From the depths of the ocean come two of the nutraceuticals industry's evolving nutritional supplements. While not on the level of fish oil in terms of clinical science or consumer awareness, shark cartilage-and to a lesser degree chitosan-can be considered emerging markets in the nutritionals field. Although the big splash made by shark cartilage in the media a few years ago has faded-and chitosan has yet to take off at the consumer level in the same way-the two segments are facing similar challenges.

Studies done on chitosan show benefits for those with high cholesterol and weight problems, while shark cartilage reportedly benefits those with arthritis and cancer. While the two products may be for different indications, the main concerns with both are whether they can live up to their claims and whether or not they are safe. Both also have processability and supply sourcing issues, with shark cartilage manufacturers in particular garnering some unwanted press from animal rights activists.

The Bare Bones Of Shark Cartilage
Although shark cartilage only became a media sensation a few years ago, its history spans three decades. According to Jim Hughes, President, SeaTech, Shrewsbury, MA, "In the late 60's some theories arose as to why sharks did not seem to develop malignant disease and some concluded that it was the cartilage." Shark cartilage, according to published studies, appears to prevent the formation of blood vessels (angiogenesis), which is essential for stunting or decreasing the growth of tumors. This anti-angiogenic effect is what compelled scientists to study shark cartilage further.

"The use of shark cartilage to prevent angiogenesis is a good theory," Mr. Hughes continued. "However, only now is the science just starting to catch up." Rick Jahnke, Director, Lane Labs, Allendale, NJ, agreed, "The fad demand is fading but more clinical use is increasing and more doctors are recommending shark cartilage to patients who are in the end stages of cancer." He added that usefulness is growing because doctors are learning to use shark cartilage in conjunction with other therapies.

Michael Yatcilla, Director of Technical Services, Cyvex Nutrition, Irvine, CA, explained that studies have been ongoing since the first discovery of shark cartilage's capabilities. "Studies over the years have concluded that angiogenesis inhibitors are very active in significant amounts in shark cartilage," he said. "With this conclusion, there was the question of whether or not it could limit angiogenesis significantly and prevent or treat cancer."

Helping treat those with cancer and arthritic conditions are well-known indications for shark cartilage. However, there has been speculation as to other uses as well.

According to Mr. Yatcilla, "The indications for arthritis have been extended and shark cartilage has been found to ease mild pain relief. It has also been found to be a potent antioxidant because it has free radical scavenging capabilities."

In addition, Leo Cullen, Vice President Sales and Marketing, MW International, Hillside, NJ, included wound healing in the gamut of uses for shark cartilage. And Ron Schiavello, President, CPB International, Pompton Lakes, NJ, added, "Shark cartilage-while popular for its anti-angiogenic effect-is also considered useful for individuals with osteoporosis and those with sports injuries"

The expanded range of uses means more are inclined to use shark cartilage. That being the case, industry leaders are concerned that consumers need to be more aware and more importantly, educated.

Awareness Means Education
While companies tout their shark cartilage products to consumers, they have yet to tell the whole story in terms of clinical science and research. According to Lane Lab's Mr. Jahnke, "Part of the problem with shark cartilage and cancer is that a lot of companies are concentrating on selling aggressively. We need to be more concerned about educating and the most important part of selling this product is establishing research to prove its effectiveness." Currently Lane Labs has partnered with the National Institutes of Health (NIH) for a comprehensive study using shark cartilage to treat cancer.

The educated public is growing in numbers, however, according to CPB's Mr. Schiavello. "Consumers are much more aware than they were years ago and that goes for the entire nutraceuticals industry," he said. "They are being made aware by the mass media; that information certainly helps the consumer decide what supplements or health products are right for them."

Cyvex's Mr. Yatcilla qualified consumer awareness. "The growing track is arthritis because that indication has become more prevalent," he said, adding that more individuals are drawing the connection between chondroitin and chondroitin sulfate in shark cartilage because that is what yields the supposed benefits in relation to arthritis.

Still Mr. Hughes urged, "What the public needs to keep in mind is that shark cartilage is not a cure-all but it can improve things significantly-that claim is possible."

The Purity Issue
Although there are several issues surrounding shark cartilage, the most important is obviously its effectiveness and this is directly related to how it is processed, said Mr. Hughes. "The science says that shark cartilage has anti-angiogenic properties, but the way cartilage is handled and produced is sometimes very crude," he said. "Some producers choose the most convenient and least expensive ways of producing the cartilage for consumption by the consumer." Lack of regulation, in terms of processing practices, creates the bad reputation that some would say this industry already has, therefore making it difficult to find a source of good quality shark cartilage.

Mr. Hughes went on, "In some countries the shark is hunted solely for its cartilage. Sharks are left to rot on shores in the sun and then later the bones and what is left is retrieved by harvesters." By this time, said Mr. Hughes, "a lot of the biological properties that once existed have been depleted." In other cases some catch the sharks, cut off the parts they need and throw the animal back in the water. Eventually what is retrieved is boiled until all that is left is the bones and cartilage. Again, Mr. Hughes noted, "A lot of the biological properties are lost and a good portion of what you wanted to recover for specific healing purposes are gone."

Also hindering the purity issue is the perception of the desired product. In this industry there is a difference between the desired product and the effective product, explained Mr. Hughes. "Good quality shark cartilage should have a light aroma and appear off white." Marketers, however, want to bring this product to the consumer as an odorless white powder because they want to avoid the fishy smell and the natural off-white tone of the cartilage. But according to Mr. Hughes, "Those are the qualities that make the shark cartilage authentic."

The Supply Issue
With the evolution of shark cartilage, the depletion of the shark population became an issue to animal rights activists, but according to MW's Mr. Cullen, "Last year there was a bit of attention given to the depletion of the shark population and several environmental groups were lobbying for discontinuing the slaughtering of sharks, but the concern seems to have since died down."

Due to heavy regulation in the U.S. by the National Marine and Fishery Service, the shark population has remained steady. The problem lies off the shores of the rest of the world, where regulation is pretty much absent. Less than reputable practices can have a serious impact on the future of the shark population. Mr. Hughes explained, "Sharks take longer to mature and once wiped out it becomes very difficult for the population to re-establish themselves." In terms of the diminishing population of sharks in certain areas of the world, Mr. Hughes noted that it is hard to determine whether it is the heavy hunting of the sharks or the lack of breeding grounds that causes this situation.

The Future Market
So where does the market go from here? Though shark cartilage became a popular niche for the media to sink their teeth into, the fad surrounding it has died down. Mr. Cullen commented, "We don't see the same high demand for shark cartilage that we did about a year ago; the market has really leveled off and declined."

Mr. Yatcilla added, "The market had been on the decline but lately I think there has been a revival. But to spur the kind of attention that shark cartilage received a couple of years ago, a media explosion would need to occur and although it is a steady seller, whether it will explode again remains to be seen."

Chitosan: Similar Markets, Differing Issues
Chitosan, which also comes from marine organisms-faces similar yet differing issues in the nutraceuticals industry. Harvested mainly from shellfish like shrimp and crab, the main indications include weight loss and cholesterol-lowering. Currently marketers are pushing chitosan in the direction of weight loss, calling it a "fat absorber"; however, chitosan is recently receiving attention for lowering cholesterol as well. Bjarte Langhelle, Technical Export Manager/Biotechnological Engineer, Primex Ingredients, Avaldsness, Norway, said that awareness of chitosan in general is growing, especially in the U.S. where it is more commercialized. "An increasing number of companies include chitosan in their product line and infomercials are run on TV and radio," he said, "However, the advertisements that talk about chitosan as a 'miracle cure' are not always based on scientific background. In this context, the consumers' awareness for chitosan as a fat binding fiber has increased, but the general public is not aware of the quality differences in the product ingredient, which definitely exist in the market."

In terms of indications, the cholesterol-lowering properties are only now beginning to surface. According to Tom Jerrel, Vice President, DCV International, Wilmington, DE, "This has excited marketing people, but not consumers yet. We are just beginning to see chitosan marketed for lowering cholesterol."

Misleading The Customer
One problem with chitosan is the presence of the less than reputable element in the business. Mr. Jerrel commented, "The people who want to find one pill to solve all of their problems won't find it here but there are companies willing to sell it. The industry has a wide range of players and there are some that are only interested in short term gain."

He pointed out that chitosan should be used in conjunction with a diet and exercise program. However, companies continuously mislead consumers, who feel that taking chitosan is just cause to eat meals high in fat. Said Mr. Jerrel, "I don't want to be characterized by the 'bad apples' in the industry because it does not do anything for the credibility of the dietary supplement industry."

While truly reputable companies work on bringing high quality chitosan to market, still another problem remains. Mr. Jerrel explained, "People don't care what is in the box, just what it says on the label."

Because the product is not as well publicized as other nutritional supplements, consumers must rely on the label to get their primary product information. Mr. Langhelle commented, "While there is an increasing consciousness concerning the efficacy of different chitosan products/sources, the main problem today is that the industry does not really know the product too well."

Mr. Langhelle noted that since the market boom for chitosan really started about two-three years ago, the market has been flooded with low quality material. No product standards have been set, leading to high variations and inconsistency in the end product, which in the end effects the consumer.

With respect to the lack of standardization Mr. Jerrel noted, "Something to remember is that not all chitosan are created equal. Chitin is treated in order to make it soluble in the stomach because chitin itself is insoluble. Depending on the way it is processed one chitosan may bind fat while others may not," he said. As a result chitosan needs to be tested to distinguish between food grade and industrial grade.

Companies like Primex and DCV have developed quality tests to make sure that the percentage of chitosan that binds fat is high. Mr. Jerrel noted, "We sell high quality chitosan; we test every lot we sell to see if successfully binds fat and if it doesn't we don't sell it."

The quality of the finished chitosan product is largely dependent on two factors, where it is retrieved and how it is processed. As those who produce shark cartilage understand, there is a constant tension between marketers who want a white soluble powder and those striving to produce high quality chitosan. Mr. Jerrel said, "Natural products are usually not naturally one color and this is something the public does not understand." Chitosan is a sensitive product, according to Mr. Jerrel, and harsh treatments will strip chitosan's capability to bind fat.

Bleaching practices, among other treatments, are not something that the consumer is readily aware of, so educating the public becomes important. CPB's Mr. Schiavello explained, "You have to be careful because of the different grades of chitosan. The industrial grade is used in water purification and other industrial processes and is much cheaper. The food grade chitosan is a lot higher in quality and is a great deal more expensive to process. My advice to the consumer is to know where the chitosan is coming from."

Pricing And Sourcing
Pricing and sourcing are aspects of the market that are largely dependent on each other. In relation to sourcing, Mr. Hughes noted of chitosan, "There still remains regulatory issues and sourcing problems. One reason this industry has a problem is because it is so fragmented and there is no vertical integration." He continued, "There are few companies that have the capability to oversee the entire process from start to finish." As a result, he said, "most of this industry is based on having raw materials go through one, two, three and even four hands before it is finally encapsulated and put on store shelves."

In terms of pricing, costs have been relatively stable but while the supply may be plentiful, there is a difference between total supply and the supply of quality chitosan. As Mr. Jerrel noted, "If you are not concerned about the quality there is a torrential rain of chitosan."

Mr. Langhelle added, "Although chitin is one of the most abundant polysaccharides in the world, the availability of fresh high quality raw material is relatively limited. With the limited knowledge of chitosan quality parameters, cost has served as the main driving force in the market."

There is a partial solution to this dilemma. "The good news is that the lack of integration is changing and more companies are starting to oversee all aspects of production from retrieving the raw material to putting it on store shelves," Mr. Hughes commented.