In the grand scheme of how seemingly crazy ideas are translated into technologies, can you imagine the "Eureka" conversation, huddled around the birth of a calf, about a potential new business venture? With every birth comes colostrum, now making headlines in the nutrition industry and gaining significant sales growth worldwide [www.dairyfoods.com] as an up and coming nutritional supplement [www.proventra.com].
Described as nature's best defense against disease, colostrum [www.bovinecolostrum.com] is the substance-secreted during the first 48 hours after birth-rich with immunoglobulins, growth factors, vitamins, minerals, enzymes, amino acids and other components available to "prime" the body for invasion by various harmful microorganisms and environmental toxins. Although colostrum is known to provide newborn children with a stronger immune system, the fact that it can also help protect the human body in later years has only been recently uncovered and accepted, through hundreds of published reports worldwide.
Research And Consumer Interest In Colostrum
Experts [www.hoards.com] believe that colostrum has the ability to kill bacteria and viral invaders, stimulate tissue repair (particularly the bowel lining), stimulate fat utilization for fuel and optimize cellular reproduction (anti-aging). Companies banking on this research are primarily using bovine colostrum, which is four times richer in immune factors than human colostrum. Over 20 years ago, researchers discovered that colostrum from cows contained special glycoproteins that are extremely effective at protecting the immune and growth factors from destruction by adult human digestive enzymes (results that were later supported by human clinical trials). It is this bovine colostrum that is being hailed as the supplement of the 21st century.
Many do question the validity of its use after the first stages of life. In the first 24-72 hours of life, a newborn's stomach lining has yet to develop, allowing the cow's protein to pass through more readily. Those who challenge the efficacy stand strong on their defense that once the digestive tract is developed in humans, colostrum products [www.colostrum-ix.com] merely become another protein and are digested as such. In the early 1980's, clinical research by Dr. David Tyrell revealed that a high percentage of the immunoglobulins present in colostrum are believed not to be absorbed but remain in the intestinal tract where they attack organisms that cause disease.
The proposition to the consumer is building from the knowledge and experience that comes with pregnancy and early parenthood. Colostrum, although used in baby food for years in Europe and as a natural ingredient in food in India, has yet to hit the mainstream in the U.S. market. On the North American front, colostrum has only been used in animal feed. Without a clear regulatory path, coupled with skepticism and disbelief among many consumers, there has been limited market penetration. Yet market surveys have shown consumer interest in immune-enhancing products, which has been the primary message behind colostrum-containing supplements [www.lifeway.net]. Sales within the market have been growing two-fold, as the percentage used for human consumption increases.
Market Facts And Figures
Just recently, colostrum has been integrated into the nutrition industry through dietary supplements; however, it is its entry into the U.S. food industry as an additive or other ingredient that could reap the most significant rewards in terms of dollar figures. Companies such as Galagen [www.galagen.com] have taken the first steps to enter into alliances with food companies who leverage health like Tropicana. If these new product ideas are successful, colostrum as an immune product is projected to have a future market size of $3.5-4.8 billion. Given the technical constraints, the food segments within the immunity category that appear to be the best candidates are cereals, beverages, yogurt, bars and cheeses.
Realizing profits from the increased publicity surrounding colostrum, the global colostrum market in retail sales surged to a high of $120 million for 1999. With approximately $35 million in dietary supplements and $1 million in the food ingredient market for the U.S., the potential for further growth is evident. Having a strong global presence, the U.S. holds 30% of overall retail sales. The value chain for the U.S. retail colostrum industry [www.brakkeconsulting.com] is broken into three distinct segments: suppliers, manufacturers/marketers and retailers. Major raw material suppliers of colostrum in the U.S. include Galagen, Sterling Technology, La Belle Incorporated, Immuno Dynamics, Western Wisconsin Dry Products, Imu-Tek Animal, Cuprem and Evolutionary Ingredients.
The raw material, after being collected and tested for IgG levels as well as other quality standards, is sold to over 100 manufacturers of colostrum-containing products. Although there are numerous manufacturers and the industry is continuously growing, a handful of companies handle the majority of manufacturing; these include Bricker Labs, Future Foods, Immune Tree, Jarrow Formulas, Nature's Plus, KAL Colostrum, Solo Care Pharmaceuticals, Source Naturals and Symbiotics. Colostrum manufacturers access different distribution channels, with mass market holding a 31% share, MLM 18%, direct sales 14%, GNC 11%, natural food & health chains 18% and practitioners 8%.
With respect to the 1999 global raw material market for colostrum, sales have reached $30 million. The average price for colostrum in raw material form is approximately $31.50/kg or $14.50/lb. Some skeptics say that these raw material figures are far too high and according to a member of the American Association of Bovine Practitioners, "If producers of colostrum are extracting pure colostrum there is no way the market could reach such production levels without taking multiple milkings." The raw material of colostrum is sold for use in two sectors of the market, animal and human. Animal supply makes up a far greater proportion of sales than does human supply, with 73% and 27% respectively.
As a global leader, New Zealand Dairy holds a solid 60% of the raw material market, with the U.S. at about 30%, while other global producers share approximately 10% of the market. Total raw material tonnage has reached almost 800 tons, with some European suppliers estimating far greater numbers. New Zealand Dairy generates about 360 tons. The U.S. has a share of almost 320 tons, while the rest of the producers are estimated to generate 100 tons. However, as mentioned, there are some European suppliers who stand by figures as high as 500 tons for Europe alone. Figures are based on estimates from interviews with key companies [www.kefir.com].
With any up and coming market, there are still many unknowns. An analyst from Dow Jones & Company has been quoted as saying, "Colostrum cannot be classified as a drug, since it is arguably the most natural food in the world." With such statements, it is hard to assess what impact the regulatory environment [www.aphis.usda.gov] will have on manufacturers who pursue aggressive claims on colostrum products. The jury is still out on whether colostrum can sustain its growth; however, with booming sales and continued expansion of product lines, it seems as though supplement companies believe this to be true. The real growth will come from the food players who figure out how to leverage results of human clinical trials and turn that message into communication that is compelling to the mainstream consumer.
NW
