America is fat and getting fatter. The question is, what can be done about it? For the nutraceuticals market, this means the weight loss category is not only growing, it's exploding. And the statistics, although alarming and sad, translate into an unprecedented opportunity for nutraceuticals manufacturers to provide science-based weight management solutions.

Nutrition Business Journal (NBJ), San Diego, CA, has pinned the weight loss category to be one of the fastest growing segments in the nutraceuticals market. According to NBJ, the sports nutrition and weight loss (SNWL) market in the U.S. totaled $9.9 billion in 2001, representing 15% growth from the year before. Weight loss supplements accounted for 19% of the market, bringing in $1.9 billion in sales; meal replacements accounted for 20% of the market, bringing in $2 billion in sales; sport supplements accounted for 18% of the market, bringing in $1.7 billion in sales; nutrition bars accounted for 14% of the market, bringing in $1.4 billion in sales and sports/energy drinks accounted for 29% of the market, bringing in $2.9 billion in sales. Of those categories, weight loss supplements was the category to post the second highest growth-20%-from 2000 to 2001.

It would be an understatement to say that a lot is happening in the weight loss market. New supplements, foods and beverages for weight loss are launched, literally, everyday to combat the epidemic of overweight and obesity. However, companies should keep a close eye on the evolving ephedra situation as well as the Federal Trade Commission's (FTC) crack down on weight loss product advertising. All things considered, several opportunities lie ahead.

Opportunity is Knocking
With the (supposed) failure of low-fat diets, the market for weight loss products is ripe for better, more substantiated solutions. Dr. Dennis Meiss, president, ProThera, Pleasanton, CA, and consultant to Pharmachem, Kearny, NJ, makers of Phase 2™, made some observations of the low-fat diet fad and the fate of obesity in years to come. "It has been prominent in the news that the experiment with the low-fat diets really didn't work, and was the wrong way to look at what really contributes to excess weight," he said. "With regard to weight loss, I think the incidence of excess body weight and obesity is probably going to be our number one health concern in the U.S. going forward. The mortality associated with excess weight and obesity is just behind cardiovascular disease right now."

Brien Quirk, technical director, Draco Natural Products, San Jose, CA, which supplies weight loss formula D-19, commented on the opportunities and challenges the industry faces when dealing with weight loss and obesity. "We know that weight loss is becoming a bigger issue because of Syndrome X and cardiovascular morbidity. This presents a great opportunity for the nutraceuticals industry, especially because some of the pharmaceuticals have significant side effects and are being pulled from the market," he said. "The challenge will be to differentiate products and prove efficacy and safety. This all needs to be combined with recommending overall lifestyle management programs."

Mark Cater, president, Nutricepts, Burnsville, MN, makers of Alpha Trim™-W, said companies should be aware of the difference of marketing a weight loss product versus a nutraceutical for eye health, for example. "Many consumers take supplements with the idea that they are going to prevent some health issue from happening to them down the road," he explained. "Diet products are significantly different because consumers expect to see something change sooner rather than later. In addition, they are expecting this change to be an observable positive event. If they don't see it, they don't repeat the purchase."

The weight loss market is divided into two trends, a pharmaceutical trend and a dietary supplement trend, according to Dr. Ivo Pischel, executive vice president, research & development-dietary supplements, Finzelberg, Germany. "The pharmaceutical trend focuses more on hormone-related therapies such as leptin research. These approaches involve molecules that can bind to receptors or have strong activity in enzyme inhibition, but they also have a lot of side effects," he said, adding, "On the dietary supplement side, companies are trying to go forward with a more mild approach to weight loss through raising metabolism, appetite suppression, producing fullness (satiety) in the stomach by providing fiber, for example, and adding trace elements such as chromium to combat insulin resistance."

Of those approaches outlined by Dr. Pischel, Tony DeLio, vice president, marketing and external relations, ADM, Decatur, IL, producers of Enova™ oil, emphasized the opportunities in metabolism and satiety. "Some of the areas that are the most interesting are metabolism-related as well as satiety-related. Particularly the latter is not well understood yet," he offered. "It has been known for a while that with carbohydrates the body will just use up more and more of them. As a result, it is harder to feel satiated or full on carbohydrates. Maybe some of the reason that protein diets have worked is because the amount of carbohydrates being consumed are reduced. You will definitely see more research on this in the future."

Allondra Stevens, marketing services manager, InterHealth, Benicia, CA, suppliers of ChromeMate® and Super CitriMax®, said companies should be attuned to savvy consumers, especially in the weight loss area. "Weight loss market trends include an increase in delivery systems such as functional beverages, meal replacement products and functional foods. What guarantees a product's success is consumer awareness and consumer scrutiny," she said. "Consumers purchasing weight loss supplements are some of the most savvy, having tried multiple products over a long period of time."

Moving away from the magic bullet approach is what Todd Norton, president and COO of Forslean® supplier Sabinsa Corporation, Payson, UT, suggested. "When it comes to weight loss ingredients, there is no magic bullet. Diet, lifestyle and genetic makeup have a tremendous impact on a person's physical appearance and to suppose that a pill can somehow effortlessly overcome these factors is irrational thinking," he said, adding, "If there was such an ingredient that could accomplish this feat, and it was supported by sound scientific data, the whole world would know about it."

Can Overweight & Obesity be Conquered?
The Centers for Disease Control and Prevention (CDC) has indicated that the prevalence of overweight in the U.S. is 34%, while the prevalence of obesity is 27%. Combined, both overweight and obesity prevalence in the U.S. is 61%. What is most alarming is the jump in the prevalence of obesity between 1976 and 1999.

Whether or not obesity can be conquered is a difficult question. According to Dr. Richard Atkinson, president, American Obesity Association (AOA), Washington, D.C., tackling obesity is a difficult mission, especially when the research lacks the support from academia and physicians. "There is huge discrimination against obesity because a large percentage of academia and the physician population feel that obesity is not a subject of serious scientific inquiry," he said, adding, "This is because obesity is considered the last bastion of socially acceptable bigotry." However, Dr. Atkinson said the abiding bias and prejudice toward obesity will change in the future. "The same thing happening with obesity happened with AIDS when people would say that those with AIDS did it to themselves," he pointed out.

Dr. Harry Preuss, professor of physiology at Georgetown University Medical Center, Georgetown, VA, and former president of the American College of Nutrition, said obesity is related, in part, to genetic makeup but mostly, overweight and obesity is a result of lifestyle. "There are genetic reasons overall for obesity, but you can't tell me that the rapid increase of obese people in this country over the last 10 years is due to the gene pool suddenly shifting," he said. "We know that Americans have a different lifestyle now that is not good for them and that they have been told to watch the fat in the diet instead of being told to watch the calories. Some of the fats are not as bad as people say as long as you watch the calories."

There is no magic tablet, according to Nina Likins, marketing director, Natural, Inc., Vernon Hills, IL, producers of Tonalin® conjugated linoleic acid (CLA). "Portion control, sensible food choices and regular exercise are essential to preventing obesity," she explained, adding, "People really need to take an elemental approach when assessing how they get fat in the first place. It's very simple, people get fat because they do not expend the calories they are taking in, whether they are from carbohydrates, protein or fat." She went on to say, "From a sociological standpoint, obesity is a relatively new disease, not something that has evolved over generations. Bad eating habits and sedentary behavior are passed on to children by example, but generally speaking, obesity is not hereditary-it is a disease of the 21st century."

David Lewis, business unit manager, North America for Clarinol™ CLA supplier Loders Croklaan Lipid Nutrition, Channahon, IL, said education might solve the overweight/obesity problem. "One solution to the problem could be a push by the manufacturer to educate the consumer about the benefits of their product for weight loss/maintenance," he said. "The more a consumer realizes the benefit a product has for their health, the higher the probability is for a consumer to make that purchase. Education on proper nutrition and exercise is key to helping reduce this problem facing Americans today."

Weight Loss: U.S. vs. Europe
The overweight/obesity epidemic is not specific to the U.S. In fact, according to a recent BBC report, it was noted that at least three in four British men and women will be overweight within the next 10-15 years. It goes on to say, "In 1980 6% of men and 8% of women were overweight. By the mid 1980s, that had doubled. Now 65.5% of men and 55.2% of women are overweight or obese in the U.K., and the numbers are climbing."

As the "Western diet" continues to permeate countries around the globe, the rates of overweight/obesity are bound to go up, according to Ken Hassen, vice president and general manager, Sigma-tau HealthScience-Fine Chemicals Division, Gaithersburg, MD, which supplies L-carnitine. "The Euro is now on par with the dollar, so it is becoming easier for U.S. franchises like McDonalds and Pizza Hut to make their way into Europe," he said. "Europeans used to be slim but the so-called Mediterranean diet is slowly disappearing."

To market weight loss products in Europe companies must realize that trends and preferences vary greatly, according to Kaare Axelsen, marketing director, Buckton Scott Ltd., Rochford, Essex, U.K.-producers of a wide range of weight loss ingredients. "The weight loss market in Europe is huge, making it difficult to take a pan-European approach," he said. "U.S. companies have failed because they tend to see Europe as one entity and it isn't." The trends, he said, differ from country to country, even region to region. For instance, he explained, "Flavor requirements differ vastly. In France, the north accepts more fruit flavors and the south prefers flavors like coffee due to North African influence."

Stefan Wypyszyk, vice president, MB-North America, Torrance, CA, creators of Finapeel™ proprietary diet formula, discussed the differences in the perception of body image and its correlation to the weight loss market. "In the U.S. there is a much stronger focus on body image as well as a different definition for being overweight. In Europe there is not so much focus on being super thin or super skinny, as physical appearance is less important," he said. "In Europe and U.S. the number of people that are obese has been steadily increasing over the years, however, I think it is being seen as more of a problem and a focus in the U.S. because appearance is everything."

Formulating a Weight Loss Product
From starch blockers to stimulants to appetite suppressants to genomics, there are many paths to take when formulating a weight loss product these days. Mark Brudnak, vice president of L-arabinose supplier Mak Wood, Grafton, WI, discussed the latter. "Companies are interested in what is unique and how they can take advantage of what is happening genetically," he said. "The multi-level marketing companies are especially trying to take advantage of this opportunity by tapping into databases and designing products based on individuals' genomes. What we are going to see is people being genotyped and then there will be standard products for them to take."

Katie Ferren, director of botanical products, BI Nutraceuticals, Long Beach, CA, discussed custom formulations and blends. "One of the trends we have noticed at BI Nutraceuticals is the creation of custom formulations, or blends, for our customers. The formulations include a wide variety of weight loss supplements and herbal products to work synergistically." But, she said, formulators must keep in mind how the ingredients are going to work in synergy. "For example, a formulator might include bee pollen with panax ginseng so the formulation targets both increasing metabolism along with increasing energy levels," she said. "Or including guarana with caffeine and green tea extract to combine the stimulant and appetite suppressant abilities of guarana with the thermogenic properties of green tea extract."

MB-North America's Mr. Wypyszyk added his thoughts on dosage and delivery. "If using thermogenic ingredients like ephedra and caffeine, dose is really important. There have been good studies conducted in terms of the efficacy of ephedra and caffeine but by nature it is known that they can raise the heart rate and thus can have side effects," he explained, adding, "What's really important is matching the formula to what the goal of the weight management product is." In terms of delivery, he stated, "If you are formulating a product for a thermogenic approach then a supplement is probably the best way to go but if you are formulating a product to suppress appetite and impart a feeling of fullness, then maybe a shake or a bar is a better solution because the person actually gets to eat something to take care of that natural desire to want to eat when you are dieting or reducing calories."

Michael Sodaro, marketing manager, Stauber Performance Ingredients, Fullerton, CA, makers of Relora®, said there is no "one size fits all" formulation when it comes to developing a weight loss product. "In formulating a weight loss product it is key to understand that one product is not perfect for everyone. Some companies address this issue by formulating products that contain dozens of different ingredients at small dosages," he said. "It would be most effective to target a specific weight loss component and formulate a product that contains ingredients that are synergistic to that approach."

Robin Ward, sales & marketing manager, Linnea, Riazzino, Switzerland, suppliers of 5-HTP, said most weight loss formulations, such as those containing ephedra, are designed to elevate metabolism. However, another approach that has been taken on by formulators, according to Mr. Ward, is to focus on the mechanisms of hunger and in particular the mechanisms of carbohydrate craving or "comfort eating." He commented, "Abnormally low levels of serotonin have been detected in obese individuals who crave carbohydrates, suggesting that low serotonin levels can contribute in the desire to overeat."

Dr. Vladimir Badmaev, vice president of medical and scientific affairs, Sabinsa, said the formulation of an effective weight loss product should start with the principle, "first do no harm." "Unfortunately, the nutraceuticals and pharmaceutical industries provide quite a few examples of potential weight loss compounds that were either used improperly (e.g. ephedra) or not researched sufficiently prior to their use (e.g. Fenfluramine). That is why compounds that can be formulated as diet foods, meal replacement powders (MRP) and ready-to-drink (RTD) supplements should be preferred for body weight management," he said, adding, "Secondly, a clear-cut weight loss mechanism for a formulation should be kept in mind while formulating the product. Formulations that serve too many health objectives while helping shed extra pounds should be discouraged."

Developing an Effective, Non-Misleading Marketing Message
Fraudulent marketing claims and products in the weight loss market are, unfortunately, not the exception these days but rather the norm. Addressing this issue was Timothy Muris, chairman, FTC, Washington, D.C., who spoke at a press conference to promote FTC's report on weight loss product advertising. "For far too long consumers have been the target of unscrupulous marketers peddling instant, effortless weight loss products. Whether pills, potions, lotions or devices, the only things these quick fix product leave lighter are consumers' wallets," he stated. "It is clear that quick fix promises do nothing to address weight issues. It is also clear that we need new approaches to the problem of deceptive weight loss advertising."

Speaking at the same press conference was U.S. Surgeon General Admiral Richard Carmona, who said, "One of the main jobs of Surgeon General is to address the public on matters of science and I see that as being able to look at complex issues and being able to deliver easily understandable messages to the public. There is no miracle pill that will lead to weight loss. It requires a lifelong commitment to healthful eating and adequate physical activity."

It is clear that marketing messages and claims are exaggerated or confusing. To solve this problem, Mr. Brudnak of Mak Wood emphasized the importance of education. "If marketing could be coupled with education then that would be a huge plus. We are seeing the bulk of the growth in direct sales because these companies have a better platform for explaining these products," he said.

In terms of who should educate, Jocelyn Mathern, RD, technical specialist, Acatris, Minneapolis, MN, makers of FenuLife™, said it should be the job of the medical community and manufacturers. "I think medical professionals are responsible for educating those that come to them," she offered. "But I would also like to see more education being done by the companies making the products." Ms. Mathern also suggested that companies part with the magic bullet approach to marketing. "If companies made products that were geared toward inclusion in consumers' overall lifestyle, the products might be more successful in maintaining market share or keep their product in the market longer," she said.

According to InterHealth's Ms. Stevens, research sells. "Consumers in the weight loss market are tired of fads, which are monetarily draining as well as frustrating. Weight loss has measurable results; therefore, consumers want ingredients and products that verifiably work. If a product is going to succeed and have longevity, an honest marketing approach is the wisest," she offered. "Research sells. So, when products deliver on their structure/function claims, consumers naturally increase brand equity and success through loyalty and fast spreading grass roots networking."

Bars, Shakes & Supplements
The delivery of a weight loss product in food, beverage or supplement form is an issue companies must consider. However, most experts in the industry are undecided as to what delivery form, if any, is ideal.

Discussing the food/beverage side of the equation was Draco's Mr. Quirk. "What people are looking for is delivery and palatability. Delivery systems like beverages or powders are preferred over capsules. Although there are some that enjoy the convenience of capsules, people want a weight loss product to be part of some type of meal replacement," he said, adding, "Most people have very poor compliance with taking capsules."

Speaking from a supplements standpoint, Acatris' Ms. Mathern commented, "Meal replacements, bars and shakes are popular but pills will always be popular as well. I don't think people want to take the time to make food that is going to make them lose weight," she said, adding, "Unfortunately, I think people are still looking for quick fixes."

Mr. Wypyszyk of MB-North America agreed. "We will continue to see the diet category grow because the consumer is still looking for the one pill solution to lose weight and that is not going away," he said. "Because of the heightened sensitivity of the thermogenic products, especially ephedra, I think we are going to see companies looking for alternatives to those products. I think they have proven themselves to be very efficacious but right now there is a lot of scrutiny by FDA and media."

Deanne Dolnick, national education manager, Soft Gel Technologies, Los Angeles, CA, suppliers of Glucosol™, said, "The majority of weight loss products are available in dietary supplement form for two reasons, ease of use and the 'quick fix' mentality. Most people want something where they will barely have to make changes to their diets and still expect to get extraordinary results. The truth is, a pill or supplement is not the answer; it may help, but people are really going to have to make serious changes to their diets to get serious weight loss results."

Looking Into the Crystal Ball
It is hard to say what the future will hold for the weight loss market. Most experts say or insist that America (and other countries around the world) will continue to get fatter, which is good news for the nutraceuticals business but bad news for the general public. Others cite trends toward ephedra alternatives, genetically-based products and functional foods.

For the future, BI's Ms. Ferren noted, "Americans are always going to want to lose weight. Over one half of Americans go on a diet to lose or maintain a certain weight in the course of a given year." She continued, "I think as scientists continue to unravel the genetic codes, we'll understand better why some people lose weight more quickly than others, as well as identify how some nutritional ingredients interact in the body to support weight control. I wouldn't be surprised if Americans spent $40 billion dollars a year in the next 10 years on weight loss products and services."

According to ProThera's Dr. Meiss the growing weight loss/obesity problem will present more opportunity to companies marketing products. As a result, he has concerns. "From a commercial standpoint when you have something that has reached epidemic proportions as obesity and excess weight has, it opens up more market opportunity," he said, adding, "The problem that raises is that it expands the difference between the products that are truly effective and products that are marketed to a large degree on unsubstantiated or false claims. It is my hope that the products that go out would be ones companies can stand behind."

Stauber's Mr. Sodaro said some ingredients will make an exit from the market. "There will be constant elimination of stimulant products. Although these products are effective and safe ( if used properly), they have been targeted by certain groups to be eliminated from the market," he said. "Some of the top selling stimulant products are sold for non-weight loss intentions. It is disappointing that because of the poor decisions some consumers make by abusing these stimulants the government and other forces will virtually eliminate these products from the market."

Loders Croklaan's Mr. Lewis said functional foods for weight loss will be the future. "Although consumers can easily purchase weight loss supplements, many are searching for products that can help them develop 'fundamental lifestyle changes,' which are meaningful and effective," he explained. "New products should appear within the area of functional foods/beverages that can become part of everyday consumer habits and lifestyle practices."

As a result of the quick fix mentality of consumers, Ms. Dolnick of Optipure/Soft Gel, said the market will continue to grow. "This is a huge market that will continue to grow as the population continues to gain weight. Consumers are going to keep buying weight loss products and when they don't work, they will move onto the next one, forcing companies to introduce a continuous stream of new products," she said, adding, "Hopefully what will happen is that companies will get smarter and start to conduct their own clinical trials. Instead of showing the before-and-after pictures of someone who lost 90 pounds in three weeks, companies should concentrate on showing consumers the reality of the results of a clinical trial."

Sigma-tau's Mr. Hassen said baby boomers factor heavily into the success of the market in the future. "I see our public, especially the baby boomers, as wealthy and wanting to live longer. The baby boomers make up a lot of the buying influence in the market and throughout their lives have tried many diet products and programs and are wary of what is out there. I think a systems approach to weight loss is tantamount to success."