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Nutraceutical Market

The Nutraceutical Market

Management has identified one of the largest sectors of the consuming public: the “Baby Boomers” (as well as others who value youth) as its initial focus. Based on the billions of dollars Boomers are spending on everything from health club memberships to cosmetic surgery, it’s clear that they’re not willing to age passively. Advances in medical science have redefined the age at which we become “old”, and many Boomers are convinced that it is quite feasible for them to continue living vital and energetic lives well into their sixties, seventies or even eighties. There is little question that products which make it possible for them to do so will be and are in great demand. Renowned economist Paul Zane Pilzer identified wellness products and programs as the economy’s next trillion-dollar industry.

Although not immune to the recessionary forces that have pummeled economies around the world, the global nutrition industry continues to grow – with China, Latin America, Australia/New Zealand, Eastern Europe/Russia and the Middle East each achieving double-digit sales expansion in 2008. According to Nutrition Business Journal (“NBJ”) estimates, total global nutrition industry sales – which NBJ defines as including dietary supplements, natural & organic foods and beverages, functional foods and beverages, and Natural & Organic Personal Care & Household Products (“N&OPC”) – increased a healthy 8% to US$270 billion in 2011. Surprisingly, the 8% increase the global nutrition industry experienced in 2008 was down only slightly compared to the 8.6% compound annual growth rate (“CAGR”) the industry achieved between 2001 and 2011. The 2011 growth is even more notable when contrasted to global gross domestic product (“GDP”) growth.

The more mature supplement segment topped $35.4 billion and 5% growth. Functional foods posted $41.4 billion in sales and its highest growth since 2002 on a strong performance in beverages and niche categories. Natural & organic foods continued a consistent progression into the mainstream food market with 14% growth and moving from 2% of total food sales in 1998 to 4.7% a decade later. Natural & organic personal care and household goods posted a third consecutive year of record growth in 2011, according to the NBJ. Management expects the market niche in which NeutriSci will compete to continue to grow dramatically during next few years.

Even in a tough economic climate, the nutrition industry is growing around the world. NBJ forecasted the industry to have continued growth, although the pace of growth is expected to level off around 6% through 2014.

According to Dr. Ken Dychtward, PhD, fully one half of all Americans now living, more than 150 million people, are “baby boomers” or children aged 2 – 17. At each stage of their lives, the needs and desires of these groups have become the dominant concerns of American business and popular culture. NeutriSci products are targeted at these markets with current offerings like Vendrome™ as well as future products such as whole plant based vitamins for children.

As a large portion of the world population ages, they are looking for products that make them look and feel better, and younger generations are looking for ways to maintain their health and energy levels to meet the needs of their busy lives. As the boomers grow older, they will continue to dominate the culture. When a few thousand people across the country share an opinion, read a book, or buy a product, it may amount to a trend. But, when 76 million people do so, it’s a cultural movement. From Barbie Dolls and yo-yo’s, to compact discs and Macintosh computers, from yuppie radicalism and anti-war marches to “Sharper-Image” consumerism, this generation has, by its very weight, created industries, driven politics, made and broken heroes, and altered the very look, feel and style of North American life.

What happens when this generation decides that it doesn’t like baldness, wrinkles and growing old? Above all else, the boomers are the “youth” generation. In the years to come, entire industries will rise in response to this new, pro-longevity obsession. Evidence of this can already be seen in the enormous growth of the fitness movement. For five years after its appearance in 1982, Jane Fonda’s workout tape outsold every other non-theatrical video tape. Sales of home gym equipment rose from $75 million in 1982 to over $1 billion in 1985. The dollar value of membership in health clubs rose sharply from $227 million in 1972 to over $8 billion by 1984.

The United Sates with Japan a close second continue to generate the majority of global nutrition sales, with Americans and Japanese spending the most money per capita on nutrition products. The market even appears to have benefited from the economic uncertainty of recent years. As the massive population ages, and healthcare costs continue to increase, the supplement industry continues to widen its customer base as the market has risen steadily from 5.5% annual growth in 2009 to 7.5% in 2010 to 8.5% in 2011, bringing U.S. retail sales to $13.2 Billion in 2011. The use of nutraceuticals, as an attempt to accomplish desirable therapeutic outcomes with reduced side effects, as compared with other therapeutic agents has met with great monetary success for prominent Nutraceutical companies.

Industry Highlights

  • High-growth sector with US market expected to reach $75.3B (6% CAGR) by 2017
  • Aging populations, rising healthcare costs and increase in health conscious consumers driving market growth
  • In 2012 North America was the world’s 2nd largest nutraceutical market

Americans age 55 and over already spend 40% more than the national average on health and personal care products.

Investment Summary

NeutriSci specializes in the innovation, production and formulation of nutraceutical products. Established in 2009, NeutriSci has focused on the development of several breakthrough nutraceutical products with an initial focus on areas such as heart and cholesterol health, sleep deprivation therapies, immune defense as well as men’s prostate and sexual health.

NeutriSci continues to build strong relationships and distribution channels for its BluScience™ and NeuEnergy™ products with retailers throughout the United States. NeutriSci is focusing efforts in strengthening sustainable sales models with convenience and drugstore chain retailers such as Walgreens, CVS, Rite Aid, 7-11 and Circle K.

ABOUT US

NeutriSci International Inc. is an Alberta based marketing, development and distribution company targeting the multi-billion dollar Nutraceutical market. We develop effective marketing and branding strategies for nutraceutical partners around the world.

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NeutriSci International Inc.
Toronto: (TSX-V: NU)
Frankfurt: (1N9)
OTCQB: (NRXCF)

Suite #1A, 4015 1st St SE

Calgary, AB, Canada
T2G 4X7

Office: 1.403.264.6320
Fax: 1.403.252.2106

Email: info@neutrisci.com

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