A Look Into The Nutraceutical Industry

The role of food in total health care is notCompetition factors for the Sports Nutrition
something new to mankind. The use of food toMarket
maintain man's health is as natural as day andProduct/brand differentiation
night. More than 2,000 years ago, Hippocrates,Because of greater saturation and competition in
considered as the father of medicine, said, "Letthe marketplace sports nutrition products look
food be your medicine and medicine be youralike and sound the same. Maintaining a brand that
food." It is this principle that eventually led to thestands apart from the rest is difficult but a thing
explosion of the nutraceutical industry.to strive for.
The nutraceutical industry is concerned withResearch-substantiated claims.
nutraceuticals, that is, " food or part of a foodConsumers' ability to make intelligent choices
that offers medical and/or health benefits includingshould never be underestimated. People place
prevention or treatment of disease."more faith endorsements by university
All therapeutic areas such as anti arthritic, cold andprofessors and doctors and claims backed by
cough, pain killers, digestion, sleeping disorders,independent research than by endorsements by
blood pressure, cholesterol, prevention of certaincelebrities.
cancers, osteoporosis, depression and diabetesCore products and strategies
are covered by nutraceuticals.A good strategy now is to focus development of
Products range from herbal dietary supplements,core products or integrating with large food and
actual food components in dosage form such aspharmaceutical concerns (e.g., Powerbar,
capsules or tablets to beverages fortified withBalanceBar).
vitamins and genetically engineered designerE-commerce
foods, functional foods, processed foods such asFor small companies that cannot or will not rely on
cereal, soup and beverages.strong distribution relationships, e-commerce is an
Functional foods, the most popular term amongincreasingly attractive option.
consumers are modifieds food or food ingredientsBasis for marketing strategy
that may provide a health benefit beyond theThe factors for competition stated above have
traditional nutrients it contains.been gleaned from researches of what
Nutraceuticals is widely popular in the US, Canada,consumers are willing to pay for. Overall,
Japan, and Europe and has garnered $80 billioncustomers want:
dollars in revenues. The demand for nutraceuticalsSomething New
has been growing worldwide due to consumerRetailers and consumers clamor for "new,"
awareness of the links of diet and disease, agingwhether it means new forms of delivery (gels,
population, rising health care cost and innovationseffervescent tablets, functional beverages), new
in food technology and nutrition.applications of or combinations with existing
Sports and Foodproducts, or all-natural sports nutrition products
In the last decade, sports and fitness nutrition hasthat are free of artificial ingredients and solvents.
emerged as one large distinct category in theExcellent Tasting All-natural products
nutraceutical industry. Three main productsConsumers are also looking for products that
contributed to the market's dramatic 2004taste good and are easy to take. Taste is a
growth:major feature that can either make or break a
•  low carbohydrate products - which grewproduct. The hunt is on for manufacturers to
by as much as 154%come up with better and new flavors.
•  sports energy beverages - which grew byHigh quality and safe products
18%;Regulatory agencies exist to protect the
•  sports supplements - which grew by 6%.consumers. It is the responsibility of product
Now, the $2 billion-worth sports nutrition industrymanufacturers to undertake sound research and
has moved away from the plain-tasting proteinprove the efficacy and safety of their
powders into a bigger pool of choices fornutraceutical products. Products that are based on
customers. Available in almost any drug stores orfalse or misleading marketing should be and are
supermarkets are energy bars, meal replacementbanned and condemned.
products, protein powders, individual items (e.g.,Through product sales and advances in research
creatine, L-carnitine), amino acids, herbs,and development, the Sports Nutrition
prohormones (hormone precursors); vitamins;Nutraceutical Industry is now validating what was
minerals; and combination products. Because ofproven, early on, by the fitness and nutrition
this the sports nutrition nutraceutical industry ispioneers -- sports nutrition products provide easier
considered a 'niche' market and an offshoot ofaccess to a healthier way of performing and living.
the mainstream food industry.