Vitamin Industry in the Us

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FDA Regulation of Vitamins & Dietary Supplements in the U.S Course: International Business Management BICG 9702
Instructor: Dr. Carmen Dima
Date: December 4, 2012

Done By: Nolwazi Dhliwayo and Hasnain Akber Ali
EXECUTIVE SUMMARY
Vitamins and dietary supplements are non-drug and non-hormone based products that can be consumed orally in the form of pills, powders, liquids or intravenously by injection. Their function is to supplement the diet, affording consumer’s added nutritional value to maximize the amount of beneficial elements in their diet, including amino and fatty acids, vitamins, minerals and fibre. In the US, supplements or Vitamins are classed as a category of food and are subject to regulations imposed by the Food and Drug Administration (FDA) with the obligation to state the potency of the product and the ingredients used. Dietary supplement/Vitamin firms must report to FDA any serious adverse events that are reported to them by consumers or health care professionals. Because dietary supplement manufacturers do not have to get the agency's approval before producing or selling these products, it is not legal to market a dietary supplement product as a treatment or cure for a specific disease, or to alleviate the symptoms of a disease. There are limitations to FDA oversight of claims in dietary supplement labeling. The purpose of this research paper is to evaluate the vitamin industry in the U.S and If the market and industry of vitamins growing, or slowly depleting. More importantly are the consumers of these aware of the implications that may be faced by the intake of non-regulated drugs. The global vitamin and supplement market to date is worth $68 billion according to research from Euromonitor. Though competitive, the industry has been showing slower growth in recent years due to the economic crisis, regulation difficulties and an overabundance of products in more mature markets. Specific market segments, however, are showing significantly higher growth, reaching double digits thanks to supplements such as fish oils, probiotics and antioxidants. Vitamins represent under $8.5 billion of the overall US vitamins and supplements market, over half of which is sales of multivitamins. Individual vitamins are showing faster market growth than multivitamins, with the former reaching 13% growth while the latter is closer to 2%. Individual vitamins showed the greatest increase at 13%, with B vitamins representing growth of more than 14%. Vitamins and minerals market (but excluding other dietary supplements such as herbal pills, probiotics, etc.) will see compound annual growth of 4.5%, nearing $30 billion in 2015.

TABLE OF CONTENTS
Introduction …………………………………………………………………………………………………………………4 Report Questions………………………………………………………………………………………………………….6 Literature Review………………………………………………………………………………………………………….8 Methods………………………………………………………………………………………………………………………..9 Results……………………………………………………………………………………………………………………………9 Discussion……………………………………………………………………………………………………………………….10 Conclusions……………………………………………………………………………………………………………………..13 Recommendations…………………………………………………………………………………………………………..14 References……………………………………………………………………………………………………………………….16 Appendices………………………………………………………………………………………………………………………17

Introduction
Although vitamins and supplements are often considered nondiscretionary purchases, the industry has grown at a steady clip over the past five years due to several factors, such as the aging population, reduced levels of employed and insured Americans and increasing consumer concerns toward health. Growth is forecast to continue over the next five years, especially as disposable incomes recover, though competition from imports and manufacturers' move to cheaper labor-cost countries will restrain significant revenue increases. The dispute that has been brewing between the Food and Drug Administration and the vitamin industry for the last two years is as far back this research paper...
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