While growth of general dietary supplements such as vitamins and minerals has slowed over recent years, specialty dietary supplements have continued to experience markedly increased sales. Consumers are becoming more health conscious and are choosing to play a more active role in preventing and treating their medical conditions. The availability of scientific evidence supporting the safety and efficacy of many specialty dietary supplements has made these products attractive to self-help oriented purchasers.

Dietary supplements account for 34.1 percent of the $47.6 billion US nutrition market, according to Health Business Partners, a Providence, R.I.based management consulting group. Overall growth in dietary supplement is estimated at 6.8 percent. The dietary supplements market is composed of vitamins, herbals/botanicals, sports nutrition, meal supplements, minerals and specialty supplements. It is estimatd that 70 percent of the US adult population uses dietary supplements of some sort. Multi-ingredient formulas are most popular, but brand loyalty is extremely low, offering good opportunities for private label offerings.

Although vitamins are the leading category, specialty supplements are driving growth; 2000 sales of specialty dietary supplements were roughly $1.65 billion. The compound average growth rate for specialty supplements from 1995 to 2000 was 18.7 percent, far outpacing growth in the overall supplement market.

Glucosamine is the largest contributor, tallying sales of $402 million in 2000, according to Health Business Partners, based on US sales (consumer sales, all channels). Homeopathics follow at $325 million, essential fatty acids (EFAs) at $182 million, S-adenosyl methionine (SAMe) at $170 million and probiotics at $111 million. The highest compounded average growth rates between 1995 and 2000 were posted by SAMe at 276.4 percent (relevant only to period from 1998 to 2000), 5-hydroxyL-tryptophan (5-HTP) at 51.6 percent, glucosamine at 46.3 percent, coenzyme Q 10 (CoQ 10) at 30.4 percent, and EFAs at 21 percent. Only melatonin posted a sales decline at 4.6 percent

SPINS, a San Francisco-based market research firm, in conjunction with A.C. Nielsen, estimates retail sales of specialty supplements through mainstream stores and natural supermarkets to be roughly $551 million in the 12 month period from June 2000 through May 2001. SPINS includes glucosamine/chondroitin, CoQ10, soy isoflavones, supplemental oils (EFAs), probiotics, amino acids, DHEA and methylsulfonylmethane (MSM) in its definition of specialty dietary supplements. The fastest growing products in the area are probiotics and MSM.

Future sales growth is likely to come from the migration of occasional to regular users of dietary supplements, suggests Health Business Partners. Condition-specific positioning of products, backed by science, will also drive retail sales growth. Consumers' focus on wellness and the connection between health and diet plus access to more information will also contribute to increasing interest in specialty dietary supplements. Consumers are experimenting with other categories of supplements and are switching to more specific products, says Laurie Demeritt, president of The Hartman Group, a Bellevue, Wash.-based consulting and marketing research firm specializing in the wellness industry. Herbals used to be a hot area, says Ms. Demeritt, but consumers' perspectives of product efficacy have decreased, and many consumers are unclear regarding how herbals can be used to prevent or treat specific conditions.

Specialty products, such as glucosamine and MSM, have been proven in clinical trials to be effective and are used for treatment of specific ailments or problems. People today are self-treating for conditions such as increased energy, weight loss, stress, heart health, bone/joint health, eye health, cholesterol lowering and diabetes, explains Protein Technologies International, a producer of soy products.

Also, negative media reports on other types of dietary supplements are still impacting consumer purchasing, explains Ms. Demeritt. New consumers do get scared off by these reports, but core users see the reports as reinforcing their use of dietary supplement products, according to a recent report by the Hartman Group on the vitamins, minerals and herbal supplement market.

Past Hartman Group research has shown that consumers' movement from periphery users to core users along the wellness continuum increases their likelihood of using dietary supplements. Some of the triggers that get people started may include nutritional needs, health conditions (such as high cholesterol or arthritis) and aging. The lack of knowledge people have about supplements initially inhibits some consumers from buying them. Additional inhibitors include price and the perceived lack of scientific proof of the efficacy of these products. However, the Hartman Group has found that over 85 percent of consumers that use specialty supplements say they are effective.

The Hartman Group has also found that the frequency of use depends on the reasons for use, whether it be for treating a condition, preventing a condition from occurring, or in many cases using different supplements to both treat and prevent a condition. Finally, an even greater percentage of consumers use specialty supplements, such as glucosamine, CoQ 10 and SAMe, for treating a condition than was seen for the other dietary supplements.

Market growth for specialty supplement, then, is specific to each supplement based on the perceived or actual health benefit associated with the supplement.

Glucosamine/ Chondroitin

There are more than 100 versions ot glucosamine or chondroitin products available through health food stores, pharmacies, supermarkets and the Internet, according to Health Business Partners, which estimates 2000 sales at $402 million, up from $60 million in 1995. Retail products containing glucosamine include McNeil Consumer Healthcare's Aflexa, Bayer's One-ADay Joint Health, Enzymatic Therapy's Enzymatic Therapy GS-500 and Now Foods' Now Glucosamine Sulfate.

Glucosamine, one of the leading specialty dietary supplements today, is used for the treatment of osteoarthritis. Roughly 50 percent of people in North America over the age of 50 have some form of osteoarthritis, according to Robert Orr, general manager of Ocean Nutrition Canada, located in Bedford, Nova Scotia, and glucosamine has been shown to contribute to the synthesis and regeneration of cartilage.

Glucosamine products are differentiated by formulation. The most common form today is glucosamine sulfate, which in the stomach is ionized to glucosamine and sulfate ions. The hydrochloride salt gives the same glucosamine ion on ingestion, so has the same efficacy as the sulfate. In fact, the hydrochloride has an advantage in that it delivers a higher dosage of glucosamine. Only about 63 percent of glucosamine sulfate is glucosamine while about 83% of glucosamine hydrochloride is actually glucosamine.

Glucosamine is isolated from the shells of crustaceans (shrimp and crabs). Most glucosamine sold in North America is made in China. There are also a few from India. Ocean Nutrition Canada is the only company in North America that manufactures glucosamine from its own shrimp.

Ocean Nutrition Canada has a research facility that has developed a mixture of natural ingredients, including glucosamine that is designed to optimize cartilage growth. The company has filed for a patent and is actively looking for marketing partners. The company is aiming for the product to be available some time in 2002.

Chondroitin, a substance found in the body that is essential to the metabolism of cartilage, is often sold in conjunction with glucosamine. Chondroitin is thought to draw fluid into the tissue, giving cartilage resistance and elasticity, and also to slow cartilage breakdown by protecting it from destructive enzymes.

CoQ10

US sales of COQlO reached $189 million in 2000, up from $50 million in 1995, according to Tom Clough, managing director of Health Business Partners. It was one of the fastest growing specialty supplements, posting a CAGR of 30.4 percent from 1995 through 2000.

CoQ 10 or ubiquinone, is a fat-soluble material naturally present in foods and synthesized in all body tissues that is involved in the production of energy. It also acts as an antioxidant. It is an approved drug in Japan for treating heart disease and may aid in the treatment of congestive heart failure. The two main suppliers are Kyowa Hakko and Nisshin Flour Milling Company Ltd.

Bioavailability remains an issue in the marketplace partially due to the water solubility of CoQlO, says Don Blaine, general manager, Kyowa Hakko USA. Kyowa Hakko is planning to introduce a novel water soluble version using a newly patented processing system. "This new water soluble version should lead to potential new delivery systems and thus result in wider use of CoQ 10," says Mr. Blaine.

In addition to dietary supplements, CoQ10 can also be found in personal care products, such as lotions and toothpaste. Most growth is expected in North America, with European and Asian markets remaining fairly stable. MSM

MSM (methylsulfonylmethane), also known as dimethyl sulfone or DMSO2 is a naturally occuring organic source of dietry sulfur, which plays an important role in the formation of muscles, nails, hair, and skin as well as other functions. MSM is mainly used to reduce allergic reactions to pollen and foods and to relieve the pain and inflammation of arthritis, sprains, tendonitis and similar conditions. Other uses include treatment of chronic fatigue, psoriasis, constipation, and gastrointestinal problems. Studies show potential for treatment of lupus, breast cancer, and diabetes, but all claims are based on limited research.

The mechanism of action is not known other than that it contributes sulfur to the body, which can then use it to synthesize various amino acids. Rochem is the major supplier of MSM in the US. US Sales of MSM reached $11.25 million in the period June 1999 to May 2000, according to SPINS/ACNielsen.

Soy

Soy is being tested as a way to reduce the risk of certain types of cancer as well as for a multitude of other benefits. The distinction between soy products as dietary supplements and foods is becoming less and less clear. PTI's Ms. Tockman says the active lifestyles of today have led people to use what once were considered dietary supplements as meal replacements. Food bars based on soy products are an important example, where people are eating health bars when they do not have access to a traditional lunch or dinner.

PTI's products, such as its SuproSoy line, are targeted at this market, and not at the pill/capsule market. These products offer guaranteed levels of ingredients based on the specific health claims that will appear on the end-product labels. PTI has also developed improved flavors in its Supro XT2 products, as consumers are demanding that health foods also have good taste. The company has recently launched its Solae consumer branded-ingredient program to food companies.

Central Soya has recently developed a new fractionated soy lecithin powder called Soy Healthy ME that contains concentrated phosphatidylcholine (PC) and its primary component choline. The company has filed structure-function claims with Food and Drug Administration for mild memory loss associated with aging, says Peter Wood, marketing manager for health and nutrition. Central Soya is in the process of introducing the product to dietary supplement manufacturers and food manufacturers interested in reaching the 40-plus year old consumer.

The company is positioning its Soy Healthy ME as an excellent source of choline with improved bioavailability over choline salts. It also cites a more direct memory improvement than ginkgo-biloba, which is a good vasodilator and acts by opening of blood vessels for increased blood flow.

Central Soya also offers three primary forms of lecithin supplements to consumers-standard liquid capsules, triple strength fractions and deoiled granules.

Kyowa Hakko has introduced a new soy peptide food ingredient, CSPHP. The product has broad applications, including as a stand-alone dietary supplement or used in combination with other products in food and nutraceutical applications, according to Mr. Blaine. CSPHP is a unique combination of soy isolate and lecithin. Enzymatic-decomposed lecithin is bound to hydrolyzed isolated soy protein resulting in a product that is stable to heat and pH and thus can be processed into variety of products. Kyowa Hakko has developed clinical data that shows CSPHP aids in the reduction of serum concentrations of total cholesterol and LDL cholesterol to healthy levels.

US sales of soy isoflavones alone reached $69.8 million during the period June 2000 to May 2001, according to SPINS/ACNielsen. Essential fatty acids include omega3 and omega-6 acids plus others. Ocean Nutrition Canada offers the omega-3fatty acids ecosapentanoic acid (EPA) and docosahexanoic acid (DHA), which are used for cardiovascular health. There is a conditional health claim through the FDA for use of long chain polyunsaturated fatty acids (LCPUFAs), specifically for EPA and DHA to prevent heart attack and heart disease. LCPUFAs have also been evaluated for treatment of neurological diseases, because 50 percent of the lipid portion of the brain is composed of DHA.

Bioriginal is another major supplier of EFAs, offering both omega-3 and omega-6 fatty acids and conjugated linoleic acid. It is generally thought that omega-6 fatty acids, which are found in vegetable oils and red meats, should be restricted. However, gamma-linolenic acid (GLA) is an omega-6 fatty acid that, when supplemented directly, counteracts the negative impact of the arachadonic acid produced from linoleic acid, which is the omega-6 fatty acid that is actually of concern. GLA is used for treatment of inflammatory conditions, cardiovascular health and diabetic neuropathy.

Bioriginal has developed a conditionspecific product that is in clinical trials for treatment of premenustral syndrome. The new product is a mixture containing essential fatty acids, herbal extracts and vitamins. The company is currently looking for marketing partners.

Other suppliers of EFAs include Spectrum, Omega Nutrition, Barlene and Arista Industries. Unilever and Roche offer fish-oil based products. Sales of EFAs have increased from $70 million in 1995 to $182 million in 2000.

Probiotics

Probiotics are a hot growth market in the specialty supplement market. Health Business Partners estimaties that US sales have grown from $65 million in 1995 to $111 million in 2000. L. Acidophilus accounts for about 70 percent of the market. Industry estimates put annual growth at 20 percent. Manufacturers of probiotics include Institut Rosell, Chr. Hansen and Rhodia, Biogaia Biologica, Valio, Nutraceutix and Degussa Bioactives.

Probiotics are basteria-based products that aid in the proper functioning of the digestive system. Nutraceutix Inc., a leading supplier of probiotics, offers 14 species of organisms of which five are most popular-- Lactobacillus acidophilus, Bifidobacterium bifidum, bifidobacterium longum, Lactobacillus bulgaricus and Streptococcus thermophilus.

Nutraceutix sells both raw ingredients and finished products capsules or tablets, according to Terri L. Bulter, general manager of nutraceuticals at Nutraceutix. The company has a proprietary tableting process call LiveBac that is designed to protect the probiotic organisms from air, moisture and heat. The ability to provide probiotics in finished goods form allows Nutraceutix to control the bacteria throughout processing, says Mr. Bulter.

A critical issue in production of probiotics is the preservation of the number of live organisms during processing. Nutraceutix has just announced a new process, which is an extension of its LiveBac procedure, for tableting probiotics. Using cryotechnology to quickly cool tablets after they are formed, preservation of much higher numbers of bacteria can be achieved. Nutraceutix also offers various products using a patented controlled delivery technology. A proprietary formulation of active ingredient, such as glucosamine, and excipents in the form of a powered blend is packaged in capsules or tablets to be used as an extented release product.

Degussa BioActives offers a range of probiotic cultures including various strains of Lactobacillus acidophilus, Lactobacillus casei, and Bifidobacteria species that are manufactured and marketed globally. The products are branded under the Biogarde and Bioghurt tradenames/co-brands in Europe, Asia, and South America, and Sbifidus and Viable tradenames in North America.

Jack Chenault, business manager, functional food, says Degussa BioActives' current focus in probiotics is on the functional food segment where the company's technical competence in dairy fermentation ingredients provides their customer base with the knowledge necessary to incorporate probiotic strains into high quality consumer products. Degussa BioActives continues to explore the expansion of its probiotic offerings to the dietary supplement segment, where they occupy leading positions in other specialty categories; such as phospholipids, nutritional oils, and amino acids and derivatives, where the

5-HTP

5-HTP is a metabolite of the amino acid L-tryptophan and is the direct precursor of the inhiibitory neurotransmittor serotonin. Low serotonin levels have been linked to conditions such as depression and obesity. 5-HTP has been available in Europe since the 1970s. L-- Tryptophan itseld was preciously used as a supplement until contaminants in the product were linked to an allergic reaction know as eosinaphilia myalgia syndrome. These contaminants result from the fermentation process used to produce the material.

5-HTP that is extracted from plants does not have the main contaminant (referrerd to as Peak X) in it due to the type of processing. Norchim S.A.S. produces its L-5-HTP via extraction of Griffonia simplicifolia seeds, which are harvested in Africa.

Jean-Pierre Allaigre, CEO of Norchim, estimates the total worldwide consumption of 5-HTP at 10 tons per year. Health Business Partners estimates that US sales of 5-HTP have risen from just $5 million in 1995 to $40 million in 2000.

SAMe

Sales of SAMe have dramatically increased from $12 million in 1998 to $170 million in 2000, according to Health Business Partners

SAMe is a naturally occuring physiological substance that is present in the body primarily used for the treatment of depression. There is limited data suggesting it may also be helpful eith arthritis and some forms of liver disease. SAMe has been in use in Europe since the 1970s and is considered a drug in several countries but not in the US. SAMe appears to increase serotonin turnover, inhibit the reuptake of norepinephrine in a temperature-dependent fashion, and augment dopaminergic activity. SAMe also increases folate levels and plays a role in many methylation reactions of the body including gene expression, cell membrance homeostasis and hormone and neurotransmitter synthesis.

However, no long-term studies have confirmed the safety or efficacy of SAMe. Commerical products come in many forms designed to stabilize the compound and prevent degradation. Derivatives include the tosylate, disulfate tosylate, disulfate ditosylate and 1,4-butanedisulfonate. The Ross Division of Abbott Laboratories is one supplier of SAMe raw material.

From healthy.net