Nature's Candy Market Forecast 160,000 140.000 100000 Baby boomers Other 40,000 20,000 2003 2004 2005 2006 2007 2.1.4 Market Growth The market for vitamins and nutritional supplements has grown to over $6.5 billion annually Herbal sales alone are growing by 20% per year. This market is lead by the aging Baby Boomers who are concerned with their mortality. Also, there has been a paradigm shift of perception of nutritional supplements. Homeopathic and naturopathic products are seen as normal, they are no longer outliers in society. Additionally, positive medical results from major studies have further egitimized these products The nutritional supplement market is a semi-mature market characterized by high-growth rates medium barriers to entry and a few large competitors. Despite the competition in the market many companies have reported annual growth levels of 30%. the market leaders are as follows GeneralNutritionalCompaniesInc.(gnc)(website:www.gnc,com):This company is a nationwide specialty retailer of vitamins, minerals, and sports nutrition supplements. With over 3, 000 stores, GNC generated $1.19 billion in 2000 NaturesSunshineProducts,Inc(website:www.naturessunshine,com):Nature's manufactures and markets a variety of health supplements. This multi-level marketing company had 2000 revenues of approximately $370 million Rexall Sundown, Inc( website: www-rexallsundown, com): Rexall develops, manufactures, markets and sells vitamins, nutritional supplements, and consumer health products through retailers, independent distributors, and mail order Rexall had 2000 venues of approximately $370 million. International Vitamin Company, Inc: IVC manufactures, packages, sells, and distributes private label vitamins and nutritional supplements to drug stores, supermarkets and health food stores. IVc had revenues of $107 million in 2000 The primary channels of distribution in this market are Mass market retailers(Fred Meyer, Rite Aide) Direct sales organizations. Health food stores(GNc) Mail order catalogs and the Internet.0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 2003 2004 2005 2006 2007 Baby boomers Other Market Forecast 2.1.4 Market Growth The market for vitamins and nutritional supplements has grown to over $6.5 billion annually. Herbal sales alone are growing by 20% per year. This market is lead by the aging Baby Boomers who are concerned with their mortality. Also, there has been a paradigm shift of perception of nutritional supplements. Homeopathic and naturopathic products are seen as normal, they are no longer outliers in society. Additionally, positive medical results from major studies have further legitimized these products. The nutritional supplement market is a semi-mature market characterized by high-growth rates, medium barriers to entry, and a few large competitors. Despite the competition in the market, many companies have reported annual growth levels of 30%. The market leaders are as follows: • General Nutritional Companies, Inc. (GNC) (website: www.gnc.com): This company is a nationwide specialty retailer of vitamins, minerals, and sports nutrition supplements. With over 3,000 stores, GNC generated $1.19 billion in 2000. • Nature's Sunshine Products, Inc. (website: www.naturessunshine.com) : Nature's manufactures and markets a variety of health supplements. This multi-level marketing company had 2000 revenues of approximately $370 million. • Rexall Sundown, Inc. (website: www.rexallsundown.com): Rexall develops, manufactures, markets and sells vitamins, nutritional supplements, and consumer health products through retailers, independent distributors, and mail order. Rexall had 2000 revenues of approximately $370 million. • International Vitamin Company, Inc.: IVC manufactures, packages, sells, and distributes private label vitamins and nutritional supplements to drug stores, supermarkets and health food stores. IVC had revenues of $107 million in 2000. The primary channels of distribution in this market are: • Mass market retailers (Fred Meyer, Rite Aide). • Direct sales organizations. • Health food stores (GNC). • Mail order catalogs and the Internet. Nature's Candy Page 4