The U.S. Market for Sports Nutritionals

Published: Jul 1, 1997 - 202 Pages

Table of Contents:

  1. Executive Summary
    The Products
    • History of the Industry
    • Product Breakouts

    The Market
    • 1996 Sales Reach $880 Million
    • Positive Factors Affecting Market Growth
    • Negative Factors Affecting Market Growth
    • Projected Market Growth
    • Table 1-1: Retail Sales and Growth of U.S. Sports Nutritionals Market, 1992-2001 (dollars)
    • Market Share by Product Category
    • Strength Products Dominate in Health Food Stores
    • Figure 1-1: Share of U.S. Sports Nutritional Sales by Product Category in Health Food Stores, 1996 (percent): Long-Term Endurance Products, Short-Term Energy Products, Exercise Recovery Products, Fat Burners/Meal Replacements, Strength and Body-Building Products
    • Sales by Retail Outlet Type

    The Marketers
    • A Highly Fragmented Market
    • Leading Marketers
    • Competition Pivots on Ingredients and Nutrition Science
    • Broadening the Market
    • Endorsements and Celebrities
    • New Products Drive Industry
    • New Product Trends
    • Nearly $70 Million in Measured National Consumer Advertising

    Distribution and Retail
    • Distinct Channels of Distribution
    • Health Food Chains vs. Mass Merchandisers
    • Sports Nutritional Retail Sections
    • Margins at Retail

    The Consumer
    • Weider Brand Used by One-Half Million
    • Use of Sports Nutritionals High Among Endurance Athletes
    • Use Is Growing Among Health Food Store Shoppers
    • The Potential Market—52 Million and Growing

    Scope and Methodology
    • Market Parameters
    • Report Methodology
  2. The Products
    Scope of Report
    • Sports Nutritionals Sold at Retail

    History of the Industry
    • First Products Were Protein Mixes
    • Joe Weider—A Sports Nutritionals Pioneer
    • Rodale Press Promotes Natural Health
    • First Isotonic Beverages in the 1960s
    • Weider Engages Arnold
    • East German Success at 1972 Olympics
    • GNC Targets Sports Nutritionals
    • Sports Nutrition in a Bar

    Product Breakouts
    • Five Product Categories
    • Strength and Body-Building Supplements
    • Fat Burners/Meal Replacements
    • Long-Term Endurance Products
    • Short-Term Energy Products
    • Exercise Recovery/Supportive Nutrition/Injury Treatment Products
    • Common Delivery Systems
    • Guide to Sports Nutritional Ingredients
    • Table 2-1: Guide to Strength and Body-Building Substances (Substance, Benefit, Source, Dosage, Possible Dangers): Ten Substances
    • Table 2-2: Fat Burners/Meal Replacements (Substance, Benefit, Source, Dosage, Possible Dangers): Seven Fat Burners/Meal Replacements
    • Table 2-3: Long-Term Endurance Substances (Substance, Benefit, Source, Dosage, Possible Dangers): Five Substances
    • Table 2-4: Energy (Short-Term) or Performance Substances (Substance, Benefit, Source, Dosage, Possible Dangers): Seven Substances
    • Table 2-5: Exercise Recovery and Supportive Nutrition Substances (Substance, Benefit, Source, Dosage, Possible Dangers): 13 Substances

    Government and Industry Regulators
    • Sports Supplements Regulated by the FDA
    • Promotional Materials Considered Part of Labeling
    • Role of the NLEA
    • The Dietary Supplement Health and Education Act
    • Structure/Function Statements
    • Commission Studies Additional Claims
    • Third-Party Literature
    • FDA's New Actions Against Ephedra

    Trade Associations
    • The National Nutritional Foods Association
    • The National Sporting Goods Association
    • The Sporting Goods Manufacturers Association
  3. The Market
    • Figure 3-1: U.S. Retail Sales of Sports Nutritionals, 1992-1996 (dollars)

    Market Size and Growth
    • Note on Sales Estimates
    • 1996 Sales Reach $880 Million
    • Table 3-1: U.S. Retail Sales of Sports Nutritionals, 1992-1996 (dollars)

    Market Composition
    • Market Share by Product Category
    • Figure 3-2: Share of U.S. Sports Nutritional Sales by Product Category, 1996 (percent): Long-Term Endurance Products, Short-Term Energy Products, Exercise Recovery Products, Fat Burners/Meal Replacements, Strength and Body-Building Products
    • Strength Products Dominate in Health Food Stores
    • Figure 3-3: Share of U.S. Sports Nutritional Sales by Product Category in Health Food Stores, 1996 (percent): Long-Term Endurance Products, Short-Term Energy Products, Exercise Recovery Products, Fat Burners/Meal Replacements, Strength and Body-Building Products
    • Sales by Retailer Type
    • Figure 3-4: Share of U.S. Sports Nutritional Sales by Retail Outlet Type, 1996 (percent): Health Food Chains, Mass Merchandisers, Drugstores, Multi-Level Marketers, Other Health and Natural Food Stores, Supermarkets, Other Outlets
    • Sunbelt and College Towns
    • Spring and Summer Stronger Sales Periods

    Factors Affecting Market Growth
    • Aging Population Wants Youthful Performance
    • Table 3-2: Projections of U.S. Households by Age of Householder, 1997-2001 (number and percent): From Under Age 25 to Age 75 and Older
    • Growing Awareness of Sports Nutrition
    • Time-Pressed Shoppers Seek Quick Energy and Nutrition
    • Sports Nutrition Gains Legitimacy
    • DSHEA Helps Gives Marketers New Tools
    • Claims Are Limited, But Give Products Credibility
    • Research Supports Interest in Supplements
    • But Claims for Some Products Are Questionable
    • Increase in Health Club Participation
    • Increase in Weight Training
    • Increase in "Radical" Sports
    • Companies Driving Market with New Products
    • New Proteins Provide Better Drinks
    • Marketers Targeting Average Consumer
    • But Products Still Suffer from "Muscle" Image
    • Products Have a Growing Presence in Mass Market
    • Juice Bars Spread Sports Nutrition Ingredients
    • Some Health and Natural Food Retailers Reluctant to Stock
    • General Nutrition Builds on Competitive Difference
    • Figure 3-5: Projected U.S. Retail Sales of Sports Nutritionals, 1996-2001 (dollars)

    Projected Market Growth
    • Sales to Surpass $1.4 Billion in 2001
    • Table 3-3: Projected U.S. Retail Sales of Sports Nutritionals, 1996-2001 (dollars)
  4. The Marketers
    The Marketers
    • A Highly Fragmented Market
    • Major Players
    • Top Companies in Health Food Stores
    • Top Companies in the Mass Market
    • VSM Companies Branching Out
    • Single-Product or Limited-Line Companies
    • Table 4-1: The U.S. Market for Sports Nutritionals: Selected Marketers by Brand Line and Product (107 Marketers and 155 Products)

    Marketer and Brand Shares
    • Twin Laboratories Leads Industry
    • Powerfood Holds 60% of Sports Bar Category
    • Nature's Best Data on Wholesale Share
    • Table 4-2a: Leading Sports Nutritional Products from Nature's Best, 3rd Quarter 1996: Capsules and Tablets (percent): 10 Companies/Brands/Products
    • Table 4-2b: Leading Sports Nutritional Products from Nature's Best, 3rd Quarter 1996: Powder & Liquids (percent): 10 Companies/Brands/Products

    Competitive Overview
    • Ingredient-Driven Products
    • More Attention to Complete Programs and Supportive Nutrition
    • Women Targeted
    • Endorsements and Celebrities
    • Companies Use Education to Support New Products
    • Marketers Promote Through Health-Food Trade Publications
    • Energy Bar Competition Heats Up

    Competitive Profile: AmeriFIT, Inc.
    • Corporate Overview
    • Product Line
    • Formerly Strength Systems USA
    • Record Growth in 1996
    • Marketing Programs
    • Future Plans

    Competitive Profile: Experimental and Applied Sciences, Inc. (EAS)
    • Corporate Overview
    • First to Introduce Creatine Monohydrate and HMB
    • New Corporate Headquarters
    • Information-Driven Company
    • Future Plans

    Competitive Profile: General Nutrition Companies, Inc.
    • Corporate Overview
    • A Sixty-Year Legacy
    • General Nutrition's Sports Nutritionals
    • Methods of Competition
    • International Activities
    • Aggressive Growth Planned

    Competitive Profile: Gum Tech International, Inc.
    • Corporate Overview
    • First Product: Natural Caffeine Gum
    • Unique Delivery System
    • Excess Inventory Traded for Advertising Credits
    • Available in Many Outlets
    • New and Future Products

    Competitive Profile: Herbalife International, Inc.
    • Corporate Overview
    • Dozens of Herbal-Based Products
    • Network Marketing
    • History and Growth
    • Multi-Million Dollar Advertiser
    • Future Objectives

    Competitive Profile: MET-Rx USA, Inc.
    • Corporate Overview
    • Most Sales Direct or Through Health Food, Fitness Outlets
    • Beefed-Up Marketing Builds Sales
    • The Celebrity Image

    Competitive Profile: MLO Products
    • Corporate Overview
    • Sales Through All Outlets
    • Broadening Its Market

    Competitive Profile: Optimum Nutrition, Inc.
    • Corporate Overview
    • Types of Products
    • A Focus on Innovation

    Competitive Overview: Powerfood, Inc.
    • Corporate Overview
    • Founded by a Frustrated Marathoner
    • Available Through All Outlets
    • The Product Mix
    • Sampling and Sponsoring Events
    • TV Advertising in 1996
    • Plans for Growth

    Competitive Profile: Twin Laboratories, Inc.
    • Corporate Overview
    • History and Growth
    • Company's Largest Customers
    • Twinlab's Sports Nutritionals
    • Products with Ma Huang
    • A Heavy Advertiser
    • Move Toward the Mainstream
    • Philosophy and Plans

    Competitive Profile: Weider Nutrition Group
    • Corporate Overview
    • Distinct Sports Brands for Distribution Channels
    • Company History and Growth
    • Liberal Advertising
    • Future Plans

    Marketing and New Product Trends
    • Growing Emphasis on New Products
    • Medical Claims Getting Stronger
    • Number of Product Introductions Growing
    • Table 4-3: U.S. Sports Nutritional New Product Introductions, 1990-1996 (SKUs)
    • "Hot" New Supplements
    • Beyond Muscle Men
    • Move Toward Fat-Burning, Energy, Endurance, and Recovery
    • Sports Gels and Gums
    • Table 4-4: The U.S. Market for Sports Nutritionals: Selected New Product Introductions, 1996-Mid 1997 (57 Marketers/Brands)

    Consumer Advertising Expenditures
    • Use of Advertising
    • Use of Muscle Magazines
    • Other Media Used
    • Nearly $70 Million Spent on National Consumer Advertising in 1996
    • General Nutrition the Major Spender
    • Twin Laboratories and Weider
    • Other Multi-Million Advertisers
    • Measured Advertising Expenditures of Over One-Half Million Dollars
    • Additional Unmeasured Expenditures

    Consumer Advertising Positioning
    • Bodies, Endorsements Sell Products
    • Products for the Elite
    • Supplements Go to War
    • Products Offer Non-Conformity
    • Technical and Scientific Claims
    • Ads Tout Convenience
    • All-Natural in a Synthetic World
    • Examples of Consumer Advertising

    Consumer Promotion
    • Education Is Key
    • Marketers Promote Products Through Own Publications
    • Celebrity Endorsements and Event Sponsorships

    Trade Advertising and Promotion
    • Use of Trade Ads
    • Displays Compete for Retail Space
    • Education to the Trade
    • Trade Shows
    • Discounts Are Common Promotion
    • Retailer Contests and Perks
    • Examples of Trade Advertising
  5. Distribution And Retail
    Distribution
    • Several Distinct Channels
    • Warehouse Delivery Used in Mass Market
    • McKesson Corp. Leading Supplement Wholesaler
    • Mass-Market Drug Wholesalers Consolidating
    • Independent Distributors to Health and Natural Food Stores
    • Several Large Distributors Dominate Health Food Channel
    • Health Food Distributor Services
    • Specialty Sports Distributors
    • Distribution Through Gyms and Health Clubs
    • Direct Shipments Through Common Carriers
    • Benefits of Direct Shipment
    • Margins for the Two Main Channels
    • Brokers Support Marketers' Sales Efforts

    Retail
    • Health Food Chains Claim Largest Retail Share
    • Table 5-1: Share of U.S. Sports Nutritional Sales by Retailer Type, 1996 (percent): Health Food Chains, Mass Merchandisers, Drugstores, Multi-Level Marketers, Other Health and Natural Food Stores, Supermarkets, Other Outlets Sports Nutritional Retail Sections
    • Margins

    At the Retail Level: Health Food Stores
    • Health Food Chains More Oriented Toward Supplements
    • GNC Stores Are Major Outlet
    • Display of Sports Nutritionals
    • Regular Promotions and Special Sales
    • Not All Health and Natural Food Stores Carry Products
    • Table 5-2: Price Comparison: Sports Nutritional Products Sold in Health and Natural Food Stores (dollars): Marketer/Brand/Product, Wholesale Price, Retail Price
    • Share of Sales Declining
    • Merchandising and Display Techniques

    At the Retail Level: Mass-Market Outlets
    • Mass Merchandisers a Growing Outlet
    • Table 5-3: Price Comparison: Sports Nutritional Products Sold in Costco Warehouse Clubs (dollars):
    • Marketer/Brand/Product, Size, Price
    • Drugstores Benefit from Shift to Mass Market
    • Table 5-4: Price Comparison: Sports Nutritional Products Sold in Drugstores (dollars): Marketer/Brand/Product, Size, Price Sports Bars in Supermarkets

    At the Retail Level: Other Outlets
    • Multi-Level Marketing
    • Gyms and Health Clubs
    • Sporting Goods Stores and Bike Shops
    • Mail Order and the Internet
  6. The Consumer
    Consumer Use and Attitudes
    • Simmons Market Research Data on Sports Nutritionals
    • Usage High Among Endurance Athletes
    • Serious Athletes Spend Over $1,000 Annually
    • Average Customer Spends $40 Monthly on Supplements
    • Use Is Growing Among Health Food Shoppers
    • A More Informed Consumer

    Sports and Fitness Trends
    • The Potential Market—52 Million and Growing
    • Growth in Frequent Exercisers Over Age 40
    • NSGA Data Suggest Increase in Fitness and Sports Participation
    • Table 6-1: NSGA Data on Participation in Selected Fitness and Sports Activities: By U.S. Population Age 7 or Older, 1986-1996 (number and percent): 15 Selected Activities
    • SGMA Data on Sports/Fitness/Outdoor Activity Participation
    • Health Club Memberships Approach 21 Million
    • Table 6-2: SGMA Data on Participation in Selected Fitness and Sports Activities: By U.S. Population Age 6 or Older, 1987-1996 (number and percent): 29 Selected Activities

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

Abstract:

The sports supplement industry began in specialty body-building magazines in the late 1940s and early 1950s. At that time, the products, publications, and body-building profession were closely connected. Ads for one of the first lines, Hoffman Protein Products, appeared in Strength and Health magazine, Bob Hoffman's publication. Joe Weider, the founder of the International Federation of Body Builders (IFBB) in the late 1940s, also marketed products in his own publication, Your Physique. Weider's company, the Weider Nutrition Group, remains very much involved in professional body building to this day.

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