Abstract
The U.S. Complementary and Alternative Medicine (CAM) market has been growing steadily since 2003. Consisting of herbal and homeopathic remedies, purchases in the market are driven by consumers seeking alternatives to conventional medicine to maintain health and wellbeing. The benefits of CAM are many-all natural medicines with no harmful side effects that do not counteract any other drugs. Yet research on CAM needs to become more rigorous to continue illustrating efficacy in the eyes of Americans.
This report explores why Mintel expects sales of CAM to continue to grow, especially in light of ever increasing fears of side effects and negative long term effects of conventional pharmaceuticals. Going "au naturel" has been strongly affecting the food and beverage market, and is helping to pave the way for CAM to carve out more shelf space in traditional supermarket aisles and in consumers' medicine cabinets alike. This report offers an in depth discussion of:
- Factors driving sales of CAM, including the aging of America and how living longer brings with it a host of chronic diseases with related symptoms to be addressed
- The role of race and ethnicity in use of CAM-along with a portrait of CAM users
- Opportunities for marketers seize upon to expand the use and acceptance of CAM
- A review of successful CAM companies, and their brand qualities, along with a look at the competitive environment in which they operate
- The entrance of CAM into mainstream retail channels and its acceptance in mainstream medicine
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
