Fragmented sports nutrition market creates opportunities for emerging brands

The first installment of the two-part webinar explored the state of the market and how it is being fueled by consumer desire for longevity and overall wellness, highlighting trends that drive innovation and consumer engagement.

Matthew Oster, head of consumer health at Euromonitor International, noted that the market is experiencing sustained strong growth. According to Euromonitor data, it continues to thrive despite a small moderation since its post-COVID explosion and is expected to grow 11% in 2024.

This growth is driven by traditional performance products and a shift towards active nutrition, which appeals to consumers seeking broader health benefits. Formats like protein powders and ready-to-drink products continue to expand, which Oster attributes to an increase in casual lifestyle consumers who demand convenient and versatile options.

Of the global market, 18% consists of non-protein products like creatine, which is seeing increased adoption by older consumers, thanks to innovations in product positioning. Lifestyle-oriented claims like hydration, immunity and cognition, are also broadening consumer base as they appeal to a wider audience.

Broader demographics

Georgie White, chief customer officer at global health product retailer Holland and Barrett, said that consumers can be divided into reactive and proactive categories.

Within the proactive category, which makes up 48% of consumers across Holland and Barrett’s markets, there are two primary groups: consistent exercisers who are focused on staying healthy (accounting for 15.5 million in the UK), and serious gym-goers who are focused on building muscle (3 million in the UK). 

In contrast, the reactive segments, which make up 52% of consumers across Holland and Barrett’s markets, are focused on health management.

While the consumer groups have different demands, both segments seek solutions that support physical, mental and emotional well-being, White said. Key motivations include maintaining a healthy lifestyle (70% of consumers), supporting mental health (60%) and boosting energy levels (50%).

She explained that this creates opportunities for brands to offer tailored solutions, and as consumers face challenges such as time constraints, high costs and health issues, brands must provide clear, accessible and affordable solutions.

Fragmented markets

Nick Morgan, founder and managing director of Nutrition Integrated, noted that with market expansion comes fragmentation, leaving space for new brands to target specific niches.

Focusing on developing memorable, affordable and appealing products is key, Morgan noted, and therefore brands should prioritize taste, desirable format and affordability in the current market.

However, there is the challenge of cultural fragmentation across European markets, where even small details like naming conventions and flavor preferences differ.

Morgan stressed the importance of education and communication to help consumers understand product value and make informed decisions, given the homogeneity of products across brands. 

While innovation traditionally focuses on products and ingredients, he believes communication will be the next frontier of innovation, especially as AI technologies like ChatGPT reshape how consumers access information.

For Paul Smith-Johnson, head of innovation at THG, innovation must be tailored to local market preferences. He explained that mature markets like the UK and the U.S. have different requirements compared to emerging markets. 

The sports nutrition brand has split its portfolio into two segments: performance and wellness. The performance segment focuses on traditional sports nutrition like protein, weight gain/loss supplements, energy, joint care and performance optimization, while the wellness segment addresses holistic health, including gut health, sleep and other areas of overall well-being.

Smith-Johnson added that, as a developer, he would like to see more claims backed by research for ingredients like creatine. Beyond its well-known role in muscle function, emerging research suggests benefits for bone health, psychological function and female health.

He also discussed the differences in needs between men and women, particularly in sports nutrition and performance, where hybrid training—combining endurance and weightlifting—is becoming more common.

This trend presents both a challenge and an opportunity, as these activities physiologically counter each other, requiring solutions that optimize adaptation for customers to get the most out of their training.

Personalized nutrition 

Beatriz Gandra Balio, women’s first team nutritionist at F.C. Famalicão, emphasized the growing importance of personalized nutrition, particularly for female athletes, highlighting how nutrition plans are now tailored to meet the unique physiological and psychological needs of women, factoring in elements like menstrual cycles and hormonal changes.

She highlighted the potential benefits of combining probiotics with other supplements, such as iron, to enhance absorption and improve immune function, noting there is some evidence supporting probiotics' impact on body composition and overall health.

She noted that more research is needed, as the effects on performance remain unclear, and responses may vary by gender and individual. In fact, a major obstacle to offering sound nutrition advice to athletes is the widespread misinformation among athletes regarding supplements.

Many athletes rely on coaches, social media or the internet rather than consulting professional nutritionists, Gandra Balio said, concluding that collaboration between supplement companies, healthcare professionals and regulatory bodies is imperative to provide accurate, informed advice to athletes.

Sports supplement regulation 

Contrary to some beliefs, sports nutrition is highly regulated, especially in the EU, noted Terrance O’Rorke, vice chair of the European Specialist Sports Nutrition Alliance (ESSNA). 

These regulations include general safety and labeling requirements, nutrition and health claims, and rules on food substances and additives. Additionally, the Food Supplements Directive addresses products like amino acids, essential fatty acids and herbal extracts.

While these regulations ensure transparency and consumer protection, they also create challenges for the industry, particularly in communicating specific nutritional needs, O’Rorke said. 

He emphasized a need to tailor the regulatory framework more closely to the sports nutrition sector, stating that educating elite athletes on supplement safety and anti-doping is crucial, with informed sports programs helping to mitigate risks to athletes' careers.

Carlos Unamunzaga, founder and CEO of Fitoplancton Marino, discussed the challenges faced in developing and gaining approval for new ingredients, noting the lengthy and risky process of navigating regulatory bodies across various countries.

He explained it took over five years to get approval for TetraSod, a marine microalgae grown using patented technology, under the novel food regulations, with similar challenges in the U.S., Brazil, Australia and Asian countries like Indonesia and Thailand. 

While increasing regulatory scrutiny is making it more difficult and costly, it has also deepened the company's understanding of its ingredient’s mode of action through research and clinical trials. 

Unamunzaga said that when designing clinical trials and communicating benefits, it is essential to align with what consumers expect to feel or experience from the product, making it easier to market in areas like sports nutrition or health maintenance.