Top 10 Predictions for 2009

By Rebecca Wright | 01.01.09

10. The Energy Crisis. Consumers and companies will be on the hunt for products that provide a sustainable source of energy beyond the raft of stimulants currently available. As state and local authorities continue their investigations of caffeine-related health incidents, look for other less risky energy ingredients to take center stage. The market is wide open for ingredients such as ribose, CoQ10, Rhodiola rosea and L-carnitine.

9. Much Needed R&R. Last year's events, to put it mildly, have consumers freaked out about what's to come. As this stress builds, look for consumers to reach for products that will help them chill out. Major ingredient players, such as Taiyo with its L-theanine ingredient (from green tea), are already making major inroads in this market.

8. Digestive Health Goes Mainstream. In 2008, several new products targeting digestive complaints hit the market. Expect this trend to continue in 2009, ushering in all sorts of new and old ingredients. Tagging along will be those products lacking gluten-gluten-free just may become the next fat-free.

7. Profitable Prevention. The tarnished public perception and struggles of Big Pharma will continue to drive the trend of self-care and prevention. But the tightening of consumers' wallets will force them to choose products based on price instead of quality. This could be trouble for mainstream brands fetching a premium price for their products. Loyal consumers in the natural foods channel, however, will continue to pay premium prices and make trade-offs in other areas of their lives in order to keep purchasing their healthy products.

6. Superfruits and Superseeds. Ingredients that offer two or more technical or functional "benefits" (e.g., exotic flavors with nutritional functionality) will continue to dominate the market. Most of the attention will continue to go toward the superfruit category, but another "super" category-superseeds-will also start gaining recognition. Look for chia, a superseed used by the Aztecs, to make a big impact in 2009.

5. Sweet Revenge. There is a petition that seeks to move ingredients like stevia into the drug category, despite its recent approval for use in foods and beverages, as well as a tabletop sweetener. Most experts don't think this will amount to action, but look for similar petitions to surface in the future, which seek to change the regulatory status of dietary ingredients. As for stevia, it's finally getting the positive attention it deserves, and it's about time.

4. OTC/Dietary Ingredient Combinations. Several years ago, Bayer decided to launch a product combining aspirin and calcium. Last year, the company made headlines when it made a similar move, this time bringing aspirin and phytosterols together in Bayer Heart Advantage. The latest entrant is Dayquil plus Vitamin C. While these combinations might make sense, technically they exist in regulatory limbo. CSPI has already been quoted as saying that Dayquil plus Vitamin C is nothing more than a cheap way to distinguish itself from other products on the shelf. Congress and others will continue to monitor this trend in 2009.

3. Playing Politics. The industry must demonstrate resolve in dealing with the new administration. The outlook remains positive, as President Obama believes wholeheartedly in wellness and preventive medicine. But will that include dietary supplements and functional foods? This industry must make sure these products become part of the new healthcare agenda.

2. Better Safe Than Sorry. Food safety will continue to be a major focus this year. Using consumer protection as motivation, Congress may try to preempt some potential safety issues by calling for increased oversight and regulation of dietary supplements and functional foods. Once the quality issues get ironed out, Dr. Josephine Briggs, the new head of NCCAM, expects natural health products to have great utility in healthcare, particularly in the area of pain management. She says this is where the pharmaceutical industry really needs help.

1. Fallout From Financial Freefall. Last year's financial crisis renewed criticism of "unregulated" markets. Look for this sentiment to apply to all areas of business in the near future. Unfortunately, despite a relatively healthy outlook for nutraceuticals, a slumping economy will shrink the number of companies in this business.

Rebecca Wright
Editor
rwright@rodpub.com