Table of Contents
TABLE OF CONTENTS
1. Executive Summary 11
2. Acknowledgements & Definitions 13
2.1. Acknowledgements 13
2.2. Research Methodology 13
2.2.1. Disclaimer 14
2.2.2. Copyright 14
2.3. Definitions 14
3. Market DATA & overview 17
3.1. U.S. Nutrition & Supplement Industry 17
3.1.1. Product Categories & Sales Channels 17
3.1.2. Growth & Forecast 19
3.2. U.S. SNWL Market 24
3.2.1. Product Category Sales 25
3.2.2. Sports Supplements 29
3.2.3. Channel Sales 32
3.2.4. U.S. SNWL vs. Total Nutrition Market 33
3.2.5. U.S. SNWL vs. Total Supplement Market 34
3.2.6. Growth & Forecast 37
3.3. Trends 40
3.3.1. Perception Trend: Failed Drug Tests for Elite Athletes Driving Scrutiny 40
3.3.2. Market Trend: Increased Regulatory Scrutiny 44
3.3.3. Competitive Trend: alli 44
3.3.4. Marketing Trend: Reaching Beyond the Core 47
3.3.5. Product Trend: Caffeine 52
3.3.6. Product Trend: Sports Nutrition Goes Natural 52
3.3.7. Product Trend: Effervescents 57
3.3.8. Consumer Usage & Spending 63
3.3.9. Regulatory Issues 68
3.4. Science 72
3.4.1. Is Ingredient Science Improving? 72
3.4.2. A Weight Control Efficacy Pyramid 73
3.5. Mergers & Acquisitions 80
3.5.1. General Mills Buys LaraBar 80
3.5.2. Glanbia Buys a Whey into Supplements Market 80
3.5.3. Nestlé Purchases Novartis Medical Nutrition 81
3.5.4. Iovate Acquires the Xenedrine & Cytodyne Brands 82
3.5.5. Bodybuilding.com Now Part of Liberty Media 82
3.5.6. Nature's Products Inc. Purchases Champion Nutrition 82
3.5.7. Besins Healthcare Acquires Olympian Labs 83
3.6. History of SNWL 83
3.6.1. 1920s 83
3.6.2. 1930s 83
3.6.3. 1940s 84
3.6.4. 1950s 84
3.6.5. 1960s 84
3.6.6. 1970s 85
3.6.7. 1980s 85
3.6.8. 1990s 86
3.6.9. 2000s 87
4. PRODUCTS 89
4.1. Sports/Energy Beverages 89
4.1.1. Product Sales 89
4.1.2. Channel Sales 93
4.1.3. Growth & Forecast 94
4.1.4. Trends 96
4.2. Sports Nutrition Supplements 99
4.2.1. Product Sales 99
4.2.2. Channel Sales 106
4.2.3. Growth & Forecast 107
4.2.4. Trends 111
4.3. Meal Replacement Supplements for Weight-Loss 114
4.3.1. Product Sales 114
4.3.2. Channel Sales 117
4.3.3. Growth & Forecast 118
4.3.4. Trends 119
4.4. Nutrition Bars 122
4.4.1. Product Sales 122
4.4.2. Channel Sales 126
4.4.3. Growth & Forecast 127
4.4.4. Trends 131
4.5. Weight-Loss Pills 133
4.5.1. Product Sales 133
4.5.2. Channel Sales 142
4.5.3. Growth & Forecast 143
4.5.4. Trends 144
4.6. Low-Carb Products 147
4.6.1. Product Sales 147
4.6.2. Channel Sales 150
4.6.3. Growth & Forecast 151
5. Sales Channels & Distribution 155
5.1. Retail Channels 157
5.1.1. Health Clubs and Gyms 157
5.1.2. U.S. Bike Stores 162
5.2. Direct Channels 164
5.2.1. Continuity Programs Aid DRTV 164
5.2.2. Event Sponsorships Heat Up 165
5.2.3. Web Pumps Up Sales of Sports Supplements 167
6. SNWL Raw Material & Ingredient Supply 173
6.1. Value Chain 173
6.1.1. The China Effect 174
6.2. Emerging Ingredients & Trends 174
6.2.1. Capsaicin 174
6.3. Raw Material Trends 177
6.3.1. Prices Rising 177
6.3.2. The Pace of Innovation 178
7. Q&A with SNWL Thought Leaders 179
7.1. Francine R. Kaufman, MD: Much Work Remains in U.S. Diabesity War 179
7.2. BSN President and CEO Chris Ferguson, First Endurance Vice President of Sales and Marketing Michael Fogarty, Max Muscle President Sean Greene and Nutratech President Bob Green. 180
7.3. Harry Preuss, MD, MACN, CNS, Georgetown University Medical Center 184
8. Company Profiles 187
8.1. 24-Hour Fitness (Apex Fitness) 187
8.2. Abbott Labs 188
8.3. AFT Fitness Products, Inc. (Sci-Fit Nutrition) 189
8.4. Ajinomoto (Amino Vital) 190
8.5. Anabolic Xtreme 191
8.6. AST Sports Science 192
8.7. Atkins Nutritionals, Inc. 193
8.8. Bally Total Fitness Corporation 194
8.9. Basic Research 195
8.10. Bio-Engineered Supplements and Nutrition, Inc. (BSN) 197
8.11. BioNutritional Research Group, Inc. 199
8.12. Bioplex Nutrition, Inc. 200
8.13. Bricker Labs 201
8.14. Celebrity Products Direct, Inc. 202
8.15. Champion Nutrition 203
8.16. Chattem, Inc. 204
8.17. Chef Jay's (Tri-O-Plex) 205
8.18. Clif Bar & Company 206
8.19. Coca-Cola (Powerade, Full Throttle, Odwalla) 207
8.20. Controlled Labs 208
8.21. CortiSlim International (National Marketing) 209
8.22. Country Life, LLC (Biochem, Iron-Tek) 210
8.23. CytoSport, Inc. 211
8.24. Dr Pepper Snapple Group 212
8.25. EST Nutrition 214
8.26. Extreme Labs, Inc. 215
8.27. First Endurance 216
8.28. Fizogen Precision Technologies 217
8.29. Forever Living 218
8.30. Forward Foods (Detour) 219
8.31. Gaspari Nutrition 220
8.32. General Mills (Larabar) 221
8.33. General Nutrition Center, Inc. (GNC) 222
8.34. Goen Technologies Corporation 223
8.35. Hammer Nutrition 224
8.36. Hansen Natural Corporation 225
8.37. Healthsmart Foods 227
8.38. Herbalife 228
8.39. Hobarama 230
8.40. Ideasphere 231
8.41. iForce Nutrition 232
8.42. Iovate (Hydroxycut, MuscleTech, Cylaris, Cytodyne, Xenadrine) 233
8.43. Iron Man (Muscle-Link) 235
8.44. Irwin Naturals (Applied Nutrition) 236
8.45. isatori Technologies 237
8.46. ISS Research 239
8.47. Jay Robb Enterprises Inc. 240
8.48. Kaizen Nutrition 241
8.49. Kellogg Company(Kashi) 242
8.50. Kraft Foods 243
8.51. Labrada Nutrition 244
8.52. Mars, Inc. (Snickers Marathon) 245
8.53. Max Muscle 246
8.54. Maximum Human Performance 247
8.55. Medical Research Institute (Natrol) 248
8.56. Mega-Pro International (Mega-Pro Sports Nutrition) 249
8.57. Metabolic Response Modifiers 250
8.58. MLO Products/Genisoy (Swander Pace) 251
8.59. Molecular Nutrition 252
8.60. Monarch Beverage Company 253
8.61. Muscle Marketing USA 254
8.62. Naturade 255
8.63. Nature's Best 256
8.64. NBTY, Inc. 257
8.65. Nestlé (Powerbar & Carnation IB, Boost) 258
8.66. Next Proteins, Inc. 260
8.67. Nutrex Research 262
8.68. NVE Pharmaceuticals 263
8.69. Olympian Labs, Inc. 264
8.70. Optimum Nutrition 265
8.71. Organic Food Bar, Inc. 267
8.72. PatentHealth 268
8.73. Pepsi (Gatorade, SoBe, Amp) 269
8.74. Premier Nutrition 270
8.75. Prime Health Dietary Supplements, Inc. (thinkproducts) 271
8.76. Prolab (Natrol) 272
8.77. Promax Nutrition Corporation 273
8.78. Provient Technologies (Ergopharm) 274
8.79. Red Bull 275
8.80. Ripfast 276
8.81. Rockstar 277
8.82. SAN Corporation 278
8.83. Schiff Nutrition International 279
8.84. The Health Company (Logic Nutrition) 280
8.85. ThermoLife International 281
8.86. Ultimate Nutrition 282
8.87. Unilever 283
8.88. Universal Nutrition Corp 284
8.89. Vitaquest International, LLC 285
8.90. VPX Sports Nutrition 286
8.91. Wellements 287
8.92. Wellness International Network, Ltd. (WIN) 288
8.93. Wellnx (Nx Labs, Slimquick) 289
8.94. Xyience 290
©2009 Penton Media, Inc. www.nutritionbusinessjournal.com 2
Table of Contents
Index Of Figures
Figure 11 U.S. Total SNWL Annual Growth, 1998-2017e 11
Figure 31 U.S. Nutrition Industry Revenues, 2007 ($mil, consumer sales) 17
Figure 32 U.S. Nutrition Industry by Product Sales, 2000-2007 18
Figure 33 U.S. Nutrition Industry by Product Growth, 2000-2007 18
Figure 34 U.S. Supplement and Nutrition Industry Sales Growth by Product, 2007 19
Figure 35 U.S. Nutrition Industry by Product Sales, 2008e-2017e 20
Figure 36 U.S. Nutrition Industry by Product Growth, 2008e-2017e 20
Figure 37 U.S. Nutrition Industry Sales & Annual Growth, 2000-2017e 21
Figure 38 U.S. Supplement vs. Total Nutrition Industry Annual Sales Growth, 2000-2017e 21
Figure 39 U.S. Supplement vs. Functional Foods Annual Sales Growth, 2000-2017e 22
Figure 310 U.S. Sports Nutrition Supplements vs. Total Supplement Annual Sales Growth, 2000-2017e 22
Figure 311 U.S. Meal Replacement vs. Total Supplement Annual Sales Growth, 2000-2017e 23
Figure 312 U.S. Lesser Evil Food Industry Sales by 8 Major Food Categories, 2007 24
Figure 313 U.S. Total SNWL Sales by Product, 2007 25
Figure 314 U.S. Total SNWL Sales by Product Subcategory, 1997-2007 25
Figure 315 U.S. SNWL Sales by Product Subcategory as a % of SNWL Total, 1997-2007 26
Figure 316 U.S. SNWL Sales Growth by Product Subcategory, 1998-2007 27
Figure 317 U.S. Total SNWL Sales & Annual Growth, 1997-2017e 27
Figure 318 U.S. Total SNWL Sales by Category, 1997-2017e 28
Figure 319 U.S. Total SNWL Sales by Product Subcategory, 2008e – 2017e 29
Figure 320 U.S. SNWL Sales by Product Subcategory as a % of SNWL Total, 2008e – 2017e 29
Figure 321 U.S. SNWL Sales Growth by Product Subcategory, 2008e – 2017e 30
Figure 322 Top Companies in SNWL ($mil) & Annual Growth, 2005-2007 31
Figure 323 U.S. Total SNWL Sales by Channel, 2007 32
Figure 324 U.S. Total SNWL Channel Sales and Annual Growth, 2005-2007 33
Figure 325 U.S. Total SNWL vs. Total Nutrition Industry Sales & Growth, 1997-2007 33
Figure 326 U.S. Total SNWL vs. Total Nutrition Industry Sales & Growth, 2008e – 2017e 34
Figure 327 U.S. Total SNWL Supplement Sales & Annual Growth, 1997-2017e 34
Figure 328 U.S. Total SNWL Supplements vs. Total Supplement Sales, 1997-2017e 35
Figure 329 U.S. SNWL Supplements vs. Total Supplement Market, 1997-2007 35
Figure 330 U.S. SNWL Supplements vs. Total Supplement Market, 2008e–2017e 36
Figure 331 U.S. SNWL Supplements* vs. Total Supplement Market, 2007 36
Figure 332 U.S. SNWL Supplements* vs. Total Supplement Market, 2017 37
Figure 333 U.S. SNWL Subcategory Compound Annual Growth Forecast, 2008e-2017e 37
Figure 334 U.S. SNWL Subcategory Compound Annual Growth, 2003-2017e 38
Figure 335 U.S. Total Supplement Sales by Category, 1997-2017e 39
Figure 336 U.S. Supplements Subcategory Compound Annual Growth, 2008-2017e 39
Figure 337 $1.7 Billion U.S. Weight-Loss Supplement Market vs. OTC Alli Sales, 2007 46
Figure 338 U.S. Consumer Sports Nutrition Supplement Use, 2007 63
Figure 339 U.S. Consumer Sports Nutrition Supplement Use as % of Market, 1999-2007 64
Figure 340 U.S. Consumer Sports Supplement Use: Number of Users, 1999-2007 64
Figure 341 U.S. Consumer Total Supplement Use Summary, 2007 64
Figure 342 U.S. Consumer Total Supplement Use as % of Market, 1999-2007 65
Figure 343 U.S. Consumer Total Supplement Use: Number of Users, 1999-2007 65
Figure 344 Supplements Users & Non-Users, 2007 65
Figure 345 U.S Consumer Weight-Loss Supplement Use, 2007 66
Figure 346 U.S Consumer Weight-Loss Supplement Use, 2010e 66
Figure 347 U.S. Consumer Weight-Loss Supplement Use as % of Market, 1999—2004, 2007, 2010e 66
Figure 348 U.S. Consumer Weight-Loss Supplement Use: Number of Users, 2000-2004, 2007, 2010e 66
Figure 349 U.S. Consumer Total Meal Replacement Supplement Use, 2007 67
Figure 350 U.S. Consumer Total Meal Replacement Supplement Use as % of Market, 1999-2007 67
Figure 351 U.S. Consumer Total Meal Replacement Supplement Use: Number of Users, 1999-2007 67
Figure 41 U.S. Sports/Energy Beverages as a Percentage of Total SNWL Sales, 2007 89
Figure 42 U.S. Sports Drinks Sales vs. Energy Drink Sales, 1997-2007 90
Figure 43 U.S. Sports vs. Energy Beverage Sales as a % of Total Sports/Energy Beverage Sales, 2007 90
Figure 44 U.S. Sports and Energy Beverages & Total SNWL Product Sales, 1999-2007 91
Figure 45 U.S. Sports/Energy Beverages & Total SNWL Product Sales & Growth, 1997-2007 91
Figure 46 U.S. Energy Beverage Branded Sales ($mil) & Annual Growth, 2006-2007 92
Figure 47 Top Companies in Sports/Energy Beverages ($mil) & Annual Growth, 2006-2007 93
Figure 48 U.S. Sports/Energy Beverages Sales by Channel, 2007 94
Figure 49 U.S. Sports/Energy Beverage Sales and Growth by Channel, 2005-2007 94
Figure 410 U.S. Sports & Energy Drink Sales & Annual Growth, 1997-2017e 95
Figure 411 U.S. Sports/Energy Beverages & Total SNWL Product Sales & Growth, 2008e – 2017e 95
Figure 412 U.S. Sports & Energy Beverages & Total SNWL Product Growth Trends, 1998-2017e 96
Figure 413 U.S. Sports Nutrition Supplements as a Percentage of Total SNWL Sales, 2007 99
Figure 414 U.S. Sports Nutrition Supplements & Total SNWL Product Sales & Growth, 1997-2007 99
Figure 415 U.S. Sports Nutrition Supplements Breakdown, 1999-2007 100
Figure 416 Top Companies in Sports Nutrition Supplements ($mil) & Annual Growth, 2006-2007 101
Figure 417 U.S. Sports Nutrition Supplements Sales by Subcategory, 2007 102
Figure 418 U.S. Sports Nutrition Supplements Sales & Growth by Subcategory, 1997-2007 102
Figure 419 Top Companies in Sports Powders/Pills ($mil) & Annual Growth, 2006-2007 103
Figure 420 U.S. Sports Powders/Formulas as a Percentage of Total SNWL Sales, 2007 104
Figure 421 U.S. Sports Performance Pills as a Percentage of Total SNWL Sales, 2007 104
Figure 422 U.S. Prepared Sports Drinks as a Percentage of Total SNWL Sales, 2007 105
Figure 423 Top Companies in Prepared Sports Drinks ($mil) & Annual Growth, 2006-2007 105
Figure 424 U.S. Sports Nutrition Supplements Sales by Channel, 2007 106
Figure 425 U.S. Sports Nutrition Supplement Sales and Growth by Channel, 2005-2007 106
Figure 426 U.S. Sports Nutrition Supplements & Total SNWL Product Sales & Growth, 2008e–2017e 107
Figure 427 U.S. Sports Nutrition Supplements & Total SNWL Product Growth Trends, 1998-2017e 107
Figure 428 U.S. Sports Nutrition Supplements Sales & Annual Growth, 1997-2017e 108
Figure 429 U.S. Sports Nutrition Supplements Sales & Growth by Subcategory, 2008e-2017e 108
Figure 430 U.S. Sports Performance Pills & Total SNWL Product Growth Trends, 1998-2017e 109
Figure 431 U.S. Sports Performance Pills Sales & Annual Growth, 1997-2017e 109
Figure 432 U.S. Sports Powders/Formulas Sales & Annual Growth, 1997-2017e 110
Figure 433 U.S. Sports Powders/Formulas & Total SNWL Product Growth Trends, 1998-2017e 110
Figure 434 U.S. Prepared Sports Drinks Sales & Annual Growth, 1997-2017e 111
Figure 435 U.S. Prepared Sports Drinks & Total SNWL Product Growth Trends, 1998-2017e 111
Figure 436 U.S. Weight-Loss Meal Replacement as a Percentage of Total SNWL Sales, 2007 114
Figure 437 U.S. WL Meal Supplements vs. Total Meal Replacement Supplements Sales, 2007 115
Figure 438 U.S. Consumer Total Meal Replacement Supplements Use, 2007 115
Figure 439 U.S. WL Meal Replacement Supps & Total SNWL Product Sales & Growth, 1997-2007 116
Figure 440 Top Companies in Weight-Loss Meal Replacement Supplement Sales ($mil) & Annual Growth, 2006-2007 116
Figure 441 U.S. WL Meal Replacement Supplements Sales by Channel, 2007 117
Figure 442 U.S. WL Meal Replacement Supps Sales by Channel: 2005-2007 118
Figure 443 U.S. WL Meal Replacement Supps & Total SNWL Product Sales & Growth, 2008e – 2017e 118
Figure 444 U.S. WL Meal Replacement Suppls & Total SNWL Product Growth Trends, 1998-2017e 119
Figure 445 U.S. WL Meal Replacement Supplements Sales & Annual Growth, 1997-2017e 119
Figure 446 U.S. Nutrition Bars as a Percentage of Total SNWL Sales, 2007 122
Figure 447 U.S. Nutrition Bars & Total SNWL Product Sales & Growth, 1997-2007 123
Figure 448 Top Companies in Nutrition Bar Sales ($mil) & Annual Growth, 2006-2007 124