Dispatches from Expo West
Expo West in a tight economy
The event, which is kicking off today with the start of its adjacent education program, is said to have attracted 100 new exhibitors this year compared to last year, pushing up the total number of exhibiting firms to 1,900.
According to the organizers, New Hope Natural Media, Expo West is currently tracking 3 percent ahead in registered retail buyers, which suggests that “despite a flagging economy”, retailers are still showing strong interest in new products and market trends.
"Even in these difficult economic times, natural and organic product sales show steady growth," said Adam Andersen, the show’s manager, adding that Expo West would create “new ways for retail buyers and manufacturers to connect and meet the challenges they face in the current business climate."
Around 250 of this year’s exhibitors are appearing in Anaheim, California, – which houses Expo West every year – for the first time in 2009. While this suggests continued new interest in the networking event, it also means that there are around 150 firms not returning this year.
NutraIngredients-USA.com from the air
Expo West focuses on natural and organic products and trends, with exhibitors featuring new and existing finished products in the food, supplement, cosmetics and pet product sectors.
Adjacent to that, the much smaller SupplyExpo show will feature ingredients, technologies, and manufacturing services for these industries.
Shane Starling will be reporting from Expo West for NutraIngredients-USA.com. To hear his take on the event ahead, recorded from the airplane yesterday on the way to Anaheim, click here.
Economic impact
Although the economic climate has already exerted some effects on the functional foods and supplements sectors, these are, on the whole, thought to be more resilient than other industries. Supplements in particular may even stand to benefit from a growing focus on alternative healthcare, suggest some industry experts.
“I think there is a real opportunity for this industry in terms of healthcare, in providing more affordable, cost effective healthcare,” said Daniel Fabricant, VP of Scientific and Regulatory Affairs at supplements trade group NPA.
Loren Israelsen, executive director of UNPA – another trade group – told NutraIngredients-USA.com that over the past 50 years the supplements industry has actually performed better during times of economic pressure.
“This is partly because people turn inward, they are much more interested in protecting themselves, they become more retrospective. And supplements are part of everyone’s daily regime to try and maintain health and wellness. People are literally splitting pills of their drugs to try and stretch out their prescriptions,” he said.
He suggested that there will likely be some trading down from national brands to store brands as consumers try to stem costs and opt for cheaper alternatives.
“But generally my expectation is that we will not see a sharp decline in supplement sales, and that would be particularly true for supplements that are helpful for stress management and for sleep and insomnia – physical symptoms of economic distress.”
