The financial crisis has been tough for everyone; however, as unusual as it may be, what’s bad for some is good for others, and the supplement industry certainly hasn’t had any reasons to complain. Sociologist Richard Florida calls the period ‘The Great Reset’, with the crisis making everyone focus more on health and well-being.
Healthy market
A report from World Nutraceutical Ingredients projects global demand for nutraceutical ingredients to grow by 6.2% annually, to a value of $21.8bn by 2013. The best growth opportunities will emerge in:
- vegetable protein nutrients
- functional food and beverage additives lutein and lycopene
- omega-3 fatty acids
- probiotics
- sterol esters.
Global demand for vitamin ingredients will especially see an increase. Projected numbers show a growth of 5.9% a year to nearly $7.1bn by 2013, and natural vitamin E formulations derived from non-genetically modified plants will receive the highest attention.
Natural formulations of beta carotenes will also fare well in the global marketplace based on efficacy advantages over synthetic ingredients. Demand has increased from consumers of daily vitamins, and opportunities for nutraceutical vitamin ingredients will favour the naturally derived versions.
Baby boomers boost vitamin success
A few weeks ago The Vitamin Shoppe, a single New York store established in the 1970s that has grown to 434 stores, raised about $150m on its initial public offering.
"We believe that one of the primary trends driving the industry is consumption by the over-50s demographic, baby boomers… who seek to improve their health and wellness, and treat and prevent disease and illness," The Vitamin Shoppe stated in its investor material.
Looking at the stockmarket situation, there should be positivity in the nutraceutical industry as it seems investors feel safe about nutrition and health.
