Fueled by low-carbohydrate products and wired on Red Bull and its copycats, the sports nutrition and weight loss categories, which represent nearly a quarter of the overall nutrition industry, grew 14% in 2004, according to Nutrition Business Journal (NBJ), San Diego, CA. Much to the dismay of pill popping dieters and bodybuilders alike, the last year was characterized by FDA exercising its authority by removing the ever-popular weight loss aid ephedra from the marketplace. It also asked manufacturers to put the brakes on their distribution of supplements containing the muscle builder “andro” (androstenedione).

President Bush reinforced FDA’s position on andro by signing the Anabolic Steroid Control Act in 2004, which banned steroid precursors from being sold and classified them as Schedule III controlled substances (dehydroepiandrosterone, or DHEA, is currently exempt, although new legislation may change that in the near future-see this issue’s Top of the News section for more information). Ephedra seems to have made the cut though, sort of. A federal court in Utah in April reversed the FDA’s ban on dietary supplements containing ephedra, but only for doses of 10 milligrams per day or less. In a suit brought by supplement manufacturers Nutraceutical Corporation and Solaray Inc., the judge found there were no experimental data showing ephedra to be unsafe at this level. What this means for the industry in the long term is unknown. However, as this issue went to press, FDA filed a notice of appeal against the ruling.

This past year the supplement industry was also characterized by consumer confusion propagated by media coverage of congress’s tug-of-war over the Dietary Supplement Health & Education Act (DSHEA), the BALCO scandal and third party disclosure of inaccurate labeling practices.

Sports Nutrition Growth Dynamics

Despite a flood of negative publicity surrounding supplements, the U.S. sports nutrition and weight loss market faired decently in 2004 by posting sales of over $15 billion. While the market has been steadily growing over the past several years (1997 saw over $6 billion in sales and 16% market share), the rate of growth has actually been steadily declining, paralleling the growth pattern of the overall supplement industry. Sports supplements accounted for nearly $2 billion in sales in 2003, an increase of 8% over the year before. However, sports supplement sales have also experienced a downward trend in sales growth over the past several years.

Depending on how it is defined, the sports nutrition market can include a host of products that crossover into other markets. For the purpose of this article, the sports nutrition and weight loss market includes weight loss pills, weight loss meal supplements, sports supplements, low-carbohydrate foods, nutrition bars and sports/energy beverages.

Industry Overview

Three main products contributed to the sports nutrition and weight loss market’s growth in 2004. According to NBJ, these included low-carbohydrate products, which experienced 154% growth (i.e., low-carbohydrate bars and meal replacements), sports/energy beverages (i.e., Gatorade, Red Bull), which accounted for 18% growth, and sports supplements (i.e., protein, creatine, amino acids), which grew 6%.

Energy bars, which were at the height of their fame in the late 1990s, recharging again in 2002, continue to post steady sales but their growth rate has stalled.

A majority of product sales in the sub-category of sports supplements came from protein powders (due to the popularity of low-carbohydrate diets) and the muscle-building supplement NO2 (posting $50-$60 million in sales, an increase of 1000% over 2003). However, NO2 is a product that isn’t solely used for athletes. It has also been marketed for those who have cardiovascular disease, pain and a host of other ailments. Therefore, future sales of NO2 will likely bleed into other markets.

Although sales of protein powders are high, prices have dropped in recent years because a majority of consumers are buying on taste vs. functionality.

Prepared sports drinks, including protein formulas, thermogenic blends and other drinks aimed at the hardcore gym-goer, contributed to $130 million sales within this market.

Prior to their ban, pro-hormones grew 35% in 2003, leading one to believe sports supplement sales overall would be significantly higher if pro-hormones were still on the market.

The sports nutrition and weight loss market has indeed seen greater percentages of growth in the past several years in comparison to the overall nutrition industry, however, this growth is expected to slow down soon due to stagnating sales of low-carbohydrate products and the hesitation of larger companies to sell products that could be construed as potentially dangerous.

According to Dr. Jeff Volek, assistant professor in the Department of Kinesiology at the University of Connecticut, and a well-known expert on the subject of low-carbohydrate diets, “The last several months have seen a fall in sales of low-carbohydrate foods, which hit an all-time high in the latter half of 2004. Whether it will recover is uncertain but one thing is for sure, the next few years will see an unprecedented amount of scientific work supporting the benefits of carbohydrate-restricted diets.”

According to New York-based Beverage Digest, sales of energy beverages increased over 73% in 2004 for total sales of approximately $2 billion. But sales of energy beverages are deceiving because they serve such a wide range of consumers, from sports enthusiasts, to night club goers, to anyone searching for the next “buzz”. The ability of the energy beverage to serve such a wide consumer base certainly speaks to its versatility and makes it the ultimate crossover product.

Current Consumers of Sports Nutrition Products

So who are the consumers of sports nutrition products? The greatest percentage of sales-over 35%-comes from what is defined as the heavy supplement user (i.e., trainers, serious athletes). Per person, they spend an average of $73 per month on supplements. Regular users like individuals who workout a few times per week, as well as weekend warriors, spend roughly half that amount per month. Given these statistics, there is a great deal of room for growth. In fact, 93% of the U.S. adult population does not use sports supplements at all.

Professional athletes have supplement regimens that differ vastly from the general public. Dave Ellis, a sports nutrition consultant to several pro teams and individual athletes said he “watched a lot of athletes pay way too much money to get a pump with all the NO2-type products. I would expect more for my money then a pump! Last time I checked, short rest intervals got that job done.” He added, “Products like Juven (a muscle-building drink) work well by combining arginine, glutamine and HMB.”

Mr. Ellis believes pro athletes, trainers and coaches will soon hedge their bets on intracellular buffers like beta-alanine (along with phosphorous) and the combination of ribose with some extra-cellular buffers like bicarbonate and citrate to keep key personnel on the field longer.

Even though pro athletes may endorse specific brands or products, the sports nutrition market consists of many products that are not solely intended for or marketed toward athletes and active individuals.

Future Growth: A Focus on Research

In addition to the lingering controversy surrounding supplements such as ephedra and andro, there are other issues that have stalled growth in the sports nutrition and weight loss industry. These include: negative media coverage, lack of product innovation and consumer education, market saturation, particularly in the case of bars and shakes, disappointment following unrealistic consumer expectations brought on by hyped advertising,and lack of and disclosure by websites like consumerlab.com declaring several supplements to be inaccurately labeled and/or not living up to claims. While consumerlab.com and other similar websites may contribute to consumer perception that this industry is unregulated, they may actually help the industry clean up its act by exposing companies not acting with integrity.

Two additional factors sure to play a role in the growth of the sports nutrition market are the economy and scientific research. This industry depends, in part, on the economy because supplements, bars and protein powders are not necessities. Instead, supplements are considered luxuries and therefore are often dropped from the shopping cart by those who aren’t competing in a bodybuilding show or aiming to win their next Ironman competition.

The good news is, the continued growth of the sports nutrition industry has stimulated the interest of those in academia. In 2004, the non-profit International Society of Sports Nutrition (ISSN) was developed by industry and academic leaders to promote research and dissemination of accurate information to the public. It is the hope of Douglas Kalman, MS, RD, vice president of ISSN, that the organization serve as a resource for nutritionists, athletes and the general public. This year’s ISSN conference, which was held in June, highlighted the latest scientific findings in the world of sports nutrition and supplements. It was only the organizations second conference and many more are expected in the coming years.

There is a great deal of interest in scientific research on sports nutrition products and novel ingredients. However, research comes at a price and therefore many companies “skimp” on product testing and clinical studies. Still, thousands of research papers are published yearly that discuss, and sometimes debate, the efficacy, safety and effectiveness of a host of ingredients and supplements. Some of the most highly researched include: glutamine, leucine, creatine, HMB, protein (including protein-carbohydrate post workout beverages) and chromium. Additional research may look at arginine and alpha-ketoglutarate based on their role in nitric oxide (NO) production, as well as beta-alanine and functional sugars, such as tagatose and trehalose. But while research is abundant for some products, it is sorely lacking for others. In reality, many supplements that are marketed for weight loss, muscle building, recovery and other purported uses are based on extrapolated science and have little or no data to support their safety and efficacy. Instead, in some instances, manufacturers have taken basic or clinical research studies, combined with the knowledge of advanced physiology, and have woven both together in an effort to create the next magic bullet.

With consumer concerns reaching a fever pitch and further research being stressed, what does the future hold for the sports nutrition industry? NBJ predicts growth will hover somewhere between 5% and 7% per year over the next eight years. By 2013, sports supplement sales are expected to reach almost $3.5 billion. Over the next year, NO2 is expected to post even further gains, followed by strong performance from creatine blends that include functional sugars, as well as other ingredients like glutamine and glucosamine.

The outlook for the sports nutrition market looks bright. Current issues surrounding this market are being addressed, more widely appealing products continue to be developed and the interest in sound, scientific research is growing. In addition, the media hype that has been so negative in the past continues to focus on health-giving the sports nutrition industry yet another avenue to promote its products.NW



About the author: Marie Spano is a registered dietitian with a MS in Nutrition and a BS in Exercise and Sports Science. She has counseled hundreds of individuals on weight loss, sports nutrition and bodybuilding. In addition, Ms. Spano has authored several articles, as well as a book chapter for Essentials of Sports Nutrition (Beverly Publishing, 2005). She is also a food industry consultant.