Emerging Opportunities in Sports Nutrition

Technology has made many aspects of our lives easier, providing immediate connection to loved ones and fingertip access to almost infinite amounts of information. Conversely, it has also created an environment of physical inactivity. With sedentary lifestyles taking a toll on America’s health, there is a renewed call to action—to get up, get out and exercise. Billboards, the NFL, community organizations and even the new government food pyramid are all touting the benefits of exercise and the need to be more active on a regular basis.

Consumers appear to be hearing the message. During the past six years, consumers have shown a 13-percent increase in their level of activity, from 67 percent of the population indicating they strenuously worked out at least once a week in 2003 to 76 percent saying so in 2008. As consumers continue to look for ways to promote long-term health and wellness, exercise has begun to move back up their priority lists, as they realize a “back to basics” lifestyle of healthy eating and regular activity is still the best method to achieve health-related goals.

Sports Nutrition Usage

The sports nutrition industry has showed some slowdown in growth over the last several years, possibly due to the increased scrutiny over sports “supplements,” lessened consumer demand for sugar-enhanced energy and a lack of true innovation by many firms.

However, sports nutrition products are on the rebound as 2008 showed growth across several categories, with sports hydration drinks helping to drive category usage increases, rising to 16 from 10 percent in 2007. Currently 24 percent of the population indicates they use at least one type of sports nutrition product (Figure 1).

While a portion of Sports Nutrition Users (SNU) may be high endurance athletes, it appears, on average, they reflect the general population regarding absolute level of activity. The current SNU works out strenuously for an average of 3.0 days per week, not much more than the general population (average 2.7 days). Demographically, they skew slightly younger, with an average of 40 compared to an average age of 45 for the general population. They do skew male (62 percent SNU vs. 48 percent GP) and appear to be slightly more affluent ($66.3K vs. $58.1K median income). Most surprising, however, is that they have similar body-mass index (BMI) ratings, 27.7 for SNU vs. 28.9 for GP (a range of 25 to 29.9 is considered overweight.)

Gen Y is the highest user of sports nutrition products, showing higher usage of almost all NMI measured product categories. However, on average, approximately one out of four consumers under the age of 63 is using some type of sports nutrition product (Figure 2).

Functionality Opportunity

Functional food and beverage usage has increased tremendously during the last decade, from 47 percent of the population using in 1999 to 66 percent of the population in 2008. Consumers desire more bang for their buck and want fewer empty calories and more nutrient-rich foods for better health. Not only are they looking to promote health, but they are also turning to foods and beverages, as well as other supplemental products, to help them prevent and manage health conditions.

With such “functionality” taking hold, the sports nutrition industry should take note. While sports nutrition is clearly functional by definition, there may be further opportunities under the functional umbrella.

One such example is “generation-specific” sports nutrition. Research findings show Gen X’ers are managing high levels of stress, anxiety and sleeplessness, while Boomers are significantly more likely to be managing the need to lose weight (57 percent), as well as arthritis and joint problems (45 percent), compared to younger generations. Gen Y’s, overall, are more oriented toward immunity and detoxification.

Products combining sports nutrition benefits along with functional benefits to fit generation-specific conditions would help take the guesswork out of making the best product choice depending on the consumer’s needs. In addition, it would help create further differentiation on the sports nutrition “shelf”.

Delivery Formats

The sports nutrition supplement category, while dwarfed by the size of the sports/energy drink and nutrition bar categories, is still a viable and growing category. While sports nutrition supplements often come in formats such as powders or even liquids, sports supplements in pill form are still the most common. However, desire for alternative formats is growing. In fact, SNUs index high against the population (126) for “preferring to get their supplements in other forms besides pills and capsules.” Desire for alternative formats may be driven by perceptions that traditional formats are less bio-available, less convenient for a faster-paced lifestyle, or even less easy to swallow considering the quantity of pills or dietary supplements a consumer takes. SNUs show a higher desire for more alternative formats beyond even powders and liquids, indexing high against the general population for some of the following emerging formats (Figure 3).

SNUs also reveal higher integration toward supplementation by indexing high against the GP for preferring to purchase dietary supplements that are derived from natural or organic sources. In addition, they show less price sensitivity, with over one out of four indicating they purchase the highest quality supplements even if they cost more (27 percent).

As the majority of the population is trying to recalibrate their lifestyles by trying to find the right balance—of nutrition, budgets, activity and energy—the sports nutrition industry can be there to lend a hand. Understanding the complexion of this emerging sports enthusiast and newly “active” consumer will be the challenge facing the sports nutrition industry. Condition-specific or generation-specific sports nutrition products as well as alternative format offerings are just some of the opportunities within this ever-evolving industry.

Steve French is managing partner at The Natural Marketing Institute (NMI), a strategic consulting, market research and business development firm specializing in the health, wellness and sustainability marketplace. For more information on NMI’s services or proprietary research tools, contact French at [email protected] or visit NMIsolutions.com.