10. Confident Consumers: Eighty-four percent of U.S. adults report confidence in supplements, according to a recent Council for Responsible Nutrition (CRN) survey. Further, nearly 70% of consumers now take a dietary supplement, representing the highest usage level ever. Despite a less than rosy economic environment, consumers continue to find value in supplementation.
 
9. Top Notch Ingredients: The most sought after ingredients in both supplements and functional foods still include omega 3s, calcium, vitamin D, fiber and probiotics. The latter, however, are being questioned by regulatory authorities, which want to move them to the drug sector. Expect more drama surrounding friendly bacteria to continue this year.
 
8. Aging Gracefully: Baby Boomers and older generations still represent the target demographic for dietary supplements and functional foods. They are the most knowledgeable, have the most disposable income and have the most to lose if they don’t keep themselves healthy. Don’t take your eyes off them.
 
7. Day of Reckoning: Given ramped up enforcement from FDA regarding GMP compliance, and the many issues that have surfaced in the form of 483s and warning letters, many companies could face their day of reckoning in 2012. If we learned anything from 2011, it’s that FDA is losing patience with this industry. Shape up or ship out!
 
6. You Talkin’ to Me?: Speaking of losing patience, FTC is tired of chasing companies making misleading claims. Expect heightened attention in this area and larger fines for the future.
 
5. Buyer Beware: Even worse than lying about what your product does, posing harm to consumers by adulterating or spiking products is reprehensible. FDA found numerous supplement products tainted with Rx ingredients in 2011 and it acted accordingly. But FDA can’t do this alone. Industry must step up and call out those they know are breaking the law. The recent effort of industry organizations in this regard is a good first step.
 
4. Natural is Non-Negotiable: In the mind of the consumer, natural is king in food, beverages and personal care—even toys, clothes and furniture. This is a market knocking hard on the door of the mainstream market. In the food and beverage market alone, Packaged Facts predicts 103% growth between now and 2015. This is THE trend to watch in 2012.
 
3. Merging Pharma & Nutrition: There was an increase in business activity in 2011 around the concept of bringing drugs and nutritional products together under one umbrella. Nestle was the most active company in this respect, spending more than $1 billion making acquisitions in both sectors. This is certainly a sign of the times and validation of the belief that pharma and nutrition should be equal partners in global consumer healthcare.
 
2. Healthy Foods = Big Business: Children’s health is just one driver prompting CPG companies to offer simpler, healthier fare to consumers. Influenced by health statistics, calls to action and consumer trends, several companies have either made major investments in improving the nutritional profile of their products or pursued acquisitions to reach their nutrition goals. Expect much more of this activity in 2012. Billions of dollars are up for grabs.
 
1. NDI Nonsense: In 2012, the confusion regarding New Dietary Ingredients (NDIs) needs to end, and FDA and industry should come to a truce on what constitutes an NDI. FDA doesn’t want to ruin the industry; and the industry, by and large, does not need what amounts to pre-market approval for its ingredients.