I. Executive Summary
Executive Summary
- The Scope of This Report
- Report Methodology
- Nutraceutical Defined
- Seven Main Categories
- Sales Exceeded $17 Billion in 2001
- Table 1-1: U.S. Retail Dollar Sales of Nutraceutical Foods and Beverages, 1997-2001 (dollars; percent)
- Nutraceuticals Expected to Reach over $22 Billion by 2006
- Table 1-2: Projected U.S. Retail Dollar Sales of Nutraceutical Foods and Beverages, 2001-2006 (dollars; percent)
- Figure 1-1: U.S Retail Dollar Sales of Nutraceutical Foods and Beverages, 1997-2006 (dollars; percent)
- Tempestuous but Thriving Market
- Infant Nutritionals and Cereals Account for over 42% of Sales
- Table 1-3: Share of Retail Dollar Sales of Nutraceutical Foods, by Product Category, 2001 (percent): 7 categories
- Perhaps 800 Marketers
- You First and "Me First" Modes
- Many Niches with Little Marketer Competition
- Growth to Enable Entry into Market
- Nutraceutical Ad Dollars at $485 Million in 2001
- Variety of Distribution Channels
- Nutraceuticals Spread throughout Store
- In-Store Pharmacies Play Role
- Reasons for Controlling Diet
- Table 1-4: Number of Adult Americans Controlling Diet by Reason, 2001 (number; percent): 14 reasons
- Factors Favoring Control of Diet
- Table 1-5: Demographic Factors Favoring Control of Diet, 2001 (listing): 12 factors
II. The Products
Introduction
- The Scope of This Report
- Nutraceutical Defined
- Glossary of Nutraceutical Terms
The Products
- Seven Categories
- Cereals
- Comprehensive Nutritional Drinks (CNDs)
- Confections
- Dairy and Dairy Substitutes
- Infant Nutritional Products
- Other Beverages
- Other Food
Regulatory Issues
- The Agencies Involved
- Food and Drug Administration (FDA)
- United States Department of Agriculture (USDA)
- Federal Trade Commission (FTC)
- Key Legislation
- Nutrition Labeling and Education Act of 1994 (NLEA)
- Dietary Supplement Health and Education Act of 1994 (DSHEA)
- Orphan Drug Act of 1983 (ODA) and Orphan Drug Amendments of 1988
- The FDA’s Approved Health Claims
- Disclaimers
- Lack of Patent Protection
- Generally Recognized as Safe (GRAS)
- Pending: Nutraceutical Research and Education Act
III. The Market
IV. The Marketers
The Marketers
- Perhaps 800 Marketers
- Types of Marketers
- Marketers Sometimes Focus on Specific Retail Channels
- Table of Marketers and Brands
- Table 4-1: Selected Nutraceutical Food Marketers and Their Brands, 2001 (listing): 48 marketers, 95 brands
Marketer and Brand Shares
- Note on Share Data
- Slim-Fast Holds Strong in Comprehensive Nutritional Drinks
- Table 4-2: Share of U.S. Retail Dollar Sales of Comprehensive Nutritional Drinks, 2000-2001 (percent): 7 marketers; 18 brands
- Mead Johnson Dominates Liquid Concentrated Infant Formula
- Table 4-3: Share of U.S. Retail Dollar Sales of Infant Formula in Concentrated Liquid Form, 2000-2001 (percent): 3 marketers; 9 brands
- Mead Johnson Rules in Powdered Infant Formulas
- Table 4-4: Share of U.S. Retail Dollar Sales of Infant Formula in Powdered Form, 2000-2001 (percent): 3 marketers; 14 brands
- Abbot/Ross Controls RTD Infant Formula
- Table 4-5: Share of U.S. Retail Dollar Sales of Infant Formula in Ready-to-Drink Form, 2000-2001 (percent): 3 marketers; 13 brands
- Pedialyte Synonymous with "Electrolyte Balancers"
- Table 4-6: Share of U.S. Retail Dollar Sales of Infant Electrolyte Balancers, 2000-2001 (percent): 3 marketers; 13 brands
- Unilever and J&J Lead in Nutraceutical Margarines
- Table 4-7: Share of U.S. Retail Dollar Sales of Nutraceutical Margarines, 2000-2001 (percent): 2 marketers; 3 brands
- Share Perspective: Cold Cereals
- Share Perspective: Quaker’s Stake in Cereals
- Share Perspective: Quaker’s Reign in Hot Cereals
- Share Perspective: Westsoy Holds its Own in Soy Milks
- Share Perspective: Lactaid
- Share Perspective: So Be and Arizona Rx Bottled Drinks
The Competitive Situation
- “You First” and “Me First” Modes
- Many Niches with Little Marketer Competition
Competitive Profile: Abbot Laboratories/Ross Products
- Net Sales of $16.3 Billion in 2001
- Corporate Overview
- Focus on R&D
- Ross Products and the Ensure/PediaSure Brands
Competitive Profile: Bristol-Myers Squibb
Company/Mead Johnson Nutritionals
- Sales of $19.4 Billion
- Corporate Overview
- Mead Johnson Nutritionals
- Other Products
Competitive Profile: Forbes Medi-Tech, Inc.
- Sales of C$7.9 Million in Fiscal 2001
- Forbes Medi-Tech Covers for Altus Food Company
Competitive Profile: The Hain Celestial Group, Inc.
- Sales of $412 Million in Fiscal 2001
- Corporate Overview
- Westsoy
- Other Hain Celestial Group Products
Competitive Profile: Johnson & Johnson
- Sales Jump Past $33 Billion in 2001
- Corporate Overview
- The Famed Benecol Food Ingredient
- Other Popular J&J Products
Competitive Profile: Kellogg Company
- Sales of almost $9 Billion in 2001
- Corporate Overview
- Kellogg’s Take on Nutraceuticals
- Other Kellogg Products
Competitive Profile: Nutraceutical Clinical
Laboratories International, Inc.
- Behind the Scenes in the Nutraceutical Market
Competitive Profile: PepsiCo, Inc./Quaker Foods North America
- Net Sales of $27 Billion in 2001
- Acquisition of The Quaker Oats Company
- Famous PepsiCo Brands
Competitive Profile: Traditional Medicinals
Competitive Profile: Unilever/Slim-Fast Foods Co.
- Sales of $46.7 Billion in Fiscal 2001
- Unilever’s Five Business Segments
- Corporate Overview
- Unilever Steps up to Web Challenge
- Unilever’s Nutraceutical Ventures
- Famous Unilever Brands
Marketing and Product Trends
- Educating the Public
- Ensuring Product Reliability
- Growth to Enable Entry into Market
- Eye Health
- Genetic Profiling
- Other New Technologies to Foster New Products
- Taste Matters
- New Product Types
- Convenience-Oriented Products Sought
- Innovative Packaging
- Table 4-8: Selected Nutraceutical Foods Introductions, 2000-2001 (listing): 37 marketers, 47 brands
Consumer Advertising Expenditures
- Nutraceutical Ad Dollars at $485 Million in 2001
- General Mills Spends $133 Million on Cheerios and Other Cereals
- PepsiCo spends $113 Million to Tout Its Quaker Brand
- Kellogg Spends $65 Million
- Abbot Spends $50 Million
- Philip Morris Spends $49 Million to Help Post and Balance
- Nestle Allocates $40 Million in Support of Infant Formula
- Unilever Spends $18 Million on Advertising for its Slim-Fast Meal On-the-Go Diet Bars
- J&J Spends $14 Million in 20001
- Bristol-Myers & Squibb Slashes Spending to $1.5 Million
Consumer Advertising Positioning
- Ads Aimed at Educating
- Advertising to Specific Group
- Hype versus Subtlety
- Kellogg’s Novel Approach to Weight Loss
- General Mills Banks on Humor
- Doctors’ Offices Friendly to Nutraceuticals
Consumer Promotions
- Coupons
- Free Samples
- In-Store Promotions
- Free Medical Tests
Trade Shows/Conferences
- Trade Shows and Conferences Abundant
- Functional Foods 2002
- EyeforFood USA 2002
- NNFA MarketPlace 2002
V. Distribution And Retail
Distribution
- Variety of Distribution Channels
- Two Main Distribution Paths: Traditional and DSD
- Traditional Path
- Direct Store Delivery
- Sales Forces Target Doctors
- ECR Operations
At the Retail Level
- Retail Margins on Nutraceutical Foods Vary
- Nutraceuticals Spread throughout Store
- Retailers Taking a More Healthful Stance
- In-Store Pharmacies Play Role
- Health Food Stores
VI. The Consumer
The Consumer: America’s Major Illnesses
- Nutraceuticals Driven by Demographics of Illness
- Fatal Illness in the United States
- Table 6-1: Deaths in the United States, by Cause: 2000 (number): 5 causes
- Cardiovascular Disease
- Cancer
- Diabetes
- AIDS
- Other Illnesses (Obesity and Bone Disease)
The Consumer: Lifestyles and Attitudes
- Notes on Sources—The Simmons Consumer Survey
- Consumer Data Are Limited
- Factors Favoring Control of Diet
- Table 6-2: Demographic Factors Favoring Control of Diet, 2001 (listing): 12 factors
- Reasons for Controlling Diet
- Table 6-3: Number of Adult Americans Controlling Diet, by Reason, 2001 (number; percent): 14 reasons
- Table 6-4: Demographic Factors Favoring Control of Diet, by Reason, 2001 (listing): 12 factors; 13 reasons
- Methods for Controlling Diet
- Table 6-5: Demographic Factors Favoring Control of Diet, by Method, 2001 (listing): 12 factors; 8 methods
The Consumer: Brand Use of Nutraceuticals
- Demographic Factors for Choosing Cold Cereal, by Brand, 2001
- Table 6-6: Demographic Factors Favoring Cold Cereal Consumption, by Brand, 2001 (listing): 12 factors; 5 brands
- Demographic Factors for Hot Cereals
- Table 6-7: Demographic Factors Favoring Quaker Hot Cereal Consumption, by Type of Cereal, 2001 (listing): 12 factors; 2 brands
- Comprehensive Nutritional Drinks
- Table 6-8: Demographic Factors Favoring Comprehensive Nutritional Drinks, by Brand, 2001 (listing): 12 factors; 2 brands
Appendix I: Examples Of Consumer Advertising
And Promotions
Appendix II: Addresses Of Selected Marketers
