Complementary and Alternative Medicines - US - July 2008

Table of Contents

• Scope and Themes
• What you need to know
• Definition
• Data sources
• Sales data
• Consumer survey data
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• Attunement and fear
• CAM is catching on
• CAM is the same...only different
• CAM is everywhere
• The search for a cure we can live with
• So many choices
• Presenting nature as innovative
• Show me the money
• CAM casts a wide net...but needs to catch more fish
• Market Size and Forecast
• Key points
• Consumers want safe alternatives
• The issue of analysis
• Sales and forecast of complementary and alternative medicines
  • Figure 2: Total U.S. consumer sales and forecast of CAM at current prices, 2002-12
  • Figure 3: Total U.S. consumer sales and forecast of CAM, at inflation adjusted prices, 2002-12
• Competitive Context
• Big brother is watching
• Leaner and cheaper
• Oh yeah, well we' re safe, too
• Segment Performance
• Key points
• Cure the symptoms
• Mainstream channels
• Sales and forecast of CAM segments
  • Figure 4: U.S. consumer sales and forecast of CAM, at current prices, by segment, 2002-12
  • Figure 5: U.S. consumer sales of CAM, by segment, 2005 and 2007
• Segment Performance--Herbal Supplements
• Key points
• Less stringent controls--both a good thing and a bad thing
• Find your niche
• Ginkgo has been hip for thousands of years
• Sales of top 10 herbs
  • Figure 6: Top 10 U.S. herbs, all channels, consumer sales, 2003-07
• Sales and forecast of herbal remedies
  • Figure 7: U.S. consumer sales and forecast of Herbal remedies, 2002-12
• Segment Performance--Homeopathic Remedies
• Key points
• Number of new products expanding the market
  • Figure 8: Number of new homeopathic products introduced, 1996-2007
• Sales and forecast of homeopathic remedies
  • Figure 9: U.S. consumer sales and forecast of homeopathic remedies, 2002-12
• Retail Channels
• Key points
• Integration into FDM
• Consumer sales of CAM by retail channel
  • Figure 10: U.S. consumer sales of CAM, by retail channel, 2005 and 2007
• Retail Channels--Natural Food Stores
• Sales of CAM at natural food and health stores
  • Figure 11: U.S. consumer sales of CAM at Natural Food Stores, 2005-07
• Retail Channels--FDM
• Sales of CAM at FDM channels
  • Figure 12: U.S. consumer sales of CAM at FDM channels, 2005-07
• Retail Channels--Other
• Sales of CAM at other channels
  • Figure 13: U.S. sales of CAM at other retail outlets, 2005-07
• Retail Channels--A Deeper Dive into Natural Grocery Sales
  • Figure 14: Natural product supermarket retail sales of alternative medicines, at current prices, 2006-08
  • Figure 15: Natural product supermarket retail sales of alternative medicines, at inflation adjusted prices, 2006-08
• Natural channel sales by segment
  • Figure 16: Natural product supermarket retail sales, alternative medicines, by segment, 2006-08
• Natural supermarket channel herbal remedies
  • Figure 17: Natural product supermarket retail sales of herbal remedies, at current prices, 2006-08
• Natural supermarket channel sales, homeopathic formulas
  • Figure 18: Natural product supermarket retail sales of homeopathic formulas, at current prices, 2006-08
• Natural supermarket brand sales
  • Figure 19: Manufacturer brand natural supermarket sales of alternative medicines, 2006 and 2008
• Natural channel sales of herbal remedies by single herbs and formulations
  • Figure 20: Natural product supermarket retail sales of herbal remedies, by type, 2006-08
• Natural channel share of herbal remedies, by health condition
  • Figure 21: Share of natural product supermarket retail sales of herbal remedies, by health condition*, 2006-08
• Natural channel share of homeopathic remedies segment, by health condition
  • Figure 22: Share of natural product supermarket retail sales of homeopathic remedies, by health condition*, 2006-08
• Market Drivers
• The graying of America and the quest for health
  • Figure 23: Generations, 2002-12
  • Figure 24: Population by age, 2002-12
• CAM enters medical schools
• Distrust of big pharma helps CAM
  • Figure 25: Attitudes toward prescription medicine, November 2007
• Confusion about CAM suppresses sales
• Leading Companies
• Key points
• Herbal manufacturers
• Homeopathic manufacturers
  • Figure 26: Manufacturer wholesale sales of herbal and homeopathic products in the U.S., 2006 and 2007
• Top five herbal companies
• NBTY
• Basic Research
• Pharmavite
• Nature' s Way
• Amerifit
• Top homeopathic companies
• Matrixx Initiatives
• Integrative Therapeutics
• Similasan
• Boiron
• Other companies
• Heel
• Homeolab
• Blairex Laboratories
• American Bioceuticals
• General Nutrition Company, Inc.
• Garden of Life
• Brand Qualities
• Amerifit
• Integrative Therapeutics
• Pharmavite
• Matrixx Initiatives
• Boiron
• Similasan
• Nature' s Way
• Heel
• Wild Child
• Homeolab
• Blairex
• American Bioceuticals
• General Nutrition Company, Inc.
• Garden of Life
• Hylands
• Innovation and Innovators
• Nature' s Cure sells the best of both worlds
• SiCap will bust any headache
• Improvita Health Products go right to the gut
• Green Pharmaceuticals
• Advertising and Promotion
• Key demographics to target
• Key reasons for usage and supporting messages
• And there' s nothing like a recommendation from Oprah
• Core propositions used in television ads
• Optimal performance
  • Figure 27: Amway Nutrilite television ad, 2008
  • Figure 28: Emergen-c television ad, 2008
  • Figure 29: Benefiber television ad, 2008
• Fear
  • Figure 30: Alka-Seltzer Plus television ad, 2008
  • Figure 31: Centrum Cardio television ad, 2008
• Personal fulfillment
  • Figure 32: Nature Made Cholest Off television ad, 2008
  • Figure 33: Elations Supplement Drink television ad, 2008
• Beauty
  • Figure 34: Metamucil Berry Burst television ad, 2008
  • Figure 35: One A Day Weight television ad, 2008
• Complementary and Alternative Medicine Usage
• Key points
• Half use CAM; about 25% haven' t but want to
  • Figure 36: Complementary and Alternative medicine usage habits, by age, May 2008
• CAM used mostly with conventional
  • Figure 37: Usage of complementary medicine, with or instead of conventional, May 2008
• Practitioners Consulted
• Key points
• Usage of CAM practitioners is low
  • Figure 38: Health Professionals consulted, topline, Jan 2007-Nov 2007
• Females and older respondents see CAM practitioners
  • Figure 39: Health Professionals consulted, by gender and age, Jan 2007-Nov 2007
• The information gap between insurers and the insured
  • Figure 40: Incidence of medical insurance covering complementary or alternative medicine, topline, May 2008
• Understanding Clients of CAM Practitioners
• Key points
• Those who visit CAM practitioners read the fine print
  • Figure 41: Attitudes about medications, by health professional consulted, Jan 2007-Nov 2007
• Those who consult CAM practitioners are inquisitive
  • Figure 42: Attitudes about health and medicine information, by health professional consulted, Jan 2007-Nov 2007
• Those who consult CAM practitioners believe in vitamins
  • Figure 43: Attitudes about vitamins and minerals, by health professional consulted, Jan 2007-Nov 2007
• Those who see CAM practitioners walk the talk
  • Figure 44: Attitudes about health and medicine, by health professional consulted, Jan 2007-Nov 2007
• Those who see CAM practitioners are more likely to distrust mainstream medicine
  • Figure 45: Attitudes about efficacy of medicines, by health professional consulted, Jan 2007-Nov 2007
• Perceived Effectiveness of Complementary Medicine
• Key points
• 25-34s are a sweet spot
  • Figure 46: Attitudes towards complementary and alternative medicines, by age, May 2008
• Education can translate into sales
  • Figure 47: Attitudes about usage of complementary and alternative medicines, by age, May 2008
• Females are a target
  • Figure 48: Attitudes about health and medicine, by gender, Jan 2007-Nov 2007
• Reasons for Using CAM
• Key points
• Acute conditions and overall vitality are two most popular reasons for usage
  • Figure 49: Ways complementary medicine is used, by age, May 2008
  • Figure 50: Ways complementary medicine is used, by presence of children in Household, May 2008
• Reasons for not using CAM--Lack of Knowledge and Fear
  • Figure 51: Reasons for not using CAM, by age, May 2008
  • Figure 52: Reasons for not using complementary medicine, by race/ethnicity, May 2008
• Race and Ethnicity
• Key points
• Hispanics are key targets
  • Figure 53: Attitudes about usage of complementary and alternative medicines, by race/ethnicity, May 2008
  • Figure 54: Ways complementary medicine is used, by race/ethnicity, May 2008
  • Figure 55: Attitudes about spending for health, by race/ethnicity, Jan 2007-Nov 2007
• Asians trust CAM
  • Figure 56: Attitudes about efficacy of medicines, by race/ethnicity, Jan 2007-Nov 2007
• Simmons Cohort Analysis
• Intimations of sea change towards CAM and CAM practitioners
  • Figure 73: Health Professionals consulted, by cohort, Jan 2007-Nov 2007
  • Figure 74: Attitudes about efficacy of medicines, by cohort, Jan 2007-Nov 2007
• Appendix: Other Useful Consumer Tables
• CAM usage
  • Figure 75: Complementary and Alternative medicine usage habits, by age, May 2008
  • Figure 76: Usage of complementary medicine, with or instead of conventional, May 2008
• Insurance coverage of CAM
  • Figure 77: Incidence of medical insurance covering complementary or alternative medicine, topline, May 2008
• Attitudes towards CAM usage
  • Figure 78: Attitudes about usage of complementary and alternative medicines, by gender, May 2008
• Attitudes towards health and medicine
  • Figure 79: Attitudes about health and medicine, by age, Jan 2007-Nov 2007
  • Figure 80: Attitudes about spending for health, by age, Jan 2007-Nov 2007
• Perceived effectiveness
  • Figure 81: Attitudes towards complementary and alternative medicines, by gender, May 2008
  • Figure 82: Ways complementary medicine is used, by gender, May 2008
• Reasons for not using
  • Figure 83: Reasons for not using CAM, by gender, May 2008
• Appendix: Trade Associations