Increased regulation could hinder anticipated growth from increasing consumer sentiment
Los Angeles, CA (PRWEB) March 09, 2012
Despite the volatile economic environment, the Dietary Fiber Supplement Manufacturing industry is expected to grow over the five years to 2012 at an average annual rate of 0.3%. The aging population, mounting health awareness and improving consumer sentiment has boosted revenue growth. In particular, the increase in the number of adults over the age of 50 has fostered growth because fiber supplements prevent and help treat certain physical issues that many older Americans face. Revenue growth has not been constant, though. “In 2009 when disposable income declined along with consumer sentiment, many Americans refrained from purchasing nonessential goods,” said IBISWorld industry analyst, Mary Nanfelt. “Since fiber supplements are not extremely necessary for many Americans, the sales of industry products decreased 8.4%.” Then as the economy rebounded in 2010 and 2011 sales returned. In 2012, revenue is forecast to expand by 1.5% to $298.5 million. As consumer become more health conscious, Americans will demand more supplements to improve their nutrition.
From 2012 to 2017, the industry will continue to experience growth. The introduction of new products along with the expansions in the number of Americans over the age of 50 will cause an increase in demand for fiber supplements. Also, consumer spending and sentiment is forecast to rise, which will positively affect the industry as Americans spend money on more goods. However the industry will experience an increase in regulation due to the Patient Protection and Affordable Care Act (PPACA). Also industry imports are expected to rise which will affect competition among domestic and international players.
IBISWorld analysis reveals the Dietary Fiber Supplement Manufacturing industry exhibits a high level of market share concentration. In 2012, the top-three companies are estimated to account for about three-fourths of the industry's overall revenue. Overwhelmingly, these three companies (Procter & Gamble, GlaxoSmithKline and Novartis) account for the majority of industry establishments, with US-based manufacturing facilities providing the basis for their market shares to be calculated. Market share concentration is forecast to decrease marginally as the number of companies in the industry increases during the coming five years. According to Nanfelt, as the population ages and health consciousness increases, the market for fiber supplements will likely become more inviting for companies seeking to enter the industry or expand existing offerings through the addition of fiber supplements. Also, the anticipated recovery in consumer sentiment on the back of rising employment levels and disposable incomes is projected to increase the industry's overall revenue potential. For more information, visit IBISWorld’s Dietary Fiber Supplement Manufacturing report in the US industry page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
This industry develops and produces dietary fiber supplements, which are ingested to remedy deficiencies of carbohydrates that the human body fails to completely digest. Supplements may be marketed to consumers for nutritional purposes, treatment of gastrointestinal disorders or other health benefits.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.