Market Research Updates
SPINS Releases Natural Products Marketplace Report
San Francisco-based SPINS (www.spins.com) released its new Natural Products Marketplace Report (NPMR). The 124-page report details information on retail statistics, sales trends and impact of macro trends on the industry.
SPINS estimates sales of natural products within the mainstream channels at $7.4 billion in mainstream food outlets, $2.3 billion in mainstream drug stores and $528.3 million in mass market stores. Looking at the top 10 categories, SPINS notes a cross section of traditional products such as produce and nondairy beverages are integrated with mainstream categories such as carbonated beverages. Packaged fresh produce, energy bars and gels, waters and nondairy beverages are the strongest drivers; vitamins, minerals and supplements are showing significantly less growth.
On the ingredient side, SPINS noted, "Many times, the cause of success, or decline, for a supplement category is popularity of a certain ingredient." While calcium is the "hottest" ingredient, negative publicity on St. John's wort and kava have stymied sales. Top growth ingredients include calcium (20 percent increase), garcinia (251.8 percent), soy foods (5.8 percent), iron (37.6 percent) and fish oil concentrate (50.5 percent). Low-growth ingredients include ginkgo (-26.8 percent), ginseng (-29 percent), St. John's wort (-34.9 percent), chromium (-24.7 percent) and kava (-50.4 percent).
NMI Explores LOHAS Market
The Natural Marketing Institute (NMI) released its second annual survey of the Lifestyles of Health and Sustainability (LOHAS) market. Harleysville, Pa.-based NMI noted nearly one-third of consumers, or 68 million adults, are concerned about various environmental and social issues and are conscientious of those issues when making purchase decisions--up 7 percent from 2002.
Overall, consumers indicated high interest levels in protecting the environment (91 percent), socially responsible business practices (83 percent) and preference for purchasing products made in a sustainable manner (59 percent). They also showed strong interest in specific product categories such as energy-efficient appliances (96 percent), renewable power (74 percent), organic food (53 percent) and hybrid vehicles (56 percent).
NMI (www.nmisolutions.com) based the research results on responses from more than 2,000 U.S. adults surveyed in April 2003. A series of nine reports, Understanding the LOHAS Consumer Report, is now available.
Americans Exercising, Eating Healthy: Mintel
More than half of Americans (56 percent) say they exercise at least three times a week, according to new consumer research from Chicago-based Mintel (www.mintel.com). A similar number claims to be trying to eat healthier foods. These are among the findings from Mintel's research on the weight-control market.
Some 40 percent of consumers who were on a weight-control program in the past year used either weight-control drinks or pills, with 31 percent using drinks and 21 percent using pills. The 18-to-24 age group is most likely to use weight control products, with usage of weight control aids declining notably beyond age 44.
Mintel also found that 70 percent of respondents to this March-April 2003 survey were concerned about the negative effects of diet pills, and only 29 percent thought such pills were effective for weight loss.
U.S. Nutraceuticals Report Available
Research & Markets (R&M) (www.researchandmarkets.com) released the U.S. Nutraceuticals Report, examining consumer behavior and acceptance of nutraceutical products and future opportunities in the U.S. market.
The company expects the U.S. nutraceutical market to reach a value of $35.4 billion by 2006, driven in large part by double-digit growth in the dairy sector. The majority of growth opportunity is in standard and performance products, and R&M expects to see further blending of the dietary supplement market with the OTC (over-the-counter) market.
Action points include urging manufacturers to better target ethnic markets, and developing nutraceutical products with additional functional benefits tailored to specific target consumer groups.
Essential Oil, Oleoresin Market Growing
The total European and U.S. essential oil and oleoresin market is currently valued at $653 million, with sales projected to top $796 million by 2009, according to a new report from Frost & Sullivan (http://frost.com). The market research firm noted the rising consumer demand for natural food products, together with requirements for flavoring compounds from natural sources, is driving market growth.
Functional food applications and dietary supplements are key development areas for essential oils and oleoresins, the report noted; however, there are challenges ahead in increasingly stringent European legislation resulting in tighter control in use of ingredients as well as labeling. Also, U.S. manufacturers of essential oils and oleoresins are facing intense competition from Asian firms that are undercutting prices.
To combat lower-priced synthetic and Asian offerings, Frost & Sullivan suggest companies develop value-added packages, using branding strategies, to differentiate products and gain competitive advantages.
Organic Foods Sales Growing Fast
Sales of organic foods and beverages reached $1 billion in 1990, but climbed to $11 billion by 2002, according to The U.S. Market for Organic Foods and Beverages, a new report from Packaged Facts (www.marketresearch.com). Among the factors influencing the growth are the new U.S. Department of Agriculture (USDA) labeling regulations and consumers' increased health consciousness. This report is the first in a three-volume series from Packaged Facts about wellness foods and beverages.
