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Fragmented brand providers. There are thousands of brands of nutraceuticals products, few of which have widespread consumer recognition. This cornucopia of brands provides an overwhelming array of choices for new consumers entering the category. Consumers quickly learn to rely heavily on their own research, label claims and “back panel” nutritional information to make informed decisions.
Few strong brands. Unlike almost every other mature consumer product category (e.g. soft drinks with Coke and Pepsi), there have not yet emerged any real “consolidator” brands in the nutraceuticals category. This can be attributed to the early-stage maturity of the category, the diverse set of brand positionings within the category and the relative paucity of advertising and marketing applied to nutraceutical products to date. Lack of strong branding also results in the heavy use of “borrowed science” and knockoffs among current players in the category. |
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