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OutlookThe impact of changes in regulation, demographics and Mark J Tallon, PhD
Dr Mark J. Tallon received his Ph.D. in nutritional biochemistry from Southampton University and also holds a first degree in exercise physiology and a Masters degree in nutrition science. He has worked as a key consultant to many companies including Yuki Gosei Koga Ltd, Miami Research Associates, Natrol Inc, Labrada Inc, and iSatori Global Laboratories. Until recently, Dr Tallon was Chief Science Officer of Oxygenix Ltd, a consultancy company specializing in European, Pan-American and Asian regulatory compliance of dietary supplements. He was co-founder of Cr-Technologies, LLP, a raw ingredient company specializing in novel and proprietary nutraceuticals for the cosmetic, dietary and functional food market. He is currently a research follow at Northumbria University (UK) and a member of the Institute of Biology, Nutrition Society of Great Britain and a member of the editorial board for the International Society of Sports Nutrition (ISSN). Through these societies, Dr Tallon is currently registered as a certified biologist and nutritionist. In 2007 Dr Tallon accepted invitations to form part of the editorial advisory board for Food Ingredients Health and Nutrition (UK) and Functional Ingredients magazine (US). Other affiliations include the Institute of Food Technologists, American Botanical Council, and American College of Nutrition, The Physiological Society and the American Medical Writers Copyright 2007 Business Insights Ltd This Management Report is published by Business Insights Ltd. All rights reserved. Reproduction or redistribution of this Management Report in any form for any purpose is expressly prohibited without the prior consent of Business Insights Ltd. The views expressed in this Management Report are those of the publisher, not of Business Insights. Business Insights Ltd accepts no liability for the accuracy or completeness of the information, advice or comment contained in this Management Report nor for any actions taken in reliance thereon. While information, advice or comment is believed to be correct at the time of publication, no responsibility can be accepted by Business Insights Ltd for its completeness or accuracy. The Dietary Supplements Market Outlook
Executive Summary
Introduction 12
Market drivers and issues
The supplements market
Innovation and NPD
Key and future trends in supplements
Industry survey
Conclusions
Chapter 1
Introduction 20
Introduction 20
Research methodology
What is this report about?
The supplements market defined
Chapter 2
Market drivers and issues
Introduction 28
Factors affecting the growth of the industry
Regulatory issues – opportunities and threats for manufacturers Chapter 3
The supplements market
Introduction 50
Sales of supplements
Chapter 4
Innovation and NPD
Introduction 90
Innovation and NPD
Category analysis
Whey gets blocked in China…A sign of things to come? Regional analysis
Microencapsulation 118 Health claims in the US.Is the EFSA influencing the US? Industry interview – insight into North America Nanotechnology – big things come in small packages Industry interview – insight into Europe Economic recovery has not guaranteed success for supplement market 132 Innovation in the hands of weight loss and beauty Chapter 5
Key and future trends in
supplements 140
Introduction 141
Personalization 141
Demographic differentiation
Emerging markets - the key to growth
Immunity gathers momentum
Obesity and cross-category-marketing
Consumer trends – where is the market headed?
The meta-analysis – “friend or foe”
Visual differentiation through research
Industry interview – clinical research Chapter 6
Industry survey
Introduction 168
Supplements NPD
Target audience
Price premiums
Regional potential
Distribution channels
Supplement categories
Supplements versus food and drinks
Impact of external factors on supplement NPD
Launching a dietary supplement
Marketing supplements
Chapter 7
Conclusions 182
Introduction 182
Growth opportunities and resistance
Disease prevention and healthcare (self-medication) Personalization 185 Purity and ingredient efficacy Partnerships: making traditional and local insights work Chapter 8
Appendix 190
References
Overview of Japanese regulatory system of dietary supplements Phosphagen Elite from EAS containing Carnosyn beta-alanine 65 Advantra-Z (Citrus aurantium) from Nutratech Percentage share of supplements launched, by category 2004 and 2007 Percentage growth of supplements launched, 2004 and 2007 DSM Nutritionals Teavigo seal of quality MyAlli starter pack with Steven Burton, Vice President of the weight control unit 112 Cross channel growth in healthcare products GSK Percentage share of supplements launched, by region, 2004 and 2007 Percentage share of supplements in each region, by category, 2007 Influence of a negative meta-analysis on Avandia The importance of key health areas in supplements NPD over the next 5 years Demographic groups that will be the most important for the growth of the supplements market over the next 5 years Price premium consumers are willing to pay for a particular benefit Regional growth potential for supplements manufacturers over the next 5 years Sales growth potential in key distribution channels over the next 5 years Supplements categories that will offer the most sales growth potential over the next 5 years 174 Future sales growth – from supplements or from use in food and drinks Impact key factors will have on supplements NPD over the next 5 years The importance of key factors for a successful launch of a dietary supplement The importance of various forms of marketing for the launch of dietary supplements Clarinol, Teavigo and Ocean Nutrition MEG-3 Sales of dietary supplements in the US, $m, 2002-2006 Per capita sales of dietary supplements in the US, $, 2002-2006 Sales of dietary supplements in Europe, $m, 2002-2006 Per capita sales of supplements, $, Europe, 2002-2006 Sales of dietary supplements in Japan, $m, 2002-2006 Per capita sales of supplements, $, Japan, 2002-2006

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Official Journal of the European Communities TWENTY-FIFTH COMMISSION DIRECTIVE 2000/11/EC of 10 March 2000 adaptingto technical progress Annex II to Council Directive 76/768/EEC on the approximation of the laws of the Member States relatingto cosmetic products (Text with EEA relevance) THE COMMISSION OF THE EUROPEAN COMMUNITIES,Having regard to the Treaty establishing the European

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