Opportunities and Key Players in Sports Nutrition: Emerging ingredients, key trends and market forecasts

Opportunities and Key Players in Sports Nutrition
Emerging ingredients, key trends and market forecasts

Report Overview

Recent data suggests the global sports nutrition market is currently valued at between $27-32bn. The term 'sports nutrition' implies use only by individuals involved in sports, however it is no longer the exclusive domain of only professional athletes and sports people. Consumption of sports nutrition products attracts a diverse audience, from teenage girls drinking Gatorade for energy for soccer, to workers consuming sports nutrition products to take part in weekend sporting activities.

‘Opportunities and Key Players in Sports Nutrition: Emerging ingredients, key trends and market forecasts’ is a nutrition report published by Business Insights that identifies current sports nutrition and ingredient trends, and examines recent developments in evolving consumer profiles and motivations behind purchasing decisions. It also provides a unique overview of key fiscal and demographic factors impacting the EU and North American markets, with a specific focus on performance nutrition             

Key Findings

Sports foods and beverages grow at CAGR of 5.3% between 2008-13. With a market value in sales of over $3.1bn forecast by 2013 sports foods and beverages will remain a significant market for sports nutrition.

Improving economies and population growth in emerging markets such as China, south-east Asia and Latin America is driving increased demand for nutritional products, and in particular sports nutrition products.

Total EU consumer spend on sports nutrition in Germany, Italy and the UK represents almost 60% of the total market. Germany leads the market, with $719m of sports nutrition expenditure in 2008, and this is forecast to increase to $783m by 2013.

The current sports nutrition market within the US was worth $3.5bn in 2008. Although the category has expanded by 4.7% (CAGR 2003-2008), Business Insights expects a slowdown to a projected growth of 3.8% over the period 2008-2013.          

Use this report to...

• Identify the drivers and key issues that are shaping sports nutrition categories across the EU and the US and understand how they will impact product formulation and marketing in 2009 and beyond.
• Understand the latest trends and developments in sports nutrition and the impact of external factors such as packaging on consumer purchasing habits.
• Quantify future growth areas in the sports nutrition market based on this report’s analysis and forecasts by region (US, EU) and categories from 2008-2013.
• Benchmark your competitive position against other players in the sports nutrition market using this report’s analysis of the performance of key players including Iovate, Cytosport, Optimum Nutrition, EAS, BSN, US Nutrition, MRI, Xyience, Multipower, Maximuscle and Lucozade.         

Key issues...

Consumer Trends. Sports nutrition is no longer the sole domain of athletes and is bypassing the stigma of being just for bodybuilders. Sports nutrition is now working its way into the acceptance of consumers seeking out a healthier lifestyle.

New Product Development. Innovation drives the sports nutrition category as consumers seek the holy grail of natural performance enhancement and brands aim to create a point of differentiation in the marketplace.

Increase in Sports Women. The participation of women in sport and exercise is significantly on the rise. In 2003, more than half of all frequent (100 or more times per year) fitness participants were female.

Private Label. The current economic downturn in the US has led to strong sales and increases for private label products in all categories. High priced sports nutrition is no exception.           

Your questions answered...

• Which are the fastest growing categories in sports nutrition and do they differ across countries?
• What are the current trends and market drivers within the sports nutrition markets?
• How significant are external factors such as packaging to the final purchase decision?
• Which companies are currently positioned to become dominant players in the sports nutrition market?
• What new ingredients and product categories present new opportunities in the field of performance nutrition?

Table of Contents

• Opportunities and Key Players in Sports Nutrition Executive summary 14
• Consumers and market drivers 14
• Regulatory opportunities and challenges 16
• The future of sports nutrition 18

Chapter 1 Introduction 22

• Summary 22
• Introduction 22
• What is sports nutrition? 22
• Performance nutrition 24
• Definitions: 24
• Sports foods & beverages 24
• Sports nutrition supplements 25

Chapter 2 Consumers and market drivers 28

• Who is the sports nutrition consumer? 29
• Bodybuilder & elite athletes 30
• Sports active 31
• Recreational lifestyle 32
• Occasional & accidentals 32
• Consumer market drivers 33
• Changing consumer profile 33
• Increasing growth in health club attendance and physical activity 33
• The rise of the sportswoman 35
• Boomers keep on booming 36
• Age is no longer a limitation 37
• The emergence of niche consumer groups 37
• Consumer attitudes and behaviors 38
• Innovation versus aspiration 38
• Performance for the masses 39
• Need for convenience 39
• Taste is still king 40

Chapter 3 Market analysis and forecasts to 2013 44

• Summary 44
• Global overview 45
• Core Europe 46
• Market overview 46
• By country 49
• By category 50
• US 52
• US sales and growth 52
• By category 53
• The future of the sports nutrition by channel 55

Chapter 4 Regulatory opportunities and challenges 58

• Summary 58
• Global overview 59
• Defining the EU regulatory framework 59
• Food Supplements Directive 59
• Maximum permitted levels (MPL) 60
• Foodstuffs intended for particular nutritional uses 61
• Sports nutrition directive 62
• Nutrition and health claims made on foods 63
• Unfair trading regulations 65
• Traditional Herbal Medicines Products Directive (THMPD) 65
• Mutual recognition 67
• European Advertising Standards Authority 68
• What is self-regulation? 69
• What are SROs? 69
• What does an SRO do? 70
• When self-regulation fails 70
• ASA and the CAP code – focusing on the UK 71
• Challenges 72
• Nutrient profiling 72
• Maximum permitted levels 73
• Opportunities 73
• Mutual recognition 73
• Article 13.5 74
• Defining the US regulatory framework 75
• Dietary Supplement Health and Education Act of 1994 75
• Nutrition Labeling and Education Act (NLEA) of 1990 76
• Food and Drug Administration Amendments Act of 2007 77
• Trilateral Cooperation Charter 80
• Challenges 81
• What is Significant Scientific Agreement? 81
• FTC and testimonials 81
• Citizen's Petitions 82
• Increased ingredient enforcement 83
• Opportunities 84
• Label claims – US system pros and cons 84
• Low level regulation and open innovation 84
• Foods as supplements 85

Chapter 5 Sports nutrition brand analysis 88

• Summary 88
• Introduction 88
• Methodology 89
• US sports nutrition – company case studies 89
• Iovate 90
• Summary 90
• Company overview 90
• Growth strategies 91
• Acquisition 91
• Litigation 91
• Innovation and NPD 91
• Iovate SWOT analysis 93
• CytoSport 94
• Summary 94
• Company overview 94
• Growth strategies 95
• Mass distribution 95
• Innovation and NPD 95
• CytoSport SWOT analysis 97
• Optimum Nutrition 98
• Summary 98
• Company overview 98
• Growth strategies 99
• Focus 99
• Optimum Nutrition SWOT analysis 100
• EAS 101
• Summary 101
• Company overview 101
• Growth strategies 102
• EAS SWOT analysis 103
• Bio-Engineered Supplements and Nutrition 104
• Summary 104
• Company overview 104
• Growth strategies 105
• Female market 105
• Beyond bodybuilding 105
• Innovation and NPD 105
• BSN SWOT analysis 106
• US Nutrition 107
• Summary 107
• Company overview 107
• Growth strategies 108
• International 108
• Direct to consumer/online 108
• Vertical integration 108
• US Nutrition SWOT analysis 110
• Medical Research Institute 111
• Summary 111
• Company overview 111
• Growth strategies 112
• Innovation and NPD 112
• MRI SWOT analysis 113
• Xyience 114
• Summary 114
• Company overview 114
• Growth strategies 115
• Innovation and NPD 115
• Xyience SWOT analysis 116
• EU sports nutrition – company case studies 117
• Multipower 117
• Summary 117
• Multipower SWOT analysis 119
• Maximuscle 120
• Summary 120
• Maximuscle SWOT analysis 121
• Lucozade 122
• Summary 122
• Company overview 122
• Growth strategies 123
• Lucozade SWOT analysis 124

Chapter 6 The future of sports nutrition 126

• Summary 126
• Overview of the market 127
• Consumer and brand trends 127
• Brands take positive action against contaminated supplement claims 127
• Education 129
• Commoditization and the move online 130
• Private label 131
• The perception of efficacy 132
• Growth in emerging markets 132
• Category trends 133
• Heat Shock Protein activators 133
• Natural testosterone boosters 134
• Ready-to-drink nutrition shakes 136
• Licensed brands 137
• Sports nutrition for breakfast 138
• Packaging trends 140
• Reusable packaging and refills 140
• Convenience 141
• Flexible packaging 142
• Ingredient predictions and future category innovations 143
• Category innovation 143
• Myogenic growth factors 143
• Emergence of a new ingredient class: Polyamines 144
• Exercise intervention 145
• Supplementation 146
• The end of prohormones 147
• Insulin enhancement and muscle growth 148
• Delivery systems are still a product driver, but are they efficacious? 149
• Summary and conclusions 152

Chapter 7 Conclusions, key messages and applications 154

• Summary 154
• Introduction 154
• Successful strategies for sports nutrition brands 155
• Know your customer 156
• Be part of the daily ritual 158
• Be authentic 159
• Create a clear consistent message 159
• Support science 161
• Geographic sensitivity 163
• Appendix 166
• Q&A with Eric Nardulli 166
• Q&A with Dr Tim Ziegenfuss 169
• Index 174

List of Figures

• Figure 1.1: The evolution of sports nutrition 23
• Figure 2.2: Key sports nutrition consumer groups 30
• Figure 2.3: Sports nutrition consumer market drivers 33
• Figure 3.4: Core European and US sports nutrition market value ($m), 2003-2013 46
• Figure 3.5: Core European sports nutrition market value ($m), 2003-2013 48
• Figure 3.6: Core European sports nutrition market by country ($m), 2008 50
• Figure 3.7: Core European sports nutrition market by category ($m), 2008 51
• Figure 3.8: US sports nutrition market value ($m), 2003-2013 53
• Figure 3.9: US sports nutrition market by country ($m), 2008 54
• Figure 4.10: Ortis happy plus St John’s Wort 74
• Figure 5.11: Iovate Sports Nutrition products 92
• Figure 5.12: Iovate SWOT analysis 93
• Figure 5.13: CytoSport sports nutrition products 96
• Figure 5.14: CytoSport SWOT analysis 97
• Figure 5.15: Optimum Nutrition sports nutrition products 99
• Figure 5.16: Optimum nutrition SWOT analysis 100
• Figure 5.17: EAS sports nutrition products 102
• Figure 5.18: EAS SWOT analysis 103
• Figure 5.19: BSN sports nutrition products 106
• Figure 5.20: BSN SWOT analysis 106
• Figure 5.21: US Nutrition sports nutrition products 109
• Figure 5.22: US Nutrition SWOT analysis 110
• Figure 5.23: MRI sports nutrition products 112
• Figure 5.24: MRI SWOT analysis 113
• Figure 5.25: Xyience sports nutrition products 116
• Figure 5.26: XYIENCE SWOT analysis 116
• Figure 5.27: Multipower sports nutrition products 118
• Figure 5.28: Multipower SWOT analysis 119
• Figure 5.29: Maximuscle sports nutrition products 121
• Figure 5.30: Maximuscle SWOT analysis 121
• Figure 5.31: Lucozade sports nutrition products 123
• Figure 5.32: Lucozade SWOT analysis 124
• Figure 6.33: Muscletech Myoshock HSP and MRI HSP Active 134
• Figure 6.34: Muscletech Cryotest, ADS Pronabolin and Gaspari Nutrition Halodrol 135
• Figure 6.35: CytoSport's Muscle Milk, Labrada Lean Body, and Gainomax Recovery 136
• Figure 6.36: Everlast licensed brand 138
• Figure 6.37: ROKIT Fuel Sports Cereal 139
• Figure 6.38: MASS FI reusable tub 140
• Figure 6.39: Muscletech Ignition Stix, Muscle Milk Ready to Drink and Gatorade packets 141
• Figure 6.40: Flexible packaging from AMP, EAS and Optimum Nutrition 142
• Figure 6.41: Muscletech nanotechnology delivery 149
• Figure 7.42: Successful strategies for sports nutrition brands 156
• Figure 7.43: Maximuscle diet range 158
• Figure 7.44: GSK and Alli® 161
• Figure 7.45: Consumer technology 163

List of Tables

• Table 3.1: Core European and US sports nutrition market value ($m), 2003-2013 45
• Table 3.2: Core European sports nutrition market value ($m), 2003-2013 47
• Table 3.3: Core European sports nutrition market by country ($m), 2008 49
• Table 3.4: Core European sports nutrition supplements market value by category ($m), 2003- 2013 51
• Table 3.5: US sports nutrition market value ($m), 2003-2013 52
• Table 3.6: US sports nutrition supplements market value by category ($m), 2003-2013 53