12.01.08
Several common themes emerged from this year's comments on the state of the industry. After digesting all of them and then turning toward what is happening generally in the U.S. as well as abroad, I've come to this conclusion: There are many industries facing impending doom in 2009, but the nutraceuticals industry could be one among few that escapes unscathed.
In this issue's State of the Industry Review (page 38), most people focused on the massive economic slowdown in the U.S. and how belt-tightening at the industry and consumer level will impact the financial health of dietary supplements and functional foods in the coming year. While the average price of gas has gently drifted back to less than $2 per gallon, the dollar still continues to weaken, and some of our nation's oldest and largest corporations have been engulfed by the most recent wave of economic turmoil. To make matters worse, consumers are scared to spend money, companies are not investing, innovation has all but come to a halt, and consumers' retirement savings are rapidly disintegrating.
Given the current financial situation, analysts are forecasting an abysmal several months, even years for most major industries. So what does that mean for nutraceuticals? One line of thinking goes like this: In times of financial struggle, consumers view supplements and functional foods as luxuries instead of necessities. In other words, consumers are more likely to drop these items from their grocery lists in favor of standard purchases like bread and milk.
History has also taught us that health becomes a major priority for consumers in tough times, so how does that factor in? Five years ago I would have said that consumers would forego our products in favor of other "necessities." But consumers have made significant progress in considering dietary supplements and functional foods essential to their health regimens. In their minds, these products represent the low cost, less invasive option when it comes to healthcare, and I believe most consumers will stick with these products in good times and bad. Case in point: The Council for Responsible Nutrition's (CRN) most recent consumer survey shows that most consumers will not let a down economy stop their use of dietary supplements.
For the future, nutraceuticals companies should approach the market with cautious optimism, and that starts with knowing your supplier. Begin your quest for the right partner using this issue's Annual International Buyers' Guide (page 56), a complete reference of companies supplying ingredients, products and services to the nutraceuticals market.
This year we have changed the format slightly. Instead of compiling four separate company sections, we've grouped all companies into one listing under the heading "Industry Companies." All companies listed are defined by their "Company Type," which includes one of four possible descriptions: Supplier, Contract Service Provider, Consultant or Association. Keep in mind that companies can fall under more than one Company Type.
We have also included associated cross reference sections for suppliers of ingredients, machinery/equipment and packaging materials, as well as contract services. In addition, we've significantly expanded our category listings-some of the new additions include ingredients, such as goji berry, capuacu and phospholipids, as well as new contract services, such as filling (sticks/packets) and research services (scientific, clinical). We hope you enjoy navigating this new guide as much as we enjoyed putting it together. Armed with the right reference and a healthy outlook, companies just might be able to turn impending doom into a nutraceuticals boom in 2009.
Rebecca Wright
Editor
rwright@rodpub.com
In this issue's State of the Industry Review (page 38), most people focused on the massive economic slowdown in the U.S. and how belt-tightening at the industry and consumer level will impact the financial health of dietary supplements and functional foods in the coming year. While the average price of gas has gently drifted back to less than $2 per gallon, the dollar still continues to weaken, and some of our nation's oldest and largest corporations have been engulfed by the most recent wave of economic turmoil. To make matters worse, consumers are scared to spend money, companies are not investing, innovation has all but come to a halt, and consumers' retirement savings are rapidly disintegrating.
Given the current financial situation, analysts are forecasting an abysmal several months, even years for most major industries. So what does that mean for nutraceuticals? One line of thinking goes like this: In times of financial struggle, consumers view supplements and functional foods as luxuries instead of necessities. In other words, consumers are more likely to drop these items from their grocery lists in favor of standard purchases like bread and milk.
History has also taught us that health becomes a major priority for consumers in tough times, so how does that factor in? Five years ago I would have said that consumers would forego our products in favor of other "necessities." But consumers have made significant progress in considering dietary supplements and functional foods essential to their health regimens. In their minds, these products represent the low cost, less invasive option when it comes to healthcare, and I believe most consumers will stick with these products in good times and bad. Case in point: The Council for Responsible Nutrition's (CRN) most recent consumer survey shows that most consumers will not let a down economy stop their use of dietary supplements.
For the future, nutraceuticals companies should approach the market with cautious optimism, and that starts with knowing your supplier. Begin your quest for the right partner using this issue's Annual International Buyers' Guide (page 56), a complete reference of companies supplying ingredients, products and services to the nutraceuticals market.
This year we have changed the format slightly. Instead of compiling four separate company sections, we've grouped all companies into one listing under the heading "Industry Companies." All companies listed are defined by their "Company Type," which includes one of four possible descriptions: Supplier, Contract Service Provider, Consultant or Association. Keep in mind that companies can fall under more than one Company Type.
We have also included associated cross reference sections for suppliers of ingredients, machinery/equipment and packaging materials, as well as contract services. In addition, we've significantly expanded our category listings-some of the new additions include ingredients, such as goji berry, capuacu and phospholipids, as well as new contract services, such as filling (sticks/packets) and research services (scientific, clinical). We hope you enjoy navigating this new guide as much as we enjoyed putting it together. Armed with the right reference and a healthy outlook, companies just might be able to turn impending doom into a nutraceuticals boom in 2009.
Rebecca Wright
Editor
rwright@rodpub.com
