Wednesday, June 2, 2010

INDUSTRY NEWS: U.S. Health & Wellness Sales Reach Nearly $125 Billion

According to the Natural Marketing Institute (NMI), U.S. consumer packaged goods retail sales in the health and wellness industry reached almost $125 billion in 2009 - an overall growth of 5% from the previous year. This bodes well for the North American markets in the health and wellness channels. This is particularly good news for Canadian retailers - while consumer confidence may have waned slightly during the recession, the Canadian health and wellness wasn't hit as hard in terms of sales as it was in the U.S. Now, with spending on the uprise again, Canadian retailers can also look forward to a solid year.


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Health & Wellness Sales Reach Nearly $125 Billion


According to the Natural Marketing Institute (NMI), Harleysville, PA, retail sales within the U.S. consumer packaged goods health and wellness industry reached almost $125 billion in 2009, representing an overall growth of 5% over the previous year. This figure includes sales across all retail and direct-to-consumer channels for the six categories detailed below. These findings are part of NMI’s annual Health & Wellness Trends Database (HWTD) research study, conducted in the fourth quarter of 2009 among 5607 U.S. households.
While functional/fortified foods and beverages continue to represent the largest portion of sales, this category had the smallest growth rate (only 2%) over 2008. The majority of other categories also saw growth rates in the single digits ranging from 5% to 8%. The notable exception was the natural/organic general merchandise category, which for the second year in a row, exhibited double-digit growth. This category, which includes pet products, clothing and household cleaning products, grew by 15%. The proliferation of these products in mainstream shopping channels was likely a major factor that contributed to this growth.
Based on consumer spending by product segment, consumer penetration/usage trends, and projected data, industry retail dollars in billions for 2009 (and growth versus 2008) are as follows ($=billions):
Functional/Fortified Foods & Beverages: $41 (2%)
Vitamins, Minerals, Herbal & Dietary Supplements: $25 (8%)
Organic Foods/Beverages: $25 (5%)
Natural Foods/Beverages: $15 (5%)
Natural/Organic Personal Care: $10 (8%)
Natural/Organic General Merchandise: $9 (15%)
According to NMI president Maryellen Molyneaux, "The economic crisis has affected consumer shopping for health and wellness. Many have changed what, where and how they buy. These changes are not short term but are lifestyle changes that could impact the industry into the future. Based on our research and analysis, NMI projects that the health and wellness industry will grow at a rate of approximately 3% to 15% across various categories in 2010."

SOURCE: Nutraceuticals World

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