As today’s aging baby boomers search for more than prescription-based remedies to physical ailments, the demand in what’s known as the nutraceuticals market has skyrocketed, industry experts report.
Nutraceuticals, or functional foods, are defined by the Food and Nutrition Board of the Institute of Medicine as foods, including any modified food or food ingredient that may provide a health benefit beyond the traditional nutrients it contains. The word “nutraceutical” was coined in 1976 by Dr. Stephen DeFelice, founder of the Foundation for Innovation in Medicine, a nonprofit group dedicated to advancing natural therapies.
Until a couple of years ago, a majority of U.S. physicians remained somewhat reluctant to recommend these products as complements with their prescribed medications, but that has changed dramatically, according to Carl Hastings, executive vice president and creator of Relìv International Inc.
“We’ve actually been working in this market sector for many years,” Hastings says. “Alternative medicine in general has grown in popularity, and more and more people are turning to it as it gains both recognition and respect from the medical industry.”
Functional foods can enhance overall health, including the prevention and/or treatment of disease such as arthritis, osteoporosis and even colon cancer. Hastings says the DSHEA prohibits nutraceuticals creators from formally claiming that their products are a cure or treatment for a named disease; rather, the claims state that these vitamin and mineral combinations reduce joint problems, for example, or reduce cholesterol.
The potential growth of this market segment is regarded as second only to low- or reduced-fat foods as the most important food category for the next five years. In the U.S. the size of the market is estimated to range from $8 to $80 billion with a potential value of $250 billion. It is anticipated that rapid growth in the functional foods market will continue as the food industry conglomerates that have recently entered this market begin to release products.
Kellogg, Nestle and Monsanto are only a few of the large companies that have created entire business units devoted to developing functional foods and nutraceuticals.
Manufacturers may add a nutraceutical to their products, but they cannot state a specific health claim on their labels. The material is listed in the ingredients statement, and also on the nutritional labels.
“Generally nutraceuticals are based on plant-derived compounds,” Hastings says. “Soy is an example of an exceptional ingredient that shows a lot of potential.” Protein Technologies International based in St. Louis recently filed a petition with the Food and Drug Administration to approve a health claim that will recognize the cholesterol-lowering effect of soy protein and has already received preliminary approval. A final ruling is expected this fall. “It’s procedural at this point...I don’t think there’s any question that the FDA will approve this one,” he says.
Persons between the ages of 35 to 55 are the primary users of nutraceuticals, Hastings notes, and women represent the majority of those who actually purchase these supplements. Chesterfield-based Relìv International has successfully marketed Arthaffect, a functional food proven to support healthy joint function, for two-and-a-half years now. “Arthaffect has proven not only to support healthy joint function,” Hastings says, “but also to rebuild cartilage. This has been a very successful product for us; one in seven Americans has some type of joint dysfunction.”
Other Relìv products, including its soy-based line, are being used to thwart chances of incurring breast cancer. SoySentials, another Relìv product, was developed to aid in reducing common symptoms associated with premenstrual syndrome and menopause. The powdered products are mixed with a favorite beverage, Hastings says.
Four of Relìv International’s products have received U.S. patents. “One of the neat things about our company is that we can choose a specific segment of the market and create a product uniquely designed to treat it,” he says.
And specific sectors of the patient market are responding, as are their health-care providers. SueEllen Turner, contract manager of the pharmacy division of AmeriNet, says her employer is the first group purchasing organization to seal a national contract with a nutraceutical firm. “We’re market leaders,” she says.
In March, AmeriNet launched an enthusiastic agreement to distribute Tyler Encapsulations Inc.’s products to 8,200 different AmeriNet-member health-care facilities. Turner notes. “We’re supplying hospitals, HMOs, surgery centers, long-term care providers, home care centers, clinics and networks with Tyler nutraceuticals. There is definitely a learning curve with regard to pharmacists and physicians. But more and more of them want to know how a nutraceutical can complement a prescripted product, and that’s exciting to us.”
AmeriNet’s contract with Tyler Encapsulations represents one of approximately 150 such national agreements, Turner says.
Chemotherapy-specific supplements are another form of nutraceutical that Tyler and its competitors have found to be popular as well as effective in curbing some of the side effects and overall weakness produced by this cancer eradication treatment.
Some 1,000 physicians are participating in another AmeriNet initiative known as INSYNC. Turner explains this physician bonding program links doctors’ offices with acute care facilities to promote use and understanding–both on the physician’s and patient’s part–of how nutraceuticals can help.
The industry predictions are immensely positive, Turner says, for those creating, recommending and using nutraceuticals.
“As far as market size and trends, the dietary supplement industry is huge and still has an unlimited capacity to keep expanding,” she says. “Right now we’re seeing a $10 billion annual market with a 20 to 40 percent annual growth rate. More than 40 percent of Americans already use some form of alternative medicine and more than $21 billion is spent annually, out of pocket, on alternative medicine. It’s an incredible market niche,” Turner notes.
Nutraceuticals are not a cure, says Relìv International CEO Robert Montgomery, but they are an effective treatment to promote a healthier lifestyle. “By keeping the right kinds of things in our bodies, we increase the chances of not falling victim to disease,” Montgomery explains. “We all know we have to eat better, but many times our lifestyles keep us from doing so. Functional foods serve as a sort of insurance to help us stand our ground and ward off illness.”
