Cognis saw its sales decline 15% during the first nine months of 2009 compared to the same period in 2008, though the company remains optimistic that the worst of the declines are over as it reported a sales increase of 5% in the third quarter compared to second quarter of 2009. The company’s nutritional and health division reported a decline of 6.8%—which Cognis attributes to the economic downturn and subsequent softening in the European dietary supplement market.
The largest hits were taken in the functional products division, which saw its sales decline by 18.9% to 591 million euros. The company attributes the declines in its functional products division to lower demand, though sales volumes did stabilize in Q3. “Sales volumes are still relatively low, but they continue to move in an upward direction,” said CEO Antonio Trius.
A number of ingredient suppliers have watched their volumes decline in 2009, as consumer sales slowed and new product production nearly grinded to a halt. Eighty two raw material and ingredient supply companies surveyed by Nutrition Business Journal in October reported that decreased customer demand for functional ingredients was having a moderate to significant impact on company growth in 2008 and 2009. Shrinking demand for dietary supplement ingredients ranked even higher on the list of concerns, though that could have been skewed by a slightly higher turnout from supplement ingredient suppliers.
For a deeper dive into the issues affecting ingredient suppliers, check out the newly released 2009 Raw Material and Ingredient Supply report. Additionally, if you are interested in learning more about the market conditions in the European supplement market, be sure to grab a copy of NBJ’s December Global Nutrition Industry Overview issue, which is available to all NBJ subscribers.
Related NBJ Links:
Cognis Q1 Sales Volume Down 18% as Customers Destock Inventory
RMIS Price Volatility Looks To Be Subsiding for Now
Cognis Achieves NSF International GMP Registration for Natural Vitamin E, Phytosterols and CLA – Complies with New FDA Regulations
Related Functional Ingredients magazine links:
Cholesterol Leads Cardio Category