Dec 5, 2008

Posted by in Business, Industry | 0 Comments

INDUSTRY REPORT Sports and Health Nutrition

 

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Sports nutrition for fitness and weight loss is big business and getting bigger. Industry sales and growth are measured in billions and holding steady. The Sports Nutrition & Weight-Loss category—which rung up a total of $19.6 billion in sales in 2007 had a pretty respectable year. Granted, it’s not the 9.6% growth experienced in 2006 but SNWL sales did expand by 7% in 20071.

While many other industries are suffering in the current economic climate, the Sports Nutrition industry is still showing respectable growth at a minimum. Strange as it may seem, bad times can also be good for health.  We all know a good workout is the best way to beat stress. Plus, preventative health is growing by leaps and bounds so people can avoid the increased costs of prescriptions and future health issues.

The Committed Consumer

feature_2008_winter_chart_helpinghand.jpgStatistically, the sports nutrition segment serves a small yet dedicated segment of the population: according to the Nutrition Business Journal, 85% of the market is bought by just 5% of the population. These types of consumers consider sports supplements essential to their life and will cut in other areas of their life before touching their supplements. Hopefully, you know exactly which customers or gym members make up this category and you have already built relationships to keep them coming back to your store or club. See the “Consumer Type” chart for additional stats on consumers.

How Healthy is the Health Club market?

Not everyone goes to their local sports supplement retailer to purchase supplements… many people get their supplements at their local club’s pro shop. In 2007, the United States had 41.5 million health club members, feature_2008_winter_chart_helpinghand.jpgaccording to the “2008 IHRSA Global Report: The State of the Health Club Industry” from the International Health, Racquet and Sportsclub Association (IHRSA). That number is 1.2 million less than the 42.7 million members that IHRSA reported for 2006.

Despite the drop in members, industry revenues have continued to climb. In 2007, the U.S. health club industry revenues increased to $18.5 billion from $17.6 billion in 2006. The increase suggests that clubs are collecting more revenue per member than before, according to IHRSA.

And Everybody Else?

Overall, 56 percent of American adults use nutritional supplements. About 34 percent of total adults, use vitamins once per day2. Consumers continue to invest in supplements due to a strong preventative health regimen. A large percentage of these consumers will be aging Baby Boomers who will have the means to invest in supplements. Due to the overwhelming costs of prescriptions and healthcare people are willing to go the extra mile for preventative health.

2009 Forecast

What does all of this mean to you, the retailer? The answer is that all indicators point to positive signs for the Sports and Health Nutrition industry as consumers continue to put their dollars into supplements. As more people invest in their health and well-being, retailers and health clubs will continue to prosper. Invest in your business and customer relationships; your customers will pay you back with their business.

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1  Nutrition Business Journal Research, 2007

2  www.packagedfacts.com

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