• Scope and Methodology
  
  • Scope of Report
  • Exclusions
  • Report Methodology
  
  
• Introduction
  
  • FDA and DSHEA at the Helm
  • Qualified Health Claims
  • Tighter Regulation on the Horizon?
  • The Market in Context
  
  
• The Market
  
  • Retail Sales Approach $5 Billion in 2004
  • Combo Products Taking a Bigger Bite
  • Figure 1-1: Share of IRI-Tracked Dollar Sales of Nutritional
  • Supplements by Product Category, 1999 vs. 2003 (percent)
  • Market Composition by Product Type
  • Mass-Market Outlets Claim 70% of Sales
  
  
• The Marketers
  
  • Overview
  • Royal Numico Exits Market
  • Private-Label on Top
  • Figure 1-2: Top Marketers of Nutritional Supplements by Share of IRI-Tracked Sales, 2004 (percent)
  • Dollar Sales Winners and Losers
  
  
• Marketing and New Product Trends
  
  • Introductions Picking Up Steam
  • Overriding Trends
  • Trends in Children’s Supplements
  • Bridging the Diet/Sports Supplement Gap
  • Consumer Advertising Expenditures
  
  
• Consumer Demographics and Psychographics
  
  • Supplements as Preventive Medicine
  • 56% of U.S. Consumers Use Vitamins
  
  
• Looking Ahead: Trends and Opportunities
  
  • The Fruits of Regulation
  • Age-Related Opportunities
  • Proprietary
  • Products

Chapter 2: Introduction

• Market Definition
  
  • Scope of Report
    • Exclusions
    
    
  • Product Categories and Classifications
    • Vitamins
    • Minerals
    • Supplements
    • Herbal Supplements
    • Nonherbal Supplements
    
    
  • Mass-Market Product Classifications
  • Combination Formulas
  • Other Product Classifications
    • Single-Element vs. Multivitamin/Mineral
    • Synthetic vs. Natural
    • Distribution Channel: Health/Natural vs. Mass Market
    • Demographic Segmentation
    
    
  • Delivery Systems
  
  
• Industry Regulation
  
  • FDA and DSHEA at the Helm
  • DSHEA a Boon to Marketers and Retailers
  • The Nutrition Labeling and Education Act (NLEA)
    • Qualified Health Claims
    • RDAs, RDIs, DRVs, and DVs
    
    
  • DSHEA Strained by Ephedra Debacle
  • Tighter Regulation on the Horizon?
  • The Bioterrorism Act
  • Consumer Health Information for Better Nutrition Initiative
  • Mandatory Good Manufacturing Practices Pending for Nutritional Supplements
  
  
• The Market in Context
  
  • Introduction
  • A National Health Crisis
  • Food Industry at Fault?
  • The Food Industry Response
  • The Low-Carb Revolution
  • America on a Diet
  • Table 2-1: Percentage Rates for Selected Diet-Related Activities and Attitudes: Overall and by Gender, 2004 (U.S. adults)
  • The Government Response
  • The Future of the Food Guide Pyramid
    • New Dietary Guidelines
    • New Low-Carb Guidelines in the Wings
    
    
  • Eating for Health
  • FDA Easing Up on Health Claims for Foods
  • Fortified Foods, Nutraceuticals, and Functional Foods
  • Here Comes “Phood”
  • Table 2-2: New Food Product Selling Points by Package Tags, 1999-2004
  • Table 2-3: New Beverage Product Selling Points by Package Tags, 1999-2004
  • Trends in Convenience/Snack Foods
  • Trends in Natural and Organic Foods
  • Trends in Allergy/Intolerance Foods
  • Trends in Sports Nutrition
  • Hope for Supplements

Chapter 3: The Market

• Market Size and Growth
  
  • Retail Sales Approach $5 Billion in 2004
  • Table 3-1: Total U.S. Retail Sales of Nutritional Supplements, 2000-2004 (in millions of dollars)
  • Figure 3-1: Total U.S. Retail Sales of Nutritional Supplements, 2000-2004 (in millions of dollars)
  • Mass-Market Sales Rebound in 2003
  • Table 3-2: IRI-Tracked Dollar Sales of Nutritional Supplements, 1999-2004 (in millions of dollars)
  • Combo Products on the Ups
  • Table 3-3: IRI-Tracked Dollar Sales of Nutritional Supplements: By Product Category, 1999-2004 (in millions of dollars)
  • Table 3-4: Annual Dollar Growth/Decline in IRI-Tracked Sales of Nutritional Supplements: By Product Category, 2000-2003 (in millions of dollars)
  • Table 3-5: Annual Percentage Growth/Decline in IRI-Tracked Sales of Nutritional Supplements: By Product Category, 2000-2003 (percent)
  • Table 3-6: Five-Year Dollar Growth/Decline in IRI-Tracked Sales of Nutritional Supplements: By Product Category, 1999-2003 (in millions of dollars)
  
  
• Market Composition
  
  • Combo Products Taking a Bigger Bite
  • Figure 3-2: Share of IRI-Tracked Dollar Sales of Nutritional Supplements by Product Category, 1999 vs. 2003 (percent)
  • Market Composition by Product Type
  • Figure 3-3: Share of IRI-Tracked Dollar Sales of Nutritional Supplements by Type, 2000 vs. 2004 (percent)
  • Table 3-7: IRI-Tracked Dollar Sales of Calcium Supplements, 1999-2004 (in millions of dollars)
  • Table 3-8: IRI-Tracked Dollar Sales of Joint Supplements, 1999-2004 (in millions of dollars)
  • Table 3-9: IRI-Tracked Dollar Sales of Children’s Supplements, 1999-2004 (in millions of dollars)
  • Table 3-10: IRI-Tracked Dollar Sales of Women’s Supplements, 1999-2004 (in millions of dollars)
  • Table 3-11: IRI-Tracked Dollar Sales of Eye Supplements, 1999-2004 (in millions of dollars)
  • “Specialty Supplement” Rankings
  • Herbal Product Rankings
  • Mass-Market Outlets Claim 70% of Sales
  • Figure 3-4: Share of U.S. Nutritional Supplement Sales by Retail Outlet Type, 2004 (percent)
  • Gender and Lifestage Patterns of Nutritional Supplement Purchasing
  • Table 3-12: Indices for Use of Selected Supplement Classifications: By Gender, 2004 (U.S. adults)
  • Table 3-13a: Indices for Use of Selected Supplement Classifications: By Adult Age Bracket, 2004 (U.S. adults)
  • Table 3-13b: Indices for Use of Selected Supplement Classifications: By Adult Age Bracket, 2004 (U.S. adults)
  • Table 3-14: Indices for Use of Selected Supplement Classifications: By Household Size, 2004 (U.S. adults)
  • Table 3-15a: Indices for Use of Selected Supplement Classifications: By Household Income Bracket (in thousands), 2004 (U.S. adults)
  • Table 3-15b: Indices for Use of Selected Supplement Classifications: By Household Income Bracket (in thousands), 2004 (U.S. adults)
  • Racial/Ethnic and Regional Patterns of Nutritional Supplement Purchasing
  • Table 3-16: Indices for Use of Selected Supplement Classifications: By Race/Ethnicity, 2004 (U.S. adults)
  • Table 3-17a: Indices for Use of Selected Supplement Classifications: By Region, 2004 (U.S. adults)
  • Table 3-17b: Indices for Use of Selected Supplement Classifications: By Region, 2004 (U.S. adults)

• Factors to Market Growth
  
  • An Industry Under Fire
  • More FDA Bans in the Pipeline?
  • Senate Bill 722
  • Saving DSHEA
  • Good Manufacturing Practices for Dietary Supplements
  • Most Supplements on Solid Scientific Ground But Promotions Based on Health Claims Are Restricted
  • The Power of Marketing
  • Table 3-18: Rate of New Nutritional Supplement Product Introduction vs. Market Growth Rate, 1999-2003 (number and percent)
  • Demographic Slicing
  • The Boomer Bulge
  • Table 3-19: Projected U.S. Population by Age Bracket, 2000-2010 (in thousands)
  • Competition from “Phoods”
  
  
• Projected Market Growth
  
  • Market to Top $6 Billion by 2009
  • Table 3-20: Projected U.S. Retail Sales of Nutritional Supplements, 2004-2009 (in millions of dollars)

Chapter 4: The Marketers

• Competitive Trends
  
  • Mass-Market Especially Concentrated
  • Health/Natural Market Players
  • Royal Numico Exits Market
  • Trends in Private Label
  • Table 4-1: Private-Label Share of IRI-Tracked Dollar Sales of Nutritional Supplements by Category, 2000 vs. 2004 (percent)
  • Table 4-2: IRI-Tracked Dollar Sales of Private-Label Nutritional Supplements by Category, 2000 vs. 2004 (in millions of dollars)
  • Category Cross-Over and Line Extensions
  • Table 4-3: The U.S. Market for Nutritional Supplements: Selected Leading Marketers and Brands, Fall 2004
  
  
• Marketer and Brand Shares
  
  • Methodology
  • Figure 4-1: Top Marketers of Nutritional Supplements by Share of IRI-Tracked Sales, 2004 (percent)
  • Private-Label on Top
  • NBTY Takes Lead in General Supplements Category
  • Multivitamins Category a Two-Horse Race
  • Private-Label About Half of 1 & 2 Letter Vitamins Category
  • Liquid Supplements Category Highly Fragmented
  • Dollar Sales Winners and Losers
  • Table 4-4: Top Marketers of Nutritional Supplements by Share of IRI-Tracked Sales, 2000-2004 (percent)
  • Table 4-5: Top Nutritional Supplement Brands by Share of IRI-Tracked Sales, 2002-2004 (percent)
  • Table 4-6: Top Marketers and Brands of General Supplements by Share of IRI-Tracked Sales, 2004 (percent)
  • Table 4-7: Top Marketers and Brands of Multivitamins by Share of IRI-Tracked Sales, 2004 (percent)
  • Table 4-8: Top Marketers and Brands of 1 & 2 Letter Vitamins by Share of IRI-Tracked Sales, 2004 (percent)
  • Table 4-9: Top Marketers and Brands of Liquid Supplements by Share of IRI-Tracked Sales, 2004 (percent)
  • Table 4-10: Total Growth/Decline in IRI-Tracked Sales of Nutritional Supplements Among Top Marketers, 2000 vs. 2004 (in millions of dollars)
  • Table 4-11: Total Growth/Decline in IRI-Tracked Sales of Nutritional Supplements Among Top Brands, 2000 vs. 2004 (in millions of dollars)
  • Table 4-12: Total Growth/Decline in IRI-Tracked Sales of Nutritional Supplements Among Top Sub-Brand Lines, 2000 vs. 2004 (in millions of dollars)

Chapter 5: Competitor Profiles

• Competitor Profile: Bayer Corp. (Bayer Group)
  
  • Company Overview
  • One-A-Day: Covering All Bases
  • Figure 5-1: Share of One-A-Day Multivitamin Sales by Variety, 2002 vs. 2004 (percent)
  • Piggybacking on Weight-Loss
  • Competing for Kids
  • On the Web
  • Competitor Profile: GNC Corp.
    
    • Company Overview
    • Background
    • Life Under Apollo
    • Market Positioning
    • Rebuilding Consumer Confidence
    • Product Launches
    • Selling Online
    
    
  • Competitor Profile: NBTY, Inc
    .
    • Company Overview
    • Table 5-1: Sales Gains by NBTY’s Nature’s Bounty and Sundown Brand Lines by Category, 2003 vs. 2004 (percent)
    • Rexall Addition Tops Spate of Acquisitions
    • Trouble at Retail?
    • Advertising and New Products
    • On the Web
    
    
  • Competitor Profile: Pharmavite LLC/Otsuka America Pharmaceutical, Inc.
    
    • Company Overview
    • Quality Guaranteed
    • Company Supports Government-Proposed AERs
    • Consumer Advertising and Education
    • New Products Aimed at Aging Population
    • Nature Made Online
    
    
  • Competitor Profile: Wyeth (Wyeth Consumer Healthcare)
    
    • Company Overview
    • Mass-Market Positioning
    • Figure 5-2: Share of Centrum Multivitamin Sales by Variety, 2002 vs. 2004 (percent)
    • An Advertising Heavy Hitter
    • Table 5-2: Share of Wyeth’s National Consumer Advertising Expenditures on Nutritional Supplements by Brand/Variety, 2002 vs. 2003 (percent)
    • Pitching New Products
    • Slow Going for Centrum Kids
    • Solgar Takes Aim at Kids

Chapter 6: Marketing and New Product Trends

• New Product Trends
  
  • Introductions Picking Up Steam
  • Table 6-1: Number of Nutritional Supplement New Product
  • Introductions, 1999-2004 (number and percent)
  • Table 6-2: New Nutritional Supplement Product Selling Points by Package Tags, 1999-2004 (number)
  • Overriding Trends
  • Trends in Bone and Joint Health Supplements
  • Bone/Calcium Supplements
  • Figure 6-1: Top Calcium Supplements by Share of IRI-Tracked Sales, 2000 vs. 2004 (percent)
  • Joint Supplements
  • Figure 6-2: Top Joint Supplements by Share of IRI-Tracked Sales, 2000 vs. 2004 (percent)
  • Other Age-Related Appeals: Eye, Brain, Heart, Diabetes
  • Eye Health Supplements
  • Figure 6-3: Top Eye Supplements by Share of IRI-Tracked Sales, 2000 vs. 2004 (percent)
  • Brain Health Supplements
  • Heart Health Supplements
  • Figure 6-4: Top Heart Supplements by Share of IRI-Tracked Sales, 2000 vs. 2004 (percent)
  • Diabetes Support Supplements
  • Trends in Women’s Supplements
  • Menopausal and Menstrual Products
  • Figure 6-5: Top Women’s Supplements by Share of IRI-Tracked
  • Sales, 2000 vs. 2004 (percent)
  • Cosmetic Products
  • Other Female Appeals
  • Trends in Men’s Supplements
  • Trends in Children’s Supplements
  • Mass-Market Leaders
  • Figure 6-6: Top Children’s Supplements by Share of IRI-
  • Tracked Sales, 2000 vs. 2004 (percent)
  • Advertising Shifts
  • Licensing Trends
  • The Candy Debate
  • Natural Products
  • Probiotics and Phytosterols
  • Bridging the Diet/Sports Supplement Gap
  • Allergy Appeals
  • Table 6-3: Selected New Product Introductions, January 2003-August 2004
  
  
• Advertising and Retail Trends
  
  • Consumer Advertising Expenditures
  • Top Three Marketers Account for Half of Total Adspend
  • Figure 6-7: Marketer Shares of National Consumer Advertising
  • Expenditures for Nutritional Supplements, 2002 vs. 2003 (percent)
  • Consumer Advertising Themes and Promotions
  • Trade Support
  • Retail Trends

• Introduction
  
  • Simmons Market Research Bureau Data
  • Supplements as Preventive Medicine
  • 56% Use Vitamins
  • Age as Leading Indicator
  • Supplement Socio-Economics
  • Table 7-1: Indices for Vitamin Use Among Consumers Who Agree with Selected Statements, 2004 (U.S. adults)
  • Table 7-2: Usage Rates for Selected Vitamin Classifications, 2004 (U.S. adults)
  • Table 7-3: Demographic Characteristics Favoring Use of Vitamins, 2004 (U.S. adults)
  • Table 7-4: Demographic Characteristics Favoring Use of Vitamins Once a Day, 2004 (U.S. adults)
  • Table 7-5: Demographic Characteristics Favoring Use of Vitamins More Than Once Daily, 2004 (U.S. adults)
  
  
• Consumer Focus: Attitudes & Opinions
  
  • Anomalies by Age
  • Preference for Alternative Medicine Among Asians, Hispanics
  • Variations by Household Income
  • Table 7-6a: Indices Among Vitamin Users for Agreement with Selected Statements: By Age Bracket, 2004 (U.S. adults)
  • Table 7-6b: Indices Among Vitamin Users for Agreement with Selected Statements: By Age Bracket, 2004 (U.S. adults)
  • Table 7-7: Indices Among Vitamin Users for Agreement with Selected Statements: Female vs. Male, 2004 (U.S. adults)
  • Table 7-8: Indices Among Vitamin Users for Agreement with Selected Statements: By Race/Ethnicity, 2004 (U.S. adults)
  • Table 7-9a: Indices Among Vitamin Users for Agreement with Selected Statements: By Region, 2004 (U.S. adults)
  • Table 7-9b: Indices Among Vitamin Users for Agreement with Selected Statements: By Region, 2004 (U.S. adults)
  • Table 7-10a: Indices Among Vitamin Users for Agreement with Selected Statements: By Household Income Bracket (in Thousands), 2004 (U.S. adults)
  • Table 7-10b: Indices Among Vitamin Users for Agreement with Selected Statements: By Household Income Bracket (in Thousands), 2004 (U.S. adults)
  
  
• Consumer Focus: Usage by Product Type
  
  • 33% Use Multiple-Formulas
  • Seniors Are Three Times as Likely to Use Vitamin D
  • Women Post Index of 152 for Calcium Supplements
  • Blacks Show Index of 180 for Iron Supplements
  • Alternative Medicine Consumers Show Index of 312 for Herbal Supplements
  • Table 7-11: Usage Rates for Selected Supplement Classifications: By Types Used Most Often, 2004 (U.S. adults)
  • Table 7-12: Demographic Characteristics Favoring Use of Multiple-Formula Vitamins, 2004 (U.S. adults)
  • Table 7-13: Demographic Characteristics Favoring Use of Calcium Supplements, 2004 (U.S. adults)
  • Table 7-14: Demographic Characteristics Favoring Use of Vitamin C, 2004 (U.S. adults)
  • Table 7-15: Demographic Characteristics Favoring Use of Vitamin E, 2004 (U.S. adults)
  • Table 7-16: Demographic Characteristics Favoring Use of Dietary Supplements, 2004 (U.S. adults)
  • Table 7-17: Demographic Characteristics Favoring Use of Vitamin B-12, 2004 (U.S. adults)
  • Table 7-18: Demographic Characteristics Favoring Use of Vitamin B-Complex, 2004 (U.S. adults)
  • Table 7-19: Demographic Characteristics Favoring Use of Fish Oil Supplements, 2004 (U.S. adults)
  • Table 7-20: Demographic Characteristics Favoring Use of Iron Supplements, 2004 (U.S. adults)
  • Table 7-21: Demographic Characteristics Favoring Use of Antioxidants, 2004 (U.S. adults)
  • Table 7-22: Demographic Characteristics Favoring Use of High-Potency Vitamins, 2004 (U.S. adults)
  • Table 7-23: Demographic Characteristics Favoring Use of Garlic Supplements, 2004 (U.S. adults)
  • Table 7-24: Demographic Characteristics Favoring Use of Vitamin D, 2004 (U.S. adults)
  • Table 7-25: Indices for Use of Selected Supplements Among Consumers Who Agree with Statement: Frequently Take Preventive Medicine, 2004 (U.S. adults)
  • Table 7-26: Indices for Use of Selected Supplements Among Consumers Who Agree with Statement: Take Vitamins/Minerals for Long-Term Benefits, 2004 (U.S. adults)
  • Table 7-27: Indices for Use of Selected Supplements Among Consumers Who Agree with Statement: Vitamins/Nutrients Make a Difference, 2004 (U.S. adults)
  • Table 7-28: Indices for Use of Selected Supplements Among Consumers Who Agree with Statement: Make Sure I Exercise Regularly, 2004 (U.S. adults)
  • Table 7-29: Indices for Use of Selected Supplements Among Consumers Who Agree with Statement: Nutritional Value Is Most Important in the Food I Eat, 2004 (U.S. adults)
  • Table 7-30: Indices for Use of Selected Supplements Among Consumers Who Agree with Statement: People Need More Vitamins When Older, 2004 (U.S. adults)
  • Table 7-31: Indices for Use of Selected Supplements Among Consumers Who Agree with Statement: Prefer Alternative Medicine to Standard Medical Practice, 2004 (U.S. adults)
  • Table 7-32: Indices for Use of Selected Supplements Among Consumers Who Agree with Statement: Always Look for Most Advanced Medications Available, 2004 (U.S. adults)
  • Table 7-33: Indices for Use of Selected Supplements Among Consumers Who Agree with Statement: Will Pay Anything When It Concerns My Health, 2004 (U.S. adults)
  • Table 7-34: Indices for Use of Selected Supplements Among Consumers Who Agree with Statement: Spend What I Have To To Look Younger, 2004 (U.S. adults)
  • Table 7-35: Indices for Use of Selected Supplements Among Consumers Who Agree with Statement: Don’t Have Time To Prepare/Eat Healthy Meals, 2004 (U.S. adults)
  • Table 7-36: Indices for Use of Selected Supplements Among Consumers Who Agree with Statement: Over-the-Counter Medications Are Safer Than Prescription Drugs, 2004 (U.S. adults)
  
  
• Consumer Focus: Usage by Brand
  
  • 19% Use Centrum
  • Middle-Age vs. Senior Skews
  • Mixed Bag by Race and Region
  • Upscale/Downscale Pattern for Centrum, One-A-Day, Caltrate
  • Table 7-37: Usage Rates for Selected Supplement Classifications: By Brands Used Most Often, 2004 (U.S. adults)
  • Table 7-38: Demographic Characteristics Favoring Use of Centrum (Any) Vitamins, 2004 (U.S. adults)
  • Table 7-39: Demographic Characteristics Favoring Use of Store-Brand Vitamins, 2004 (U.S. adults)
  • Table 7-40: Demographic Characteristics Favoring Use of One-A-Day (Any) Vitamins, 2004 (U.S. adults)
  • Table 7-41: Demographic Characteristics Favoring Use of Nature Made (Any) Vitamins, 2004 (U.S. adults)
  • Table 7-42: Demographic Characteristics Favoring Use of Caltrate Vitamins, 2004 (U.S. adults)
  • Table 7-43: Demographic Characteristics Favoring Use of GNC Vitamins, 2004 (U.S. adults)
  • Table 7-44: Demographic Characteristics Favoring Use of Theragran (Any) Vitamins, 2004 (U.S. adults)
  • Table 7-45: Demographic Characteristics Favoring Use of Os-Cal Vitamins, 2004 (U.S. adults)

Chapter 8: Looking Ahead

• Trends and Opportunities
• The Fruits of Regulation
• Age-Related Opportunities
• Proprietary Products
• Phoods and Forms
• The Omega Wave
• Cross-Over Appeals
• International Influences

Appendix: Addresses of Selected Marketers