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    Features

    2020 State of the Industry: High Expectations

    Second annual survey indicates strong degree of confidence for the future, but regulations, quality, and safety issues remain points of concern.

    2020 State of the Industry: High Expectations
    2020 State of the Industry: High Expectations
    2020 State of the Industry: High Expectations
    2020 State of the Industry: High Expectations
    2020 State of the Industry: High Expectations
    2020 State of the Industry: High Expectations
    2020 State of the Industry: High Expectations
    2020 State of the Industry: High Expectations
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    By Sean Moloughney, Editor12.04.19
    In October-November 2019, Nutraceuticals World conducted its 2nd annual audience survey to gauge perceptions about the state of the industry and issues affecting businesses. We received responses from 165 qualified industry members working at companies that either manufacture, market, or distribute finished nutraceutical products—such as dietary supplements, functional foods, or nutritional beverages—supply raw materials, or provide services directly related to these markets and products. The charts and graphics on the following pages depict results. 
     
    Most of the people that responded to this survey work with small businesses with less than 25 employees (51%), while another 21% work with large firms that employ more than 200 (Figure 1). Two-thirds market dietary supplements (68%), and another third supply nutritional ingredients (36%) (Figure 2). 
     


    Confidence & Concerns
    Confidence in the future of the nutraceuticals industry remains overwhelmingly high and steady compared to last year’s survey; 84% of respondents said they are “very” confident in the future, virtually unchanged from last year (Figure 3). Additionally, 57% said they are more confident about the industry now compared to the same time last year; 10% were less confident; and 33% said their confidence remained unchanged (Figure 4). 
     
    In terms of specific concerns, regulations remained the top response—cited by 57%—but this was down from 65% the year before. Concern about negative or misleading news was also down from 55% in 2018 to 49% this year. Quality (44%) and trade issues (33%) remained steady, while there was an uptick in those who cited concern about climate change (18% this year versus 10% last year). (See Figure 5.) 

     

    Future Expectations & Initiatives 
    Perhaps not surprisingly, most people believe hemp/CBD will be the market that sees the most success over the next 10 years (36%)—up from 26% last year—followed by personalized nutrition (18%), probiotics (17%), and healthy aging (16%) (Figure 6).
     
    In terms of innovations or efforts companies are most interested in implementing or planning to incorporate in their own business, clinical research (58%) was a top priority followed by delivery/dosage technologies and increased transparency (both 42%), and third-party testing/analysis (39%) (Figure 7).
     
    Plastic waste reduction saw the biggest increase from last year, up from 22% in 2018 to 33% this year. Blockchain also saw a slight uptick from 6% to 13%. 
     



    Unique Insights 
    Prompted to offer their own thoughts about the state of the nutraceuticals industry, responses suggested some mixed feelings about CBD, alongside an overall need for regulatory clarity in an evolving marketplace, more research to validate products, and a commitment to safety and quality. 
     
    As one person noted, “I feel like there have been huge steps taken over the last few years to assure high quality, well-researched products with efficacy testing; however, I feel like more is necessary to source quality raw materials that are consistent and then further researched in human clinical trials.”
     
    Another respondent suggested that while most companies are operating ethically and with the best interest of the consumer at heart, “There are still too many players though that are just out to make a buck and give the industry as a whole a bad reputation.”
     
    As expected, CBD was a common topic, and while many expressed excitement and optimism, others offered concern about a chaotic marketplace that’s gotten too far ahead of science and research. As one person put it, “The industry is presently facing a real challenge with CBD. If CBD’s benefits aren’t established, or worse safety issues are found, then the industry will be damaged.” 
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