Using information contained in the September 1998 issue of Nutrition Business Journal, RTI calculated 4-firm and 8-firm concentration ratios (CR4s and CR8s) and Herfindahl-Hirschman indexes (HHIs) for the dietary supplement industry (Nutrition Business International, 1998). In Table A-1, we list the manufacturers and 1997 revenues as reported in the Nutrition Business Journal. First, we calculated each firm's share of total sales. We added the shares of the top 4 firms to obtain a 4-firm concentration ratio of 22.8 percent and the shares of the top 8 firms to obtain an 8-firm concentration ratio of 38.9 percent. To calculate the Herfindahl-Hirschman index, we first squared the shares of each manufacturer and then added them together for all 40 firms listed to arrive at an HHI of 250.2. Although the HHI theoretically includes the shares of all firms in the industry, adding the squared shares of firms below the 40th would have little effect on the HHI.
Table A-1. Revenues and Market Shares of the Top Dietary Supplement Manufacturers, 1997
| Manufacturer | Revenue (millions) | Market Share | Squared Share |
| Leiner Health Products (Your Life) | 425 | 7.02% | 49.35 |
| Pharmavite (Nature Made) | 340 | 5.62% | 31.58 |
| American Home Products/Lederle (Centrum) | 325 | 5.37% | 28.86 |
| Rexall Sundown | 291 | 4.81% | 23.14 |
| NBTY (Natures Bounty) | 281 | 4.64% | 21.57 |
| General Nutrition Companies (GNC) | 260 | 4.30% | 18.47 |
| Weider Nutrition Group (Schiff) | 219 | 3.62% | 13.10 |
| Twin Laboratories (Nature's Herbs) | 213 | 3.52% | 12.40 |
| Abbott Labs (Ross Products) | 170 | 2.81% | 7.90 |
| Perrigo | 152 | 2.51% | 6.31 |
| Solgar Vitamin and Herb Company | 120 | 1.98% | 3.93 |
| Bayer Corporation (One-a-Day) | 110 | 1.82% | 3.31 |
| IVC Industries (International Vitamin Corp.) | 109 | 1.80% | 3.25 |
| Experimental and Applied Sciences (EAS) | 108 | 1.79% | 3.19 |
| Nature's Way Products (MMS) | 100 | 1.65% | 2.73 |
| Nutraceutical International (KAL, Solaray) | 98 | 1.62% | 2.62 |
| Pharmaton Natural Health Products (Ginsana) | 90 | 1.49% | 2.21 |
| PowerFoods Inc. | 90 | 1.49% | 2.21 |
| MET-Rx USA | 88 | 1.45% | 2.12 |
| Country Life Vitamins | 70 | 1.16% | 1.34 |
| Mead Johnson | 70 | 1.16% | 1.34 |
| Amrion (Whole Foods Market) | 65 | 1.07% | 1.15 |
| Now Foods | 55 | 0.91% | 0.83 |
| Enzymatic Therapy | 50 | 0.83% | 0.68 |
| Anabolic Labs (Vitamer) | 50 | 0.83% | 0.68 |
| Vitatech International | 50 | 0.83% | 0.68 |
| Natural Alternatives | 49 | 0.81% | 0.66 |
| Optimum Nutrition | 45 | 0.74% | 0.55 |
| Natrol | 43 | 0.71% | 0.51 |
| Balance/Bio Foods, Inc. | 40 | 0.66% | 0.44 |
| Chattem (Sun Source) | 40 | 0.66% | 0.44 |
| Nature's Plus | 35 | 0.58% | 0.33 |
| Planetary Formulas | 35 | 0.58% | 0.33 |
| Chai-Na-Ta Corp | 34 | 0.56% | 0.32 |
| HVL Inc. | 34 | 0.56% | 0.32 |
| Weinstein Nutritional Products (Ashland) | 33 | 0.55% | 0.30 |
| Metagenics | 32 | 0.53% | 0.28 |
| Pharmanex | 32 | 0.53% | 0.28 |
| Standard Process, Inc. | 30 | 0.50% | 0.25 |
| Tishcon Corp. | 30 | 0.50% | 0.25 |
| All Other Manufacturers | 1,539 | 25.44% | |
| Total | 6,050 | 100.00% | |
| Source: Nutrition Business International. September 1998. "$23 Billion and Counting: Nutrition Industry Braces for a Competitive Future." Nutrition Business Journal 3(9):1-5, 13, 18. | |||