Market Research Updates

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-pagereport details information on retail statistics, sales trends and impact ofmacro 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 storesand $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 nondairybeverages are integrated with mainstream categories such as carbonatedbeverages. Packaged fresh produce, energy bars and gels, waters and nondairybeverages are the strongest drivers; vitamins, minerals and supplements areshowing 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 certainingredient." While calcium is the "hottest" ingredient, negativepublicity on St. John's wort and kava have stymied sales. Top growth ingredientsinclude calcium (20 percent increase), garcinia (251.8 percent), soy foods (5.8percent), 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 (-50.4percent).

NMI Explores LOHAS Market

The Natural Marketing Institute (NMI) released its second annual survey ofthe Lifestyles of Health and Sustainability (LOHAS) market. Harleysville,Pa.-based NMI noted nearly one-third of consumers, or 68 million adults, areconcerned about various environmental and social issues and are conscientious ofthose issues when making purchase decisions--up 7 percent from 2002.

Overall, consumers indicated high interest levels in protecting theenvironment (91 percent), socially responsible business practices (83 percent)and preference for purchasing products made in a sustainable manner (59percent). They also showed strong interest in specific product categories suchas energy-efficient appliances (96 percent), renewable power (74 percent),organic food (53 percent) and hybrid vehicles (56 percent).

NMI (www.nmisolutions.com) basedthe research results on responses from more than 2,000 U.S. adults surveyed inApril 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 threetimes 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 thefindings from Mintel's research on the weight-control market.

Some 40 percent of consumers who were on a weight-control program in the pastyear used either weight-control drinks or pills, with 31 percent using drinksand 21 percent using pills. The 18-to-24 age group is most likely to use weightcontrol products, with usage of weight control aids declining notably beyond age44.

Mintel also found that 70 percent of respondents to this March-April 2003survey were concerned about the negative effects of diet pills, and only 29percent 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 andacceptance of nutraceutical products and future opportunities in the U.S.market.

The company expects the U.S. nutraceutical market to reach a value of $35.4billion by 2006, driven in large part by double-digit growth in the dairysector. The majority of growth opportunity is in standard and performanceproducts, and R&M expects to see further blending of the dietary supplementmarket with the OTC (over-the-counter) market.

Action points include urging manufacturers to better target ethnic markets,and developing nutraceutical products with additional functional benefitstailored to specific target consumer groups.

Essential Oil, Oleoresin Market Growing

The total European and U.S. essential oil and oleoresin market is currentlyvalued 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 foodproducts, together with requirements for flavoring compounds from naturalsources, is driving market growth.

Functional food applications and dietary supplements are key developmentareas for essential oils and oleoresins, the report noted; however, there arechallenges ahead in increasingly stringent European legislation resulting intighter control in use of ingredients as well as labeling. Also, U.S.manufacturers of essential oils and oleoresins are facing intense competitionfrom Asian firms that are undercutting prices.

To combat lower-priced synthetic and Asian offerings, Frost & Sullivansuggest companies develop value-added packages, using branding strategies, todifferentiate products and gain competitive advantages.

Organic Foods Sales Growing Fast

Sales of organic foods and beverages reached $1 billion in 1990, but climbedto $11 billion by 2002, according to The U.S. Market for Organic Foods andBeverages, a new report from Packaged Facts (www.marketresearch.com).Among the factors influencing the growth are the new U.S. Department ofAgriculture (USDA) labeling regulations and consumers' increased healthconsciousness. This report is the first in a three-volume series from PackagedFacts about wellness foods and beverages.