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U.S. Sports and Fitness Nutrition Markets
Frost & Sullivan, March 2004
Widening Product Choice Limits Customer Loyalty
The sports nutrition industry has reached a stage where the focus needs to be on acquiring new consumers while retaining existing ones. With new products and variants being launched frequently, brands are fighting for both shelf space and consumer attention. The wide range of choices in terms of flavor, form, size, and price is encouraging consumers to shift from product to product, trying out tastes and other benefits. As a result, most participants in the sports/fitness nutrition industry - with the exception of the top ten companies, which have strong product profiles - find themselves struggling to retain customer loyalty. Developing stronger brands with distinct identities and clear-cut positioning holds the key to overcome this challenge.
This Frost & Sullivan research analyzes the U.S sports and fitness nutrition industry, dividing it into six segments: energy and nutrition bars, meal replacement bars, meal replacement powders, ready-to-drink shakes, protein powders, and creatine. It provides valuable analysis of market drivers and restraints, along with forecasts identifying the areas of growth.
Better Taste Profile Increases Product Appeal for Mainstream Consumers
In the last three years, the single most important factor driving the growth of the sports nutrition industry has been taste, says the analyst of the research. With an increasing number of mainstream consumers adopting sports nutrition products as a means of healthy living, the taste factor will remain important for some more time to come.
Companies have realized that functional benefits alone are not enough - the reason most sports nutrition products fail to attract mainstream consumers is their weak taste profile. Focused R&D efforts on this area, has resulted in an explosion of flavors - each product category from top manufacturers has at least three to four flavor variants. As the market tries to draw more mainstream consumers, the importance of taste and texture profiles is expected to increase further.
Ever Increasing Awareness Levels Draw Health Conscious People Toward Sports Nutrition
One of the key factors influencing the demand for sports nutrition products is the awareness level of the potential consumer, which is usually bolstered by books, magazines, and other media. Increasing health consciousness and focus on issues such as obesity-related deaths and the adverse effects of eating wrong foods is steering people toward healthy lifestyles. The average consumer now feels that regular diets do not provide them with all the essential nutrients they need - something sports nutrition products can do. Accordingly, manufacturers are also promoting sports nutrition products as health foods, which have an affect on physical appearance as well as performance.
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