The Products
Historical Overview
Product Breakouts
Sports Supplements Regulated By The FDA
FDA's Actions On Ephedra, Creatine Monohydrate, And Androstenedione

The Market
1998 Sales Over $1.2 Billion
Positive Factors Affecting Market Growth
Negative Factors Affecting Market Growth
Projected Market Growth
Table 1-1: U S Retail Sales Of Sports Nutritionals, 1994-2003 (Dollars)
Table 1-2: U S Retail Sales Of Sports Nutritionals By Product Category, 1996-2003 (Dollars): 5 Product Categories
Market Share By Product Category
Strength/Bodybuilding And Short-Term Energy Products Drive Market

The Marketers
Leading Marketers
Mergers Make Competitors Bigger And Stronger
Scientific Language Drives Market
Reaching A Broader Market
New Product Introductions
New Combinations Maintain Interest
Competition Through Line Extensions
Celebrities Sell Product
Promotion Through Own Magazines
National Consumer Advertising Expenditures Over $68 Million

Distribution And Retail
Distinct Channels Of Distribution
Health Food Chains Vs Mass Merchandisers
Figure 1-1: Share Of U S Sports Nutritional Sales By Top Retailer Types, 1998 (Percent): 4 Retail Outlets
High Margins At Retail
Retail Environment In Health And Natural Food Stores
Retail Environment In Mass-Market Outlets
Growth Through The Internet And Gyms

The Consumer
Weider Brand Used By One Million
Use Of Sports Drinks
Use Of Powerbars
Possible Decline In Sports Supplement Use Among Health And Natural Food Store Shoppers
The Potential Market For Sports Nutritionals

Scope And Methodology
Market Parameters
Report Methodology

II. The Products

Scope Of Report
Sports Nutritionals Sold At Retail

History Of The Industry
First Products Were Protein Mixes
Joe Weider—A Sports Nutritional Pioneer
Rodale Press Promotes Natural Health
First Isotonic Beverages In The 1960s
Weider Engages Bodybuilder Schwarzenegger
East Germans' Success At 1972 Olympics
Gnc Targets Sports Nutritionals
Sports Nutrition In A Bar

Product Breakouts
The Product Categories
Ingredients And Product Category Lines
Strength And Bodybuilding Supplements
Fat Burners/Lean Mass Products
Short-Term Energy Products
Exercise Recovery/Supportive Nutrition/ Injury Treatment Products
Long-Term Endurance Products
Common Delivery Systems
Guide To Sports Nutritional Ingredients
Table 2-1: Guide To Strength And Bodybuilding Substances
Table 2-2: Fat Burners/Lean Mass Products
Table 2-3: Energy (Short-Term) Or Performance Substances
Table 2-4: Exercise Recovery And Supportive Nutrition Substances
Table 2-5: Long-Term Endurance Substances

Industry Regulators
Sports Supplements Regulated By The FDA
Promotional Materials Considered Part Of Labeling
The Role Of The NLEA
The Dietary Supplement Health And Education Act
Structure/Function Statements
New Ruling Against FDA's "Review Regime"
Third-Party Literature
FDA's Actions Against Ephedra
Creatine Monohydrate And Androstenedione

Trade Associations
National Nutritional Foods Association
National Sporting Goods Association
Sporting Goods Manufacturers Association

III. The Market
Figure 3-1: U S Retail Sales Of Sports Nutritionals, 1994-1998 (Dollars)

Market Size And Growth
Sales Difficult To Quantify
1998 Sales Over $1 2 Billion
Table 3-1: U S Retail Sales Of Sports Nutritionals, 1994-1998 (Dollars)
Strength And Bodybuilding Sales Near $400 Million
Table 3-2: U S Retail Sales Of Sports Nutritionals By Product Category, 1996-1998 (Dollars): 5 Product Categories
Dollar Growth By Product Category

Market Composition
Strength And Bodybuilding Products Garner 31% Of Market
Table 3-3: Share Of U S Sports Nutritional Sales By Product Category, 1996 Vs 1998 (Percent): 5 Product Categories
Dollar Growth By Product Category
Table 3-4: Share Of U S Sports Nutritional Sales Growth By Product Category, 1996-1998 (Percent): 5 Product Categories
Powders/Pills/Formulas Comprise Over Two-Thirds Of Market
Creatine A $180 Million Business
Mass Merchandisers Edge Up On Health Food Chains
Table 3-5: Share Of U S Sports Nutritional Sales By Retail Outlet Type, 1996 Vs 1998 (Percent): 7 Retail Outlets
Market Skews To Sunbelt
Table 3-6: Regional Distribution Of Consumption: Thirst Quencher/Activity Drinks Vs Powerbars, 1998 (U S Adults): Northeast, Midwest, South, West
Spring And Summer Stronger Sales Periods

Factors To Market Growth
Aging Population Wants Youthful Performance
Table 3-7: Projections Of U S Households By Age Of Householder, 1998 Vs 2003 (Number And Percent): From Age Under 25 To Age 75 And Older
Aging Americans More Prone To Injury, Longer Recovery Times
Time-Starved Shoppers Seek Energy
Companies Driving Market With New Products
Dshea Gives Sports Nutrition Products New Credibility
Claims Help Educate Consumers
Research Supports Interest In Sports Nutritionals
But Claims For Some Products Questionable
Ephedra In Short-Term Energy Products
Androstenedione Hot, But Formally And Informally Banned
Health Club Participation At 22 Million; May Be Tapering Off
Weight Training To Lift Sales
Marketing More Geared To Average Consumer
Products Still Suffer From "Muscle" Image
Growing Number Of Juices Use Sports Nutrition Ingredients
Health And Natural Food Retailers Still Reluctant To Stock
General Nutrition Builds On Competitive Difference
Marketers Target Mass Market
Figure 3-2: Projected U S Retail Sales Of Sports Nutritionals, 1998-2003 (Dollars)

Projected Market Growth
Sales To Surpass $2.2 Billion In 2003
Table 3-8: Projected U S Retail Sales Of Sports Nutritionals, 1998-2003 (Dollars)
Energy Products To Become Largest Category
Table 3-9a: Projected U S Retail Sales Of Sports Nutritionals By Product Category, 1998-2000 (Dollars): 5 Product Categories
Table 3-9b: Projected U S Retail Sales Of Sports Nutritionals By Product Category, 2000-2003 (Dollars): 5 Product Categories
Exercise Recovery/Supportive Nutrition/Injury Treatment Category Will Be Fastest-Growing

IV. The Marketers

The Marketers
Major Players
Many Minor Players
Top Companies In Health And Natural Food Stores
Top Companies In The Mass Market
VSM Companies Branching Out
Single-Product/Limited Line Companies
Table 4-1: The U S Market For Sports Nutritionals: Selected Marketers By Brand Line And Product (143 Marketers)

Marketer And Brand Shares
Twin Laboratories A Leader
Top Brands In Health And Natural Food Stores
Table 4-2a: Leading Sports Nutritional Products From Nature's Best, 2nd Quarter 1998: Capsules & Tablets (Percent): 3 Companies/10 Brands/Products
Table 4-2b: Leading Sports Nutritional Products From Nature's Best, 2nd Quarter 1998: Powders & Liquids (Percent): 4 Companies/10 Brands/Products
Ginsana Top Brand In All Mass-Market Channels
Other Top-Selling Brands In Mass Merchandisers
Table 4-3: Selected Leading Sports Pills And Powders In U S Mass Merchandisers, 1997 Vs 1998 (Dollars): 12 Marketers/Brands
Other Top-Selling Brands In Drugstores
Table 4-4: Leading Sports Pills And Powders In U S Drugstores, 1997 Vs 1998 (Dollars): 12 Marketers/Brands
Top-Selling Brands In Supermarkets
Table 4-5: Leading Sports Pills And Powders In U S Supermarkets, 1997 Vs 1998 (Dollars): 12 Marketers/Brands
Top Sports Bar Brands
Table 4-6: Leading Sports Bars In U S Mass Market, 1997 Vs 1998 (Dollars): Supermarkets, Drugstores, Mass Merchandisers

Competitive Overview
New Products Are Ingredient-Driven
Complete Sports Programs
Sports Nutrition For Aging Boomers
Mergers And Acquisitions
Move To Mass Market
Endorsements And Celebrities
Consumer Education Supports New Products
Extra Educational Efforts For Androstenedione
Marketers Promote To Trade Through Specialty Publications
Line Extensions Win Shelf Space

Competitive Profile: Action Labs, Inc
Corporate Overview
Action's First Products
Distributed Through Multiple Channels
Advertising Efforts Target Health And Beauty

Competitive Profile: Amerifit, Inc
Corporate Overview
Product Line
Formerly Strength Systems USA
Marketing Programs
Move Beyond Sports
Outreach To Pharmacists

Competitive Profile: Balance Bar Co
Corporate Overview
The Product Line
Distribution And Sales Milestones
Product Introductions
Marketing Support

Competitive Profile: Bodyonics Ltd
Corporate Overview
A Complete Line
Established With Pyruvate
Move Beyond Sports Nutrition

Competitive Profile: Experimental And Applied Sciences, Inc (Eas)
Corporate Overview
Popular Products
Official Sponsor Of Denver Broncos
Information-Driven Company
Future Plans

Competitive Profile: General Nutrition Cos , Inc
Corporate Overview
General Nutrition Stores
GNC's Position On Androstenedione
The General Nutrition Products
General Nutrition's Sports Nutritionals
A 60-Year Legacy
Price Cuts Announced
Promotion Support
New Alliances
New Retail Formats
Growth Through Acquisition
Future Plans

Competitive Profile: Herbalife International, Inc
Corporate Overview
Herbal-Based Products
Network Marketing
History And Growth
Future Objectives

Competitive Profile: Met-Rx Usa, Inc
Corporate Overview
Company History
A Mass-Market Player
Substrate Solutions: Androstenedione Products

Competitive Profile: MLO Products
Corporate Overview
Sales Through All Outlets

Competitive Profile: Optimum Nutrition, Inc
Corporate Overview
Types Of Sports Products
Move Beyond Sports
Control Of Manufacturing And Distribution

Competitive Profile: PacificHealth Laboratories, Inc
Corporate Overview
Products Based On Ciwujia

Competitive Profile: Powerbar, Inc
Corporate Overview
Founded By A Frustrated Marathoner
Available Through All Outlets
The Product Mix
Powerbar Harvest—A New Entry
Sampling And Sponsoring Events
Plans For Growth

Competitive Overview: Twin Laboratories, Inc
Corporate Overview
The Product Line
Company Innovations
History And Growth Of Company
Distribution
Twinlab's Sports Nutritionals
Sports Products Promotional Support
New Sports Line For Mass Market
Recent Acquisitions
Company Philosophy And Plans

Competitive Profile: Weider Nutrition International, Inc
Corporate Overview
Product Mix
Distinct Sports Brands For Distribution Channels
Marketing Realignment In 1998
Company History And Growth
A Publishing Empire
Relaunch Of Ephedra Products
Recent Acquisitions
Future Plans Call For Manufacturing Consolidation

Marketing And New Product Trends
Continued Emphasis On New Products
Medical Claims Getting Stronger
Reaching A Broader Market
Number Of Product Introductions Growing
Table 4-7: Number Of New U S Sports Nutritional Product Introductions By Type, 1996-1998 (Stock-Keeping Units): 4 Types
Creatine And HMB
And Androstenedione
New Delivery Systems
Other New And Novel Creatine Combination Products
Androstenedione Combinations
New Sports Bars
Recovery Products
Short-Term Energy Products Based On Thermogenic Stack
Table 4-8: The U S Market For Sports Nutritionals: Selected New Product Introductions, 1998

Consumer Advertising And Promotion
Use Of Advertising
Targeted Magazines Used
Other Media Used
Expenditures Total Over $68 Million In 1997
General Nutrition The Major Spender
Two Companies Approach $10 Million In Advertising
Other Million-Dollar-Plus Spenders
$300,000 To $600,000 Spenders
Many Marketers Spend Small Amounts; Print Preferred
Additional Unmeasured Expenditures
Size Counts For Male Bodybuilders
Violent Content
Endurance And Energy Product Ads More Subdued
Sex Sells
Before And After
Targeting Women
Food Images Not Popular
Science Sells Supplements
Some Just Sell Price
Products Require Education
Marketers Promote Products Through Own Magazines
Celebrity Endorsements
Sponsorships Of Sporting Events
Taste Tests
Examples Of Consumer Advertising

Trade Advertising And Promotion
Role Of Trade Ads
Displays Compete For Retail Space
Trade Education
Trade Shows
Discounts Are Common Promotion
Retailer Perks

V. Distribution And Retail

At The Distribution Level
Distinct Channels Of Distribution
Warehouse Delivery Used In Mass Market
Independent Distributors To Health And Natural Food Stores
Several Large Distributors Dominate Health Food Sector
Health Food Distributor Services
Forward Buying By Distributors
Leading Drug Wholesalers
Specialty Sports Distributors
Distribution Through Gyms And Health Clubs
Direct Shipments Through Common Carriers
Benefits Of Direct Shipment
Margins For Health Food And Mass Market
Brokers Support Marketers' Sales Efforts
Marketers' Sales Forces Work With Brokers

At The Retail Level
Health Food Chains Claim Largest Retail Share
Figure 5-1: Share Of U S Sports Nutritional Sales By Top Retailer Types, 1998 (Percent): 4 Retail Outlets
Sports Nutritional Retail Sections
Margins

Retail Focus: Health Food Stores
Health Food Chains Oriented Toward Sports Nutritionals
GNC Stores Major Outlet
Display Of Sports Nutritionals
Products Not Carried In Some Formats
Share Of Sales Declining
Whole Foods Sports Nutritionals Section
Health Food Store Price Comparison: Major Brands
Table 5-1: Price Comparison: Sports Nutritional Products Sold In Health And Natural Food Stores
Promotions And Sales
Other Merchandising Techniques

Retail Focus: Mass-Market Outlets
Discounters Growing Outlet For Sports Nutritionals
Warehouse Club Price Comparison: Major Brands
Table 5-2: Price Comparison: Sports Nutritional Products Sold In Costco Warehouse Clubs
Sports Nutritionals Established In Some Chain Drugs
Drugstore Price Comparison: Major Brands
Table 5-3: Price Comparison: Sports Nutritional Products Sold In Drugstores
Sports Bars And Drinks In Supermarkets

Retail Focus: Other Channels
Multi-Level Marketing
Gyms And Health Clubs
Sporting Goods Stores And Bike Shops
Mail Order
The Internet

VI. The Consumer

Consumer Use
Simmons Market Research Data On Sports Nutritionals
Simmons Data On Weider And Sport Shake
Simmons Data On Sports Drinks
Simmons Data On Powerbars
Simmons Data On Sports Pain Relief Products
Use High Among Endurance Athletes
Use Among Health And Natural Food Store Shoppers
Table 6-1: Demographic Characteristics Favoring Use Of Sports Drinks, 1998 (U S Adults)
Table 6-2: Demographic Characteristics Favoring Use Of Powerbars, 1998 (U S Adults)
Table 6-3: Demographic Characteristics Favoring Use Of Sports Pain Relief Rubs/Liquids, 1998 (U S Adults)

Sports And Fitness Participation
The Potential Market For Sports Nutritionals
Simmons Data On Sports/Fitness Activities
Nsga Data On Sports/Fitness Activities
Popular Sports Are Fitness-Related
A Broadening Of The Fitness Movement
Trends In Health Club Memberships
Regular Exercisers Younger, Single, Educated, And White-Collar
Westerners, The College-Educated, And White-Collar Workers Are Frequent Exercisers
Health Clubs Draw Younger Crowd
Table 6-4: U S Adult Participation In Selected Sports And Fitness Activities, 1998 (Percent): 24 Sports Activities
Table 6-5: Participation In Selected Fitness And Sports Activities Among U S Population Age 7 Or Older, 1987-1997 (Numbers): 18 Fitness/Sports Activities
Table 6-6: Most Popular Sports And Fitness Activities Among U S Population Age 6 Or Older, 1997 (Number): 25 Sports Activities
Table 6-7: Demographic Indicators For Regular Exercisers, 1998 (U S Adults)
Table 6-8: Demographic Indicators For Frequent Exercisers, 1998 (U S Adults)
Table 6-9: Demographic Indicators For Health Club Members, 1998 (U S Adults)

Appendix I: Examples Of Consumer Advertising And Promotions
Appendix II: Addresses Of Selected Marketers