observations from the expo west 2019 show floor · dietary supplements, most consumers think of...

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Observations from the Expo West 2019 Show Floor By Carla Ooyen, Ooyen Research LLC Every year it feels like Expo West is as big as it can get, and yet, the next year it’s always bigger! While 2018 brought the much-awaited expansion into the Convention Center’s newly opened two-story North Hall, 2019 exhibits were back to overflowing into the Hilton Hotel. For many of you, the show is about meetings, relationships, and education – meaning that the time on the show floor is limited. Even for those focused on the show floor, seeing all of the booths – with 5 main halls, 3 rd floor convention center booths, the Arena, the North Halls, the Hilton, and even outside stands – is a nearly impossible feat. While I spent 3 days trying to see (and record) as much of the show as possible, there were still areas that I wanted to see but never did. But I managed to take more than 900 photos (sorry for the blurry ones). Here are some of my observations from the show along with example photos. I hope they help to fill in the gaps whether you were unable to attend, didn’t have enough show time, or are just looking for additional perspective. More and Multi This seemed to be the year of “more” – i.e. many of the trends that ruled the show last year exploded and more clearly emphasized their staying power. Turmeric, for instance, has become so ubiquitous that I haven’t highlighted it here as a trend (it’s everywhere – just assume that!). Other “more” trends are highlighted below. It was also the year of “multi” trend products – if a product embracing one trend is great, why not address two or three? Why not have a beet CBD shot (beets are still hot in food and supplements), a keto cider vinegar, or a collagen product with turmeric? CBD Expo West As someone who has been tracking and sizing the hemp and CBD market since 2015, I thought we had seen an explosion of CBD products in 2018, but boy was I wrong! For 2019, it almost seemed that the show should have been called “CBD Expo West” because CBD was everywhere. The early pioneers in the CBD market are seeing big name supplement brands enter the market, as well as new players in supplements, food, and personal care that are excited to be part of this movement. Many brands are proudly promoting CBD offerings, while other brands are relying on the halo effect of hemp popularity. New Hope hosted an all-day CBD session on Tuesday before the show floor opened. Slides for many of the show’s sessions are available at https://www.newhope.com/sessions (though they may not be posted just yet). New Hope’s standards department was kept busy reviewing exhibitor’s CBD products ahead of the show, and Michelle Zerbib, director of standards, highlighted many of the ways manufacturers have had to improve their labeling in order to meet show standards, including inconsistent and unclear labeling about CBD content. New Hope doesn’t allow synthetic products or CBD isolates on the show floor, though there was at least one manufacturer who was giving out cards about

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Page 1: Observations from the Expo West 2019 Show Floor · dietary supplements, most consumers think of them as beverages not supplements. However, manufacturers are clearly moving toward

Observations from the Expo West 2019 Show Floor

By Carla Ooyen, Ooyen Research LLC

Every year it feels like Expo West is as big as it can get, and yet, the next year it’s always bigger! While 2018 brought the

much-awaited expansion into the Convention Center’s newly opened two-story North Hall, 2019 exhibits were back to

overflowing into the Hilton Hotel. For many of you, the show is about meetings, relationships, and education – meaning

that the time on the show floor is limited. Even for those focused on the show floor, seeing all of the booths – with 5

main halls, 3rd floor convention center booths, the Arena, the North Halls, the Hilton, and even outside stands – is a

nearly impossible feat. While I spent 3 days trying to see (and record) as much of the show as possible, there were still

areas that I wanted to see but never did. But I managed to take more than 900 photos (sorry for the blurry ones).

Here are some of my observations from the show along with example photos. I hope they help to fill in the gaps whether

you were unable to attend, didn’t have enough show time, or are just looking for additional perspective.

More and Multi

This seemed to be the year of “more” – i.e. many of the trends that ruled the show last year exploded and more clearly

emphasized their staying power. Turmeric, for instance, has become so ubiquitous that I haven’t highlighted it here as a

trend (it’s everywhere – just assume that!). Other “more” trends are highlighted below.

It was also the year of “multi” trend products – if a product embracing one trend is great, why not address two or three?

Why not have a beet CBD shot (beets are still hot in food and supplements), a keto cider vinegar, or a collagen product

with turmeric?

CBD Expo West

As someone who has been tracking and sizing the hemp and CBD market since 2015, I thought we had seen an explosion

of CBD products in 2018, but boy was I wrong! For 2019, it almost seemed that the show should have been called “CBD

Expo West” because CBD was everywhere. The early pioneers in the CBD market are seeing big name supplement

brands enter the market, as well as new players in supplements, food, and personal care that are excited to be part of

this movement. Many brands are proudly promoting CBD offerings, while other brands are relying on the halo effect of

hemp popularity.

New Hope hosted an all-day CBD session on Tuesday before the show floor opened. Slides for many of the show’s

sessions are available at https://www.newhope.com/sessions (though they may not be posted just yet). New Hope’s

standards department was kept busy reviewing exhibitor’s CBD products ahead of the show, and Michelle Zerbib,

director of standards, highlighted many of the ways manufacturers have had to improve their labeling in order to meet

show standards, including inconsistent and unclear labeling about CBD content. New Hope doesn’t allow synthetic

products or CBD isolates on the show floor, though there was at least one manufacturer who was giving out cards about

Page 2: Observations from the Expo West 2019 Show Floor · dietary supplements, most consumers think of them as beverages not supplements. However, manufacturers are clearly moving toward

a product he couldn’t display. While Michelle and her team did find CBD products violations on the floor – such as

artificial ingredients – it’s an issue they faced across the product categories, not just with CBD.

A few points of note: Garden of Life and many well-established supplement brands have made strong entrances into the

CBD category. A wide selection of condition specific offerings is now on the market, whether for sleep, relaxation, pain,

or other uses. Expanding flavor options are becoming available, including Barlean’s new Chocolate Mint CBD oil. Delivery

systems are continuing to expand, with the roll-on and spray options offered by Nature’s Fusions serving as one

example. Pets are part of the family, and more brands, including Smart Organics, Bido, and (the elephant in the room)

Charlotte’s Web, are offering CBD products for your fluffy friends. CBD and hemp products have also crept well beyond

the supplement aisle, gaining popularity in personal care and food aisles. Dr. Tusk’s men’s grooming products with hemp

and caffeine and Cadence CBD Coffee are just a couple of examples. While the number of products sometimes seems

overdone, in perspective, hundreds of brands offer vitamin C or omegas or probiotics products, so why not hemp/CBD?

I’ve highlighted some of the interesting new brand entrants, new formats, and new uses here, but this is far from a

complete list of CBD products seen at the show. (Give me a holler if you’d like to see more of my CBD photos from the

show floor).

Page 3: Observations from the Expo West 2019 Show Floor · dietary supplements, most consumers think of them as beverages not supplements. However, manufacturers are clearly moving toward

Elderberry

I’ve been happily using elderberry (along with zinc) for a decade to keep the winter crud at bay, so I’m excited to see

that this is a trend that is finally reaching a larger segment of consumers. Elderberry was popping up more prominently

at EW18, but more brands jumped onto this trend at EW19, and elderberry is one of the top supplements that natural

retailers are talking about this year. Brands looking to differentiate are offering new ingredient combinations, such as

Nature’s Answer’s Sambucus + Probiotic, and mixing up the delivery system, including Nature’s Way’s Sambucus Hot

Drink Mix. And you always know that a trend has really made it when you also see ingredients crossing over into food

products, such as Cawston Press’ Elderflower Lemonade.

Page 4: Observations from the Expo West 2019 Show Floor · dietary supplements, most consumers think of them as beverages not supplements. However, manufacturers are clearly moving toward

Mushrooms

The magic of mushrooms is becoming increasingly recognized and brands such as Om and Host Defense are helping to

lead the charge with hip branding, condition specific formulations and creative delivery systems. Consumers always love

a good excuse to east some chocolate, so make it functional with some mushrooms! Purely Elizabeth is bringing the

mushroom back into the food aisle with its new line of bars with reishi.

Collagen

Interest in collagen has been ramping up quickly over the last several years, and more and more products were in

evidence at EW19. Pill and powders remain abundant, but shots appear to be the next big step in delivery system

evolution (with wellness shots in general heavily trending at the show).

Page 5: Observations from the Expo West 2019 Show Floor · dietary supplements, most consumers think of them as beverages not supplements. However, manufacturers are clearly moving toward

Prebiotics

Prebiotics have been gaining recognition over the last several years, and brands continue to discover new ways to

incorporate them into products and revitalize a category that was not too long ago considered to be nothing more than

your grandma’s Metamucil. Beyond prebiotics, the term synbiotic is gaining traction and the oft-forgotten digestive

enzymes category also continues to move into more prominence.

Page 6: Observations from the Expo West 2019 Show Floor · dietary supplements, most consumers think of them as beverages not supplements. However, manufacturers are clearly moving toward

Location Personalization

Personalization is an important trend that has been bubbling up in the supplement industry. While condition specific

formulas are the most basic form of personalization, one company at EW19, Secrets of the Tribe, just introduced a line

of season tinctures that are designed to address local health issues for a given season. While the formulas aren’t based

on an individual’s characteristics, they are keyed to the subtleties of your geographic location.

Pain

Turmeric has brought the concept of natural pain management to the forefront, while collagen is another hot ingredient

associated with joint pain management. Natural retailers are seeing patients looking more for natural pain solutions, and

brands are using ingredients in new ways (or offering new positioning) to address pain.

Page 7: Observations from the Expo West 2019 Show Floor · dietary supplements, most consumers think of them as beverages not supplements. However, manufacturers are clearly moving toward

Delivery System

While pills and capsules remain the most popular format, brands continue to innovate around delivery system and

consumers continue to shift to alternative delivery when the products meet expectations around efficacy, ingredient

quality, and convenience. Consumers are increasingly interested in on-the-go stick packs or powders that can be easily

added to foods.

Condition Specific in the Food Aisle (and beyond)

As alternative delivery systems become more popular in the supplement aisle, functional foods are becoming harder to

distinguish from supplements. Food and beverage brands are following the supplement industry’s lead and beginning to

promote more condition specific claims rather than relying on functional ingredient labeling.

This condition specific idea is especially prevalent in the beverage aisles. While many teas have long been labeled as

dietary supplements, most consumers think of them as beverages not supplements. However, manufacturers are clearly

moving toward producing more condition specific use occasions rather than focusing on the tea type or herbal

ingredients.

Beyond tea, condition specific shots were clearly a big EW19 trend. Shots over the last decade have floundered as

offerings were focused on quick energy alone and often tasted horrible. Now shots are falling somewhere between

herbal tincture and morning juice to allow consumers a tastier alternative for on-the-go supplementation.

Condition specific labelling is also appearing on items like nutrition bars (it’s no longer just about energy and protein)

and chocolates, including Peak Chocolate’s Focus and entering the personal care aisle with products like WestLab’s bath

salts.

Page 8: Observations from the Expo West 2019 Show Floor · dietary supplements, most consumers think of them as beverages not supplements. However, manufacturers are clearly moving toward

Product and Ingredient Relationships Redefined

Over the last decade we’ve become accustomed to gluten-free options and vegetarian proteins, but at EW19, the

reinvented ingredient and product relationship trend seems to have exploded to the point that it’s almost a surprise

when a product IS made out of a traditional ingredient. Now jerky might be bananas or mushrooms, protein from

pumpkins, “bread” crumbs made from chickpeas, chips made entirely of cheese, or egg tortillas. One interesting aspect

of this reinvention trend is that some items eliminate animal products while others add animal products, but either way,

it’s an old product category with a new ingredient list.

Page 9: Observations from the Expo West 2019 Show Floor · dietary supplements, most consumers think of them as beverages not supplements. However, manufacturers are clearly moving toward

Keto and Paleo Continue to Explode

Back in 2012, I worked at New Hope and we did a report on specialty diets trends including Paleo and Raw. Back then,

these were just tiny trends with only a few products on the show floor. Now those products are everywhere, and Keto,

something that wasn’t on the radar back then, is leading the charge. These diet trends are helping to drive the earlier

trend of ingredient relationships redefined.

Smaller diet trends being highlighted on product packaging and in literature include FODMAP and the more restrictive

Whole30 diet.

One of the side effects of the popularity of Paleo and Keto is an interest in obtaining high protein without necessarily

relying on animal sources. As part of this trend, there were many companies promoting “high” protein levels beyond

nutrition bars and protein powders where protein claims are standard operating procedure. These high protein claims

might be 6g or 20g but are intended to help consumers identify where protein levels are higher than in normal versions

of the product. For instance, 6g of protein in a snack bag of chickpea puffs is much higher than found in a bag of tortilla

chips.

Page 10: Observations from the Expo West 2019 Show Floor · dietary supplements, most consumers think of them as beverages not supplements. However, manufacturers are clearly moving toward

Ethnic Flavors and the Umami Revolution

Americans are clearly bored with the same old food options, and ethnic flavors and cuisine are becoming more

predominant on the show floor. Part of this ethnic embrace is paired with the American consumer’s introduction to the

umami flavor concept, with many umami flavors appearing in traditional Asian sauces. Beyond looking for new flavor

profiles, diet trends such as paleo and keto have helped to drive interest in high fat items, and ghee has clearly moved

into the hot trends category in 2019.

Page 11: Observations from the Expo West 2019 Show Floor · dietary supplements, most consumers think of them as beverages not supplements. However, manufacturers are clearly moving toward

Not your Mama’s Ramen

An obvious extension of the ethnic flavors trend, along with the bone broth phenomenon, is the explosion of the noodle

cup. Thirty cent chicken ramen cups are clearly passé.

Beverages

EW19 makes it clear that if you are drinking your same old milk, soda, or juice, you are clearly behind the times.

Kombucha has become a fridge staple, and now companies like Wild Tonic are promoting higher alcohol versions that

transition kombucha into the drinking hour.

Closely adjacent to the kombucha category is drinking vinegar. While many companies are delivering tasty vinegar

focused drinks and shots in a variety of flavors, others (such as Switchle) are being more inventive with their use of a mix

of spring water, fruit juice, vinegar, and teas. Flavors traditionally associated with alcoholic drinks, like hops and bitters,

are also appearing in non-alcoholic teas and waters.

Page 12: Observations from the Expo West 2019 Show Floor · dietary supplements, most consumers think of them as beverages not supplements. However, manufacturers are clearly moving toward

Healthier waters and sodas continue to enter the market, giving consumers more flavor options while avoiding the

downside of sugars. Beets continue to be a hot functional ingredient and flavor trend in the beverage aisle. And if you

really must still drink a cow-based beverage, you really ought to be getting something with an added flavor profile, like

Burrough’s lavender milk.

Page 13: Observations from the Expo West 2019 Show Floor · dietary supplements, most consumers think of them as beverages not supplements. However, manufacturers are clearly moving toward

Better Animal Products – Pasture Raised and Grass-fed,

If a brand is still sticking with animal-based products, they have to go above and beyond to set themselves apart. Many

companies are promoting the cleanliness and higher quality of their animal products via pasture raised or grass-fed

labelling.

Sustainable Packaging and Products

Sustainability is one non-food trend that can’t be missed. From bamboo bandages to bamboo toothbrushes to reusable

paper bags, savvy brands are continuing the sustainability conversation beyond the food aisles.

About the Author

Carla Ooyen is an independent market research consultant focusing on the natural products industry. She has also

conducted research in the emerging hemp and CBD industry. Prior to founding Ooyen Research, LLC in 2014, Carla spent

six years honing her market research skills with Nutrition Business Journal and New Hope Natural Media. Carla has

worked with suppliers, manufacturers, retailers, investors, and everyone else involved in the value chain to determine

market potential and future strategy based on quantitative and qualitative inputs. Carla holds an MBA from the

University of Colorado’s Leeds School of Business.

Past Clients include: AHPA, Atrium Innovations, CoQ10 Association, Freshmade Brands, Nattopharma, Natural Foods

Merchandiser, New Hope Network, Nicholas Hall, Nutrition Business Advisors, Milk Specialties Global, Nutrition Business

Journal, Organic Trade Association, Pure Branding, Trust Transparency Center, TSI Group, ArcView Market Research, and

Hemp Business Journal.

You can learn more about Ooyen Research’s services at https://www.linkedin.com/in/cooyen. If you’d like to discuss

your next market research or strategy project with Carla, she can be reached directly at [email protected].