Nutrition Business Journal

Ingredient Suppliers Serve as Industry Bellwether In Current Bleak Economy

Firms feel the pinch operationally, but consumer and manufacturer demand holds despite rising supply prices

Dec. 1, 2008 12:00pm

The faltering economy is likely first and foremost on the minds of nutrition industry executives these days, and conversations with suppliers of dietary supplement and functional ingredients paint two sides to the story of how the downturn is affecting the U.S. nutrition industry and what is possibly in store for 2009.

On one side, suppliers say they are feeling the pinch associated with bad debt and tighter access to capital and credit, while still dealing with the blows that rising fuel prices and currency fluctuations delivered in 2007 and the first half of 2008. “Like all other companies, we are clearly feeling the...