The U.S. ethical nutrition market is divided into four very distinct categories: the infant formula market, adult enteral formula, parenteral formula and ethical nutrition supplies and equipment markets, market analysts Business Communications Company, Inc. report this week.
According to the company's latest report, RGA-112 The U.S. Market for Ethical Nutrition in Healthcare, the total current U.S. market for ethical nutrition in 2001 reached $9.1 billion (10.2 billion euros) at U.S. manufacturers' sales levels. The growing number of elderly and critically ill, along with the shift toward home care, has been fuelling growth. By 2006, it is anticipated that revenues will likely reach $12.5 billion (14.05 billion euros), growing at an AAGR (average annual growth rate) of 6.5 per cent.
The total U.S. ethical nutrition market was dominated by the infant formula market, which in 2001 accounted for 39.1per cent of total revenues. It will grow nearly as fast as the total market and reach $4.9 billion (5.5 billion euros) by 2006.
The market for adult nutrition products will be the fastest growing during the forecast period with an AAGR of 11.2 per cent. It is expected to increase from $1.3 billion (1.46 billion euros) in 2001 to $2.2 (2.47 billion euros) in 2006.
Parenteral nutrition products are currently estimated at $1.6 billion (1.79 billion euros) and with an AAGR of 6.1 per cent, this market is expected to reach $2.1 billion (2.3 billion euros) in 2006.
Ethical nutrition supplies and equipment account for nearly 30 per cent of the total with an estimated value of $2.7 billion (3.03 billion euros) in 2001. This market is likely to reach $3.4 billion (3.82 billion euros) as it grows at an AAGR of 4.5 per cent during the forecast period.
The report concludes that even though there are different products and methods distinguishing each category, the common thread is nutrition.
The impact of managed care and demand for cost-effective healthcare has dramatically changed the structure of this market and has significantly altered the strategies that companies use to survive and succeed.