Natural Products Insider · Whoa, Canada! • June 7 Senate passed bill C -45. • Amendments will...

Ingredient & Product Trends

STEVE MyersNatural Products Insider

TODD RunestadNew Hope Network

12 shifts directing the market to 2020Supplements Round Table: Expo East 2018

Supplements Market Overview

Todd RunestadIngredients & Supplements Editor New Hope Networkwww.NewHope.comwww.NaturalProductsInsider.comtrunestad@newhope.com@ToddRunestad

Steve MyersSenior & Sports Editor Informa Health & Nutritionwww.NaturalProductsInsider.comSteve.myers@informa.com@stevomyers

Supplements SWOT

3

• STRENGTHS: Natural compounds, gentle acting, work with the body

• WEAKNESSES: Communication, quality, ingredient adulteration • (it happens across industries: VW, ecstasy), fly-by-nighters

• OPPORTUNITIES: Demographics, Rx opposition, nutrition science, hemp-derived CBD

• THREATS: FDA, AGs, trust, media

Trend: Millennial Concerns

4

• Non-GMO / Organic has come to supplements• T&T, includes testing (adulteration)• Clean label • Alternative delivery formats• Protein• Paleo

Millennials Alternative Delivery Formats

• Carlson Laboratories, Inc. Carlson Baby's DHA• Redd Remedies Curcumin C3 Reduct Chewable• EuroPharma CuraMed Effervescent• Ora Organic Plant-based DHA• NeoCell Collagen Cookie Bar• TMR Vita Straw

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%

Vision Problems

Blood-sugar Issues

Respiratory Issues

Frequent Digestive Issues

Others

Frequent Muscle Soreness

Menopause

Frequent Joint Soreness

Skin or Hair Issue

Lack of Energy

Sleep Issues

What health issues are consumers concerned about?

Source: NBJ Consumer Study, May 2015

Market Data Update

Trend: Middle-aged Concerns

In a consumer survey conducted by NBJ in 2015, more than 30% of participants indicated having issues with sleep or suffering from lack of energy. Number 3 & 4 are skin/hair and joint—this is where collagen comes into play.

Healthy Aging

• Ceramides• Saffron• Mood• Memory• Peak cognitive performance• Healthy fats

Collagen continues double-digit growthU.S. collagen supps sales grew 30% to $98M in 2017

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2016 2017e 2018e 2019e 2020e 2021e

Organic supplements

Trend: Alternative formats: Powders

Trend: Whole-food supplements

Right to win: Brain health

It’s all in your head!• Stress• Sleep• Mood• Memory• Peak cognitive performance• Performance / focus• Vitality

Right to win: Stresssss

Not a disease state• Herbal extracts• Vitamins• Minerals: Mg, Ca, D• CBD

Right to win: Sleep

Not a disease state• Valerian• L-theanine• Magnesium• Kava• GABA• CBD

Right to win: Performance

• Caffeine—now non-synthetic• Coffeeberry, fruit, not bean. • Protein—source diversification• Adaptogens—sports, stress• Mushrooms• Nitric Oxide—blood flow/”pump”• Muscles—mTOR: HMB/phosphatidic

Acid, BCAAs/leucine

Right to win: Inflammation

• Blame the modern American food system• The root of all chronic degenerative disease

Inflammation: Sports Recovery

• Montmorency Tart Cherry • Curcumin• Omega-3s—also for cognitive protection and function• Joint health—glucosamine/chondroitin, eggshell membrane, MSM, collagen

Mitochondrial supplements

• CoQ10: ATP creation• PQQ: Memory, mitochondria biogenesis• Carnitine: Shuttle• Omega-3s: Membranes, ROS• Alpha-lipoic acid: Optimizer

Sports: Energy/Endurance• Creatine• Beta-alanine— carnosine• Ketogenic—ketones, BHB, MCTs• Bars, Shots, Gels, RTD/RTM, effervescent

Macular carotenoids & blue light

• Macula for visual acuity and sharpness• ARMD: Was 65, now 60; 2000-10: up 18%• AREDS I & II: 25% cut• 10 mg lutein, 2 mg zeaxanthin, minimum• 20/4: visual processing speed, contrast sensitivity, sleep, headache frequency, eye

strain, eye fatigue

Probiotics, everywhere in everything

• High-CFU counts• Strain-specific to match conditions

Market Data Update

Cannabis: It’s probably just a fad

• Whoa, Canada ($5.6B)• U.S. Farm Bill• Topicals• Pets• Genetics• Blurred lines

Market Data Update

Whoa, Canada!

• June 7 Senate passed bill C-45. • Amendments will follow. • House of comments to review and vote on amendments.• Includes an amendment to allow the category of ‘cannabinoid-infused

foods and beverages’• Estimated $5.6 billion market in Canada alone, according to Consumer

Health Products Canada• CBD alone estimated to grow to $2.1 billion consumer market by 2020

Market Data Update

Farm Bill / Hemp Farming Act

• Remove hemp from Controlled Substances Act• Definition: < 0.3% THC• Avail hemp farmers of water rights, federal ag grants, national banking system, crop

insurance, research; lets states be primary regulators• 5 years only

Market Data Update

CBD Innovations: Topicals

Market Data Update

CBD Innovations: Pets

Market Data Update

Hemp Innovations: Genetics

THANK YOU!

Todd RunestadNew Hope NetworkNewHope.comNaturalProductsInsider.comtrunestad@newhope.com@toddrunestad

Steve MyersInforma Health & NutritionNaturalProductsInsider.comsteve.myers@informa.com@stevomyers