Rewards Cards in the U.S., 3rd Edition

Date: September 22, 2010
Pages: 196
Price:
US$ 3,750.00
Publisher: Packaged Facts
Report type: Strategic Report
Delivery: E-mail Delivery (PDF)
ID: R6037944BB5EN
Leaflet:

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Rewards Cards in the U.S., 3rd Edition
2010 brings a perfect storm to the credit card industry, driven by recession-induced changes that are reshaping its core. At the same time, card rewards have become ubiquitous. In the face of some of the most significant changes the credit card industry has ever faced, some argue that rewards programs are simply no longer feasible in an era of constrained revenue and profits. However, as detailed in Packaged Facts’ Rewards Cards in the U.S., it is not a matter of eliminating reward programs, but rather about adapting them to some of the most significant changes the credit card industry has ever faced.

In its most consultative report in the series, this 3rd edition of Rewards Cards in the U.S. helps position industry participants to navigate this reengineering in card rewards by assessing the following industry trends and challenges:
  • How does continued migration to electronic payments shape the future of rewards?
  • Which regulatory changes are most relevant to rewards?
  • Understanding the macroeconomic and credit factors that shape the pool of current and future credit card customers.
  • How large is this pool of customers?
  • Does the current credit environment effect migration from credit to debit? Why? How?
  • Which fee structures are being implemented—or could be implemented—to counteract regulatory change?
  • How are card issuers’ credit card portfolios adapting to change? How can they share in tapping a smaller pool of cardholders while growing profits?
  • What will happen to affluent, credit worthy cardholders? Less credit worthy cardholders? How do rewards play a role?
  • Can rewards help grow transactions and help extend card reach beyond a shrinking consumer base?
  • How does closed-loop versus open-loop competition and significant industry consolidation affect competition?
  • What is the fate of co-brand rewards?
  • Which reward types best fit the needs of specific consumers?
  • Over the course of the recession, which consumers are active card users? Multiple card users? Transactors? Revolvers? How has this changed over time?
CHAPTER 1: EXECUTIVE SUMMARY

Scope & Methodology
  Scope of Report
  Mass-Market Product Classifications
  Report Methodology
The Market
  U.S. Retail Sales on the Ups
  Figure 1-1: U.S. Retail Sales of Nutritional Supplements, 2005, 2009, 2014 (in millions of dollars)
  Mass-Market Sales Accelerate
  General Supplements Dominate Mass-Market Sales
  Modest Growth in Condition-Specific Products
  Supercenters/Mass Merchandisers Lead in Supplement Sales
  Macro Trends
  Consumers Sticking with Nutritional Supplements
The Marketers
  Competitive Overview
  Natural Product Marketers
  Direct Marketing Companies
  Multi-Level Marketers
  Practitioner Channel on the Rise
  Private-label Share Stagnant
  Pharmavite and NBTY Lead the Market
New Product Trends
  Supplement Introductions Bouncing Back
  Dietary Themes Sell Supplements
  Market Leaders in New Product Entries
  Macro Trends
Consumer Trends
  Between 57% and 63% of Adults Use Supplements
  Figure 1-2: Percent of Adults Using Nutritional Supplements, 2006-2010 (U.S. adults)
  Vitamin D Riding High
  Top Brand Lines Are Multivitamins
  Faith and Doubt on Supplement Efficacy
  Forgetting to Take Their Pills
  Age Is Leading Demographic Indicator
  The Gender Gap
  Supplement Socio-Economics

CHAPTER 2: INTRODUCTION

Market Definition
  Scope of Report
  Product Categories and Classifications
    Vitamins
    Minerals
    Supplements
  Mass-Market Product Classifications
  Combination Formulas
  Other Product Classifications
    Single-Element vs. Multivitamin/Mineral
    Synthetic vs. Natural
    Demographic Segmentation
  Delivery Systems
Industry Regulation
  FDA and DSHEA Oversee Supplements Industry
  The Nutrition Labeling and Education Act (NLEA)
    Qualified Health Claims
    RDAs, RDIs, DRVs and DVs
  Congress Passes Adverse Event Reports (AER) Bill
  The Dietary Supplement Health and Education Act
    DSHEA Remains FDA Focus, Evolves
  FDA Enforces Good Manufacturing Practices for Dietary Supplements
  More Regulation on the Horizon
  CRN Spearheading Industry Self-Regulation

CHAPTER 3: THE MARKET

Market Size and Growth
  U.S. Retail Sales Top $9 Billion in 2009
  Table 3-1: U.S. Retail Sales of Nutritional Supplements, 2005-2009 (in millions of dollars)
  Mass-Market Sales Accelerate
  Table 3-2: SymphonyIRI-Tracked Sales of Nutritional Supplements, 2008-2009 (in millions of dollars)
  Liquid Supplements Provide a Jolt, General Supplements a Baseline
  Table 3-3: SymphonyIRI-Tracked Sales of Nutritional Supplements: By Product Category, 2008-2009 (in millions of dollars)
    Table 3-4: Annual Dollar Growth/Decline in SymphonyIRITracked Sales of Nutritional Supplements: By Product Category, 2008-2009 (in millions of dollars)
  Table 3-5: Annual Percentage Growth/Decline in SymphonyIRI-Tracked Sales of Nutritional Supplements: By Product Category, 2008-2009 (percent)
Market Composition
  General Supplements Dominate Mass-Market Sales
  Figure 3-1: SymphonyIRI-Tracked Sales of Nutritional Supplements: By Product Category, 2008-2009 (in millions of dollars)
  Modest Growth in Condition-Specific Products
  Table 3-6: Condition-Specific Supplement Share of SymphonyIRI-Tracked Sales, 2008-2009 (in millions of dollars and percent)
    Calcium and Joint Supplements Falling
    Children’s Supplements Robust
    Healthy Eyes and Healthy Hearts
    Women’s Supplements Gaining on Men’s
    Brain and Energy Supplements Losing Vigor
    Digestive Gains Big While Cosmetic Supplements Slip
  Table 3-7: SymphonyIRI-Tracked Sales of Condition-Specific Supplements: By Type, 2008-2009 (in millions of dollars)
  Table 3-8: Share of SymphonyIRI-Tracked Sales of Condition-Specific Supplements: By Type, 2008-2009 (percent)
  Another Look at Nutritional Supplement Category Sales
  Herbal Supplements Going Strong
  Supercenters/Mass Merchandisers Lead in Supplement Sales
  Figure 3-2: Share of U.S. Nutritional Supplement Sales by Retail Outlet Type, 2010 (percent)
  Walmart Draws the Most Supplement Shoppers
  Table 3-9: Percentage of Consumers Purchasing Vitamin/Mineral/Supplement Products by Channel, May/June 2010 (percent)
Market Outlook
  Macro Trends
  Consumers Sticking with Nutritional Supplements
    A Supplement a Day Keeps the Doctor Away
  Supplements’ Public Image Always an Issue
  A Growing Part of the Economy
  Table 3-10: U.S. Out-of-Pocket Costs for Complementary and Alternative Medicine, 2007 (adults age 18 and over; in billions of dollar and percent)
  Competition from Functional Foods
  Figure 3-3: Level of Agreement with Statement, “Rather Than Vitamin/Supplement Pills, I Prefer to Buy Foods or Beverages with Specific Nutritional Benefits,” February 2009 (percent)
  Figure 3-4: Level of Agreement with Statement, “I Frequently Choose Foods and Beverages Because They Are Naturally Rich in Specific Nutrients,” May/June 2010 (percent)
  The Natural/Organic Connection
  Aging Baby Boomers an Underpinning Market Force
  Figure 3-5: Percent of U.S. Adults Using Nutritional Supplements: By Age Bracket, 2010 (U.S. adults)
  Table 3-11: Number of Adults Using Nutritional Supplements: By Generational Cohort, 2010 (percent of total U.S. adult users)
  Table 3-12: Projected U.S. Population by Age Bracket, 2010-2020 (in thousands)
Looking Ahead
  Nutritional Supplements Not Immune to Economy
  Table 3-13: New Vitamin and Mineral SKUs, 2005-2009
  Projected Market Growth
  Table 3-14: Projected U.S. Retail Sales of Nutritional Supplements, 2009-2014 (in millions of dollars)
  Healthcare Bill Expected to Help Industry
  Science Pushing Out Snake Oil
  Integrative Pharmacies: A New Type of Supplement Retailer

CHAPTER 4: THE MARKETERS

  Competitive Overview
  Recent Mergers & Acquisitions
    Carlyle Group Purchases NBTY
    Sanofi-Aventis Purchases Chattem
    Atrium Takes Over Garden of Life
    Practitioner Marketer Makes for Appealing Acquisition
  Supplement Companies Help Relieve IPO Drought
  Natural Product Marketers
  Direct Marketing Companies
    Direct and Online Sales Enticing Supplement Sellers
    Online Sales at 3% of Revenue for GNC
    Direct Mail Works for Nutritional Supplements
  Ups and Downs of Multi-Level Marketers
  Practitioner Channel on the Rise
  Retailers Benefit from Private-Label Offerings
    Private-label Share Stagnant
  Figure 4-1: Private-Label Share of Mass-Market Sales of Nutritional Supplements by Category: 2007 vs. 2009 (percent)
  Table 4-1: SymphonyIRI-Tracked Sales of Private-Label Nutritional Supplements by Category: 2007 vs. 2009 (in millions of dollars)
  Category Cross-Over and Line Extensions
  Consumer Advertising Themes and Promotions
    Eco-Credibility
  Traceability
  Celebrity Endorsements
  Web 2.0
Trade Support
The Retail Channel Classroom
Natural Grocers Continue to Extend Reach
GNC and Vitamin Shoppe Coming on Strong
Table 4-2: The U.S. Market for Nutritional Supplements: Selected Leading Marketers and Brands, 2009
Marketer and Brand Shares
  Methodology
  Pharmavite and NBTY Lead the Market
  NBTY Leads in General Supplements
  Multivitamins Category a Two-Horse Race
  Pharmavite, Private Label Dominate in 1 & 2 Letter Vitamins
  Liquid Supplements Category Highly Fragmented
  Table 4-3: Top Twenty Marketers of Nutritional Supplements by SymphonyIRI-Tracked Dollar Sales and Market Share, 2008-2009 (in millions of dollars and percent)
  Table 4-4: Top Fifteen Nutritional Supplement Brands by SymphonyIRI-Tracked Dollar Sales and Market Share, 2008-2009 (in millions of dollars and percent)
  Table 4-5: Top Marketers and Brands of General Supplements by SymphonyIRI-Tracked Dollar Sales and Market Share, 2008-2009 (in millions of dollars and percent)
  Table 4-6: Top Marketers and Brands of Multivitamins by SymphonyIRI-Tracked Dollar Sales and Market Share, 2008-2009 (in millions of dollars and percent)
  Table 4-7: Top Marketers and Brands of 1 & 2 Letter Vitamins by SymphonyIRI-Tracked Dollar Sales and Market Share, 2008-2009 (in millions of dollars and percent)
  Table 4-8: Top Marketers and Brands of Liquid Vitamins by SymphonyIRI-Tracked Dollar Sales and Market Share, 2008-2009 (in millions of dollars and percent)
Focus on Condition-Specific Products
  Condition-Specific Products Charting Healthy Growth
  Table 4-9: SymphonyIRI-Tracked Dollar Sales and Market Share of Condition-Specific Products by Type, 2008-2009 (in millions of dollars and percent)
  Osteo Bi-Flex on Top in Joint Health Supplements
  Table 4-10: Joint Supplements: SymphonyIRI-Tracked Sales and Segment Share, 2008-2009 (in millions of dollars and percent)
  Citracal No. 1 in Calcium Supplements
  Table 4-11: Calcium Supplements: SymphonyIRI-Tracked Sales and Segment Share, 2008-2009 (in millions of dollars and percent)
  Children’s Supplements Led by Bayer’s Flintstones
  Bausch & Lomb Dominates in Eye Care Supplements
  Table 4-12: Children’s Supplements: SymphonyIRI-Tracked Sales and Segment Share, 2008-2009 (in millions of dollars and percent)
  Table 4-13: Eye Supplements: SymphonyIRI-Tracked Sales and Segment Share, 2008-2009 (in millions of dollars and percent)
  NBTY’s Q-Sorb Out Front in Heart Health Supplements
  Table 4-14: Heart Supplements: SymphonyIRI-Tracked Sales and Segment Share, 2008-2009 (in millions of dollars and percent)
  One-A-Day a Strong No. 1 in Men’s Supplements
  Table 4-15: Men’s Supplements: SymphonyIRI-Tracked Sales and Segment Share, 2008-2009 (in millions of dollars and percent)
  Women’s Supplements Target Menopausal and Prenatal Health
  Table 4-16: Women’s Supplements: SymphonyIRI-Tracked Sales and Segment Share, 2008-2009 (in millions of dollars and percent)
  Consumers Aren’t Looking for Energy in Supplements
  Table 4-17: Energy Supplements: SymphonyIRI-Tracked Sales and Segment Share, 2008-2009 (in millions of dollars and percent)
  Digestive Health Supplements Going Strong
  Table 4-18: Digestive Supplements: SymphonyIRI-Tracked Sales and Segment Share, 2008-2009 (in millions of dollars and percent)
  Cosmetic Supplements Down
  Table 4-19: Cosmetic Supplements: SymphonyIRI-Tracked Sales and Segment Share, 2008-2009 (in millions of dollars and percent)
  Sales Trending Down in Brain Health Segment
  Table 4-20: Brain Supplements: SymphonyIRI-Tracked Sales and Segment Share, 2008-2009 (in millions of dollars and percent)

CHAPTER 5: NEW PRODUCT TRENDS

Supplement Introductions Bouncing Back
Table 5-1: Number of Vitamin and Mineral New Product Reports and SKUs, 2005-2010
Dietary Themes Sell Supplements
Table 5-2: Top Package Tags/Claims for New Vitamin and Mineral Products, 2005-2009 (number)
Table 5-3: High-Growth Nutritional Supplement Package Tags/Claims: 2009 vs. 2005 Increase (number)
Market Leaders in New Product Entries
Table 5-4: Number of Nutritional Supplement Launches by Company, 2008-2010
Macro Trends
Trends in Joint Supplements
Heart Health Supplements Going Strong
Aiming for the Gut
Omega-3s Still Have Mileage
Brain Boosters
Eye Care Supplements Lean on Scientific Support
The Oral Angle
Seeking Immunity
Supplements for Sleep
Targeting Specific Diseases and Conditions
  Diabetes
  Bariatric Patients
  Tinnitus
  ADHD
“Beauty from Within” Seeming Homely
Alternate Delivery Systems Tout Efficacy, Novelty
  Powdered Supplements
  Gummies and Gels
  Oral Strips
  Lip Balm
Up-and-Coming Ingredients
  Vitamin D
  Resveratrol
  Superfruits

CHAPTER 6: CONSUMER TRENDS

Introduction
  Notes on Experian Simmons Data
  Between 57% and 63% of Adults Use Supplements
  Figure 6-1: Percent of Adults Using Nutritional Supplements, 2006-2010 (U.S. adults)
  Vitamin D Riding High
  Figure 6-2: Selected Leading Types of Nutritional Supplement by Usage Rates, 2006 vs. 2010 (percent of U.S. adults)
  Top Brand Lines Are Multivitamins
  Figure 6-3: Top Nutritional Supplement Brand Lines by Usage Rates, 2006 vs. 2010 (percent of U.S. adults)
  Table 6-1: Overview of Nutritional Supplement Usage, 2010 (percent and number of U.S. adults)
Consumer Psychographics
  Faith and Doubt on Supplement Efficacy
  Forgetting to Take Their Pills
  Figure 6-4: Top Reasons Consumers Do Not Take Supplements, 2010 (percent)
  Supplement Users Proactive About Healthcare
  Stronger Skews for Specialized Products
  A Taste for Alternatives
  Branded vs. Private Label
  Table 6-2: Psychographic Indicators for Nutritional Supplement Users, 2010 (percent and index of U.S. adults)
  Table 6-3: Attitudes Toward Product Efficacy Among Nutritional Supplement Users, 2010 (percent of U.S. adults)
  Table 6-4: Overall Psychographic Indicators for Daily Users of Nutritional Supplements, 2010 (number and percent of U.S. adults)
  Table 6-5: Top Psychographic Indicators for Nutritional Supplement Usage by Product Type, 2010 (index of U.S. adults)
  Table 6-6: Top Psychographic Indicators for Nutritional Supplement Usage by Brand, 2010 (index of U.S. adults)
Consumer Demographics
  Age Is Leading Demographic Indicator
  Figure 6-5: Percent of U.S. Adults Using Nutritional Supplements: By Age Bracket, 2010 (U.S. adults)
  40% of Supplement Users Are Boomers
  Figure 6-6: Number of Adults Using Nutritional Supplements: By Generational Cohort, 2010 (percent of total U.S. adult users and number in millions)
  Usage Edges Up in Age Brackets
The Gender Gap
Supplement Socio-Economics
Patterns by Product Type
Patterns by Brand Line
Table 6-7: Nutritional Supplement Usage: Overall Demographic Patterns, 2010 (percent, number and index of U.S. adults)
Table 6-8: Percentage of Adults Using Nutritional Supplements: By Age Bracket, 2006 vs. 2010 (U.S. adults)
Table 6-9: Percentage of Adults Using Nutritional Supplements: By Age Bracket, Men vs. Women, 2010 (U.S. adults)
Table 6-10: Indices for Adult Use of Nutritional Supplements: By Educational Attainment and Household Income, 2006 vs. 2010 (U.S. adults)
Table 6-11: Demographics of Those Using Nutritional Supplements Once or More Daily, 2010 (percent, number and index of U.S. adults)
Table 6-12: Top Demographic Indicators for Nutritional Supplement Usage by Product Type, 2010 (percent and index of U.S. adults)
Table 6-13: Demographic Indicators for Nutritional Supplement Usage by Brand or Brand Line, 2010 (percent and index of U.S. adults)

APPENDIX: ADDRESSES OF SELECTED MARKETERS
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