Global Nutrition Industry Stable and Growing

The Nutrition Business Journal recently released their 2010 Global Nutrition Report.  It is a 265 page research report on the Global Nutrition market.  The research is rather expensive but gives a lot of great insight on the Global Nutrition industry and where it is headed in the future.  Since I know a number of my webpage subscribers are in the nutritional business I wanted to share some of the basic points.  Remember, one of the easiest ways to succeed in business is to get positioned in an industry that (1) is driven by real demand and (2) is forecasted to be in a long-term uptrend.  Below is a picture of the current and forecasted global market and a summary of the key factors driving the Global Nutrition Market. 

Highlight #1 – The Global Nutrition Industry is Stable and Growing

Even in a tough economic climate, the nutrition industry is growing around the world.  As you can see from the chartbelow, the industry is forecasted to have continued growth, although they do expect the pace of growth to level off around 6% through 2014. 

Highlight #2 – The Factors Driving Nutrition Are Real Problems Facing Society

There are 3 primary factors driving the Global Nutrition Market:

1.  An Aging Population – In most of the industrialized world, society is getting older.  This is especially true in Japan and throughout Europe.  Even the US baby boomers are heading into their “retirement stage”.  What do we know about this older population?  First, health is a major factor in their life.  They want to stay healthy so they can sustain their quality of life.  In addition, health costs have a major impact on their finances.  More and more of this group of society is looking for ways to avoid being sick and incurring the massive healthcare costs that in turn impacts so many other areas of their lifestyle.  This group is a “momentum driver” for the Global Nutrition Industry.  Equally, for those who market opportunities in the nutrition area, you might find this group to be a great source for expanding your business.  Most of them are looking to make money in retirement and they have relationships with others who share their concerns and needs.

2. Continued Bad Health – Continued growth in diabetes, heart disease, cancer and other chronic health ailments linked to poor nutritional habits are a major problem around the world.  As consumers worldwide become more educated on Wellness and Prevention, they will look for solutions that will enable them to stay out of the healthcare systems.  Part of this education will be the realization that spending money to stay healthy is a better economic choice than the costs associated with being sick.

3. Changing Economics – Around the world, more and more people are moving toward the middle class.  The research indicates that people who spend on nutrition can afford to do it.  Countries like Brazil, China and India are examples of major global markets where there is a growing middle class.  As the masses have more money and become more educated on the value of health and wellness, they will drive the Global Nutrition Market.

Highlight #3 – The Regulatory Climate

There is a worldwide movement toward more regulation as it pertains to Global Nutrition.  Without having to explain the specific regulatory issues in each country, I wanted to summarize two basic issues that are going to change in the future.  The regulators are focused on these two areas because they feel these factors are critical to oversight of the Global Economic market.  For some, this news might seem a bit scary.  For others who are well ahead of the direction of the regulatory climate, this news will seem like a breath of fresh air.

Focus #1 – What is in your product?    There is a lot of controversy surrounding  what is being put into products.  In particular there is a major focus on botanicals and herbs.  There seems to be concern over products that could potentially damage health vs. promote it.  Therefore, the  more mainstream and proven the components of your products are, the better off you will be as the regulatory climate increases.

Focus #2 – What claims are you making about your product?    I think it is safe to say that regulators are moving toward science and away from salesmanship.  Regulators want scientific proof that your products work.  Some of the old sales tactics used to promote the value of a product are under great scrutinization by regulators around the world.  The level of scientific proof could go as far as to include the standards that are currently expected from pharmaceutical companies with their drug testing.  To give you a perspective on what that could mean, let’s look at Canada.  The new regulations in Canada resulted in a 33% loss of the nutritional players in that market, simply because they could not meet the new regulatory requirements.

Of course there are many, many highlights that could be extracted from this extensive report.  However, I felt it important to note a couple key features that can help those of you in the nutrition business understand the road that lies ahead for your industry.