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    Editorial

    Top 10 Trends for 2013

    As we turn the page on 2012, here’s a breakdown of critical issues to consider for the year ahead.

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    Sean Moloughney, Editor01.01.13
    10) ‘Clean’ Labels: The gluten-free market has set the table for a broad movement among manufacturers to eliminate ingredients with negative associations. Sugar-free, preservative-free and non-GMO all resonate with consumers who scrutinize labels. Less is more.
     
    9) A Good Start: Sales of breakfast foods have grown nearly 20% from 2007-2011, reaching $12.5 billion, according to Mintel, which predicted the category will grow nearly 26% from 2012-2017 to $15.7 billion. Meanwhile, protein has gone mainstream with the explosion of Chobani greek yogurt. Is this a match made in industry heaven?
     
    8) Energy Issues: Following reports of adverse events associated with some of the most popular energy products on the market, including 5-Hour Energy and Monster Energy drinks, FDA said it would consult outside experts to determine possible risks posed by high caffeine levels among certain groups. Is this market in for a wake-up call?
     
    7) Supplements vs. Foods: The global market for functional foods and drinks could reach $149 billion by 2018, according to Global Industry Analysts, Inc. Better technologies are balancing taste and health, driving consumer acceptance. Meanwhile, Packaged Facts predicted U.S. dietary supplement sales could reach $15.5 billion by 2017. Expect the whole food-based supplement trend to continue as the line between these markets fades.
     
    6) The Dr. Oz Factor: Every natural remedy Dr. Mehmet Oz endorses becomes a best-selling sensation overnight—from green coffee bean to raspberry ketone. Such profound influence reverberates throughout the industry, creating issues related to quality and supply.
     
    5) Innovation: R&D is at the heart of any progressive industry. Companies that invest in the future (e.g., personalized nutrition) will be in a favorable competitive position.
     
    4) Emerging Markets: China added $10 billion in new sales to the global health and wellness market in 2011, according to Euromonitor. Latin America also contributed impressive sales; in Venezuela and Argentina, value sales were up 36% and 25%, respectively. Between 2012 and 2017 China and Brazil are expected to add $103 billion in new sales.
     
    3) European Claims: The new European Health Claim Regulation took effect on Dec. 14, 2012, limiting the number of health related messages food and supplement products can convey to consumers to 222 approved claims. How will companies adapt, and will the new law actually serve its purpose of harmonizing European regulations?
     
    2) Oversight Intensifies: FDA is enforcing GMPs and at this point there’s no excuse for non-compliance. Meanwhile, the agency’s revised NDI guidance is forthcoming, and the Food Safety Modernization Act’s registration requirements are non-negotiable.
     
    1) Big Business Deals: Major mergers and acquisitions will have a dramatic impact on the evolution of the nutraceuticals industry. Reckitt’s $1.4 billion purchase of Schiff in late 2012 followed many others throughout the supply chain. And with an estimated $430 billion available in private equity, the competitive landscape has yet to be fully mapped out.
     
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