187�7.1.1.� Trend:�Calcium�May�Not�Reduce�Blood�Pressure�...........................................................................................�187�7.1.2.� Trend:�Research�Strengthens�Calcium’s�Story�...............................................................................................�187�

8.� MEAL REPLACEMENT SUPPLEMENTS ............................................................................................. 189�


9.� SPECIALTY SUPPLEMENTS ................................................................................................................ 195�


9.2.� PRODUCT�CATEGORIES�.................................................................................................................................................�204�9.2.1.� Melatonin�......................................................................................................................................................�204�9.2.2.� Probiotics�.......................................................................................................................................................�205�9.2.3.� DHEA�..............................................................................................................................................................�207�9.2.4.� Fish/Animal�Oils�.............................................................................................................................................�208�9.2.5.� Plant�Oils�........................................................................................................................................................�210�9.2.6.� Glucosamine/Chondroitin�..............................................................................................................................�211�9.2.7.� Bee�Products�..................................................................................................................................................�212�9.2.8.� CoQ10�............................................................................................................................................................�214�9.2.9.� 5HTP�..............................................................................................................................................................�215�9.2.10.� SAMe..............................................................................................................................................................�216�9.2.11.� MSM�..............................................................................................................................................................�218�9.2.12.� Gelatin�...........................................................................................................................................................�219�9.2.13.� Digestive�Enzymes�.........................................................................................................................................�220�9.2.14.� Homeopathics�................................................................................................................................................�221�9.2.15.� Other�Specialty�Supplements�.........................................................................................................................�223�

9.3.� TRENDS�.....................................................................................................................................................................�224�9.3.1.� Trend:�Will�Zicam�Recall�Hurt�Homeopathics?�..............................................................................................�224�

10.� CONDITION SPECIFIC MARKETS ...................................................................................................... 227�

10.1.� OVERVIEW�.................................................................................................................................................................�227�10.1.1.� Trend:�Supplements�Targeted�to�Specific�Conditions�Fuel�Industry�Growth�..................................................�228�

10.2.� GENERAL�HEALTH�........................................................................................................................................................�230�10.3.� COLD/FLU�IMMUNE�....................................................................................................................................................�233�


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10.4.� SPORTS/ENERGY/WEIGHT�LOSS�....................................................................................................................................�236�10.5.� BRAIN/MENTAL�ACUITY�...............................................................................................................................................�239�10.6.� INSOMNIA�..................................................................................................................................................................�241�10.7.� MOOD/DEPRESSION�....................................................................................................................................................�244�10.8.� MENOPAUSE�..............................................................................................................................................................�246�10.9.� CARDIO/HEARTH�HEALTH�.............................................................................................................................................�249�10.10.� JOINT�HEALTH�........................................................................................................................................................�252�10.11.� SEXUAL�HEALTH�......................................................................................................................................................�255�10.12.� BONE�HEALTH�........................................................................................................................................................�257�10.13.� GASTROINTESTINAL�HEALTH�......................................................................................................................................�259�10.14.� DIABETES�..............................................................................................................................................................�262�10.15.� CANCER�PREVENTION�..............................................................................................................................................�266�10.16.� HAIR/SKIN/NAILS�...................................................................................................................................................�269�10.17.� VISION/EYE�HEALTH�................................................................................................................................................�271�10.18.� TRENDS�.................................................................................................................................................................�272�

10.18.1.� Trend:�Broken�Health�Care�Industry�Creating�Opportunities�.........................................................................�272�10.18.2.� Trend:�Rising�Health�Costs�Fuel�OTC�..............................................................................................................�273�10.18.3.� Case�Study:�Condition�Specific�Marketing�Limited�........................................................................................�273�10.18.4.� Trend:�Science�Crucial�to�Success�...................................................................................................................�274�10.18.5.� Trend:�With�Obesity�Rates�Growing,�Nutrition�Firms�Vie�for�Their�Piece�of�the�Diabetes�Pie�.......................�276�10.18.6.� Trend:�Chromium�Used�for�Diabetes�Treatment�............................................................................................�277�10.18.7.� Case�Study:�DSM:�Bringing�Back�Forbidden�Foods�with�InsuVital�.................................................................�278�10.18.8.� Case�Study:�Promising�Diabetes�Specific�Supplements�..................................................................................�279�10.18.9.� Trend:�As�Digestive�Problems�Bloom,�So�Do�Sales�of�Probiotics�And�Other�Gut�Supplements�......................�280�10.18.10.� Trend:�Getting�Probiotics�Down�to�a�Science�............................................................................................�281�10.18.11.� Case�Study:�Smooth�Move�Moving�Well�....................................................................................................�281�10.18.12.� Trend:�Enzymes�Remain�a�Digestive�Health�Staple�...................................................................................�282�10.18.13.� Case�Study:�Jigsaw�Pieces�Together�Solutions�for�Chronic�Pain�Sufferers�.................................................�283�10.18.14.� Case�Study:�LifeVantage�Corp.�Aims�for�a�Sales�Comeback�With�its�Anti�Aging�Pill,�Protandim�...............�283�10.18.15.� Trend:�Supplement�Firms�Race�In�To�Fill�Void�Created�by�Recalled�Rx�Joint�Drugs�...................................�287�10.18.16.� Case�Study:�Primus�Pharmaceuticals�Takes�Medical�Food�Route�to�Help�Osteoarthritis�Sufferers�...........�289�10.18.17.� Trend:�Supplement�Use�High�Among�People�Looking�to�Treat,�Prevent�Cancer,�Study�Shows�.................�291�

11.� SALES CHANNELS & DISTRIBUTION ................................................................................................ 297�

11.1.� NATURAL�&�SPECIALTY�RETAIL�.......................................................................................................................................�298�11.1.1.� Trend:�Retailers�Weather�Downturn�Better�Than�Most�Industries�................................................................�301�11.1.1.� Case�Study:�“Whole�Foods�of�Pharmacies”�Fails�............................................................................................�301�11.1.1.� Whole�Foods�Battles�FTC�&�Economy�............................................................................................................�302�11.1.2.� Whole�Foods�Strives�to�Shrug�Off�Whole�Paycheck�Image�in�Current�Economic�Climate�..............................�303�

11.2.� MASS�MARKET�RETAIL�.................................................................................................................................................�305�11.3.� PRACTITIONER�............................................................................................................................................................�308�

11.3.1.� Case�Study:�Using�Practitioner�Endorsement�to�Increase�Online�Sales..........................................................�311�11.4.� MULTI�LEVEL�MARKETING�............................................................................................................................................�314�

11.4.1.� Trend:�Economy�Affecting�MLM�Sales�...........................................................................................................�316�11.5.� MAIL�ORDER/DRTV/RADIO�.........................................................................................................................................�318�11.6.� INTERNET�...................................................................................................................................................................�321�

11.6.1.� E�marketing:�A�Recession�Essential�for�Every�Company�................................................................................�324�11.6.1.� Trend:�Successful�E�mail�Marketing�Starts�With�a�Good�List�.........................................................................�325�11.6.1.� Case�Study:�NBTY�Prioritizes�Web�Sales�.........................................................................................................�327�11.6.2.� Trend:�Internet�Sales�Growth�Exceeds�Retail�.................................................................................................�328�

12.� GLOBAL MARKETS OVERVIEW .......................................................................................................... 329�

12.1.� GLOBAL�NUTRITION�INDUSTRY�SALES,�GROWTH�&�FORECASTS�............................................................................................�329�


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12.2.� GLOBAL�SUPPLEMENT�SALES,�GROWTH�AND�FORECASTS�.....................................................................................................�333�

13.� COMPANY SPOTLIGHTS & EXPERT INTERVIEWS .......................................................................... 339�

13.1.� METAGENICS�CEO:�WE�NEED�ALTICOR’S�BACKING�TO�MAKE�A�DENT�IN�CHRONIC�ILLNESS�EPIDEMIC�..........................................�339�13.2.� THERE'S�A�TIME�FOR�FISH�OIL,�AND�THERE'S�A�TIME�FOR�BYPASS�SURGERY,�GUARNERI�SAYS�.....................................................�341�13.3.� RESEARCH,�PRACTITIONER�EDUCATION�KEYS�TO�METAGENICS�SUCCESS�.................................................................................�344�13.4.� HOWARD�SCHIFFER�ON�VITAMIN�ANGELS:�‘WE�ARE�SAVING�KIDS’�LIVES,�AND�WE�CAN�PROVE�IT’�.............................................�347�13.5.� Q&A�WITH�MARTEK�BIOSCIENCES:�ETHAN�LEONARD,�VP�OF�PEDIATRIC�NUTRITION;�CASSIE�FRANCE�KELLY,�SENIOR�PUBLIC�RELATIONS�

MANAGER;�AND�JEFF�BERNFELD,�EXECUTIVE�DIRECTOR�OF�SALES.�.....................................................................................................�351�13.6.� FRANCINE�R.�KAUFMAN,�MD�ON�THE�U.S.�DIABESITY�WAR�................................................................................................�354�13.7.� ANDREW�WEIL:�WE�NEED�TO�CREATE�A�COMPLETELY�NEW�CULTURE�OF�HEALTH�AND�MEDICINE...............................................�355�13.8.� BRIGGS:�SUPPLEMENT�USE�IS�BEING�INFLUENCED�BY�SCIENCE�..............................................................................................�358�13.9.� NBJ�CHEWS�THE�FAT�WITH�EXECUTIVES�FROM�FOUR�GROWING�SNWL�COMPANIES�..............................................................�361�

14.� SUPPLEMENT COMPANY PROFILES ................................................................................................. 365�

14.1.�21st�Century�HealthCare�Inc.�..................................................................................................................................�365�14.2.�Abbott�Labs/Ross�Products�....................................................................................................................................�366�14.3.�Aboca�.....................................................................................................................................................................�367�14.4.�Airborne�Consumer�Health�.....................................................................................................................................�368�14.5.�Alacer�.....................................................................................................................................................................�369�14.6.�Alan�James�Group�..................................................................................................................................................�370�14.7.�Alcon�Labs�..............................................................................................................................................................�371�14.8.�Allergy�Research�Group�(KI�Nutricare)�...................................................................................................................�372�14.9.�Amerifit�..................................................................................................................................................................�373�14.10.�Apex�Fitness�.........................................................................................................................................................�374�14.11.�Applied�Nutrition�Inc.�...........................................................................................................................................�375�14.12.�Arizona�Natural�Products�.....................................................................................................................................�376�14.13.�Arkopharma/Health�From�the�Sun�.......................................................................................................................�377�14.14.�AST�Sports�Science�................................................................................................................................................�378�14.15.�Atkins�Nutritionals�................................................................................................................................................�379�14.16.�Atrium�Innovations�(Pure�Encapsulations,�Douglas�Labs)�....................................................................................�380�14.17.�Barlean's�Organic�Oils�..........................................................................................................................................�381�14.18.�Basic�Research/�Zoller�Labs�..................................................................................................................................�382�14.19.�Bausch�&�Lomb�.....................................................................................................................................................�383�14.20.�Bayer�....................................................................................................................................................................�384�14.21.�Beehive�Botanicals�...............................................................................................................................................�385�14.22.�Bio�Engineered�Supplements�and�Nutrition,�Inc.�(BSN)�........................................................................................�386�14.23.�Bluebonnet�Nutrition�Corp.�..................................................................................................................................�387�14.25.�Boiron�USA�...........................................................................................................................................................�388�14.26.�Botanical�Labs�......................................................................................................................................................�389�14.27.�Bristol�Myers�Squibb/Mead�Johnson�....................................................................................................................�390�14.28.�Carlson�Laboratories�............................................................................................................................................�391�14.29.�Celebrity�Products�Direct�(Hollywood�Celebrity�Diet)�...........................................................................................�392�14.31.�Chattem�(Sunsource)�............................................................................................................................................�393�14.32.�Coromega�.............................................................................................................................................................�394�14.33.�Country�Life�(BioChem,�Iron�Tek)�.........................................................................................................................�395�14.34.�Crystal�Star�Herbal�Nutrition�................................................................................................................................�396�14.35.�CytoSport�..............................................................................................................................................................�397�14.36.�Delavau�................................................................................................................................................................�398�14.37.�Eclectic�Institute,�Inc.�............................................................................................................................................�399�14.38.�Enzymedica�..........................................................................................................................................................�400�14.39.�Fizogen�Precision�Technologies�............................................................................................................................�401�


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14.40.�Flora��Inc.�..............................................................................................................................................................�402�14.41.�Futurebiotics�........................................................................................................................................................�403�14.42.�Gaia�Herbs,�Inc.�....................................................................................................................................................�404�14.43.�Garden�of�Life�.......................................................................................................................................................�405�14.44.�GlaxoSmithKline�...................................................................................................................................................�406�14.45.�GNC�(contract�manufacturing)�.............................................................................................................................�407�14.46.�Green�Pharmaceuticals�........................................................................................................................................�408�14.47.�Health�and�Nutrition�Systems�..............................................................................................................................�409�14.48.�Healthy�Directions�(Doctor's�Preferred)�...............................................................................................................�410�14.49.�Herb�Pharm�..........................................................................................................................................................�411�14.50.�Hero�Nutritionals�..................................................................................................................................................�412�14.51.�HVL�Inc./Douglas�Labs�..........................................................................................................................................�413�14.52.�IdeaSphere�Company/ISI�Brands�(TwinLab,�Metabolife)�......................................................................................�414�14.53.�Integrated�BioPharma�(Agrolabs/�Manhattan�Drug)�...........................................................................................�415�14.54.�Inverness�Medical�innovations,�Inc.�.....................................................................................................................�416�14.55.�Iovate�(Hydroxycut,�MuscleTech,�Cytogenix)�.......................................................................................................�417�14.56.�Irwin�Naturals�.......................................................................................................................................................�418�14.57.�iSatori�Technologies�.............................................................................................................................................�419�14.58.�ISS�Research�.........................................................................................................................................................�420�14.59.�Jarrow�Formulas�...................................................................................................................................................�421�14.60.�Kaizen�Nutrition�...................................................................................................................................................�422�14.61.�Kroeger�Herb�Products�.........................................................................................................................................�423�14.62.�Labrada�Nutrition�.................................................................................................................................................�424�14.63.�LaneLabs�USA,�Inc.�...............................................................................................................................................�425�14.64.�Lichtwer�Pharma�US�(Kwai,�Kira)�.........................................................................................................................�426�14.65.�Life�Extension�.......................................................................................................................................................�427�14.66.�Maharishi�Ayur�Ved�Products�Int'l,�Inc.�................................................................................................................�428�14.67.�Maitake�Products,�Inc.�.........................................................................................................................................�429�14.68.�Mason�Vitamins�...................................................................................................................................................�430�14.69.�Matrixx�Initiatives�................................................................................................................................................�431�14.70.�Max�Muscle�(Retail�Label)�....................................................................................................................................�432�14.71.�Maximum�Human�Performance�...........................................................................................................................�433�14.72.�McNeil�Nutritionals�..............................................................................................................................................�434�14.73.�Megafood�.............................................................................................................................................................�435�14.74.�Metabolic�Maintenance�Products�........................................................................................................................�436�14.75.�Metabolic�Response�Modifiers�(MRM)�.................................................................................................................�437�14.76.�Metagenics�...........................................................................................................................................................�438�14.77.�MLO�Products/Genisoy�(Swander�Pace)�...............................................................................................................�439�14.78.�Muscle�Marketing�USA�.........................................................................................................................................�440�14.79.�Natrol�...................................................................................................................................................................�441�14.80.�Naturade�Inc.........................................................................................................................................................�442�14.81.�Natural�Alternatives�.............................................................................................................................................�443�14.82.�Natural�Balance�...................................................................................................................................................�444�14.83.�Natural�Factors�Nutritional�Products�...................................................................................................................�445�14.84.�Natural�Organics/Nature's�Plus�...........................................................................................................................�446�14.85.�Naturally�Vitamins,�Inc.�........................................................................................................................................�447�14.86.�Nature's�Answer�...................................................................................................................................................�448�14.87.�Nature's�Benefit�(Dr.�Holt)�....................................................................................................................................�449�14.88.�Nature's�Best�........................................................................................................................................................�450�14.89.�Nature's�Life�.........................................................................................................................................................�451�14.90.�Nature's�Products,�Inc.�(Rainbow�Light,�Champion�Nutrition)�.............................................................................�452�14.91.�Nature's�Way�Products�(Enzymatic�Therapy,�Integrative�Therapeutics)�..............................................................�453�14.92.�NBTY�.....................................................................................................................................................................�454�


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14.93.�Nestlé�...................................................................................................................................................................�455�14.94.�New�Chapter�........................................................................................................................................................�456�14.95.�Nexgen�Pharma�....................................................................................................................................................�457�14.96.�NEXT�Proteins,�Inc.�...............................................................................................................................................�458�14.97.�Nordic�Naturals�....................................................................................................................................................�459�14.98.�NOW�Foods�..........................................................................................................................................................�460�14.99.�Nutraceutical�International�Corporation�..............................................................................................................�461�14.100.�Nutramax�Laboratories,�Inc.�(Cosamin�DS)�........................................................................................................�462�14.101.�Nutrex�Research�.................................................................................................................................................�463�14.102.�Nutrition�Now,�Inc.�.............................................................................................................................................�464�14.103.�Nutrition�Research�Group�(ANSI�&�SS�USA)�........................................................................................................�465�14.104.�Wellnx�(NX�Labs,�Slimquick)�...............................................................................................................................�466�14.105.�NX�Nutraceuticals�...............................................................................................................................................�467�14.106.�Optimum�Nutrition�(Glanbia)�.............................................................................................................................�468�14.107.�Pacific�Nutritional�Inc.�........................................................................................................................................�469�14.108.�PatentHealth�......................................................................................................................................................�470�14.109.�Perrigo�................................................................................................................................................................�471�14.110.�Pharmavite�.........................................................................................................................................................�472�14.111.�Pioneer�Nutritional�Formulas�Inc.�......................................................................................................................�473�14.112.�Prince�of�Peace�Enterprises�................................................................................................................................�474�14.113.�Progressive�Laboratories�....................................................................................................................................�475�14.114.�Quigley�Corp.�(Cold�EEZE)�...................................................................................................................................�476�14.115.�Real�Health�Laboratories�....................................................................................................................................�477�14.116.�ReNew�Life�Formulas,�Inc.�..................................................................................................................................�478�14.117.�S.A.N.�Corporation�..............................................................................................................................................�479�14.118.�Schiff�Nutrition�International�.............................................................................................................................�480�14.119.�Schwartz�Laboratories�........................................................................................................................................�481�14.120.�Similasan�USA.....................................................................................................................................................�482�14.121.�Standard�Homeopathic�Company�(Hyland's�Inc.)�...............................................................................................�483�14.122.�Standard�Process�................................................................................................................................................�484�14.123.�Supernutrition�....................................................................................................................................................�485�14.124.�Theralogix�..........................................................................................................................................................�486�14.125.�Thermo�Life�International�..................................................................................................................................�487�14.126.�Thorne�Research�.................................................................................................................................................�488�14.127.�Threshold�Enterprises�Ltd.�(Source�Naturals,�Planetary�Herbals)�.......................................................................�489�14.128.�Trace�Minerals�Research�....................................................................................................................................�490�14.129.�Ultimate�Nutrition,�Inc.�......................................................................................................................................�491�14.130.�Unilever�(SlimFast)�.............................................................................................................................................�492�14.131.�Universal�Nutrition�Corp.�....................................................................................................................................�493�14.132.�VHT�Body�............................................................................................................................................................�494�14.133.�Vianda�................................................................................................................................................................�495�14.134.�Vibrant�Health�....................................................................................................................................................�496�14.135.�VitaQuest�Intl�(Garden�State,�Windmill)�............................................................................................................�497�14.136.�Vita�Tech�International�......................................................................................................................................�498�14.137.�VPX�Sports�Nutrition�...........................................................................................................................................�499�14.138.�Wakunaga�of�America�(Kyolic)�...........................................................................................................................�500�14.139.�Wellements�........................................................................................................................................................�501�14.140.�Wyeth�(Centrum,�Caltrate)�.................................................................................................................................�502�14.141.�Yerba�Prima�........................................................................................................................................................�503�


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0�10� www.nutritionbusinessjournal.com�� ©2009�Penton�Media,�Inc.�

INDEX OF FIGURES Figure�1�1�U.S.�Dietary�Supplement�Sales�by�Product�Category�in�2008�................................................................�19�Figure�3�1�U.S.�Total�Nutrition�Industry�Sales�by�Product,�2008�.............................................................................�27�Figure�3�2�U.S.�Nutrition�Industry�Sales�by�Product�,�1998�2008�............................................................................�28�Figure�3�3�U.S.�Nutrition�Industry�Sales�Growth�by�Product,�1998�2008�...............................................................�28�Figure�3�4�U.S.�Nutrition�Industry�Sales�by�Product�as�%�of�Total,�1998�2008�.......................................................�28�Figure�3�5�U.S.�Nutrition�Industry�Sales�Growth�by�Product,�2008�.........................................................................�29�Figure�3�6�U.S.�Nutrition�Industry�Sales�&�Growth,�2000�2017e�............................................................................�29�Figure�3�7�U.S.�Total�Nutrition�Industry�Sales�by�Channel,�2008�............................................................................�30�Figure�3�8�U.S.�Nutrition�Industry�Sales�&�Growth�by�Channel,�2008�.....................................................................�31�Figure�3�9�U.S.�Nutrition�Industry�Sales�&�Growth�by�Channel,�2007�.....................................................................�31�Figure�3�10�U.S.�Nutrition�Industry�Sales�&�Growth�by�Channel,�2006�...................................................................�32�Figure�3�11�U.S.�Nutrition�Industry�Sales�by�Channel,�1998�2008�..........................................................................�32�Figure�3�12�U.S.�Nutrition�Industry�Sales�by�Product,�2009e�2017e�.......................................................................�33�Figure�3�13�U.S.�Nutrition�Industry�Sales�Growth�by�Product,�2009e�2017e..........................................................�33�Figure�3�14�U.S.�Nutrition�Industry�Sales�by�Product�as�%�of�Total,�2009e�2017e�.................................................�33�Figure�3�15�U.S.�Nutrition�Industry�Estimated�Compound�Annual�Sales�Growth,�2009e�2017e�............................�34�Figure�3�16��U.S.�Dietary�Supplements�vs.�Total�Nutrition�Industry,�1998�2008�....................................................�34�Figure�3�17�U.S.�Dietary�Supplements�vs.�Total�Nutrition�Industry�Sales�Growth,�2000�2017e�.............................�35�Figure�3�18�U.S.�Dietary�Supplement�Sales�by�Product�Category�in�2008�..............................................................�36�Figure�3�19�U.S.�Dietary�Supplement�Sales�by�Product�,�1998�2008�......................................................................�36�Figure�3�20�U.S.�Dietary�Supplement�Sales�Growth�by�Product�,�1998�2008�.........................................................�37�Figure�3�21�U.S.�Dietary�Supplement�Sales�by�Product�as�%�of�Total�,�1998�2008�.................................................�37�Figure�3�22�U.S.�Dietary�Supplement�Sales�Growth�by�Product,�2008�...................................................................�38�Figure�3�23�U.S.�Dietary�Supplement�Sales�&�Growth,�2000�2017e�.......................................................................�38�Figure�3�24�U.S.�Dietary�Supplements�Product�Category�Sales�Growth,�2000�2017e�............................................�39�Figure�3�25�Top�50�Dietary�Supplement�Companies�in�2008:�Part�I�.......................................................................�40�Figure�3�26�Top�50�Dietary�Supplement�Companies�in�2008:�Part�II�......................................................................�41�Figure�3�27�Top�100�Dietary�Supplements�According�to�U.S.�Sales,�2002�2008:�Part�I�..........................................�42�Figure�3�28�Top�100�Dietary�Supplements�According�to�U.S.�Sales,�2002�2008:�Part�II�.........................................�43�Figure�3�29�Top�100�Dietary�Supplements�According�to�U.S.�Sales,�2002�2008:�Part�III�........................................�44�Figure�3�30�U.S.�Dietary�Supplement�Sales�by�Channel,�2008�................................................................................�45�Figure�3�31�U.S.�Dietary�Supplement�Sales�and�Annual�Growth�by�Channel,�2006�2008�......................................�45�Figure�3�32�U.S.�Dietary�Supplement�Sales�by�Channel,�2000�2008�.......................................................................�46�Figure�3�33�U.S.�Dietary�Supplement�Sales�by�Product,�2009e�2017e�...................................................................�46�Figure�3�34�U.S.�Dietary�Supplement�Sales�Growth�by�Product,�2009e�2017e�......................................................�47�Figure�3�35�U.S.�Dietary�Supplement�Sales�by�Product�as�%�of�Total,�2009e�2017e�..............................................�47�Figure�3�36�U.S.�Dietary�Supplements�Estimated�Compound�Annual�Sales�Growth,�2009e�2017e�.......................�48�Figure�3�37�U.S.�Consumer�Use�of�Dietary�Supplements,�2008�..............................................................................�49�Figure�3�38�U.S.�Herb�&�Botanical�Use�by�Adults�as�%�of�Total�Market�Share�,�1999�2008....................................�49�Figure�3�39�U.S.�Herb�&�Botanical�Use�by�Adults�by�Millions�of�Users,�1999�2008�................................................�49�Figure�4�1�U.S.�Vitamin�Sales�by�Product�Category�in�2008�....................................................................................�93�Figure�4�2�U.S.�Vitamin�vs.�Total�Supplement�Sales�,�1998�2008�............................................................................�94�Figure�4�3�U.S.�Vitamin�Sales�by�Product�,�1998�2008�............................................................................................�94�Figure�4�4�U.S.�Vitamin�Sales�Growth�by�Product�,�1998�2008�...............................................................................�95�Figure�4�5�U.S.�Vitamin�Sales�by�Product�as�%�of�Total�,�1998�2008�.......................................................................�95�

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©2009�Penton�Media,�Inc.� www.nutritionbusinessjournal.com� 1�11��

Figure�4�6�U.S.�Vitamin�Sales�Growth�by�Product,�2008�.........................................................................................�96�Figure�4�7�U.S.�Vitamin�Sales�&�Growth,�2000�2017e�.............................................................................................�96�Figure�4�8�U.S.�Vitamin�Product�Category�Sales�Growth,�2000�2008�.....................................................................�97�Figure�4�9�Top�20�Vitamin�Companies�in�2008�.......................................................................................................�98�Figure�4�10�U.S.�Vitamin�Sales�by�Channel,�2008�....................................................................................................�99�Figure�4�11�U.S.�Vitamin�Sales�and�Annual�Growth�by�Channel,�2006�2008�..........................................................�99�Figure�4�12�U.S.�Vitamins�vs.�Dietary�Supplements�Sales�Growth,�2000�2017e�...................................................�100�Figure�4�13�U.S.�Vitamins�vs.�Total�Dietary�Supplement�Sales�and�Growth,�2009e�2017e�..................................�100�Figure�4�14�U.S.�Consumer�Use�of�Vitamins,�2008�................................................................................................�101�Figure�4�15�U.S.�Vitamin�Use�by�Adults�as�%�of�Total�Market�Share�,�1999�2008�................................................�101�Figure�4�16�U.S.�Vitamin�Use�by�Adults�by�Millions�of�Users,�1999�2008�.............................................................�102�Figure�4�17�U.S.�Multivitamin�Sales�&�Growth,�1998�2008�..................................................................................�102�Figure�4�18�U.S.�Multivitamin�Sales�by�Channel,�2008�..........................................................................................�103�Figure�4�19�U.S.�Vitamin�C�Sales�&�Growth,�1998�2008�........................................................................................�104�Figure�4�20�U.S.�Vitamin�C�Sales�by�Channel,�2008�...............................................................................................�104�Figure�4�21�U.S.�Vitamin�E�Sales�&�Growth,�1998�2008�........................................................................................�105�Figure�4�22�U.S.�Vitamin�E�Sales�by�Channel,�2008�...............................................................................................�105�Figure�4�23�U.S.�Vitamin�B�Sales�&�Growth,�1998�2008�........................................................................................�106�Figure�4�24�U.S.�Vitamin�B�Sales�by�Channel,�2008�...............................................................................................�107�Figure�4�25�U.S.�Vitamin�A�Sales�&�Growth,�1998�2008........................................................................................�107�Figure�4�26�U.S.�Vitamin�A�Sales�by�Channel,�2008�...............................................................................................�108�Figure�4�27�U.S.�Vitamin�D�Sales�&�Growth,�2001�2008�.......................................................................................�108�Figure�4�28�U.S.�Vitamin�D�Sales�by�Channel,�2008�...............................................................................................�109�Figure�4�29�U.S.�Other�Vitamin�Sales�&�Growth,�1998�2008�................................................................................�110�Figure�4�30�U.S.�Other�Vitamin�Sales�by�Channel,�2008�........................................................................................�110�Figure�5�1�U.S.�Herb�&�Botanical�Sales�by�Product�Category�in�2008�...................................................................�115�Figure�5�2�U.S.�Herb�&�Botanical�vs.�Total�Supplement�Sales�,�1998�2008�...........................................................�116�Figure�5�3�U.S.�Top�50�Herb�&�Botanical�Producs�Ranked�by�Sales�,�2000�2008:�Part�I�........................................�116�Figure�5�4�U.S.�Top�50�Herb�&�Botanical�Producs�Ranked�by�Sales�,�2000�2008:�Part�II�.......................................�117�Figure�5�5�U.S.�Herb�&�Botanical�Sales�Growth�for�Top�10�Products�,�1998�2008�................................................�118�Figure�5�6�U.S.�Herb�&�Botanical�Sales�Growth�for�Top�10�Growth�Products,�2008�.............................................�118�Figure�5�7�U.S.�Herb�&�Botanical�Sales�&�Growth,�2000�2017e�............................................................................�119�Figure�5�8�Top�20�Herb�&�Botanical�Companies�in�2008�.......................................................................................�120�Figure�5�9�U.S.�Herb�&�Botanical�Sales�by�Channel,�2008�.....................................................................................�121�Figure�5�10�U.S.�Herb�&�Botanical�Sales�and�Annual�Growth�by�Channel,�2006�2008�.........................................�121�Figure�5�11�U.S.�Herb�&�Botanical�vs.�Dietary�Supplement�Sales�Growth,�2000�2017e�.......................................�122�Figure�5�12�U.S.�Herb�&�Botanical�vs.�Total�Dietary�Supplement�Sales�and�Growth,�2009e�2017e�.....................�122�Figure�5�13�U.S.�Consumer�Use�of�Herbs�&�Botanicals,�2008�...............................................................................�123�Figure�5�14�U.S.�Herb�&�Botanical�Use�by�Adults�as�%�of�Total�Market�Share�,�1999�2008..................................�123�Figure�5�15�U.S.�Herb�&�Botanical�Use�by�Adults�by�Millions�of�Users,�1999�2008�..............................................�124�Figure�5�16�U.S.�Noni�Juice�Sales�&�Growth,�1998�2008�.......................................................................................�124�Figure�5�17�U.S.�Noni�Juice�Sales�by�Channel,�2008�..............................................................................................�125�Figure�5�18�U.S.�Mangosteen�Juice�Sales�&�Growth,�2000�2008�..........................................................................�126�Figure�5�19�U.S.�Mangosteen�Juice�Sales�by�Channel,�2008�.................................................................................�126�Figure�5�20�U.S.�Goji�Juice�Sales�&�Growth,�2000�2008�........................................................................................�127�Figure�5�21�U.S.�Goji�Juice�Sales�by�Channel,�2008�...............................................................................................�128�Figure�5�22�U.S.�Green�Tea�Sales�&�Growth,�1998�2008�.......................................................................................�128�


�


Figure�5�23�U.S.�Green�Tea�Sales�by�Channel,�2008�..............................................................................................�129�Figure�5�24�U.S.�Echinacea�Sales�&�Growth,�1998�2008�.......................................................................................�130�Figure�5�25�U.S.�Echinacea�Sales�by�Channel,�2008�..............................................................................................�130�Figure�5�26�U.S.�Garlic�Sales�&�Growth,�1998�2008�..............................................................................................�131�Figure�5�27�U.S.�Garlic�Sales�by�Channel,�2008�.....................................................................................................�131�Figure�5�28�U.S.�Saw�Palmetto�Sales�&�Growth,�1998�2008�.................................................................................�132�Figure�5�29�U.S.�Saw�Palmetto�Sales�by�Channel,�2008�........................................................................................�132�Figure�5�30�U.S.�Ginkgo�Biloba�Sales�&�Growth,�1998�2008�.................................................................................�133�Figure�5�31�U.S.�Ginkgo�Biloba�Sales�by�Channel,�2008�........................................................................................�134�Figure�5�32�U.S.�Milk�Thistle�Sales�&�Growth,�1998�2008�.....................................................................................�134�Figure�5�33�U.S.�Milk�Thistle�Sales�by�Channel,�2008�............................................................................................�135�Figure�5�34�U.S.�Acai�Sales�&�Growth,�1998�2008�................................................................................................�136�Figure�5�35�U.S.�Acai�Sales�by�Channel,�2008�........................................................................................................�136�Figure�5�36�U.S.�Psyllium�Sales�&�Growth,�1998�2008�..........................................................................................�137�Figure�5�37�U.S.�Psyllium�Sales�by�Channel,�2008�.................................................................................................�138�Figure�5�38�U.S.�Ginseng�Sales�&�Growth,�1998�2008�..........................................................................................�138�Figure�5�39�U.S.�Ginseng�Sales�by�Channel,�2008�.................................................................................................�139�Figure�5�40�U.S.�Green�Foods�Sales�&�Growth,�1998�2008�...................................................................................�140�Figure�5�41�U.S.�Green�Foods�Sales�by�Channel,�2008�..........................................................................................�140�Figure�6�1�U.S.�Sports�Nutrition�Supplement�Sales�by�Product�Category�in�2008�................................................�149�Figure�6�2�U.S.�Sports�Nutrition�Supplements�vs.�Total�Supplement�Sales�,�1998�2008�......................................�149�Figure�6�3�U.S.�Sports�Nutrition�Supplement�Sales�by�Product�,�1998�2008�........................................................�150�Figure�6�4�U.S.�Sports�Nutrition�Supplement�Sales�Growth�by�Product�,�1998�2008�...........................................�150�Figure�6�5�U.S.�Sports�Nutrition�Supplement�Sales�by�Product�as�%�of�Total�,�1998�2008�...................................�150�Figure�6�6�U.S.�Sports�Nutrition�Supplement�Sales�Growth�by�Product,�2008�.....................................................�151�Figure�6�7�U.S.�Sports�Nutrition�Supplement�Sales�&�Growth,�2000�2017e�.........................................................�151�Figure�6�8�U.S.�Sports�Nutrition�Product�Category�Sales�Growth,�2000�2017e�....................................................�152�Figure�6�9�Top�20�Sports�Nutrition�Supplement�Companies�in�2008�....................................................................�153�Figure�6�10�U.S.�Sports�Nutrition�Sales�by�Channel,�2008�.....................................................................................�154�Figure�6�11�U.S.�Sports�Nutrition�Supplement�Sales�and�Annual�Growth�by�Channel,�2006�2008�......................�154�Figure�6�12�U.S.�Sports�Nutrition�Supplements�vs.�Dietary�Supplements�Sales�Growth,�2000�2017e�.................�156�Figure�6�13�U.S.�Sports�Nutrition�vs.�Total�Dietary�Supplement�Sales�and�Growth,�2009e�2017e�......................�156�Figure�6�14�U.S.�Consumer�Use�of�Sports�Nutrition�Supplements,�2008�..............................................................�157�Figure�6�15�U.S.�Sports�Nutriton�Supplement�Use�by�Adults�as�%�of�Total�Market�Share�,�1999�2008�...............�157�Figure�6�16�U.S.�Sports�Nutrition�Supplement�Use�by�Adults�by�Millions�of�Users,�1999�2008�...........................�158�Figure�6�17�U.S.�Sports�Nutrition�Powders/Formulas�Sales�&�Growth,�1998�2017e�............................................�158�Figure�6�18�U.S.�Sports�Nutrition�Pills�Sales�&�Growth,�1998�2017e�....................................................................�159�Figure�6�19�U.S.�Sports�Nutrition�Hardcore�Sales�&�Growth,�1998�2017e�...........................................................�159�Figure�7�1�U.S.�Mineral�Sales�by�Product�Category�in�2008�..................................................................................�169�Figure�7�2�U.S.�Minerals�vs.�Total�Supplement�Sales�,�1998�2008�........................................................................�169�Figure�7�3�U.S.�Mineral�Sales�by�Product�,�1998�2008�..........................................................................................�170�Figure�7�4�U.S.�Mineral�Sales�Growth�by�Product�,�1998�2008�.............................................................................�170�Figure�7�5�U.S.�Mineral�Sales�by�Product�at�%�of�Total�,�1998�2008�.....................................................................�171�Figure�7�6�U.S.�Mineral�Sales�Growth�by�Product,�2008�.......................................................................................�171�Figure�7�7�U.S.�Mineral�Sales�&�Growth,�2000�2017e�...........................................................................................�172�Figure�7�8�Top�20�Mineral�Companies�in�2008�.....................................................................................................�173�Figure�7�9�U.S.�Mineral�Sales�by�Channel,�2008�....................................................................................................�174�Figure�7�10�U.S.�Mineral�Sales�and�Annual�Growth�by�Channel,�2006�2008�........................................................�174�

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Figure�7�11�U.S.�Minerals�vs.�Dietary�Supplements�Sales�Growth,�2000�2017e�...................................................�175�Figure�7�12�U.S.�Minerals�vs.�Total�Dietary�Supplement�Sales�and�Growth,�2009e�2017e�..................................�175�Figure�7�13�U.S.�Consumer�Use�of�Minerals,�2008�................................................................................................�176�Figure�7�14�U.S.�Mineral�Use�by�Adults�as�%�of�Total�Market�Share�,�1999�2008�................................................�176�Figure�7�15�U.S.�Mineral�Use�by�Adults�by�Millions�of�Users,�1999�2008�.............................................................�177�Figure�7�16�U.S.�Calcium�Sales�&�Growth,�1998�2008�..........................................................................................�177�Figure�7�17�U.S.�Calcium�Sales�by�Channel,�2008�..................................................................................................�178�Figure�7�18�U.S.�Magnesium�Sales�&�Growth,�1998�2008�....................................................................................�178�Figure�7�19�U.S.�Magnesium�Sales�by�Channel,�2008�...........................................................................................�179�Figure�7�20�U.S.�Chromium�Sales�&�Growth,�1998�2008�......................................................................................�180�Figure�7�21�U.S.�Chromium�Sales�by�Channel,�2008�.............................................................................................�180�Figure�7�22�U.S.�Zinc�Sales�&�Growth,�1998�2008�.................................................................................................�181�Figure�7�23�U.S.�Zinc�Sales�by�Channel,�2008�........................................................................................................�182�Figure�7�24�U.S.�Selenium�Sales�&�Growth,�1998�2008�........................................................................................�182�Figure�7�25�U.S.�Selenium�Sales�by�Channel,�2008................................................................................................�183�Figure�7�26�U.S.�Potassium�Sales�&�Growth,�1998�2008�.......................................................................................�184�Figure�7�27�U.S.�Potassium�Sales�by�Channel,�2008�..............................................................................................�184�Figure�7�28�U.S.�Iron�Sales�&�Growth,�1998�2008�.................................................................................................�185�Figure�7�29�U.S.�Iron�Sales�by�Channel,�2008�........................................................................................................�186�Figure�7�30�U.S.�Other�Mineral�Sales�&�Growth,�1998�2008�................................................................................�186�Figure�7�31�U.S.�Other�Mineral�Sales�by�Channel,�2008�........................................................................................�187�Figure�8�1��U.S.�Meal�Replacement�vs.�Total�Supplement�Sales�,�1998�2008�.......................................................�189�Figure�8�2�U.S.�Meal�Replacement�Sales�&�Growth,�2000�2017e�.........................................................................�189�Figure�8�3�Top�20�Meal�Replacement�Supplement�Companies�in�2008�...............................................................�190�Figure�8�4�U.S.�Meal�Replacement�Sales�by�Channel,�2008�..................................................................................�191�Figure�8�5��U.S.�Meal�Replacement�Supplement�Sales�and�Annual�Growth�by�Channel,�2006�2008�...................�191�Figure�8�6�U.S.�Meal�Replacement�Supplements�vs.�Total�Dietary�Supplement�Sales�and�Growth,�2009e�2017e�...............................................................................................................................................................................�192�Figure�8�7��U.S.�Meal�Replacement�Supplements�vs.�Dietary�Supplements�Sales�Growth,�2000�2017e�..............�192�Figure�8�8�U.S.�Consumer�Use�of�Meal�Replacement�Supplements,�2008�...........................................................�193�Figure�8�9�U.S.�Meal�Replacement�Supplement�Use�by�Adults�as�%�of�Total�Market�Share�,�1999�2008�............�193�Figure�8�10�U.S.�Meal�Replacement�Supplement�Use�by�Adults�by�Millions�of�Users,�1999�2008�.......................�194�Figure�9�1�U.S.�Specialty�Supplement�Sales�by�Product�Category�in�2008�............................................................�195�Figure�9�2��U.S.�Specialty�Supplement�vs.�Total�Supplement�Sales�,�1998�2008�..................................................�196�Figure�9�3��U.S.�Specialty�Supplement�Sales�by�Product�,�1998�2008�...................................................................�196�Figure�9�4��U.S.�Specialty�Supplement�Sales�Growth�by�Product�,�1998�2008�......................................................�197�Figure�9�5��U.S.�Specialty�Supplement�Sales�by�Product�as�%�of�Total�,�1998�2008�.............................................�198�Figure�9�6�U.S.�Specialty�Sales�Growth�by�Top�8�Growth�Products,�2008�.............................................................�198�Figure�9�7�U.S.�Specialty�Sales�&�Growth,�2000�2017e�.........................................................................................�199�Figure�9�8�Top�20�Specialty/Other�Supplement�Companies�in�2008�....................................................................�200�Figure�9�9�U.S.�Specialty�Sales�by�Channel,�2008�..................................................................................................�201�Figure�9�10��U.S.�Specialty�Sales�and�Annual�Growth�by�Channel,�2006�2008�.....................................................�201�Figure�9�11��U.S.�Specialty��vs.�Total�Dietary�Supplements�Sales�Growth,�2000�2017e�........................................�202�Figure�9�12�U.S.�Specialty�vs.�Total�Dietary�Supplement�Sales�and�Growth,�2009e�2017e�..................................�202�Figure�9�13�U.S.�Consumer�Use�of�Specialty/Other�Supplements,�2008�..............................................................�203�Figure�9�14�U.S.�Specialty/Other�Supplement�Use�by�Adults�as�%�of�Total�Market�Share�,�1999�2008�...............�203�Figure�9�15�U.S.�Specialty/Other�Supplement�Use�by�Adults�by�Millions�of�Users,�1999�2008�............................�204�


�


Figure�9�16�U.S.�Melatonin�Sales�&�Growth,�1998�2008�.......................................................................................�204�Figure�9�17�U.S.�Melatonin�Sales�by�Channel,�2008�..............................................................................................�205�Figure�9�18�U.S.�Probiotics�Sales�&�Growth,�1998�2008�.......................................................................................�205�Figure�9�19�U.S.�Probiotics�Sales�by�Channel,�2008�..............................................................................................�206�Figure�9�20�U.S.�DHEA�Sales�&�Growth,�1998�2008�..............................................................................................�207�Figure�9�21�U.S.�DHEA�Sales�by�Channel,�2008�.....................................................................................................�207�Figure�9�22�U.S.�Fish/Animal�Oil�Sales�&�Growth,�1998�2008�...............................................................................�208�Figure�9�23�U.S.�Fish/Animal�Oil�Sales�by�Channel,�2008�......................................................................................�209�Figure�9�24�U.S.�Plant�Oil�Sales�&�Growth,�1998�2008�..........................................................................................�210�Figure�9�25�U.S.�Plant�Oil�Sales�by�Channel,�2008�.................................................................................................�210�Figure�9�26�U.S.�Glucosamine/Chondroitin�Sales�&�Growth,�1998�2008�..............................................................�211�Figure�9�27�U.S.�Glucosamine/Chondroitin�Sales�by�Channel,�2008�.....................................................................�212�Figure�9�28�U.S.�Bee�Products�Sales�&�Growth,�1998�2008�..................................................................................�212�Figure�9�29�U.S.�Bee�Products�Sales�by�Channel,�2008�.........................................................................................�213�Figure�9�30�U.S.�CoQ10�Sales�&�Growth,�1998�2008�............................................................................................�214�Figure�9�31�U.S.�CoQ10�Sales�by�Channel,�2008�....................................................................................................�214�Figure�9�32�U.S.�5HTP�Sales�&�Growth,�1998�2008�...............................................................................................�215�Figure�9�33�U.S.�5HTP�Sales�by�Channel,�2008�......................................................................................................�216�Figure�9�34�U.S.�SAMe�Sales�&�Growth,�1998�2008�..............................................................................................�216�Figure�9�35�U.S.�SAMe�Sales�by�Channel,�2008�.....................................................................................................�217�Figure�9�36�U.S.�MSM�Sales�&�Growth,�1998�2008�...............................................................................................�218�Figure�9�37�U.S.�MSM�Sales�by�Channel,�2008�......................................................................................................�218�Figure�9�38�U.S.�Gelatin�Sales�&�Growth,�1998�2008�............................................................................................�219�Figure�9�39�U.S.�Gelatin�Sales�by�Channel,�2008�...................................................................................................�220�Figure�9�40�U.S.�Digestive�Enzymes�Sales�&�Growth,�1998�2008�.........................................................................�220�Figure�9�41�U.S.�Digestive�Enzymes�Sales�by�Channel,�2008�.................................................................................�221�Figure�9�42�U.S.�Homeopathic�Sales�&�Growth,�1998�2008�.................................................................................�221�Figure�9�43�U.S.�Homeopathic�Sales�by�Channel,�2008�.........................................................................................�222�Figure�9�44�U.S.�Other�Specialty�Supplement�Sales�&�Growth,�1998�2008�..........................................................�223�Figure�9�45�U.S.�Other�Specialty�Supplement�Sales�by�Channel,�2008�.................................................................�223�Figure�10�1�U.S.�Supplement�Sales�by�Condition�in�2008�.....................................................................................�227�Figure�10�2��U.S.�Dietary�Supplement�Sales�&�Growth�by�Condition�Specific�Market,�1999�2008�.......................�228�Figure�10�3�U.S.�Condition�Specific�Supplement,�OTC�and�Rx�Sales�in�2007�.........................................................�229�Figure�10�4��U.S.�Condition�Specific�Sales�by�Market,�1999�2007�.........................................................................�230�Figure�10�5�U.S.�General�Health�Condition�Specific�Supplement�Sales�by�Product�in�2008�.................................�230�Figure�10�6�U.S.�General�Health�Condition�Specific�Supplement�Sales�&�Growth,�1999�2008.............................�231�Figure�10�7��U.S.�General�Health�Condition�Specific�Sales�by�Market,�1999�2008�...............................................�231�Figure�10�8��U.S.�General�Health�Condition�Specific�Supplement�Sales,�1999�2008�............................................�232�Figure�10�9�U.S.�Cold/Flu�Immune�Condition�Specific�Supplement�Sales�by�Product�in�2008�.............................�233�Figure�10�10�U.S.�Cold/Flu�Immune�Condition�Specific�Supplement�Sales�&�Growth,�1999�2008�......................�234�Figure�10�11��U.S.�Cold/Flu�Immune�Condition�Specific�Sales�by�Market,�1999�2007�.........................................�234�Figure�10�12��U.S.�Cold/Flu�Immune�Condition�Specific�Supplement�Sales,�1999�2008�......................................�235�Figure�10�13�U.S.�Sports/Energy/Weight�Loss�Condition�Specific�Supplement�Sales�by�Product�in�2008�...........�236�Figure�10�14�U.S.�Sports/Energy/Weight�Loss�Condition�Specific�Supplement�Sales�&�Growth,�1999�2008�.......�237�Figure�10�15��U.S.�Sports/Energy/Weight�Loss�Condition�Specific�Sales�by�Market,�1999�2007�.........................�237�Figure�10�16��U.S.�Sports/Energy/Weight�Loss�Condition�Specific�Supplement�Sales,�1999�2008�......................�238�Figure�10�17�U.S.�Brain/Mental�Acuity�Condition�Specific�Supplement�Sales�by�Product�in�2008�.......................�239�Figure�10�18�U.S.�Brain/Mental�Acuity�Condition�Specific�Supplement�Sales�&�Growth,�1999�2008�..................�240�

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Figure�10�19��U.S.�Brain/Mental�Acuity�Condition�Specific�Sales�by�Market,�1999�2007�.....................................�240�Figure�10�20��U.S.��Brain/Mental�Acuity�Condition�Specific�Supplement�Sales,�1999�2008�.................................�241�Figure�10�21�U.S.�Insomnia�Condition�Specific�Supplement�Sales�by�Product�in�2008�.........................................�242�Figure�10�22�U.S.�Insomnia�Condition�Specific�Supplement�Sales�&�Growth,�1999�2008�....................................�242�Figure�10�23��U.S.�Insomnia�Condition�Specific�Sales�by�Market,�1999�2007�.......................................................�243�Figure�10�24��U.S.�Insomnia�Condition�Specific�Supplement�Sales,�1999�2008�....................................................�243�Figure�10�25�U.S.�Mood/Depression�Condition�Specific�Supplement�Sales�by�Product�in�2008�..........................�244�Figure�10�26�U.S.�Mood/Depression�Condition�Specific�Supplement�Sales�&�Growth,�1999�2008�.....................�245�Figure�10�27��U.S.�Mood/Depression�Condition�Specific�Sales�by�Market,�1999�2007�........................................�245�Figure�10�28��U.S.�Mood/Depression�Condition�Specific�Supplement�Sales,�1999�2008�.....................................�246�Figure�10�29�U.S.�Menopause�Condition�Specific�Supplement�Sales�by�Product�in�2008�....................................�247�Figure�10�30�U.S.�Menopause�Condition�Specific�Supplement�Sales�&�Growth,�1999�2008�................................�247�Figure�10�31��U.S.�Menopause�Condition�Specific�Sales�by�Market,�1999�2007�...................................................�248�Figure�10�32��U.S.�Menopause�Condition�Specific�Supplement�Sales,�1999�2008�................................................�248�Figure�10�33�U.S.�Cardio/Heart�Health�Condition�Specific�Supplement�Sales�by�Product�in�2008�.......................�249�Figure�10�34�U.S.�Cardio/Heart�Health�Condition�Specific�Supplement�Sales�&�Growth,�1999�2008�..................�250�Figure�10�35��U.S.�Cardio/Heart�Health�Condition�Specific�Sales�by�Market,�1999�2007�.....................................�250�Figure�10�36��U.S.�Cardio/Heart�Health�Condition�Specific�Supplement�Sales,�1999�2008�..................................�251�Figure�10�37�U.S.�Joint�Health�Condition�Specific�Supplement�Sales�by�Product�in�2008�....................................�252�Figure�10�38�U.S.�Joint�Health�Condition�Specific�Supplement�Sales�&�Growth,�1999�2008�................................�253�Figure�10�39��U.S.�Joint�Health�Condition�Specific�Sales�by�Market,�1999�2007�..................................................�253�Figure�10�40��U.S.�Joint�Health�Condition�Specific�Supplement�Sales,�1999�2008�...............................................�254�Figure�10�41�U.S.�Sexual�Health�Condition�Specific�Supplement�Sales�by�Product�in�2008..................................�255�Figure�10�42�U.S.�Sexual�Health�Condition�Specific�Supplement�Sales�&�Growth,�1999�2008�.............................�256�Figure�10�43��U.S.�Sexual�Health�Condition�Specific�Sales�by�Market,�1999�2007�................................................�256�Figure�10�44��U.S.�Sexual�Health�Condition�Specific�Supplement�Sales,�1999�2008�.............................................�257�Figure�10�45�U.S.�Bone�Health�Condition�Specific�Supplement�Sales�by�Product�in�2008�....................................�257�Figure�10�46�U.S.�Bone�Health�Condition�Specific�Supplement�Sales�&�Growth,�1999�2008�...............................�258�Figure�10�47��U.S.�Bone�Health�Condition�Specific�Sales�by�Market,�1999�2007�..................................................�258�Figure�10�48��U.S.�Bone�Health�Condition�Specific�Supplement�Sales,�1999�2008�...............................................�259�Figure�10�49�U.S.�Gastrointestinal�Health�Condition�Specific�Supplement�Sales�by�Product�in�2008�..................�260�Figure�10�50�U.S.�Gastrointestinal�Health�Condition�Specific�Supplement�Sales�&�Growth,�1999�2008�.............�261�Figure�10�51��U.S.�Gastrointestinal�Health�Condition�Specific�Sales�by�Market,�1999�2007�................................�261�Figure�10�52��U.S.�Gastrointestinal�Health�Condition�Specific�Supplement�Sales,�1999�2008�.............................�262�Figure�10�53�U.S.�Diabetes�Condition�Specific�Supplement�Sales�by�Product�in�2008�.........................................�263�Figure�10�54�U.S.�Diabetes�Condition�Specific�Supplement�Sales�&�Growth,�1999�2008�.....................................�263�Figure�10�55��U.S.�Diabetes�Health�Condition�Specific�Sales�by�Market,�1999�2007�............................................�264�Figure�10�56��U.S.�Diabetes�Health�Condition�Specific�Supplement�Sales,�1999�2008�.........................................�265�Figure�10�57�U.S.�Cancer�Prevention�Condition�Specific�Supplement�Sales�by�Product�in�2008�..........................�266�Figure�10�58�U.S.�Cancer�Prevention�Condition�Specific�Supplement�Sales�&�Growth,�1999�2008�.....................�267�Figure�10�59��U.S.�Cancer�Prevention�Condition�Specific�Sales�by�Market,�1999�2007�........................................�267�Figure�10�60��U.S.�Cancer�Prevention�Condition�Specific�Supplement�Sales,�1999�2008�.....................................�268�Figure�10�61�U.S.�Hair/Skin/Nails�Condition�Specific�Supplement�Sales�by�Product�in�2008�...............................�269�Figure�10�62��U.S.�Hair/Skin/Nails�Condition�Specific�Supplement�Sales,�2006�2008�..........................................�270�Figure�10�63�U.S.�Vision�Condition�Specific�Supplement�Sales�by�Product�in�2008�..............................................�271�Figure�10�64��U.S.�Vision�Condition�Specific�Supplement�Sales,�2006�2008�.........................................................�272�Figure�11�1�U.S.�Dietary�Supplement�Sales�by�Channel,�2008�..............................................................................�297�


�


Figure�11�2�U.S.�Dietary�Supplement�Sales�and�Annual�Growth�by�Channel,�2006�2008�....................................�297�Figure�11�3�U.S.�Natural�&�Specialty�Retail�Channel�Dietary�Supplement�Sales�by�Product,�2008�......................�298�Figure�11�4�U.S.�Natural�&�Specialty�Retail�Channel�Dietary�Supplement�Sales�&�Annual�Growth�by�Product,�2006�2008�..............................................................................................................................................................�298�Figure�11�5�U.S.�Natural�&�Specialty�Retail�Channel�Dietary�Supplement�Sales�by�Product�,�1999�2008�............�299�Figure�11�6�U.S.�Natural�&�Specialty�Retail�Dietary�Supplement�Sales�&�Growth,�1997�2008�.............................�299�Figure�11�7�U.S.�Natural�&�Specialty�Retail�Channel�Dietary�Supplement�Sales�by�Product�,�2009e�2017e�........�300�Figure�11�8��U.S.�Natural�&�Specialty�Retail�vs.�Total�Dietary�Supplement�Sales�Growth,�1997�2017e�...............�300�Figure�11�9�U.S.�Mass�Market�Retail�Channel�Dietary�Supplement�Sales�by�Product,�2008�................................�305�Figure�11�10�U.S.�Mass�Market�Retail�Channel�Dietary�Supplement�Sales�&�Annual�Growth�by�Product,�2006�2008�.......................................................................................................................................................................�305�Figure�11�11�U.S.�Mass�Market�Retail�Channel�Dietary�Supplement�Sales�by�Product�,�1999�2008�....................�306�Figure�11�12�U.S.�Mass�Market�Retail�Dietary�Supplement�Sales�&�Growth,�1997�2008�.....................................�306�Figure�11�13�U.S.�Natural�&�Specialty�Retail�Channel�Dietary�Supplement�Sales�by�Product�,�2009e�2017e�......�307�Figure�11�14��U.S.�Mass�Market�Retail�vs.�Total�Dietary�Supplement�Sales�Growth,�1997�2017e�.......................�307�Figure�11�15�U.S.�Practitioner�Channel�Dietary�Supplement�Sales�by�Product,�2008�..........................................�308�Figure�11�16�U.S.�Practitioner�Channel�Dietary�Supplement�Sales�&�Annual�Growth�by�Product,�2006�2008�....�308�Figure�11�17�U.S.�Practitioner�Channel�Dietary�Supplement�Sales�by�Product�,�1999�2008�................................�309�Figure�11�18�U.S.�Practitioner�Dietary�Supplement�Sales�&�Growth,�1997�2008�.................................................�309�Figure�11�19�U.S.�Practitioner�Channel�Dietary�Supplement�Sales�by�Product�,�2009e�2017e�............................�310�Figure�11�20��U.S.�Practitioner�vs.�Total�Dietary�Supplement�Sales�Growth,�1997�2017e�...................................�310�Figure�11�21�U.S.�Multi�level�Marketing�Channel�Dietary�Supplement�Sales�by�Product,�2008...........................�314�Figure�11�22�U.S.�Multi�Level�Marketing�Channel�Dietary�Supplement�Sales�&�Annual�Growth�by�Product,�2006�2008�.......................................................................................................................................................................�314�Figure�11�23�U.S.�Multi�Level�Marketing�Channel�Dietary�Supplement�Sales�by�Product�,�1999�2008�................�315�Figure�11�24�U.S.�Multi�Level�Markting�Dietary�Supplement�Sales�&�Growth,�1997�2008�..................................�315�Figure�11�25�U.S.�Multi�Level�Marketing�Channel�Dietary�Supplement�Sales�by�Product�,�2009e�2017e�............�316�Figure�11�26��U.S.�Multi�Level�Marketing�vs.�Total�Dietary�Supplement�Sales�Growth,�1997�2017e�...................�316�Figure�11�27�U.S.�Mail�Order/DRTV/Radio�Channel�Dietary�Supplement�Sales�by�Product,�2008�.......................�318�Figure�11�28�U.S.�Mail�Order/DRTV/Radio�Channel�Dietary�Supplement�Sales�&�Annual�Growth�by�Product,�2006�2008�.......................................................................................................................................................................�318�Figure�11�29�U.S.�Mail�Order/DRTV/Radio�Channel�Dietary�Supplement�Sales�by�Product�,�1999�2008�.............�319�Figure�11�30�U.S.�Mail�Order/DRTV/Radio�Dietary�Supplement�Sales�&�Growth,�1997�2008�.............................�319�Figure�11�31�U.S.�Mail�Order/DRTV/Radio�Channel�Dietary�Supplement�Sales�by�Product�,�2009e�2017e�.........�320�Figure�11�32��U.S.�Mail�Order/DRTV/Radio�vs.�Total�Dietary�Supplement�Sales�Growth,�1997�2017e�................�320�Figure�11�33�U.S.�Internet�Channel�Dietary�Supplement�Sales�by�Product,�2008�................................................�321�Figure�11�34�U.S.�Internet�Channel�Dietary�Supplement�Sales�&�Annual�Growth�by�Product,�2006�2008�..........�321�Figure�11�35�U.S.�Internet�Channel�Dietary�Supplement�Sales�by�Product�,�1999�2008�......................................�322�Figure�11�36�U.S.�Internet�Dietary�Supplement�Sales�&�Growth,�1997�2008�.......................................................�322�Figure�11�37�U.S.�Internet�Channel�Dietary�Supplement�Sales�by�Product�,�2009e�2017e�..................................�323�Figure�11�38��U.S.�Internet�vs.�Total�Dietary�Supplement�Sales�Growth,�1997�2017e�.........................................�323�Figure�12�1�Global�Nutrition�Industry�Sales�by�Product,�2006�..............................................................................�329�Figure�12�2�Global�Nutrition�Industry�Sales�&�Growth,�1995�2013e�....................................................................�330�Figure�12�3�Global�Nutrition�Industry�Sales�by�Product,�1997�2006�.....................................................................�330�Figure�12�4�Global�Nutrition�Industry�Sales�by�Product,�2007e�2013e�.................................................................�331�Figure�12�5�Global�Nutrition�Industry�Sales�by�Region,�1996�2006�......................................................................�331�Figure�12�6�Global�Nutrition�Industry�Sales�by�Region,�2007e�2013e�..................................................................�332�Figure�12�7�Global�Supplement�Sales�by�Region,�2006�.........................................................................................�333�

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Figure�12�8�Global�Supplement�Sales�&�Growth,�1995�2013e�..............................................................................�334�Figure�12�9�Global�Supplement�Sales�by�Region,�2000�2006�................................................................................�335�Figure�12�10�European�Supplement�Sales�by�Region,�1999�2006�........................................................................�336�Figure�12�11�Global�Nutrition�Industry�Sales�by�Product�as�%�of�Total,�2006�......................................................�338��

� �


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�

1�Executive�Summary��

�


1. EXECUTIVE SUMMARY Last�year’s�economic�implosion�didn’t�offer�many�silver�linings�for�businesses,�but�one�positive�effect�of�the�

recession�for�the�U.S.�nutrition�industry�was�the�spike�in�consumer�interest�in�dietary�supplements.�Some�predicted�that�consumers’�falling�disposable�income�would�hamper�dietary�supplement�sales,�but�in�fact�the�opposite�actually�occurred:�As�more�people�lost�their�jobs�and�ability�to�pay�for�healthcare,�many�turned�to�supplements�to�remain�healthy�and�ward�off�expensive�doctor�visits�and�pharmaceutical�drugs.�From�an�overall�growth�perspective,�U.S.�consumer�sales�of�dietary�supplements�lagged�those�of�other�nutrition�industry�categories.�Yet,�of�all�the�categories,�supplements�was�the�only�one�to�actually�grow�more�in�2008�than�in�2007—which�is�saying�a�lot�for�a�relatively�mature�business�in�a�tough�economy.�Nutrition�Business�Journal�estimates�show�that�total�U.S.�consumer�sales�of�dietary�supplements�expanded�6.2%�to�$25.2�billion�last�year.�Dietary�supplement�sales�growth�was�stronger�in�2008�than�it�has�been�since�the�late�1990s,�and�NBJ�expects�supplement�sales�to�continue�growing�in�2009�but�at�a�slightly�slower�pace�than�in�2008.�

Beyond�the�economy,�2008�proved�to�be�an�eventful�year�for�the�nutrition�industry�from�a�regulatory�and�news�making�perspective,�and�2009�is�turning�out�to�offer�even�more�of�the�same.�As�we�move�into�the�second�half�of�this�year,�companies—particularly�dietary�supplement�firms—stand�on�the�precipice�of�potential�change�with�regard�to�government�legislation�and�its�enforcement�and�U.S.�consumer�confidence�in�the�products�the�industry�manufactures,�markets�and�sells.��

All�of�this�and�more�is�reviewed�in�the�2009�Supplement�Business�Report,�which�is�a�compilation�of�13�years�of�continuous�research�by�NBJ.�This�report�was�designed�to�deliver�the�U.S.�dietary�supplement�sales�data�analysis�and�business�insights�companies�need�to�thrive�in�the�current�economy�and�make�the�most�of�future�market�opportunities.�

In�this�report,�you�will�find:�� Detailed�sales�quantifications�and�growth�forecasts�for�NBJ’s�six�supplement�subcategories:�vitamins,�

minerals,�herbs�&�botanicals,�specialty�supplements,�meal�replacement�supplements�and�sports�nutrition�supplements�

� NBJ’s�Top�100�Dietary�Supplements�in�the�United�States�ranked�by�sales�� Analysis�and�forecasts�for�every�distribution�channel�(mass�market�retail,�natural�&�specialty�retail,�multi�

level/network�marketing,�mail�order/DRTV/DR�radio,�practitioner�and�Internet)�in�each�product�category��

Figure�1�1�U.S.�Dietary�Supplement�Sales�by�Product�Category�in�2008�

Source: Nutrition Business Journal estimates.($mil., consumer sales)

Vitamins34%

Herbs/Botanicals19%

Sports�Nutrition11%

Minerals8%

Meal�Replacements10%

Specialty/Other18%


�


� Analysis�of�competitors�throughout�the�industry,�from�direct�sales�to�retail,�including�more�than�175�dietary�supplement�company�profiles�detailing�company�sales�and�product�breakdowns�

� *New*�for�2009�is�the�“NBJ�Bottom�Line”�on�175�plus�supplement�manufacturers,�marketers�and�distributors,�providing�succinct�commentary�and�analysis�on�the�latest�happenings�within�each�firm�

� A�review�of�consumer�spending�data,�including�a�detailed�look�at�the�universe�of�dietary�supplement�users�in�the�United�States�broken�out�by�population�of�users�and�non�users�and�average�dollars�spent�in�each�individual�supplement�category�

� A�breakdown�of�2008�supplement,�OTC�and�prescription�sales�estimates�by�16�NBJ�defined�health�categories,�including�heart�health,�cold/flu/immune,�joint�health,�bone�health�and�gastrointestinal�health��

� Company�case�studies�and�expert�interviews�with�CEOs�and�thought�leaders�within�the�U.S.�dietary�supplement�industry�

� The�latest�market�trends�and�insights�extracted�from�NBJ’s�monthly�surveys�and�interviews�� More�than�500�pages�of�analysis�that�is�simply�not�duplicated�by�any�market�research�firm�in�the�United�

States�

2�Acknowledgements�&�Definitions��

�


2. ACKNOWLEDGEMENTS & DEFINITIONS 2.1. Acknowledgements The�principal�editors�of�Nutrition�Business�Journal’s�Supplement�Business�Report�2009�were�NBJ�Publisher�&�

Editorial�Director�Patrick�Rea�and�Research�Manager�Carla�Ooyen.�Authors�of�various�sections�and�market�profiles�include�NBJ�Editor�Carlotta�Mast�and�NBJ�Associate�Editor�Jason�Phillips,�as�well�as�the�following�list�of�contributing�writers:�Kenneth�Bock�(MD),�Mitchell�Clute,�Nancy�Coulter�Parker,�Victoria�Dolby�Toews,�Kelly�Pate�Dwyer,�Mirium�Raftery,�Sarah�Clachar,�Pamela�Bond,�Mary�Butler,�Brenda�Porter,�Lisa�Marshall,�Mark�Mulcahy,�Katy�Neusteter,�Helen�Olsson,�Karen�Raterman,�Shara�Rutberg,��Anna�Soref,�Mark�J.�Tallon�(PhD),�Vicky�Uhland,�and�Tyler�Wilcox.�

We�would�also�like�to�acknowledge�a�number�of�secondary�sources�of�information,�which�are�cited�in�this�report,�especially�SPINS�(spins.com),�AC�Nielsen,�Information�Resources�Inc.�(infores.com),�Natural�Foods�Merchandiser�magazine,�Functional�Ingredients�magazine,�Delicious�Living�magazine,�and�New�Hope�Natural�Media,�and�many�others.�

Most�importantly,�we�thank�all�of�the�companies�NBJ�has�interviewed�since�we�published�our�first�issue�of�NBJ�in�1996�and�the�companies�that�have�participated�in�our�annual�quantitative�surveys�over�the�years.�Our�ability�to�collect,�compile,�analyze�and�present�data�and�information�is�a�function�of�the�cooperation�of�the�companies�in�the�industry,�and�we�are�grateful�for�their�participation.�

2.2. Research Methodology NBJ’s�basic�methodology�for�nutrition�industry�quantification�has�been�a�complete�compilation�and�

assessment�of�existing�data�on�the�industry,�augmented�by�NBJ�surveys�and�interviews.�Data�is�compiled�and�analyzed�at�each�level�of�the�value�chain:�consumer�spending�data�(Hartman�and�Nielsen,�for�instance),�retail�sales�figures�(IRI�and�ACNielsen�for�mass�market�and�SPINS,�Natural�Foods�Merchandiser�and�Whole�Foods�magazine�for�natural�food�store�data),�alternative�channels�(NBJ�surveys�on�multilevel�marketing,�catalog,�practitioner�and�internet�sales),�distributor�data�&�interviews,�manufacturer�sales�(NBJ�surveys)�and�raw�material�supplier�data�(NBJ�surveys).�Individual�company�data�is�also�collected�through�surveys�or�secondary�sources.�NBJ�also�conducts�a�minimum�of�40�50�interviews�with�executives�every�month�to�capture�both�qualitative�and�quantitative�information.�For�NBJ’s�2009�Supplement�Business�Report,�2008�data�is�included�based�on�analysis�conducted�in�June�through�September�2009.��

NBJ’s�business�segment�survey�methodology�starts�with�an�understanding�of�the�total�universe�of�companies�in�that�segment�and�an�in�depth�knowledge�of�the�top�20�100�companies�in�that�segment.�NBJ�then�makes�every�effort�to�ascertain�annual�sales�of�the�top�firms�and�get�an�adequate�response�from�surveying�the�remaining�populace�to�build�a�statistically�valid�model�for�that�segment.�Segments�NBJ�surveys�in�this�detailed�manner�include�supplement�manufacturers�in�each�category,�raw�material�suppliers�in�vitamins�and�herbs�&�botanicals,�MLM�firms,�internet�sellers,�catalog�sellers,�etc.��NBJ�will�typically�capture�60�80%�of�the�revenues�in�a�defined�segment�using�this�method.�Subsequently�breakdowns�received�from�companies�are�aggregated�into�segment�models�to�obtain�industry�or�segment�breakdowns�by�product,�sales�channel�or�other�characteristic.�

Sales�data�determined�from�each�level�of�the�nutrition�industry�value�chain�(see�chart�at�beginning�of�the�raw�material�section)�is�reconciled�against�the�other�levels�so�consumer�sales,�retail�sales,�wholesale�sales,�distributor�sales�and�material�supply�sales�ratios�are�accurate�for�each�product�area.�


�


Although�NBJ�has�made�every�effort�to�be�accurate�in�its�data�collection�and�presentation,�it�is�impossible�to�be�perfect�and�the�authors�beg�your�understanding�of�any�inaccuracies�that�appear�in�this�report.�In�addition,�NBJ’s�data�is�constantly�updated�given�best�available�data�so�that�in�some�cases�previously�published�data�may�be�inconsistent�with�the�data�printed�in�this�report.�Conversely�data�printed�in�NBJ�issues�after�September�2009�or�in�subsequent�reports�will�represent�best�available�data�as�of�that�time.�Any�questions�regarding�data�sources�and/or�methodology�may�be�sent�to�NBJ�Editorial�Director�Patrick�Rea�or�NBJ�Research�Manager�Carla�Ooyen�([email protected]).�

2.2.1. Disclaimer NBJ�understands�that�some�of�the�categorizations�or�analysis�in�this�report�may�not�agree�with�that�of�our�

readers.�NBJ�conducts�a�variety�of�surveys�and�interviews�with�companies�and�accesses�data�in�many�forms�to�help�provide�sales�figures�for�as�many�companies�as�possible.�These�figures�are�used�in�market�estimation�models,�but�are�also�listed�in�the�profile�section�of�this�report.�Sales�figures�printed�for�each�company�is�not�always�the�result�of�a�direct�contact�or�response�with�that�company,�and�in�some�cases�estimates�are�derived�from�secondary�sources�or�estimates.�

NBJ�has�made�every�reasonable�effort�to�ensure�the�accuracy�of�this�report.�However,�information�in�this�report�is�not�guaranteed�to�be�accurate�and�should�not�be�construed�as�investment�advice.�Any�errors�and�omissions�are�unintentional.�

2.2.2. Copyright ©�2009�Penton�Media�Inc.�New�Hope�Natural�Media,�Nutrition�Business�Journal,�

www.nutritionbusinessjournal.com.��All�rights�reserved.�This�report,�or�any�part,�may�not�be�duplicated�or�reproduced�in�any�form�without�the�written�permission�of�the�publisher.�Likewise,�no�part�of�this�report�may�be�given,�lent,�resold�or�disclosed�without�written�permission.��

For�more�information�on�duplicate�copies,�reproduction�rights�and�proprietary�research�services,�please�visit�www.nutritionbusinessjournal.com.�

2.3. Definitions Nutrition�Industry:��NBJ�defines�the�Nutrition�Industry�by�its�4�main�product�categories:�Dietary�

Supplements,�Natural/Organic�Foods,�Functional�Foods�and�Natural�&�Organic�Personal�Care�and�Household�Products.�

2.3.1. Product Categories Dietary�Supplements:�NBJ�defines�the�Dietary�Supplements�by�its�6�main�product�categories:�Vitamins,�

Minerals,�Herbs,�Meal�Supplements,�Sports�Nutrition�Supplements,�Specialty�Supplements.�Natural�&�Organic�Foods:��Natural�foods�focus�on�the�health�benefits�of�foods�derived�from�natural�sources�

and�that�are,�to�varying�degrees,�free�of�pesticides,�additives,�preservatives�and�refined�ingredients.�Organic�foods,�sometimes�"certified�organic,"�are�not�only�free�of�chemicals,�pesticides,�hormones�and�antibiotics,�but�go�beyond�the�human�health�consequences�of�conventional�farming�and�food�manufacturing�to�embrace�principles�of�sustainable�farm�management,�humane�treatment�of�animals�and�the�social�impacts�of�food�production.�

Functional�Foods�:��Because�“functional�foods”�and�“nutraceuticals”�are�essentially�marketers’�terms�and�not�recognized�in�law�or�defined�in�any�dictionary,�market�researchers�tend�to�use�them�inconsistently.�Nutrition�Business�Journal�defines�functional�food�as�food�fortified�with�added�or�concentrated�ingredients�to�a�functional�level,�which�improves�health�and/or�performance�or�products�marketed�for�their�‘inherent’�functional�qualities.��They�include�some�enriched�cereals,�breads,�sports�drinks,�bars,�fortified�snack�foods,�baby�foods,�prepared�


�


meals�and�more.�If�a�food�could�be�considered�both�organic�and�functional,�NBJ�categorized�it�as�an�organic�food.�

Natural�&�Organic�Personal�Care�(N&OPC):�NBJ’s�broad,�inclusive�accounting�of�the�natural�&�organic�personal�care�industry�defines�N&OPC�as�health�and�beauty�products�derived�from�natural�&�organic�sources�and�that�are,�to�varying�degrees,�free�of�pesticides,�additives,�preservatives�and�refined�ingredients.��Natural�&�Organic�Personal�Care�products�include�shampoos,�soaps,�lotions,�cosmetics�and�other�natural�toiletries.�

Other�Natural�Household�Products:�This�category�includes�all�natural�&�organic�household�cleaners,�natural�&�organic�pet�food,�organic�flowers�and�organic�fibers�(linens�&�clothing).��

2.3.1.1. Dietary Supplements Vitamins:��Single�and�multivitamin�supplements�made�of�natural�or�synthesized�vitamins.�Vitamins�are�any�

of�various�organic�or�synthesized�substances�that�are�essential�in�minute�quantities�to�the�nutrition�of�most�animals�and�some�plants,�act�especially�as�coenzymes�and�precursors�of�coenzymes�in�the�regulation�of�metabolic�processes�but�do�not�provide�energy�or�serve�as�building�units,�and�are�present�in�natural�foodstuffs�or�sometimes�produced�within�the�body.�Products�in�the�vitamin�category�include:�vitamin�C,�vitamin�E,�B�vitamins,�vitamin�A/beta�carotene,�niacin,�folic�acid,�multi�vitamin�formulas�and�other�single�vitamins.��

Minerals:��Single�and�multi�mineral�supplements�made�of�natural�or�synthesized�minerals.�Minerals�are�solid�homogeneous�crystalline�chemical�elements�or�compounds.��Products�in�the�mineral�category�include:�calcium,�magnesium,�chromium,�zinc,�selenium,�potassium,�iron,�silica,�manganese,�boron,�choline,�iodine,�phosphorous,�copper,�dolomite,�multi�minerals�formulas�and�other�single�minerals.��

Herbs�&�Botanicals:��Single�herb�or�multi�herb�supplements�made�primarily�from�plants�or�plant�components.�Products�in�this�category�include:�echinacea,�garlic,�ginseng,�ginkgo�biloba,�super�fruits�and�many�more.��

Specialty�Supplements:�Supplements�that�do�not�fit�into�the�other�supplement�sub�categories,�including:��glucosamine,�melatonin,�probiotics,�DHEA,�fish�oils/shark�cartilage,�bee�products,�CoQ10,�5HTP,�amino�acids,�homeopathic�remedies,�SAMe,�chondroitin,�probiotics,�prebiotics,�colustrum,�other�oils,�other�enzymes,�other�hormones,�etc.��

Meal�Supplements:��Shelf�stable�liquid�nutritional�formulas�created�primarily�to�substitute,�but�sometimes�supplement,�a�meal.�Some�are�enteral�feeding�formulas�and�some�are�weight�loss�formulas.�Occasionally�some�are�sold�for�medical�purposes�to�frail�or�intestinally�challenged�people.�Meal�supplement�products�sold�at�retail�include�Slim�Fast,�Ensure,�Nestle�Sweet�Success,�Boost,�EAS�AdvantEdge,�Pedia�Sure�and�Sustacal.��

Sports�Nutrition:��Sports�Nutrition�products�include�all�pills,�powders/formulas�and�drinks�(excluding�Gatorade,�Powerade,�etc.)�formulated�to�enhance�physical�activity�whether�it�be�endurance,�strength,�speed,�or�other�athletic�states.�Sports�nutrition�products�include:�creatine,�amino�acids,�protein�formulas,�fat�burners,�ribose,�HMB,�androstenedione�and�many�others.��

2.3.1.2. Food and Beverage Dairy:�Milk,�cheese,�eggs,�butter,�yogurt,�sour�cream,�cottage�cheese,�ice�cream,�and�other�fresh,�canned,�or�

frozen�dairy�products.�Fruit�&�Vegetables:�Fresh,�frozen,�canned,�and�dried�fruits�and�vegetables.�Breads�&�Grains:�Fresh,�refrigerated,�and�frozen�bread,�baked�goods,baking�needs,�dry�breakfast�foods�

(cereal),�pasta,�rice,�andother�dried�grains.�Meat,�Fish,�Poultry:�Fresh,�frozen,�and�canned�meat,�fish,�and�poultry.�Beverages:�Fresh,�frozen,�and�RTD�juice,�soft�drinks,�alcoholic�beverages,�tea,�coffee,�and�dairy�alternatives.�Snack�Foods:�Candy,�gum,�nuts,�salty�snacks�such�as�chips,�and�nutrition�bars.�Packaged/Prepared�Foods:�Frozen,�refrigerated,�canned,�and�dried�prepared�foods,�service�deli,�jams�&�

jellies,�meat�alternatives,�baby�food�and�formula,�canned�&�dry�soup,�pasta�sauce,�and�desserts.�


�


Condiments:�Dressings,�spreads,�sauces,�spices,�fats�&�shortenings,�and�sweeteners.�

2.3.1.3. Natural & Organic Personal Care Health�&�Beauty�Care�(HBC):�All�conventional�personal�care�products�including�those�made�with�natural,�

organic�and�functional�ingredients.��Products�included�in�the�HBC�category�include�cosmetics,�feminine�hygiene,�hair�products,�baby�care,�nail�care,�oral�hygiene,�bath�items,�deodorants,�shaving,�skin�care,�bath/toilet�soap�and�fragrances.�

Skincare:�Natural�or�organic�facial�care�products�including�lotions,�cleansers,�toners,�exfoliants,�and�masks;�lip�balm;�hand�&�body�lotions;�foot�care;�sunscreen;�tanning�products;�and�insect�repellants.�

Hair�care:�Natural�or�organic�shampoo,�conditioner,�styling�products,�hair�spray,�hair�colorants�and�hair�accessories�such�as�brushes,�barrettes,�and�clips.�

Soap:�Natural�or�organic�liquid�and�bar�soap,�shower�gel,�and�body�wash.�Oral�Hygiene:�Natural�or�organic�toothpaste,�mouthwash,�whiteners,�dental�floss,�and�other�dental�

accessories.�Cosmetics:�Natural�or�organic�cosmetic�products�such�as�foundation,�eyeliner,�mascara,�concealers,�lipstick�

and�blush.�Fragrances�&�Aromatherapy:�Natural�or�organic�perfumes,�essential�oils,�and�massage�oils.�Deodorants:�Natural�or�organic�solid,�roll�on,�gel,�powder,�spray,�and�crystal�deodorants.�Baby�Care:�Natural�&�Organic�baby�shampoos,�lotions,�diapers,�diaper�rash�creams,�and�diaper�wipes.�Bath�Products:�Natural�or�organic�bath�gels,�bath�salts,�bubble�bath,�loofah,�bath�puffs,�and�bath�brushes.�Shaving:�Natural�or�organic�shaving�cream,�aftershave,�and�razors.�Feminine�Hygiene:�Natural�or�organic�menstrual�pads,�tampons,�and�washes.�Nail�Care:�Natural�or�organic�nail�polish,�polish�remover,�nail�files,�and�cuticle�creams.�

2.3.1.1. Other Household Products Household�Cleaners:�Natural,�organic,�eco�friendly�or�green�liquid�laundry�products;�dishwashing�products;�

bath,�kitchen�and�other�cleaners;�powder�laundry�products;�cleaning�supplies;�and�air�fresheners.�Pet�Food:�Natural�or�organic�pet�food,�treats,�chews,�and�rawhide.�Fiber:�Organic�clothing�and�linen,�such�as�bedding,�towels,�and�table�linen.�Flowers:�Flowers�grown�according�to�organic�standards.�

2.3.2. Sales Channels Natural�&�Specialty�Retail:�This�channel�represents�natural�&�health�food�stores,�supplement�stores�and�

specialty�retail�outlets,�such�as�Whole�Foods�and�GNC.��Department�store/boutique/other:�High�end�department�store/boutique�brands�and�salon/spa�or�

‘practitioner’�sales�(e.g.,�Aveda,�Dr.�Perricone).�Practitioners�include�Chiropractors,�Traditional�Chinese�Medicine�Specialists,�Acupuncturists,�Homeopathists,�Massage�Therapists,�Naturopaths,�Osteopaths,�Aromatherapy�Specialists,�Faith�Healers,�Biofeedback�Specialists,�Mediatation/Relaxation�Therapists,�Hypnotherapists,�Hydrotherapists,�Ayurvedic�Specialists,�and�Mainstream/Conventional�Medical�Practitioners�(M.D.s,�G.Ps,�etc)�

Specialty�Personal�Care�Stores:�Specialty�personal�care�stores�(e.g.,�The�Body�Shop,�Sephora,�Bath�&�Body�Works)�that�sell�primarily�personal�care�products�

Multi�level�Marketing:�Covers�multi�level�and�network�marketing�companies�(for�example,�Neways,�NuSkin,�Avon,�Herbalife,�etc.).�Also�known�as�direct�selling,�the�Multi�level�Marketing�channel�consists�of�products�or�services�marketed�person�to�person�by�independent�salespeople.�Salespeople�are�commonly�referred�to�as�distributors,�representatives�and�consultants.�Products�are�sold�primarily�through�in�home�product�demonstrations,�parties�and�one�on�one�selling.��


�


Other�Direct:�Other�Direct�&�multi�channel�sales�are�defined�as�consumer�purchases�directly�from�the�seller�and�includes�mail�order,�Internet,�direct�response�television�and�radio.��Brands�sold�in�this�channel�include�Jurlique�and�Bare�Escentuals.��

Mass�Market:�The�Mass�Market�channel�represents�conventional�grocery,�drug,�mass�merchandise,�club�and�convenience�stores.�Examples�include�Wal�Mart,�Target,�7�Eleven,�and�Cost�Co.�

Mass�Market�&�Beauty�Supply:�Mass�market�(supermarkets,�drug,�mass�merchandiser,�club�an�convenience�stores)�and�beauty�supply�discounters.��

Mail�Order:�Mail�Order�sales�are�defined�as�consumer�purchases�of�nutrition�products�from�direct�to�consumer�sellers�that�utilize�catalogs,�direct�mail�or�infomercials�to�reach�their�customers�and�facilitate�sales.��

Multi�Level/Network:�Also�known�as�direct�selling,�the�Multi�level�Marketing�channel�consists�of�products�or�services�marketed�person�to�person�by�independent�salespeople.�Salespeople�are�commonly�referred�to�as�distributors,�representatives�and�consultants.�Products�are�sold�primarily�through�in�home�product�demonstrations,�parties�and�one�on�one�selling.��

Practitioner�(also�includes:�athletic�and�fitness�trainers):�Practitioner�sales�consist�sales�of�products�to�consumers�by�practitioners.�Included�in�the�Practitioner�channel�are:�Chiropractors,�Traditional�Chinese�Medicine�Specialists,�Acupuncturists,�Homeopathists,�Massage�Therapists,�Naturopaths,�Osteopaths,�Aromatherapy�Specialists,�Faith�Healers,�Biofeedback�Specialists,�Meditation/Relaxation�Therapists,�Hypnotherapists,�Hydrotherapists,�Ayurvedic�Specialists,�and�Mainstream/Conventional�Medical�Practitioners�(M.D.s,�G.Ps,�etc)��

Internet:�Internet�sales,�otherwise�known�as�E�commerce�sales,�are�defined�as�consumer�purchases�of�nutrition�products�from�direct�to�consumer�sellers�that�utilize�Internet�websites�to�reach�their�customers�and�facilitate�sales.��

Direct�Channels:��Include�Mail�Order�(Catalog,�DRTV/Radio,�Direct�Mail,�Telemarketing),�Multi�level/Network,�Practitioner�sales,�and�Internet.�

�


�


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