Part 1: FDA Restructuring and FTC Activity
Part 2: Supplement Access, Safety, and CBD
Part 3: Communication, Education, and Trust
Part 4: Advanced/Advancing Technologies and Research
Part 5: Advocating Best Practices
Part 6: Business Trends and Innovation

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NW: What are some of the business, regulatory, science, or market trends that have affected the dietary supplement industry over the last 12 months and what types of developments are you anticipating for the coming year?

Elyse Lovett, MBA, MS, Founder of Lovett Marketing and Advertising Agency, LLC: The cognitive health market has been booming over the past few years and emerging cross-over categories are starting to evolve the market even further. If we really look back on what started the market it was Prevagen and the tremendous amount of marketing that went along with the product. Since then, we have seen so many different types of products hitting the cognitive health space with attributes from focus to memory to energy to attention and focus claims. But now the category is starting to really innovate with unique solutions that tailor personalized nutrition.

Formulators should be looking at what’s trending alongside the cognitive health market and what makes sense for consumers to make their products stand out on the shelves. Incorporating benefits like immune health, stress and mood, and men’s and women’s health into cognitive health products to make them unique could help the product stand out.

The “old is new” concept—I love this concept for cognitive health products and coming back to the roots of great science. Taking those novel, scientifically-researched branded ingredients and incorporating them with well-researched ingredients like omega-3s, citicoline, antioxidants, and adaptogens gives a sense of security to the consumer that they are getting their daily dose of “what they know” with “what’s new and innovative.”

Synergistic blends are another area that is growing in the space. Combining cognitive health ingredients with other health-promoting ingredients to appeal to the broader market helps to create innovative solutions.

Branding and marketing is a key to getting new products developed in the market. This includes utilizing clear and evidence-based marketing strategies to educate consumers about the benefits of the product—and to make sure those benefits are substantiated by solid research. Another part of marketing is consumer education through websites and other channels to inform consumers about the importance of cognitive health, the science behind the products, and healthy lifestyle choices.

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“As consumer trends shift from key areas like immunity, stress and sleep, to women’s health, gut health, brain health, energy, and a variety of other categories, product development and innovation teams are busy creating the new products their marketing teams are asking for.”

— Paul Altaffer, RFI

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Paul Altaffer, Chief Innovation Officer, RFI: The biggest trend we observed in 2023 was a return of what we consider normal business activity. The pandemic was all about supply chains, employee safety, and trying to make sure we could keep shelves and warehouses full. Early post-pandemic brought us the shock of the sudden shift in demand and the shock of overstocks. But 2023 has been an incredible year in that the industry, by and large, has been able to correct the craziness of the past 3 years and return to some form of “normal.” The biggest beneficiary of this normalization has been the return of innovation and product development.

As consumer trends shift from key areas like immunity, stress and sleep, to women’s health, gut health, brain health, energy, and a variety of other categories, product development and innovation teams are busy creating the new products their marketing teams are asking for. Product development cycles are shorter, at least for now, as a whole new pipeline of innovation comes through. Customers are engaged and interested in the next new thing. This signals greater interest in science that will support this innovation. 

This also signals a shift in supply chain efforts, where purchasing teams are being asked to help scout out what is new and to be a part of the development initiatives. Collaboration between teams will be key to the success of these efforts.

Another very interesting trend is the shift in interest to sustainable and eco-friendly packaging. This is an area that is prime for disruption, as the industry in general has a long way to go to reduce its footprint in packaging. There are several efforts emerging in sustainable packaging and this will definitely grow dramatically in 2024 and beyond.

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Dan Murray, VP of Business Development, Xsto Solutions: Over the past year, we have seen some tentative interest in new product launches. Some companies are expanding their lines and others are looking for savings on everything from raw materials to employment costs.

Anecdotally speaking, the companies focused on new products appear to be doing better. The logistical problems are primarily behind us and the “risk averse” population seems to have been rewarded. Gut health and circulation seem to be doing well in terms of expansion, as well as pain and sleep products. We are seeing new launches in all those areas.

Post-pandemic, many of us saw a spike in revenue and then a significant decrease, so we all wondered: “Is 2023 the year of getting back to normal?” So far, I would say the answer is yes, for better and for worse. We are seeing a focus away from Asia and back to Europe and the Americas for raw materials, which is a welcome trend.

Acquisitions have been dead since interest rates increased in the latter part of 2022 but may be showing signs of a comeback in 2024. The awareness and value of individual nutrition seems higher post-pandemic, as well as the awareness of our own mortality.

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Wilson Lau, President, Nuherbs: Natural products, in particular herbal products, are still doing well. The past few years have brought many operational challenges due to Covid and the logistic and human resource issues that it caused. However, those that made it through have by necessity become organizationally stronger.

As we exit the era of free money/zero interest, we need to think about how that will impact assumptions, margins, costs, return on capital and, more importantly, business models in our industry.

The fastest growing dietary supplement delivery forms are also those that make it difficult to deliver a therapeutic dose to the consumer. We need to put in the effort to solve the technical challenges involved in making sure the consumers who trust us to deliver specific health benefits get what they are paying for.

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“The market’s focus has shifted toward comprehensive wellbeing, particularly mental health, presenting substantial opportunities for developers. Synbiotics in the microbiome space and the endorsement of products by knowledgeable influencers add exciting dimensions to our evolving landscape.”

— Len Monheit, Industry Transparency Center / Global Prebiotic Association

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Len Monheit, CEO, Industry Transparency Center, Executive Director, Global Prebiotic Association: In the post-Covid era, immunity has evolved into a thriving market centered around overall wellness, resilience, and active aging, with a significant focus on mental wellbeing. Our global consumer research at the Industry Transparency Center (ITC) highlights the shift in health concerns among supplement, food, and beverage users over the past 6 years.

During the pandemic, there was a notable surge in individuals expressing concerns about sleep, stress, mood, anxiety, focus, mental acuity, and energy levels. In the last year, we’ve observed a growing demand for products addressing these issues, presenting substantial opportunities for product developers in various food, beverage, and supplement formats. The demographic showing the highest interest comprises both genders, aged 18-34, representing a market with significant potential.

As managers of the Global Prebiotic Association at ITC, we recently concluded our annual meetings, focusing on the microbiome space’s latest trends. Synbiotics, defined as mixtures of microorganisms co-administered with substrates conferring health benefits, are gaining traction. We are optimistic about the increasing scientific support and positive outcomes associated with synbiotics and consumers increasingly are seeking these combination products too.

Turning our attention to influencers, we’re not referring to traditional medical practitioners but rather dietitians and nutritionists. These professionals recognize the inadequacies of current diets, particularly under stress and inconvenience. They increasingly acknowledge the role of supplements, healthier foods, and beverages in optimizing health. This community, characterized by its curiosity and reliance on solid science, readily endorses products backed by clear scientific evidence.

In conclusion, the market’s focus has shifted toward comprehensive wellbeing, particularly mental health, presenting substantial opportunities for developers. Synbiotics in the microbiome space and the endorsement of products by knowledgeable influencers add exciting dimensions to our evolving landscape.

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Sameer Joshi, COO, Cepham: In the business arena, we are seeing economic instability in the U.S. with consumers, as well as in certain regions where we obtain raw materials. With consumers watching more closely where they are spending their dollars, we are seeing dips and spikes in consumption. As an ingredient manufacturer, this volatility can take a toll on our ability to procure our raw materials in certain seasons. If you think about the supply chain, the turmeric that is in the capsule on the shelf today at a retailer was planted over 18 months ago and is just now getting to the shelves. These high and low demands have the tendency to create a glut of material, or a shortage, which can lead to increased costs or adulteration.

Another developing area is the dual-sourcing mindset shift, which is coming to the forefront of many companys’ operations, with a heavy focus on different geographies. Dual sourcing is critical for a robust supply chain and continuity of supply. We have factories and R&D labs scattered around the globe, which gives us the comfort of knowing in all cases our business can continue to operate.

When it comes to market trends, we have seen many of the same ingredients coming out as winners. We at Cepham have taken a different approach by targeting categories that may not be on the cover of all the magazines but can really have a greater impact on people all over the world. We have seen multiple ingredients come out as superstars like berberine and we in turn have reacted by ensuring a multi-geographic supply to cover our customers’ demands.

Regarding science, we see trends continuing toward solutions that people can relate to and understand. Much of our market research related to our clinical efforts led us to the well-known yet not too often followed KISS outcome. During our talks, people were so receptive to hearing about science and wanted to have further discussions even if it wasn’t something they would generally have use for in their lives, yet they wanted to have more dialogue and learn more. This led us to continue down the path of making our consumer message both compliant and relative.

In the next 12 months, we will continue developing and launching new clinically-backed products, such as our most recent ingredient, Jyotivari, a novel offering positioned for women’s health, which captured overwhelming interest at this year’s SupplySide West show. We will continue to bring customer-compliant and understandable science to the market for our partners to bring to end consumers.

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Sébastien Bornet, VP Global Sales & Marketing, Horphag Research: Research and educated consumers are really driving the market. For instance, the beauty market is evolving significantly with more consumers and products embracing the inside-out approach; 92% of beauty product buyers believe the best way to attain your beauty objectives is with this inside-out approach.

Consumers also want more efficiency with a simple daily routine they can stick to and still achieve the desired results; 76% of beauty product buyers expect beauty brands to offer health supplements that complement their traditional topical product offerings such as skin care, hair care, and body care.

Products with evidence-based ingredients that support the basic building blocks are in good position in a market where more educated consumers are driving growth. Our flagship ingredient, Pycnogenol French maritime pine bark extract, provides a unique offering for consumers as it not only supports skin and hair goals but also offers extensive natural health benefits for the entire body.

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Marc Philouze, General Manager, Gnosis by Lesaffre: The last 12 months have been challenging, creating a struggle for all industries, particularly dietary supplements. From geopolitical and economic situations that have delivered strong inflation to a flood of less-innovative, me-too products positioned based on price while offering varying degrees of quality, we have seen several years of solid market growth (+6-8%) give way to almost flat market growth since summer 2022.

We have observed a shift in the momentum of distribution channels—where e-commerce boomed during COVID-19, brick-and-mortar has been experiencing a rebirth lately, particularly with the mass market. From a global perspective, we have seen regulatory challenges with lengthy registration processes in Asia, especially in China, when trying to compete with local suppliers. 

However, we observed several positive signals from the market. The industry is reinventing itself, focusing more than ever on solutions with solid scientific support and unimpeachable quality, but also with an insistence on efficient, cost-effective solutions. The market demands high service levels and strong partnerships between suppliers and brand owners. We provide that at Gnosis by Lesaffre: Science, Service, and Sustainability.

At Gnosis, our quality products are fully traceable with European sourcing and produced with great care for the environment. We continue to support our well-known brands like MenaQ7 K2 and Adonat Premium SAMe with further science to discover and confirm new benefits while also innovating formulation and services to facilitate creativity and reduce time to market, as is the case with our first-ever turnkey K2 product, MenaQ7 Protect, and our Quatrefolic Fine Powder.

What Gnosis will be genuinely excited to share with the industry in the coming months is leveraging our leading-edge fermentation capabilities to bring to market sustainable alternatives to highly compromised/adulterated natural products.

 

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“Consumers are beginning to learn about the benefits of liposomal ingredients … But not all liposomal ingredients are in fact liposomal. Our extensive testing over the last 7 years has revealed that 95% of the supposed liposomal ingredients we have tested do not contain any liposomes whatsoever. This is a huge disservice to the CPG companies and to the consumers who are paying a premium … “

— Sebastian Balcombe, Specnova

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Sebastian Balcombe, Founder and CEO, Specnova: Over the past year, the “liposomal” supplement market has grown significantly. Consumers are beginning to learn about the benefits of liposomal ingredients, including enhanced bioavailability and stability in the body. But not all liposomal ingredients are in fact liposomal. Our extensive testing over the last 7 years has revealed that 95% of the supposed liposomal ingredients we have tested do not contain any liposomes whatsoever. This is a huge disservice to the CPG companies and to the consumers who are paying a premium for an ingredient that is supposed to offer improved benefits that you can feel in your daily life.

In the coming year, Specnova will continue to pave the way for this advanced, high-performance technology through our intensive, four-step TruLiposome Validation process—a first for the natural products industry. Every liposome manufacturer should be able to certify that its liposomal ingredients are true liposomes—which will be a huge win for consumers and for the health of the entire industry. Furthermore, we will continue to advance the performance of liposomes showing increased bioavailability, thus providing improved efficacy. Specnova is dedicated to leading the path to liposomes that truly deliver better benefits, which ultimately heightens consumer confidence.

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Eric Anderson, Managing Director, NXT-USA: Clearly, one of the biggest challenges facing industry post-Covid is innovation. It seems as though the brand marketing companies put many development projects on hold while dealing with Covid demands for immunity and stress/relaxation products while not actively developing other product concepts. What we have seen from our customers and from conversations with other ingredient suppliers is that the new product development activity is recently increasing and hopefully industry will be back on track bringing the latest and greatest technologies to market.

At NXT, we have taken advantage of this time to pursue our clinical research. In the past 2 years we have published three human studies—gold-standard, double-blind, placebo-controlled  trials—with large sample populations that will allow our customers to come to market with strong structure-function claims validated by solid science with real endpoints.

We also have an international perspective. The U.S. typically drives innovation, and the rest of the world tends to follow. Regulatory challenges are always present and a complete safety and efficacy dossier is very important for new ingredients in these markets.

Per our ingredients, Digexin delivers what others promise. Constipation is a common gastrointestinal (GI) dysfunction that limits social activities and reduces mental and physical wellbeing. Globally, constipation is prevalent in 12-15% of adults. Digexin, a proprietary herbal blend, has been designed to address both gut and emotional wellbeing. It has been clinically demonstrated to be a tolerable and efficacious botanical supplement that helps relieve constipation, reduce stress, and improve GI function, sleep quality, and general wellness in healthy adults.

Our TamaFlex product now has three published human studies involving over 300 participants from 30 days to 3 months. In every study, every time, just 250 mg of TamaFlex has been proven effective. The first TamaFlex studies focused on identifying that joint relief was fast-acting and long-lasting, while the third study provides concrete data supporting our novel approach to joint health and the impact it has on improving participants’ quality of life and physical capabilities, with physician assessment, physical tests, and biomarkers providing subjective and objective evidence of efficacy. This is truly unique.

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“The sports nutrition and active nutrition sector is dynamic, with ongoing research into new ingredients and formulations, including novel functional ingredients and delivery systems.”

— Brandon Sojka, Founder, NutraShure

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Brandon Sojka, Founder, NutraShure: Over the last 12 months market trends for unique branded ingredients continue to be on the rise due to the FTC’s communications earlier this year. Brands are demanding clinical substantiation to improve their efficacy and marketability.

From the start, sports nutrition was a benefit category that NutraShure was and is committed to providing the most unique, novel science-backed ingredients. The sports nutrition category is not just about your protein-based pre- or post-workout products anymore, but is growing to include so many additional benefits when it comes to formulation—including cognition, energy, stress and mood, men’s health, and microbiome health. Providing solutions to consumers with unique ingredients will set products apart in the marketplace. In addition, having products with unique flavors that taste great have been dominating the market for the past year and there are no signs of slowing down here either. 

NutraShure’s newest ingredient is a perfect example of how our company is expanding the sports nutrition category and providing unique science-backed branded ingredients to the marketplace. SA3X is a clinically studied, standardized extract of Paracress (Spilanthes acmella) that has been shown to increase muscle size, strength, and sexual satisfaction. In one study with 546 healthy men, SA3X saw a 1.5x increase in bench and squat weight, and significant increases in chest, thigh, and arm size over a 6 month period (results were evident as early as 2 months). In another study targeting sexual health in 448 men, subjects saw an 80% increase in sexual satisfaction after 8 weeks (results were evident within the first 7 days). This novel extract is ideal for men’s health and sports nutrition products.

If we look at consumers and the demands in the space over the past 12 months, we have seen an uptick in the increasing focus on health and wellness, driving demand for products that support overall wellbeing. As more consumers are living active lifestyles, demands for sports nutrition products are also growing. Over the past few years, there has been a trend toward clean-label products, with consumers seeking transparency in ingredient lists and preferring minimally processed ingredients. In addition, consumers continue to seek out products that fit their personal active nutrition and wellness goals.

The sports nutrition and active nutrition sector is dynamic, with ongoing research into new ingredients and formulations, including novel functional ingredients and delivery systems. Nutrashure’s novel ingredient, SA3X delivers that to the category with both performance and sexual function benefits, backed by clinical research.