Nutrition industry growth to continue, but safety concerns remain
continued growth in the US nutrition industry, but intelligent
science-based marketing and consumer communication should help keep
sales high, claims a new report.
Concerns about the safety of certain products could overshadow continued growth in the US nutrition industry, according to a new report by Nutrition Business Journal.
The study showed that sales in the US nutrition industry grew to $52.9 billion in 2001, a 6.7 per cent increase on the previous year, with sales in the dietary supplement segment reaching $17.7 billion, natural and organic foods totalling $12.6 billion, natural personal care products $4.1 billion and functional foods $18.5 billion.
There were substantial differences in growth between products, the NBJ study showed. For example, while vitamin sales rose just 1 per cent and herbal supplements only 1.4 per cent, sports and weight loss supplements showed a 13 percent jump over the previous year, far outstripping growth of 4 per cent in the total supplement segment.
The success of sports and weight loss products was attributed to a variety of factors , including a sharp increase in the number of new users moving over from other supplement products, positive lifestyle marketing, convenience and a major push by manufacturers to market these products in the mass market.
But this growth will not necessarily continue unchecked, the NBJ warned, with a number of concerns likely to act as a check on future growth. Chief among these is the question of product safety. Increasing numbers of products are having their safety and efficacy called into question, and while this does not necessarily mean that they will be found to be dangerous, such concerns will inevitably mean a change in consumer choice.
These safety concerns have also prompted calls for tighter regulation of the industry - which is largely self-regulating at present - and this too could impact future growth, as could media coverage and the pace of new product development.
The report suggests that more effective science-based marketing is the best solution to problems plaguing the supplement segment - backed up by broader consumer education efforts by government, the medical community and increased collective industry action.
The potential for growth is extremely high, but companies must take action to ensure that this potential is fulfilled and cannot simply sit back and wait for it to happen, the report concludes.
