Homeopathic Products Market

Published by: Packaged Facts

Published: May. 1, 1996 - 140 Pages

Table of Contents

1. Executive Summary
   
   The Products
   
   • Homeopathy Defined
     
   • A More Diluted Remedy Is Stronger
     
   • Five Major Delivery Systems
     
   • History of Homeopathy
     
   • Homeopathics Currently Regulated by FDA
     
   
   The Market
   
   • Retail Sales Reach $230 Million in 1995
     
   • [Table] Retail Sales and Growth of U.S. Homeopathic
     
   • Products Market, 1991—2000 (dollars)
     
   • Health and Natural Food Stores Account for Largest Share,
     
   • But Mass Market Growing
     
   • [Graphic] Dollar Share of U.S. Homeopathic Products Market
     
   • by Retail Outlet, 1995
     
   • Three-Fourths of Sales from Combination Products
     
   • Key Factors Affecting Market Growth
     
   
   The Marketers
   
   • About 70 Companies in Market
     
   • Leading Homeopathic Companies
     
   • Leading Brands in Health and Natural Food Stores
     
   • Leading Companies in the Mass Market
     
   • Competitive Dynamics
     
   • New Product Trends
     
   
   Distribution and Retail
   
   • Two Distribution Systems
     
   • Distributor and Retail Margins
     
   • Growing Selection in Health and Natural Food Stores
     
   • Drugstores Predict Increased Sales for Homeopathic Remedies
     
   
   The Consumer
   
   • 6.1 Million Consumers Use Homeopathic Remedies
     
   • Typical User Is Over 30, Well-Educated, and Female
     
   • Homeopathy and Health and Natural Food Store Customers
     
   • Consumers Primarily Seek Remedies for Chronic Conditions
     
   • Most Consumers Use Homeopathy Without Supervision
     
   
   Scope and Methodology
   
   • Market Parameters
     
   • Report Methodology
     
2. The Products
   
   Scope of Report
   
   • Non-Prescription Homeopathic Products Sold at Retail
     
   
   Product Definition
   
   • Homeopathic Medicine Treats Like with Like
     
   • Remedies Available for a Range of Illnesses
     
   • 80% of Homeopathics Are Botanical in Origin
     
   • Remedies Prepared by Dilution and Succussion
     
   • A More Diluted Remedy Is Stronger
     
   • General Rules of Dosing
     
   • Maladies That Respond Best to Homeopathic Treatment
     
   
   History of the Products
   
   • Homeopathy Formalized 200 Years Ago
     
   • Popularity in the United States from 1825
     
   • Decline of Homeopathy, Rise of AMA
     
   • Resurgence of Interest in 1980s and 1990s
     
   
   Product Breakouts
   
   • Two Product Categories: Single-Ingredient and Combination Remedies
     
   • Single Remedies Require More Expertise
     
   • Three Types of Combination Remedies
     
   • Proprietary Products Are the Best-Known Homeopathics
     
   • Transitional Products Treat More Narrow Conditions
     
   • Topical Products Can Be Used Without Knowledge of Homeopathy
     
   • Five Main Delivery Systems
     
   • [Chart] Selected Single-Ingredient Homeopathic Remedies
     
   
   Government and Industry Regulators
   
   • Homeopathics Regulated by the FDA
     
   • Products Made According to the Homeopathic Pharmacopoeia
     
   • 95% of Homeopathic Medicines Are Available OTC
     
   • Exemption from Safety and Effectiveness Standards—So Far
     
   • Guidelines Established in 1988 Boost Market
     
   • The Office of Alternative Medicine
     
   • OTC Homeopathic Products Prescribed by Various Health Professionals
     
   • The NCAHF and Opposition to Homeopathic Products
     
   
   Homeopathic Industry Associations
   
   • HPCUS Monitors Industry
     
   • Industry Associations Support Homeopathy
     
3. The Market
   
   • [Graphic] Retail Sales and Growth of U.S. Homeopathic
     Products Market, 1991-1995 (dollars)
     
   
   Market Size and Growth
   
   • Retail Sales Reach $230 Million in 1995
     
   • [Table] Retail Sales and Growth of U.S. Homeopathic
     Products Market, 1991-1995 (dollars)
     
   • [Graphic] Dollar Share of U.S. Homeopathic Products Market
     by Retail Outlet, 1993
     
   • [Graphic] Dollar Share of U.S. Homeopathic Products Market
     by Retail Outlet, 1995
     
   
   Market Composition
   
   • 75% of Sales Are from Combination Products
     
   • Top Product Segments in Health and Natural Food Stores
     
   • Sales and Growth in Drugstores
     
   • [Table] U.S. Retail Sales of Major Mass-Market Homeopathic
     Brands Through Drugstores: By Product Type, 1994-1995
     (dollars and percent)
     
   • Sales and Growth in Food Stores
     
   • [Table] U.S. Retail Sales of Major Mass-Market Homeopathic Brands
     Through Food Stores: By Product Type, 1994-1995
     (dollars and percent)
     
   • Health and Natural Food Stores Account for Largest Share,
     
   • But Mass Market Growing
     
   • [Table] Dollar Share of U.S. Homeopathic Products Market: By Retail
     Outlet, 1993 vs. 1995 (percent): Health and Natural Food Stores,
     Drug Chains, Direct, Health Professionals/Clinics,
     Drug Independents, Supermarkets, Discount Stores
     
   • Sales Strongest on West Coast and in East Coast Cities
     
   
   The International Market
   
   • Homeopathy Widely Accepted Worldwide
     
   • Homeopathy in Europe
     
   • A $17.5 Million Market in Canada
     
   • Popularity in Latin America
     
   
   Factors Affecting Market Growth
   
   • Aging Consumer Market Supports Interest in Homeopathy
     
   • Public Taking More Responsibility for Personal Health
     
   • Consumer Preference for Natural Medicine
     
   • Growth of Health and Natural Food Stores
     
   • Homeopathic Products Moving into Mass Market
     
   • Homeopathic Marketers Upgrade Advertising—To a Point
     
   • Homeopathy Offers an Alternative for Chronic Conditions
     
   • Savings Over Prescription Drugs
     
   • Combination Products Make Homeopathy More User-Friendly
     
   • Ineffective Combination Products May Discourage Consumers
     
   • Attitudes Among Practitioners and Pharmacists
     
   • Homeopathic Programs Offered by Mainstream and Alternative Schools
     
   • Lack of Uniform Training Standards
     
   • Clinical Research Supports Homeopathic Products
     
   • Homeopathic Research Debuts in an American Medical Journal
     
   • But Scientific Proof Still Scant
     
   • Positive Signals from Federal Agencies and Regulators
     
   • As Popularity Grows, FDA May Take a Closer Look
     
   • Insurance Companies Begin to Fund Alternative Medicine
     
   • Books and Magazines Promote Homeopathy
     
   • But Not All Media Coverage Is Positive
     
   • Petitions and Lawsuits Against Homeopathy
     
   • Homeopathy's Biggest Shortcoming: How Does It Work?
     
   • Effective in Children and Pets
     
   • Selling Products Requires Consumer Education
     
   • [Graphic] Projected Retail Sales and Growth of U.S.
     Homeopathic Products Market, 1996-2000 (dollars)
     
   
   Market Projections
   
   • Sales Through New Outlets Will Drive Market to $572 Million by 2000
     
   • [Table] Projected Retail Sales and Growth of U.S.
     Homeopathic Products Market, 1996-2000 (dollars)
     
4. The Marketers
   
   The Marketers
   
   • About 70 Companies in Market
     
   • Leading Homeopathic Companies
     
   • The Next Echelon
     
   • Pharmaceutical Companies in the Market
     
   • Specialized Homeopathic Marketers
     
   • Herbal Marketers and Homeopathic Products
     
   • Prominence of Europe-Based Marketers
     
   • Leading Brands in Health and Natural Food Stores
     
   • [Chart] Top-Ten Selling Homeopathic Products from
     Nature's Best, 4th Quarter 1995
     
   • Leading Companies in the Mass Market
     
   • Direct Marketers and Direct Mail
     
   • [Chart] Selected Marketers and Brands of Homeopathic Products
     
   
   Competitive Overview
   
   • A Highly Fragmented Market
     
   • Competition at Retail Level
     
   • Room in Market for Many Different Products
     
   • Changing Dynamics of the Market
     
   • Competitive Differences in Delivery Systems
     
   • Competing for the Mass Market
     
   • The Potential for Drug Chain Private-Label Products
     
   • Competition Against Conventional Alternatives
     
   
   Company Profiles
   
   • Boericke & Tafel, Inc.
     
   • Boiron, Inc.
     
   • Brauer Homeopathics (The ADL Group)
     
   • Dolisos America, Inc.
     
   • General Nutrition Companies, Inc.
     
   • Heel/BHI
     
   • Murdock Madaus Schwabe
     
   • Nature's Sunshine Products
     
   • Nova Homeopathic Therapeutics, Inc.
     
   • Pharmavite Corp.
     
   • Standard Homeopathic Co.
     
   • Sunsource International
     
   • Weleda USA
     
   
   Marketing Trends
   
   • Most Promote to Health and Natural Food Industry
     
   • Larger Players Target Mass Market
     
   • Medical Professionals Targeted
     
   • Drugstore Pharmacists Targeted
     
   • Homeopathic Marketers Provide In-Store Information
     
   • Marketing on the Internet
     
   • Increased Consumer Advertising
     
   • Homeopathy Downplayed, Safety and Effectiveness Emphasized
     
   • Wider Lines Designed to Win Shelf Space
     
   
   New Product Trends
   
   • 78 New Homeopathic Products in 1995
     
   • [Table] Number of New Homeopathic Product Introductions,
     1993-1995 (units): New Brands, Brand Extensions, Line Extensions
     
   • Types of New Homeopathic Products
     
   • [Table] Percent of Homeopathic New Product Introductions
     by Product Type, 1993—1995 (percent)
     
   • New Products Fill Gaps
     
   • Products Designed for Simple and Common Health Problems
     
   • Combining Homeopathy with Other Types of Medicine
     
   • Product Name Follows Function
     
   • More Topicals
     
   • New Packaging
     
   • [Chart Selected Homeopathic New Product
     Introductions, 1995-March 1996
     
   
   Consumer Advertising
   
   • Little Spent on Mass-Market Advertising
     
   • Advertising Is Copy-Intensive ...
     
   • ... But Less Technical Than for Other Alternative Medicines
     
   • Markets Promote Utility of Homeopathic Products
     
   • Safety Is Prime Selling Point
     
   • Homeopathy Ads Echo Natural Product Themes
     
   • Mainstream Look
     
   • Fear and Trembling
     
   • Season- or Demographic-Specific Advertisements
     
   • Examples of Consumer Advertising
     
   
   Consumer Promotions
   
   • Brochures and Handouts Educate Consumers
     
   • Coupons
     
   • Toll-Free Numbers
     
   
   Trade Advertising and Promotions
   
   • Products Advertised Mainly to Health and Natural Food Stores
     
   • Products Promoted to Trade Through Discounts
     
   • Trade Shows Launch New Products
     
   • Boericke & Tafel's Sweepstakes
     
   • Boericke & Tafel's Cross-Merchandising Display
     
   • Standard Promotes Its TV Campaign
     
   • In-Store Displays Support Products
     
   • Educational Manuals for Retailers
     
   • Examples of Trade Promotion Materials
     
5. Distribution And Retail
   
   Distribution
   
   • Health and Natural Food Distributors
     
   • Warehousing Trend Among Large Natural Food Retailers
     
   • The Mass Market: A Growing Sector
     
   • Distributor Margins Differ for Two Sectors
     
   • Distributor Services
     
   • Broker Services
     
   
   Retail
   
   • Health and Natural Food Stores Are Leading Outlet
     
   • [Graphic] Dollar Share of U.S. Homeopathic Products Market
     
   • by Retail Outlet, 1995 (percent)
     
   • Margins Comparable in Health and Natural Food Stores and Drugstores
     
   • But Prices Often Slightly Higher in Drugstores
     
   • [Table] Homeopathic Product Retail Price Comparison: Chain
     Drugstores vs. Health and Natural Food Stores (size, price, percent)
     
   
   At the Retail Level: Health and Natural Food Stores
   
   • Small Sales Share, Big Profits
     
   • Growing Selection of Products
     
   • Growth in the Single Remedy Category
     
   • Segregation vs. Integration with Supplements
     
   • Networking with Local Health Practitioners
     
   
   At the Retail Level: Mass-Market Retailers
   
   • Drugstores Account for Growing Portion of Sales
     
   • Drugstores Predict Increased Sales for Homeopathics
     
   • Merchandising Within Drugstores
     
   • Retailing Homeopathics Requires Educated Staff and Consumer
     
   • Homeopathy Not Yet Established in Supermarkets, Discounters
     
6. The Consumer
   
   Consumer Demographics and Attitudes
   
   • Consumer Reliance on Alternative Medicine
     
   • Over 6 Million Consumers Use Homeopathic Remedies
     
   • Typical User Is Over 30, Well-Educated, and Female
     
   • Homeopathy and Health and Natural Food Store Customers
     
   • Homeopathy and Readers of Health Magazines
     
   • The Customers of Hahnemann Pharmacy
     
   • Many Consumers Seek Remedies for Chronic Conditions
     
   • Two-Thirds Use Homeopathy Without Medical Supervision
     
   
   Appendix I: Examples Of Consumer And Trade
   Advertising And Promotions
   
   Appendix II: Addresses Of Selected Marketers And
   Industry Associations
   

Abstract

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