Competition is fiercer than ever in the raw materials and ingredient supply (RMIS) segment of the nutrition industry. Yet along with heightened competition and increasing commoditization of core ingredients, RMIS companies reported a more stable and mature business environment than during the desolate years of 2000 to 2002. Today's growth rates and margins are by comparison healthier, reflecting some recovery in the dietary supplement market in addition to new opportunities in foods and cosmeceuticals. John Waldron, president of Stratmark Services (Deerfield, Ill.), a marketing-consulting firm dedicated to raw material suppliers, reported seeing "modest growth across the board," for a range of companies, a view echoed by NBJ data that indicated growth of 2% for the RMIS sector in U.S. supplement and functional food supply in 2005, with 2006 shaping up to be marginally better. Overall 52 of 79 companies responding to NBJ's recent RMIS survey reported growth in 2005 and only 14 of the 52 reporting growth percentages in 2005 expected a lower growth rate in 2006.

What NBJ defines as the market for specialty raw materials and ingredients for supplements and functional foods amounted to $2.96 billion in U.S. sales in 2005, up 4.0% over 2004. This figure finally passes a similar figure from 1999, the last year of growth before market globalization and price pressures took hold, particularly in commoditity ingredients like vitamins and certain herbs. Growth in U.S. sales of supplement ingredients was 2.2% in 2005, only the second year of growth since 1999. U.S. sales of fortification ingredients for functional foods was up 12% to $560 million in 2005.

1 - 12		Raw Material & Ingredient Supply 2006: Nutrition RMIS business grows 4% to $2.9 billion, review of competitive strategies, NBJ survey results, list of top suppliers and ingredients
13 - 14		Antioxidants get new lease on life; Horphag’s picture-perfect IP strategy
15 - 16		Strategic investors lead M&A activity in raw material supply; list of deals in 2006
17 - 19		Glanbia and Kerry acquire strength in health & wellness; Fruturom buys Acatris
20		Strategic partnerships contribute to DNP’s successful reorganization
21 - 22		Executives discuss change—and its absence—in the Chinese supply chain; New China model? Beijing Tang-An markets CinSulin directly to U.S. customers
23 - 25		DSM, Kingchem and PAT Vitamins find ways to build value in a mature segment
25 - 28		Indena, P.L. Thomas and BI Nutraceuticals review recent trends in the botanicals segment; specialty suppliers report good demand for rainforest herbs
28 - 30		Heart, weight and energy top functional foods: Fortitech, Cevena and P&G update
31		Embria opens new plant for EpiCor production
32 - 33		Encapsulators Qualicaps and Capsugel summarize the year
33 - 34		Mineral suppliers find health-driven niches in a segment subject to global forces
35 - 39		Analysis of China’s vitamin supply business and emerging comsumer market by Andrew Liu of Guangzhou Flacious Chemical