Functional Foods and Beverages - US - November 2006

Table of Contents

1. Overview

• 1.1 Statement of Report
• 1.2Objectives
• 1.3 Scope
• 1.4 Methodology
• 1.5 Executive Summary

2. Nutraceuticals and Dietary Supplements Markets

• 2.1 Overview
  • 2.1.1 DSHEA Classification
  • 2.1.2 DSHEA
• 2.2 Food and Drug Administration Policy
• 2.3 Voluntary Industry Compliance to GMPs
  • 2.3.1 Current Progress
  • 2.3.2 Future Trends
• 2.4 Key Issues
  • 2.4.1 Herbals: Standardized Dosage
  • 2.4.2 Vitamin Supplements
  • 2.4.3 Mineral Supplements
    • 2.4.3.1 PEST Analysis of Vitamin and Mineral Deficiencies in Food
  • 2.4.4 Homeopathic Remedies
    • 2.4.4.1 Key Issues in Homeopathy
    • 2.4.4.2 What Is Homeopathy?
    • 2.4.4.3 History
    • 2.4.4.4 U.S. Revival of Homeopathy
    • 2.4.4.5 Homeopathic Training
    • 2.4.4.6 Homeopathic Treatment Regimen
    • 2.4.4.7 Homeopathic Remedies
    • 2.4.4.8 FDA Regulation of Homeopathic Remedies
    • 2.4.4.9 Homeopathy: Side Effects or Complications
    • 2.4.4.10 Scientific Research on Homeopathy
    • 2.4.4.11 Continuing Homeopathic Controversies
    • 2.4.4.12 NCCAM-Funded Research on Homeopathy
  • 2.4.5 Essential Oils
• 2.5 Labeling Requirements
  • 2.5.1 Nutrient Content Claims
  • 2.5.2 Antioxidant Claims
  • 2.5.3 High Potency Claims
  • 2.5.4 Percentage Claims
  • 2.5.5 Health Claims
  • 2.5.6 Structure and Function Claims

3. Nutraceuticals Market Segments

• 3.1 Overview
  • 3.1.1 World Markets
  • 3.1.2 U.S. Market
• 3.2 Market Trends
  • 3.2.1 Market Segments
  • 3.2.2 Customer Needs
  • 3.2.3 Competitor Analysis
• 3.3 Pricing Pressures
  • 3.3.1 "Big Box" Retailing
  • 3.3.2 Internet Retailing
  • 3.3.3 Mail Order
  • 3.3.4 Chain Retail Outlets
  • 3.3.5 "Mom and Pop" Health Food Stores
  • 3.3.6 Multi-Level Marketing (MLM)
• 3.4 Third-Party Reimbursement
• 3.5 Regulation Trends
  • 3.5.1 Food Labeling and Nutrition
  • 3.5.2 Dietary Supplements
  • 3.5.3 Public Meetings and Hearings
  • 3.5.4 Herbs and Botanicals Market: New Opportunities
  • 3.5.5 Current Market Dynamics
  • 3.5.6 Quality Issues
  • 3.5.7 Regulatory Pressures
  • 3.5.8 Opportunities
  • 3.5.9 Other Opportunities
• 3.6 Advertising
• 3.7 Women's Health
• 3.8 Distribution and Sales
  • 3.8.1 Branded Products
  • 3.8.2 Mass-Market Sales
  • 3.8.3 Health Food Channels

4. Technology Issues

• 4.1 Raw Material Variability
  • 4.1.1 Realities of Natural Products
  • 4.1.2 Source Variability
  • 4.1.3 Method of Production/Acquisition Variability
  • 4.1.4 Testing Issues
    • 4.1.4.1 United States Pharmacopoeia (USP)
    • 4.1.4.2 NSF International
    • 4.1.4.3 Animal Testing
• 4.2 Production Methods
• 4.3 Change Control: OEM Materials and Production Methods
  • 4.5.2.1 Tryptophan (Essential Amino Acid)
• 4.4 Cleanliness, Sterilization Methods, Concerns
• 4.5 Categories of Nutraceuticals
  • 4.5.1 Aloe Products
  • 4.5.2 Amino Acids
    • 4.5.2.1 Tryptophan (Essential Amino Acid)
    • 4.5.2.2 Lysine (Essential Amino Acid)
    • 4.5.2.3 Methionine (Essential Amino Acid)
    • 4.5.2.4 Phenylalaine (Essential Amino Acid)
    • 4.5.2.5 Threonine (Essential Amino Acid)
    • 4.5.2.6 Valine (Essential Amino Acid)
    • 4.5.2.7 Leucine and Isoleucine (Essential Amino Acid)
    • 4.5.2.8 Arginine (Non-Essential Amino Acid)
    • 4.5.2.9 Tyrosine (Non-Essential Amino Acid)
    • 4.5.2.10 Glycine (Non-Essential Amino Acid)
    • 4.5.2.11 Serine (Non-Essential Amino Acid)
    • 4.5.2.12 Glutamic Acid (Non-Essential Amino Acid)
    • 4.5.2.13 Asparatic Acid (Non-Essential Amino Acid)
    • 4.5.2.14 Taurine (Non-Essential Amino Acid)
    • 4.5.2.15 Cystine (Non-Essential Amino Acid)
    • 4.5.2.16 Histidine (Non-Essential Amino Acid)
    • 4.5.2.17 Proline (Non-Essential Amino Acid)
    • 4.5.2.18 Alanine (Non-Essential Amino Acid)
  • 4.5.3 Antioxidants
  • 4.5.4 Aromatherapy
  • 4.5.5 Beauty Products
  • 4.5.6 Bee Products
  • 4.5.7 Calcium
  • 4.5.8 Cardiovascular Health
  • 4.5.9 Children's Vitamins and Minerals
  • 4.5.10 Coenzymes
  • 4.5.11 Colon Products
  • 4.5.12 Diet Products
  • 4.5.13 Enzymes
  • 4.5.14 Eye Care and Nutrition Products
  • 4.5.15 Food Supplements
  • 4.5.16 Foot Care Products
  • 4.5.17 Garlic
  • 4.5.18 Green Foods
  • 4.5.19 Hair Care Products
  • 4.5.20 Herbal Products and Tea
    • 4.5.20.1 Alfalfa (mendicago sativa)
    • 4.5.20.2 Aloe Vera (aloe barbadenis)
    • 4.5.20.3 Blessed Thistle
    • 4.5.20.4 Burdock Root
    • 4.5.20.5 Capsicum or Cayenne (capsicum frutescens)
    • 4.5.20.6 Cascara Sagrada or "Sacred Bark" (rhamnus purshiana) 84
    • 4.5.20.7 Chamomile 84
    • 4.5.20.8 Chapparal 84
    • 4.5.20.9 Comfrey 85
    • 4.5.20.10 Echinacea (echinacea angustifolia)
    • 4.5.20.11 Euphrasia (euphrasia officinalis)
    • 4.5.20.12 Fo Ti (polygonum multiflorum)
    • 4.5.20.13 Garlic (allium sativum)
    • 4.5.20.15 Ginseng (panax ginseng)
    • 4.5.20.14 Ginger (zangiber officinale)
    • 4.5.20.16 Gotu Kola (hydrocotyle asiatica or centella asiatica)
    • 4.5.20.17 Green Tea Extract
    • 4.5.20.18 Hawthorne Berries (crataegus oxyacantha)
    • 4.5.20.19 Hyssop
    • 4.5.20.20 Licorice
    • 4.5.20.21 Ma Huang
    • 4.5.20.22 Mullein
    • 4.5.20.23 Rose Hips (rosa canina)
    • 4.5.20.24 Sarsaparilla (smilax officinalis)
    • 4.5.20.25 Saw Palmetto or Pygeum Extract
    • 4.5.20.26 Soy Isoflavone Extract
    • 4.5.20.27 Spirulina
    • 4.5.20.28 St. John's Wort Extract
    • 4.5.20.29 Turmeric
    • 4.5.20.30 Valerian
    • 4.5.20.31 Yellow Dock
  • 4.5.21 Homeopathy
  • 4.5.22 Minerals
    • 4.5.22.1 Calcium
    • 4.5.22.2 Magnesium
    • 4.5.22.3 Iron
    • 4.5.22.4 Iodine
    • 4.5.22.5 Chromium
    • 4.5.22.6 Copper
    • 4.5.22.7 Magnesium, Magnesium Oxide
    • 4.5.22.8 Manganese
    • 4.5.22.9 Potassium
    • 4.5.22.10 Selenium
    • 4.5.22.11 Silver, Colloidal
    • 4.5.22.12 Zinc
    • 4.5.22.13 Trace Minerals
  • 4.5.23 Multivitamins
  • 4.5.24 Nutritional Oils
    • 4.5.24.1 Flaxseed/Linseed Oil
    • 4.5.24.2 Black Currant Oil
    • 4.5.24.3 Borage Seed Oil
    • 4.5.24.4 Cod Liver Oil
    • 4.5.24.5 Evening Primrose Oil
    • 4.5.24.6 Omega-3/Fish Oils
  • 4.5.25 Personal Care Products
    • 4.5.25.1 Hyaluronic Acid
    • 4.5.25.2 Natural Beauty Soaps
    • 4.5.25.3 Creams
  • 4.5.26 Vitamins
    • 4.5.26.1 Vitamin A (Beta-Carotene)
    • 4.5.26.2 Vitamin B-1 (Thiamin)
    • 4.5.26.3 Vitamin B-2 (Riboflavin)
    • 4.5.26.4 Vitamin B-3 (Niacin)
    • 4.5.26.5 Vitamin B-6 (Pyridoxine)
    • 4.5.26.6 Vitamin B-12 (Cobalamin)
    • 4.5.26.7 Vitamin C (Ascorbic Acid)
    • 4.5.26.8 Vitamin D (Calciferol)
    • 4.5.26.9 Vitamin E (Tocopherol)
    • 4.5.26.10 Pantothenic Acid
    • 4.5.26.11 Biotin
    • 4.5.26.12 Folic Acid
    • 4.5.26.13 Inositol
    • 4.5.26.14 Choline
    • 4.5.26.15 PABA (Para Amino Benzoic Acid)
  • 4.5.27 Women's Products
• 4.6 Functional Foods
• 4.7 Category Variations and Combinations
  • 4.7.1 Joint Compounds
  • 4.7.2 Memory Assistance Products
  • 4.7.3 Men's Products
  • 4.7.4 Children's Vitamins and Minerals
  • 4.7.5 Teenagers' Vitamins and Minerals
  • 4.7.6 Sports Products
  • 4.7.7 Cardiovascular Health
  • 4.7.8 Pet Products
• 4.8 Future Directions

5. Business Trends

• 5.1 Market Drivers
  • 5.1.1 Medical and Clinical Studies
  • 5.1.2 Preventive Medicine
    • 5.1.2.1 Controversy Over Mega Doses
    • 5.1.2.2 Proven Supplements
    • 5.1.2.3 Dangerous Interactions
  • 5.1.3 Holistic Medicine
  • 5.1.4 CAM: Complementary and Alternative Medicine
  • 5.1.5 Demographics
  • 5.1.6 Growing Convergence in Conventional Medicine and Alternatives
  • 5.1.7 Changing Lifestyles
  • 5.1.8 Increasing Healthcare Costs
  • 5.1.9 Increasing Consumer Interest in a Healthy Lifestyle
• 5.2 Market Prospects
• 5.3 Marketing and Distribution
  • 5.3.1 "Big Box" Retailing
  • 5.3.2 Internet Marketing
  • 5.3.3 Mail Order
  • 5.3.4 Chain Retail Outlets (Grocery, Dedicated)
  • 5.3.5 "Mom and Pop" (Stand Alone) Health Food Stores
  • 5.3.6 MLM (Multi Level Marketing)
  • 5.3.7 Customized Nutraceuticals
  • 5.3.8 Ethnic-Specific Nutraceuticals
  • 5.3.9 Managing Glycemic Response
• 5.4 Competitive Landscape
• 5.5 Business Developments
• 5.6 Acquisitions and Partnerships
• 5.7 Key Players

6. Product Innovations and Introductions

• 6.1 Recently-Announced Product Innovations/Introductions
• 6.2 Future Technologies

7. Recently-Announced Industry Activity

8. Corporate Profiles

• 8.1 Advanced Nutraceuticals
• 8.2 General Nutrition Center (GNC)
• 6.1 Recently-Announced Product Innovations/Introductions
• 8.3 Leiner Health Products
• 8.4 Natrol
• 8.5 NBTY
• 8.6 Nutraceutical International Corporation
• 8.7 Perrigo Company
• 8.8 Puritan's Pride
• 8.9 Schiff

9. List of Nutraceutical Companies

INDEX OF FIGURES

• Figure 3.1: U.S. Nutraceuticals Market Product Groups Ranked by Sales: 2005
• Figure 3.2: U.S. Nutraceuticals Market Product Groups Ranked by Market Share: 2005
• Figure 3.3: U.S. Top Selling Vitamins: 2005
• Figure 3.4: U.S. Sales of Non-Vitamin Nutraceuticals in 2005
• Figure 4.1: Typical Key Nutraceutical Production Steps
• Figure 5.1: U.S. Population by Age Clusters
• Figure 5.2: Representative Major U.S. Producers by Market Capitalization

LIST OF TABLES

• Table 2.1: Disclosure Statement Requirements Threshold (FDA)
• Table 3.1: Total World Retail VMS Market
• Table 3.2: Number of Vitamins/Minerals Consumed per Day by Nutraceutical Consumers
• Table 3.3: Worldwide Nutraceuticals Market Sales: 2002 to 2012
• Table 3.4: World Market for Essential Minerals: 2002 to 2012
• Table 3.5: Vitamins in Nutraceutical Products Market: 2002 to 2012
• Table 3.6: Worldwide Demand for Herbal and Non-Herbal Extracts
• Table 3.7: U.S. Nutraceuticals Market Sales: 1999 to 2012
• Table 3.8: U.S. Natural Foods Market Sales: 2005 to 2012
• Table 3.9: U.S. Vitamin and Minerals Market Sales: 2005 to 2012
• Table 3.10: U.S. VMS FDMC Total Market
• Table 3.11: U.S. VMS FDMC Store Brand Market
• Table 3.12: U.S. Herbs and Botanicals Market Sales: 2005 to 2012
• Table 3.13: U.S. Personal Care Market Sales: 2005 to 2012
• Table 3.14: U.S. Sports Nutrition Market Sales: 2005 to 2012
• Table 3.15: Market Share of U.S. VMS FDMC Segment
• Table 3.16: Market Drivers: 2006 to 2012
• Table 3.17: Market Restraints: 2005 to 2012
• Table 4.1: Organic Foods Categories and Market Share: 2005
• Table 4.2: Total U.S. Organic Food Sales Compared to All U.S. Foods Sales: 1997 to 2005
• Table 4.3: Foods Most/Least Likely to Be Pesticide-Contaminated
• Table 5.1: U.S. Healthcare Expenditures in 2003
• Table 5.2: Key Players in U.S. Market