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Nutricosmetics: Eat and Drink Your Skin Care
By: Leslie Benson
Posted: September 5, 2008, from the September 2008 issue of GCI Magazine.
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This leaves the U.S. as a fertile breeding ground for nutricosmetics brand expansion. Susan Babinsky, senior vice president and head of Kline & Co.’s consumer products consulting practice, explains. “With a huge untapped market in the U.S., the nutricosmetics industry offers a number of opportunities for companies looking to break into this market,” she says. LycoRed is one such company, according to Djerassi, having entered into the U.S. during the past three years from a primary market hold in Asia and Europe.
According to Sabinsa’s Prakash, “interest in these products in the U.S. is increasing as manufacturers introduce more functional food products such as cereals, bread, pasta, beverages, meal replacements, yogurt, candies and other forms that can be conveniently consumed and fit readily into daily eating/snacking patterns.”
The Natural Marketing Institute (NMI) announced that between 2006 and 2007 in the U.S. alone, functional/fortified food and beverage consumer sales increased 12% to $38.6 billion. The category comprises the largest segment within the health and wellness category, according to Maryellen Molyneaux, president of NMI. “It represents more than one-third of all industry sales,” she says. And of this group, NMI reports consumer food and beverage sales for organic brands similar to Intelligent Nutrients increased by 25% in the U.S., with sales of $19 billion. Global Industry Analysts’ 2007 report on functional foods estimates that, when combined, the U.S., Japan and Europe (led by sales in the U.K., France and Germany) consume 90% of the world’s functional foods and beverages. The researchers report that functional beverages—specifically in the dairy category—have staked the biggest claim in the market, with total sales expected to hit $34 billion by 2010.
On the global front, Krämer and Strube say the combination of oral and topical products will gain importance in this market: “Consumers will detect this as a new opportunity to have an even more effective beauty.” Expanding into the U.S., specifically, with a fortified dairy beverage or a dual skin care cream and supplement regimen remains an opportune start.