June 2005

Natural product sales top $45 billion

Natural product sales in the United States grew 6.9 percent across all retail and direct-to-consumer sales channels in 2004, reaching $45.8 billion in total sales, while supplement sales declined 4.4 percent, according to the Nutrition Business Journal and ACNielsen and Information Resources, Inc..

Of the $2.96 billion in incremental sales of natural products added in 2004, 52 percent were sourced from natural product retailers, who represent 48 percent of the total natural product sales of $45.8 billion.

Natural product retailers also outpaced other channels with 7.5 percent sales growth. Mass-market sales grew 6.7 percent; direct-to-consumer sales rose 5.7 percent.

In the mass market, initial research by Nutrition Business Journal on manufacturers/marketers and a review of data from ACNielsen and Information Resources Inc. indicates growth by category was all over the map in 2004.

Supplement sales declined 4.4 percent, while food growth catapulted upward by 16.8 percent, leaving the natural personal care/other category to turn in a healthy growth of 8 percent.

IRI data indicated that glucosamine and chondroitin sales declined 6 percent, vitamin E sales were down 14.5 percent, calcium was down 10.2 percent, and multivitamins were down 1.8 percent.

Although product sales in the natural market rose 7.5 percent, 2004 saw some dips in certain niches. Low-carb sales stole attention from nearly all other categories in the first half of the year, peaked in the third quarter and declined in the fourth quarter.

Source: Natural Foods Merchandiser, Vol. 26, No. 6, p. 1.

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