The U.S. Market for Sports Nutritional Products: Sports Drinks and Energy Bars Fueling the Couch Potato, 5th Edition

• Scope and Methodology
  • Market Parameters
  • Report Methodology
  
  
• The Market
  • 2003 Sales Top $3 Billion
  • Beverages Dominate Market
  • Figure 1-1: Share of Total U.S. Retail Sales of Sports Nutritional Products by Category, 1999 vs. 2003 (percent)
  • Convenience Stores and Drugstores Gaining Share
  • Hispanics Big Consumers of Sports Drinks
  • Broader "Wellness" and "Energy" Approaches Draw New Customers
  • Convenience and Flavor Also Lure Shoppers
  
  
• The Marketers
  
  • Major Players
  • Second-Tier Marketers
  • PepsiCo in a Class by Itself
  • A Shifting Competitive Landscape
  
  
• Marketing and New Product Trends
  
  • New Lines and Extensions
  • Marketing to Women
  • Marketing to Children
  • A Flood of Product Introductions
  • What's Hot
  • Gatorade Dominates in Advertising
  • Advertising Positioning
  • Retail Distribution Varies by Category
  • Table 1-1: Share of U.S. Sports Nutritional Product Sales by Category and Retail Outlet Type, 2003 (percent)
  • Reaching Out to Mass-Market Retailers
  
  
• The Consumer
  
  • 28% of U.S. Adults Are Physically Active
  • The Physically Active Are 54% More Likely to Prioritize Nutrition
  • 37% Use Sports Beverages
  • 13% Use Energy/Diet Bars
  • 53% of Adults Use Supplements
  
  
• Looking Ahead: Trends and Opportunities
  
  • Sports Nutrition and Mass Markets Converge on "Sweet Spot"

Chapter 2: The Market

• Introduction
  • Market Definition
  • Three Product Categories
    • Beverages
    • Bars and Gels
    • Supplements
    
    
  • Functional Categories
  • History of the Industry
  • Overview of Sports Nutritional Ingredients
  
  
• Government and Industry Regulations
  • The FDA and DSHEA
  • DSHEA Tested by Ephedra Controversy
  • The Government's Next Targets: Andro and Beyond
  • Consumer Health Information for Better Nutrition Initiative
  • Good Manufacturing Practices for Dietary Supplements
  • Burdens of the Bioterrorism Act
  • Figure 2-1: IRI-Tracked Sales of Sports Nutritional Products, 1999-2003 (in millions of dollars)
  
  
• Market Size and Growth
  • Methodology
  • 2003 Sales Top $3 Billion
  • Table 2-1: U.S. Retail Sales of Sports Nutritional Products, 1999-2003 (in millions of dollars)
  • 2003 Mass-Market Sales Approach $2 Billion
  • Table 2-2: IRI-Tracked Sales of Sports Nutritional Products, 1999-2003 (in millions of dollars)
  • Beverage Sales Going Strong
  • Table 2-3: IRI-Tracked Sales of Sports Nutritional Beverages, 1999-2003 (in millions of dollars)
  • Sales of Bars and Gels Also Climbing Fast
  • Table 2-4: IRI-Tracked Sales of Sports Nutritional Bars and Gels, 1999-2003 (in millions of dollars)
  • Supplement Sales Growth Slowing
  • Table 2-5: IRI-Tracked Sales of Sports Nutritional Supplements, 1999-2003 (in millions of dollars)
  • Beverages Dominate Market
  • Table 2-6: Share of Total U.S. Retail Sales of Sports Nutritional Products by Category, 1999 vs. 2003 (percent)
  • Share of Sales by Retail Outlet
  • Table 2-7: Share of U.S. Sports Nutritional Sales by Retail Outlet Type, 1999 vs. 2003 (percent)
  • Product Mix Varies by Retail Outlet
  • Table 2-8: Share of U.S. Sports Nutritional Product Sales by Category and Retail Outlet Type, 2003 (percent)
  • Sports Nutrition-Related Activities by Gender
  • Table 2-9a: Participation Rates for Selected Sports Nutrition-Related Activities: Overall and By Gender, 2003 (in millions)
  • Table 2-9b: Indices for Participation in Selected Sports Nutrition-Related Activities: By Gender, 2003 (U.S. adults)
  • Sports Nutrition-Related Activities Highest in West
  • Table 2-10: Indices for Participation in Selected Sports Nutrition-Related Activities: By Region, 2003 (U.S. adults)
  • Hispanics Big Consumers of Sports Drinks
  • Table 2-11: Indices for Participation in Selected Sports Nutrition-Related Activities: By Race/Ethnicity, 2003 (U.S. adults)
  • Sports Drink Consumption Increases with Household Size
  • Table 2-12: Indices for Participation in Selected Sports Nutrition-Related Activities: By Household Size, 2003 (U.S. adults)
  • Sports Participation/Product Usage Highest Among Youths
  • Table 2-13a: Indices for Participation in Selected Sports Nutrition-Related Activities: By Adult Age Bracket, 2003 (U.S. adults)
  • Table 2-13b: Indices for Participation in Selected Sports Nutrition-Related Activities: By Adult Age Bracket, 2003 (U.S. adults)
  • Sports Participation/Product Usage by Income Bracket
  • Table 2-14a: Indices for Participation in Selected Sports Nutrition-Related Activities: By Household Income Bracket (in Thousands), 2003 (U.S. adults)
  • Table 2-14b: Indices for Participation in Selected Sports Nutrition-Related Activities: By Household Income Bracket (in Thousands), 2003 (U.S. adults)
  
  
• Factors to Market Growth
  • Broader "Wellness" and "Energy" Approaches Draw New
    • Customers
    • Overcoming the "Hard-Core" Sports Image
    • Consumers Skeptical of Extreme Health/Energy Claims
    
    
  • Convenience and Flavor Lure Shoppers
  • Products for Every Occasion
  • Premium Waters, Other Functionals Growing Drinks Segment
  • Sports Nutritionals Piggyback on Diet and Obesity Concerns
    • Low-Carb Diets Lead Shoppers to High-Protein Products
    • The Child Obesity Epidemic and Kids at Gyms
    
    
  • Younger Consumers Eager to Experiment
  • Aging Population Staying Active Longer
  • Women Seeking Specialized Products
  • Hispanic Market Cracking Open
  • Figure 2-2: Projected U.S. Retail Sales of Sports Nutritional Products, 2003-2008 (in millions of dollars)
  
  
• Projected Market Growth
  
  • Sales to Approach $6 Billion in 2008
  • Table 2-15: Projected U.S. Retail Sales of Sports Nutritional Products, 2003-2008 (in millions of dollars)
  • Strongest Growth in Non-Supplement Categories
  • Table 2-16: Projected U.S. Retail Sales of Sports Nutritional Products by Category, 2003-2008 (millions of dollars)

Chapter 3: The Marketers

• Marketer Overview
  • Major Players
  • Second-Tier Marketers
  • Many Minor Players
  • Table 3-1: U.S. Market for Sports Nutritional Products: Selected Marketers and Leading Brands, 2004
  
  
• Marketer and Brand Shares
  
  • Methodology
  • PepsiCo in a Class by Itself
  • Table 3-2: Top Marketers in Core Sports Nutritional Categories by Mass-Market Share: 1999-2003 (percent)
  • Marketer Rankings by 2001-2003 Sales Gains
  • Table 3-3: Top Marketers in Core Sports Nutritional Categories by Dollar Gains in IRI-Tracked Sales: 2003 vs. 2001 (in millions of dollars)
  • Top Sports Beverage Marketers and Brands
  • Table 3-4: Top Marketers of Sports Nutritional Beverages by Mass-Market Share: 1999-2003 (percent)
  • Table 3-5: Top Sports Nutritional Beverage Marketers by Dollar Gains in IRI-Tracked Sales: 2003 vs. 2001 (in millions of dollars)
  • Table 3-6: Top Sports Nutritional Beverage Brands by Mass-Market Share: 1999-2003 (percent)
  • Leaders in Bars and Gels
  • Table 3-7: Top Marketers of Sports Nutritional Bars and Gels by Mass-Market Share: 1999-2003 (percent)
  • Table 3-8: Top Sports Nutritional Bar and Gel Marketers by Dollar Gains in IRI-Tracked Sales: 2003 vs. 2001 (in millions of dollars)
  • Table 3-9: Top Sports Nutritional Bar and Gel Brands by Mass-Market Share: 1999-2003 (percent)
  • Leading Supplement Marketers
  • Table 3-10: Top Marketers of Sports Nutritional Supplements by Mass-Market Share: 1999-2003 (percent)
  • Table 3-11: Top Sports Nutritional Supplement Marketers by Dollar Gains in IRI-Tracked Sales: 2003 vs. 2001 (in millions of dollars)
  • Table 3-12: Top Sports Nutritional Supplement Brands by Mass-Market Share: 1999-2003 (percent)
  
  
• Competitive Overview
  • A Shifting Landscape
    • New Companies Enter Market
    • Mergers and Acquisitions
    • Line Extensions Critical to Brand Longevity
    
    
  • Big Marketers Fight “Anti-Brand” Mentality
  • Competitive Focus: Energy/Wellness Products
  • Competitive Focus: Strength and Bodybuilding Products
  • Competitive Focus: Recovery/Nutrition Products
  • Competitive Focus: Sports Bars

Chapter 4: Competitive Profiles

• Competitive Profile: Apollo Advisors, L.P. (General Nutrition Companies, Inc.)
  • Corporate Overview
  • New Owners Aim for Turnaround
  • Keeping Step with the Average Consumer
  • GNC Starts Independent Certification
  • Preferred Customer Controversy
  • GNC’s Balancing Act
  
  
• Competitive Profile: Clif Bar, Inc.
  • Corporate Overview
  • Innovative Products
  • More Than an Image
  • Organics and Sustainability
  • A New Advertising Focus
  • Quest for Innovation
  
  
• Competitive Profile: Experimental and Applied Sciences, Inc. (EAS)
  • Corporate Overview
  • Mass-Market Plan Backfires for CEO…
  • …But Contributes to New Success
  • An “Information-Driven” Company
  • Move Myoplex More Mainstream?
  
  
• Competitive Profile: Natrol, Inc. (Prolab Sports Nutrition)
  • Corporate Overview
  • ProLab a Strong Division
  • Promoting Products Through Sports Event Sponsorships
  • Extending Prolab Beyond the Professionals
  
  
• Competitive Profile: NBTY, Inc. (Rexall Sundown, Met-Rx USA, Worldwide Sport Nutrition)
  • Corporate Overview
  • Rexall Sundown
  • MET-Rx Sport Nutrition
  • Worldwide Sport Nutrition
  • An Image Issue
  
  
• Competitive Profile: Nestlé S.A. (PowerBar, Inc.)
  • Corporate Overview
  • Bar Lineup Continues to Evolve
  • Beyond Bars—a New Entry
  • A New Direction?
  
  
• Competitive Profile: PepsiCo, Inc. (Gatorade/Tropicana North America)
  • Corporate Overview
  • Gatorade Controls the Market It Created
  • Future in Doubt for Gatorade Energy Bar
  • Propel Fitness Water Dominates New Category
  • The Future’s So Bright
  
  …
• Competitive Profile: Red Bull GmbH
  • Corporate Overview
  • The Un-Marketing Plan
  • Extending the Brand
  • Riding the Wave
  
  
• Competitive Profile: Twinlab Corp.
  • Corporate Overview
  • A New Beginning
  • What About Sports Nutrition?
  • Swallowed by the Sphere

Chapter 5: Marketing Trends

• Marketing Dynamics
  • New Lines and Extensions
  • Repositioning Products Is Key to Continued Success
  • Taste Still a Major Concern
  • Customer Education and Reassurance
  • Marketing to Women
  • Marketing to Children
  • Targeting the Hispanic Market
  • Fueling the Hip-Hop Lifestyle
  
  
• New Product Trends
  • A Flood of Product Introductions
  • Table 5-1a: Number of New Sports Nutritional Product Introductions by Ingredient or Benefit: Beverages, August 2002-February 2004 (number and percent)
  • Table 5-1b: Number of New Sports Nutritional Product Introductions by Ingredient or Benefit: Bars/Gels, August 2002-February 2004 (number and percent)
  • Table 5-1c: Number of New Sports Nutritional Product Introductions by Ingredient or Benefit: Supplements, August 2002-February 2004 (number and percent)
  • What's Hot
    • Energy and Wellness
    • Protein, Soy, and Amino Products
    • Natural and Organic
    • Low-Carb
    
    
  • What's Not
  • New Forms and Styles
  • The Candy Connection
  • Probiotics: The Next Big Thing?
  • Table 5-2: Marketers and Brands of Sports Nutritional Beverages and Key New Product Introductions, 2002—Spring 2004
  • Table 5-3: Marketers and Brands of Sports Nutritional Bars and Gels and Key New Product Introductions, 2002—Spring 2004
  • Table 5-4: Marketers and Brands of Sports Nutritional Supplements and Key New Product Introductions, 2002—Spring 2004
  
  
• Advertising and Promotion
  • Consumer Advertising Expenditures
  • Gatorade Dominates in Advertising
  • Figure 5-1: Marketer Shares of National Consumer Advertising Expenditures for Sports Nutritionals, 2002 (percent)
  • Targeted Media Used
  • Advertising Positioning
    • Exclusive Ingredients
    • Targeting Youth Markets Via Moms
    • Sports Themes and Celebrity Endorsements
    
    
  • Trade Associations and Shows
  • Retail Dynamics
    • Retail Distribution Varies by Category
    • Table 5-5: Share of U.S. Sports Nutritional Product Sales by Category and Retail Outlet Type, 2003 (percent)
    • Reaching Out to Mass-Market Retailers
    • Specialty Outlets, General Market
    • On the Web

Chapter 6: The Consumer

• Consumer Overview
  • The Simmons Survey System
  • 28% Are Physically Active
  • Walking Is Top Sports/Exercise Activity
  • The Physically Active Are 54% More Likely to Prioritize Nutrition
  • Table 6-1: Demographic Characteristics Favoring Weekly Participation in Sports/Exercise, 2003 (U.S. adults)
  • Table 6-2: Exercise and Sports Participation "Every Chance I Get": Overall and by Gender, 2003 (U.S. adults)
  • Table 6-3: Exercise and Sports Participation in Last 12 Months: Overall and by Gender, 2003 (U.S. adults)
  • Table 6-4: Attitudes About Nutrition: Adults Who Participate Weekly in Sports/Exercise vs. Adults Overall, 2003 (U.S. adults)
  
  
• Consumer Focus: Sports Beverages
  • 37% Use Sports Beverages
  • Not Just for Sports
  • Younger and Hispanic Skew
  • Gatorade vs. Powerade
  • Table 6-5: Usage Rates for Selected Sports Beverage Products: Overall and by Gender, 2003 (U.S. adults)
  • Table 6-6: Profile of Energy Bar Users: Adults Who Participate in Sports/Exercise Weekly vs. Adults Overall, 2003 (U.S. adults)
  • Table 6-7: Demographic Characteristics Favoring Use of Sports Drinks by Gender: Women, 2003 (U.S. adult females)
  • Table 6-8: Demographic Characteristics Favoring Use of Sports Drinks by Gender: Men, 2003 (U.S. adult males)
  • Table 6-9: Demographic Characteristics Favoring Use of Sports Drinks by Brand: Gatorade, 2003 (U.S. adults)
  • Table 6-10: Demographic Characteristics Favoring Use of Sports Drinks by Brand: Powderade, 2003 (U.S. adults)
  • Table 6-11: Demographic Characteristics Favoring Use of Sports Drinks by Brand: Powdered Gatorade, 2003 (U.S. adults)
  • Table 6-12: Demographic Characteristics Favoring Use of Sports Drinks by Brand: Snapple Elements, 2003 (U.S. adults)
  • Table 6-13: Demographic Characteristics Favoring Use of Sports Drinks by Brand: All Sport, 2003 (U.S. adults)
  
  
• Consumer Focus: Energy Bars
  • 13% Use Energy/Diet Bars
  • 23% of Physically Active Women Use Energy/Diet Bars
  • 5% of Physically Active Adults Use PowerBar
  • Higher Education, Higher-Income Skew
  • PowerBar vs. Balance Bar vs. Luna
  • Table 6-14: Usage Rates for Selected Energy Bar Products: Overall and by Gender, 2003 (U.S. adults)
  • Table 6-15: Profile of Energy Bar Users: Adults Who Participate Weekly in Sports/Exercise vs. Adults Overall, 2003 (U.S. adults)
  • Table 6-16: Demographic Characteristics Favoring Use of Energy/Diet Snacks & Bars by Gender: Women, 2003 (U.S. adult females)
  • Table 6-17: Demographic Characteristics Favoring Use of Energy/Diet Snacks & Bars by Gender: Men, 2003 (U.S. adult males)
  • Table 6-18: Demographic Characteristics Favoring Use of Energy/Diet Snacks & Bars by Brand: PowerBar, 2003 (U.S. adults)
  • Table 6-19: Demographic Characteristics Favoring Use of Energy/Diet Snacks & Bars by Brand: Balance Bar, 2003 (U.S. adults)
  • Table 6-20: Demographic Characteristics Favoring Use of Energy/Diet Snacks & Bars by Brand: Luna, 2003 (U.S. adults)
  
  
• Consumer Focus: Supplements
  • 53% of Adults Use Supplements
  • Usage and Confidence Runs Higher Among Active Consumers
  • Top Supplements by Type
  • Top Supplements by Brand
  • Table 6-21: Supplement Use and Attitudes: Overall and by Gender, 2003 (U.S. adults)
  • Table 6-22: Supplement Use and Attitudes: Adults Who Participate Weekly in Sports/Exercise vs. Adults Overall, 2003 (U.S. adults)
  • Table 6-23: Use of Supplements by Type: Adults Who Participate Weekly in Sports/Exercise vs. Adults Overall, 2003 (U.S. adults)
  • Table 6-24: Indices for Use of Supplements by Type of Formula: Adults Who Participate Weekly in Sports/Exercise, 2003 (U.S. adults)
  • Table 6-25: Use of Supplements by Brand Adults Who Participate Weekly in Sports/Exercise vs. Adults Overall, 2003 (U.S. adults)
  • Table 6-26: Indices for Use of Supplements Among Adults Who Participate Weekly in Sports/Exercise: By Brand, 2003 (U.S. adults)

Chapter 7: Looking Ahead

• Trends and Opportunities
  • Sports Nutrition and Mass Markets Converge on "Sweet Spot"
  • Segmentation at a Furious Pace
  • Beverages Set for a Shift
  • Low-Carb, But How Long?
  • Tough Times Ahead for Supplements

Appendix: Addresses of Selected Marketers