Natural products to bloom in sales
Homeopathy is hopping. Sales of many of the homeopathy brands represent some of the fastest-growing products across the OTC landscape these days, as evidenced by the number of brands escalating on the top 10 lists across several categories. Overall, sales of homeopathic medicines totaled $1.3 billion for the 52 weeks ended Dec. 22, up 8% according to SPINS, which tracks sales across both the natural channel (excluding Whole Foods) and mass retailers.
According to a survey conducted by the market research firm Kline, more than 45% of consumers consider natural OTCs like homeopathic products effective. And more than 40% believe that natural OTCs are safer and/or have fewer side effects than traditional OTCs.
Business opportunities vary across product categories, noted Laura Mahecha, industry manager at Kline's Healthcare practice. "For instance, while cough and cold preparations are expected to grow at a rate of only 5% to reach $320.9 billion in 2016, it is anticipated that sleeping aids will grow by about 18% per year to reach $54 million in 2016 from $23.5 million reported in 2011," she said. "Growth in natural OTCs will be dependent on whether consumers continue to find them effective and safe."
Beyond opportunities within sleep, external analgesics containing arnica may become another growth driver. "You're going to see the leg cramps and the arnica really come full force in the next 12 months," said Les Hamilton, VP sales for Hyland's. Menthol rubs are common across the category, he added, and the homeopathic external analgesic solutions could supply some "newness" to the category.
The article above is part of the DSN Category Review Series. For the complete Homeopathy Buy-In Report, including extensive charts, data and more analysis, click here.