New NMI Study Reports 2004 Health & Wellness Industry Sales at $68 Billion

Harleysville, Pa. (January 24, 2005) – The Natural Marketing Institute (NMI) announced today that retail sales within the consumer packaged goods health and wellness industry reached $68 billion in 2004. That constitutes a total growth of 8.5% over 2003. These findings are part of NMI’s annual research study of 2,000+ U.S. consumer households, The Health and Wellness Trends DatabaseÔ (HWTD).

NMI Managing Partner Steve French states, “Despite recent economic challenges, consumer spending last year in the health and wellness industry continued to rise. We project this trend to continue with sales reaching more than $73 billion in 2005.” This outlook was corroborated by the Consumer Confidence Board when it reported that 2004 saw an increased economic expansion and job growth with an even more favorable outlook in 2005.

The industry’s top category sales continue to be among functional and fortified foods/beverages, which at $23.4 billion, represent 34% of the total industry. The biggest percentage of growth versus 2003 however, is in organic foods/beverages (+18%) as the following chart illustrates.

Segment

2001

(Billions)

2003

(Billions)

2004

(Billions)

Growth

vs.

2003

4 YEAR CAG*

Functional and fortified foods & beverages

$18.4

$21.8

$23.4

7%

8.3%

Vitamin, minerals, herbal & dietary supplements

$17.1

$17.9

$19.0

6%

3.6%

Natural foods and beverages

$9.6

$10.8

$11.3

4%

5.6%

Organic foods and beverages

$7.6

$9.2

$10.9

18%

12.8%

Personal care

$2.4

$3.5

$4.0

14%

18.6%

TOTALS

$55.1

$63.2

$68.6

8.5%

7.6%

This data will be published in March 2005 in NMI’s 2005 Health and Wellness Trends Report (HWTR). This comprehensive report contains more than 200 pages of data and analyzes the consumer attitudes, behaviors, product usage, lifestyles and demographics surrounding the health and wellness arena. Specific category focus includes: natural, organic, functional, fortified foods and beverages; weight loss products; natural/organic personal care; sports nutrition; dietary supplements; health-related ingredients; Rx versus OTC versus foods and supplements in treatment and expanded analysis of the top trends of 2005. Pre-order the 2005 Health and Wellness Trends Report by February 28, 2005 and receive $500 off the published price! For more information, visit www.NMIsolutions.com.

According to NMI President Maryellen Molyneaux, “The 2004 data represent a 7.6% overall compound annual growth since 2001. In addition, the positive and negative changes in consumer attitudes and behavior present both opportunities and challenges to marketers who want to stay on the cutting edge of developing trends. The 2005 HWTR provides valuable insight into these attitudes and behaviors and is an excellent resource to assist with strategic business planning, new product development and marketing communications.”

###

NMI is a strategic consulting, market research, and business development company specializing in the health, wellness, and sustainable marketplace. For more information on the HWTR or NMI’s other proprietary research reports and services, visit NMI’s web site at www.NMIsolutions.com.

Contact:
Nancy White
The Natural Marketing Institute
215.513.7300 ext. 225
[email protected]
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