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The U.S. Herbal Supplements Market

How are the pharmaceutical and supplement giants in the herbal products business shaping growth? Has their domination become the principal competitive force, or will the regulatory and scientific climate be the prime shaper of this dynamic young industry? This Packaged Facts report covers the $4 billion U.S. herbal products industry and its players. You will learn how changing demographics, external market influences, product and ingredient standardization, and crossover into mass-market retail channels are moving the industry into uncharted directions.

Scope And Methodology

Market Parameters

This report covers herbal supplements used for nutritional or medicinal pur-poses and sold at retail primarily through health and natural product stores, mass mer-chandisers, drugstores, supermarkets, direct selling, and mail order. It also covers herbal teas, if they are sold for medicinal uses. This report does not cover herbal products sold at the institutional or professional health-care level or bulk herbs. The report does not cover vitamins; minerals; supplements derived from non-plant sources such as shark cartilage or red yeast; nutraceuticals or functional foods; culinary herbs sold as ingredients; homeopathic or aromatherapy products; nor most sports nutritionals. Note, however, that sports products with a significant competitive overlap in the herbal market, such as ginseng, are covered by this report.

Report Methodology

The information contained in this report was obtained from both primary and secondary research. Primary research entailed in-depth, on-site examinations of health and natural product stores, drugstores, mass merchandisers, and supermarkets. Company, distributor, and retailer interviews were conducted to obtain information on market size and growth, marketing programs, and new products. Secondary research entailed data gathering from relevant sources, including consumer and industry publications, newspapers, government and financial reports, company literature, and corporate annual reports. Because a large share of herbal supplement sales occurs in health and natural product stores, which are not monitored by tracking services, retail sales of herbal products can only be estimated. For this sector, Packaged Facts has relied on data published by trade magazines such as Natu-ral Foods Merchandiser, OTC Update, Whole Foods, and Nutrition Business Journal and company interviews. For the mass-market sector, Packaged Facts used data from Information Resources, Inc. (IRI) and trade publications. The analysis of consumer demographics is derived from Simmons Market Research Bureau data for fall 2000.

Press Release

Herbal Supplements Win Scientific Validity -- Market Swings Dramatically Upward

New York, June 6/PRNewswire –-, the premier business intelligence marketplace, announced the release of a new report, “The U.S. Herbal Supplement Market,” published by Packaged Facts. According to the study, herbal care has gained popularity and validity in recent years as herbs have been deemed a medically legitimate form of treatment and prevention. As the regulatory environment has opened up, pharmaceutical manufacturers have identified the herbal supplement market as a growing industry with a high potential for profit, and are now vying for market space against the established supplement brands. Scientific validation has also had an impact upon consumer demand. Americans concerned about aging, an inadequate diet, and a medical system that may fail them at some time in the future, have embraced preventive self-care which may lead to longer, healthier lives.

“The growth of the aging population of the United States will have a direct influence on the herbal care market,” said Richard Koulbanis, VP of Publishing for “Products that address conditions associated with aging, as well as those that support gender specific health concerns, will continue to be of interest to consumers, and the industry will benefit from general shifts in demographics and attitudes.”

Top selling herbs in the nation include ginkgo biloba and ginseng, with a 16.7% and 10.5% market share, respectively. Garlic was the third most popular with a 10.4% market share, followed by echinacea, at 9.9%. The herbal supplement industry is up overall from $1.7 billion in 1996 and sales grew in double-digits until peaking at $2.6 billion in 1998, while sales grew at a compound annual growth rate of 8.2% from 1996 to 2000. The retail market for herbal supplements will near $2.7 billion by 2005, a compound annual growth rate from 2000 to 2005 of 3.6%. Annual growth will increase from a projected flat rate from 2000 to 2001 to 5% by 2005. The compound annual growth rate for the period 1996 to 2005 is projected to be 5.6%. Health and natural product stores accounted for 50.1% of herbal product sales in 2000, up 11.3 percentage points from 38.8% in 1996. In 2000 mass merchandisers retained their place as the second-largest outlet for herbal products, with a 10.4% share of market; drugstores followed with a 10.3% share, and food stores held 6.2% of sales. Direct sales accounted for 17.6% of market share, and mail order/Internet had a 5.4% share in 2000.

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You know the herbal supplements market is growing. But do you know what it is becoming?

In the past four years the market for herbal supplements in the U.S. has experienced radical growth, with annual sales totaling up to $4 billion. As the regulatory environment changes and herbs become a widely accepted form of self care, this market will continue to provide a wealth of opportunity to those who are able to accurately follow the trends and developments in the industry. The U.S. Herbal Supplements Market a new report from Packaged Facts now available through, covers the latest industry developments in product development, the regulatory environment, advertising and promotion trends, consumer attitudes, demographics, and sales information that are necessary to succeed in this explosive market.

Use The U.S. Herbal Supplements Market to find out how:

  • Pharmaceutical giants are realizing the market potential of herbal supplements and cashing in.
  • The regulatory environment is shaping the market for herbal supplements.
  • Successful companies are harnessing the market’s growth in all the right ways.
  • The age-obsessed baby boomer generation is increasingly turning to herbal treatments to slow the effects of aging and promote a healthier lifestyle.
  • Scientific studies proving the efficacy of herbal care will boost the acceptance of herbs, both as a legitimate treatment for ailments and for preventive care.

The report also provides detailed industry information on many categories, including:

  • Women’s Products
  • Men’s Products
  • Children’s Products
  • Anxiety Products
  • Energy Products

Representing over 600 hours of research, analysis and execution, The U.S. Herbal Supplements Market is compiled from both primary and secondary data such as:

  • Industry-dedicated trades
  • Company, government and industry research
  • Consultations with industry experts gives you the tools you need to identify strategic opportunities for your company and stay ahead of the competition. With this substantial insight into your current and projected market, you have the necessary information to formulate on-target business plans, execute the right creative for advertising, and budget resources properly.

At, we provide critical information to key decision-makers in the herbal supplement industry. Visit our site at today to purchase any report as a complete study, or buy discrete segments using the options below:

  • MarketLooks – concise, graphic-rich summaries of full-length market research reports available for online delivery. These PowerPoint slides provide industry high points in a presentation-ready format.
  • Buy By the Slice –a cost-effective option that enables you to select and purchase exactly what you value most.

Issues Addressed:

  • New product development
  • Mergers and acquisitions
  • Regulatory environment
  • Consumer attitudes
  • Demographic data
  • Market share
  • Advertising and promotion trends
  • Advertising expenditures
  • Sales by distribution channel

Companies/Sites Discussed:

  • Body Shop
  • Boehringer Ingelheim Pharmaceuticals, Inc
  • Chattem
  • Herbalife
  • Leiner Health Products Inc.
  • Murdock Madaus Schwabe
  • Natrol, Inc.
  • NBTY, Inc.
  • Pharmaton Natural Health Products
  • Rexall Sundown, Inc.
  • Wakunaga of America, Ltd.

Categories Covered:

  • Women’s Products
  • Men’s Products
  • Children’s Products
  • Anxiety Products
  • Energy Products

Tables and Graphs:

  • U.S. Market by Category
  • Product Breakouts by Category
  • U.S. Sales by Category, Region
  • Projected U.S. Sales by Category
  • Product Introduction by Category
  • Share of Market by Category, Outlet
  • Select Marketers by Brand Line & Product

  1. Executive Summary
    Scope and Methodology
    • Market Parameters
    • Report Methodology

    The Products
    • Historical Overview
    • Resurgence of Interest in Herbals Spurs Conflict
    • FDA Proposes Strict Herbal Supplement-Claims Guidelines
    • The Dietary Supplement Health and Education Act
    • Structure/Function Claims vs. Disease Claims
    • Product Breakouts
    • Classification by Standards and Origin

    Size and Growth of the Market
    • 2000 Retail Sales Nearly $2.3 Billion
    • Sales Reach $2.7 Billion by 2005
    • Table 1-1: U.S. Retail Sales of Herbal Supplements, 1996-2005 (dollars)
    • Sales by Retail Outlet Type
    • Top-Sellers in the Health and Natural Product Stores
    • Top-Sellers in the Mass Market
    • An Aging Population Will Propel Sales
    • Medical Legitimacy Will Spur Growth
    • Large Companies Lend Growth and More
    • Negative Factors Affecting Market Growth

    The Marketers
    • Over 600 Companies in the Field
    • Leading Herbal Supplement Marketers
    • Presence of Pharmaceutical Giants
    • Mergers and Acquisitions
    • Store Brands Play Important Role
    • Budgets Divide Industry
    • Market Driven by Product Introductions
    • Table 1-2: The U.S. Herbal Supplement Market: Number of Product Introductions, 1996-May 2001* (stock-keeping units)
    • Structure/Function Claims on Packaging
    • Price-Lowering Strategies

    Distribution and Retail
    • Distinct Channels of Distribution
    • Health and Natural Product Stores Retain Largest Share
    • Table 1-3: Share of U.S. Herbal Supplement Sales by Retail Outlet Type, 2000, 1998, and 1996 (percent): 6 Outlet Types
    • Margins for Health Product and Mass Market
    • Category Management: Grouping Products by Function
    • Health and Natural Product Stores Essential to
    • Herbal Supplement Market
    • Types of Health and Natural Product Stores
    • Mass Merchandisers Compete on Price, Selection, and Advertising
    • Herbal Supplements Important to Drugstores
    • Mass Market Poses Competition for Health and Natural Product Stores

    The Consumer
    • Use of Herbal and Garlic Products Decreasing
    • Demographics of Herbal Supplement and Garlic Users
    • Table 1-4: Demographic Characteristics Favoring Use of Herbal and Garlic Supplements, 2000
    • Most Commonly Used High-Profile Herbs
    • Nearly All Products Have Lost Users in Last Year
    • Consumers Using Herbs for Health and Well Being
    • Consumers Want Efficacy Testing, Regulation
  2. The Products
    Scope of the Report
    • Herbal Supplements Used for Nutritional or Medicinal Purposes
    • Vitamins and Minerals Excluded
    • Nutraceutical and Functional Foods Not Covered
    • Culinary Herbs Excluded
    • Homeopathic and Aromatherapy Products Not Covered

    History of the Industry
    • Ancient Roots of Herbalism
    • Early European Influences
    • The Rise and Fall of American Herbalism
    • Oriental and Ayurvedic Influences
    • Native American Origins
    • A Growing Industry Sparks Government Crackdown
    • The Proxmire Amendment Curbs FDA, Opens Market
    • NLEA Gives FDA New Rules and Power
    • FDA Frustrates VSM Marketers after NLEA
    • Passage of DSHEA Is Victory for Industry
    • DSHEA Structure/Function Claims vs. Disease Claims
    • FDA Rules for DSHEA Implementation Upset Industry
    • Litigation Forces FDA to Review NLEA Health Claims
    • NLEA Implementation Not Yet Final . . .
    • . . . But Claims Are Still Pouring In
    • Status of Cholestin

    Product Definition
    • Plant-Based Products
    • Table 2-1: Herbal Ingredients and Their Primary Benefits (118 herbs)

    Product Breakouts
    • Single-Ingredient Products and Formulas
    • Standardized and Non-Standardized
    • Classification by Origin
    • Europe Has Strong Influence on the United States
    • Chinese Herbal Products Now in the Mainstream
    • Ayurveda Based on Ancient Indian Texts
    • Native American Herbs Based on Native Plants
    • Tropical Herbs Support Rain Forest Preservation
    • Delivery Systems Include Tablets, Capsules, and Liquids
    • Health and Natural Products vs. Mass Market

    Government and Industry Regulations
    • Herbs Regulated by the Federal Food and Drug Administration
    • NLEA Supplement Facts Panels
    • DSHEA Specifies Limited Medical Claims
    • Structure/Function Statements
    • Third-Party Literature
    • Final Rules for Structure/Function Claims Released January 2000
    • Implementation Plan

    Trade Associations
    • American Botanical Council
    • American College of Nutrition
    • American Herbal Products Association
    • Citizens for Health
    • Consumer Healthcare Products Association
    • Council for Responsible Nutrition
    • Herb Research Foundation
    • National Nutritional Foods Association
  3. The Market
    Market Size and Growth
    • Sales Difficult to Quantify
    • Numbers Vary by Source
    • 2000 Sales at $2.3 Billion
    • Table 3-1: Retail Sales of U.S. Herbal Supplement Market, 2000-1996 (dollars)

    Market Composition
    • Health and Natural Product Stores Lead Channels
    • Direct Sales' Market Share Rises
    • Mass Merchandisers Edge Out Drugstores in Mass Market
    • Drugstores Decline Alongside Mass Merchandisers
    • Food Stores Gain Market Share
    • Share for Mail Order and Internet
    • Table 3-2: Share of U.S. Herbal Supplement Sales by Retail Outlet Type, 2000, 1998, and 1996 (percent): 6 Types Single Herbs Account for Majority of Sales
    • Top-Selling Herbal Supplements
    • Table 3-3: Top-Selling Single Herbs in U.S. Health and Natural Product Stores, 2000 vs. 1999 (percent): 30 Herbs, Other
    • Mass-Market Single-Herb Winners
    • Top Herbs Losing Market Share
    • Table 3-4: Top-Selling Single Herbs in U.S. Mass-Market Stores, 2000 vs. 1999 (percent): 10 Herbs, Other
    • Single-Herb Sales by Mass-Market Retail Outlet
    • Table 3-5: Share of U.S. Herbal Supplement Segment Sales by Mass-Market Retail Outlet Type, 2000 (percent): 15 Herbal Segments, Other, Total, 3 Retail Outlets
    • Greater Variety Through Health and Natural Product Stores
    • West Leads Market for Herbal Supplement Use
    • Table 3-6: Regionality of Use of Herbal Supplements, 2000 (percent and index): West, Midwest, Northeast, South

    Factors to Market Growth
    • Prevention and Trend Toward Self-Care
    • Aging Population Will Drive Herbal Supplement Sales
    • Living Longer, Living Well
    • Women's Health and Aging
    • Modern Man's Health Problems
    • DSHEA-Induced Claims Spur Market
    • Patients, Doctors Looking for Herbal Information
    • Medical Establishment Endorses Herbs
    • Positive Research Promotes Specific Herbs
    • Unique Herbal Combos Given Patents
    • Pharmaceutical Giants Lend Legitimacy, Growth
    • Wealth of Consumer Research Propels Industry
    • Chinese Medicine Moving to the United States
    • Interest in Ayurvedic Medicine Continues
    • Potential for Growth: Majority of Americans Still Non-Users
    • Every Market Has a Correction
    • Industry Tightens Its Belt
    • Bad Studies . . .
    • . . . Lead to Bad Press
    • Perception that Herbs Do Not Work
    • Herbals Require Patience
    • Lack of Blockbuster New Products

    Projected Market Growth
    • Sales to Reach Nearly $2.7 Billion by 2005
    • Long-Term Growth Expected Well into the Future
    • Table 3-7: Projected Retail Sales of U.S. Herbal Supplement Market, 2000-2005 (dollars)
  4. The Marketers
    The Marketers
    • Over 600 Companies in the Market
    • Health and Natural Product Store Marketers
    • Leading Broadline Marketers in the Mass Market
    • Presence of Pharmaceutical Giants
    • "Pharmaceutical-Type" Supplement Leaders
    • Store Brands Play Important Role
    • Leading Direct Marketers
    • Mail-Order and Online Marketers
    • Table 4-1: The U.S. Market for Herbal Supplements: Selected Marketers by Brand, Line, and Product (168 Marketers)

    Marketer and Brand Shares
    • Leading Herbal Supplements in Health and Natural Product Stores
    • Table 4-2: Leading Herbal Supplements from Nature's Best, 4th Quarter 2000: Capsules and Tablets (wholesale dollar share)
    • Table 4-3: Leading Herbal Supplements from Nature's Best, 4th Quarter 2000: Powders and Liquids (wholesale dollar share) Leading Garlic and Ginseng Products in Health and Natural Product Stores
    • Table 4-4: Leading Herbal Supplements from Nature's Best, 4th Quarter 2000: Garlic Products (wholesale dollar share)
    • Table 4-5: Leading Herbal Supplements from Nature's Best, 4th Quarter 2000: Ginseng Products (wholesale dollar share) Overall Mass Market Brand Shares
    • Table 4-6: Herbal Supplements in the Mass Market by Company/Brand Share, 2000 and 1999 (percent): 6 Companies, Other Top-Selling Brands in Mass Merchandisers
    • Top-Selling Brands in Drugstores
    • Top-Selling Brands in Food Stores
    • Table 4-7: Top Herbal Supplement Products Sold Through Mass Merchandisers: Dollar Sales By Product Segment (in millions), 2000 vs. 1999 (brand and sales): 2 Product Segments
    • Table 4-8: Top Herbal Supplement Products Sold Through Drugstores: Dollar Sales By Product Segment (in millions), 2000 vs. 1999 (brand and sales): 2 Product Segments
    • Table 4-9: Top Herbal Supplement Products Sold Through Food Stores: Dollar Sales By Product Segment (in millions), 2000 vs. 1999 (brand and sales): 2 Product Segments
    • Top-Selling Ginkgo Brands
    • Top-Selling St. John's Wort Brands
    • Top-Selling Ginseng Brands
    • Top-Selling Garlic Brands
    • Top-Selling Echinacea Brands
    • Top-Selling Saw Palmetto Brands

    Competitive Overview
    • New Products Drive Market
    • The Most Active Marketers
    • Small Companies Grow Up . . .
    • . . . and Enter the Mass Market
    • Pharmaceutical Giants Continue to Enter Market
    • Competitive Pressure Changing Industry
    • Traditional Companies Feel the Pinch
    • Mergers and Acquisitions
    • Dutch Giant Royal Numico Buys into U.S. Market
    • Larger Marketing Budgets
    • New Pricing Strategies
    • Line Extensions Win Shelf Space
    • Brand Extensions Bank on Familiarity
    • Quitting to Get Ahead
    • Consolidating Lines
    • Private-Label Manufacturing
    • Owning the Playing Field
    • Companies Sponsor Scientific Studies

    Competitive Focus: Health and Natural Product Sector
    • Hundreds of Products, Dozens of Brands
    • Discounting Wins Customer Dollars
    • Market Segments by Structure/Function and Demographics
    • Tradition and Innovation Drive Market
    • Marketers Promote through Health and Natural Product Publications
    • Advertising Expenditures Up, But Most Competition at Store Level
    • Retailers Wooed at Trade Shows

    Competitive Focus: The Mass Market
    • Pharmaceutical Companies Compete in Traditional Manner
    • Largest Players Use Consumer Advertising and Promotion
    • Inspiration Gained from Health and Natural Products
    • Health Product Lines Cross Over into Mass Market
    • Marketers Seek Medical Endorsements
    • Marketers Compete on Price
    • Educational Programs Boost Sales
    • Competition by Stores for Their Own Brands
    • Marketers Offer Plan-O-Grams and Shelf-Stocking Assistance

    Competitive Focus: Women's Products
    • Segment Growing
    • Leaders in the Industry
    • Market Penetration
    • Products Organized by Need
    • Use of Branded Ingredients
    • Company-Supported Studies Used as Promotional Tools
    • Novogen Supports Red-Clover Research . . .
    • . . . While Johnson & Johnson Pushes Soy
    • More Women's Herbal Supplements in Development

    Competitive Profile: Chattem, Inc.
    • Corporate Overview
    • Product Lines
    • Company History
    • Promotion Dollars and New Products
    • Buying and Selling
    • Trepidation For Future

    Competitive Profile: Leiner Health Products Group, Inc.
    • Corporate Overview
    • Roots in 18th Century Budapest
    • Private Label Bulk of Company Sales
    • Acquisitions, Joint Ventures Aim to Increase OTC Business
    • Income Falling
    • 1999 Body Benefits Relabel, Relaunch
    • Megatrends Marketing Approach
    • Company Increases Advertising to Bolster Lagging Sales
    • Publicity Focuses on Women's Health
    • New Products Under YourLife Brand

    Competitive Profile: Natrol, Inc.
    • Corporate Overview
    • Product Lines
    • Mass-Market Entry, Reduction
    • New Herbal Products
    • Acquisition of ProLab Nutrition
    • Focus on Cost-Cutting for 2001

    Competitive Profile: NBTY, Inc.
    • Corporate Overview
    • Nature's Bounty Is Main Herbal Line
    • Retail Business Figures Prominently
    • Online Presence
    • Acquisitions Grow Company
    • Future Plans

    Competitive Profile: Pfizer, Inc. (Warner-Lambert Co.)
    • Competitive Overview
    • Company's Product Lines
    • Rise of Quanterra Line
    • Product Introductions
    • Quanterra Sales Sluggish Despite Heavy Ad Spending
    • Quanterra Discontinued

    Competitive Profile: Royal Numico N.V. (General Nutrition Cos., Inc., Rexall Sundown, Inc.)
    • Corporate Overview
    • Company History
    • Acquisitions Include Herbal Supplement Companies
    • General Nutrition Cos., Inc.
    • Manufacturing Consolidation
    • General Nutrition's Herbal Products
    • Store-Within-A-Store Deal Means Growth Ahead
    • Rexall Sundown
    • Built by Acquisitions
    • Sundown Vitamins
    • Plans for the Future

    Competitive Profile: Twin Laboratories Corp.
    • Corporate Overview
    • Complete Product Line
    • Herbal Supplements under Nature's Herbs
    • Nature's Herbs Endorsed by Respected Herbalist
    • Other Divisions Bought and Sold
    • Losses Stem from Faulty GNC Connection
    • Move into Mass Market
    • Herbal Extensions
    • Alvita Herbal Teas
    • Advertising Expenditures Heavy on Endorsement
    • Online Presence Backed by IBM
    • Consolidation, in More Ways than One

    Marketing Tools and Trends
    • Structure/Function Claims
    • Packaging for Retail Merchandising . . .
    • . . . and Target Marketing
    • Pharmaceutical-Style Names and Labeling
    • Viagra Claims
    • Standardization and Branded Ingredients
    • Companies Restrict Sales to Pharmacies
    • Twice the Product
    • Herbs Made Kid Friendly
    • Other Imaginative Segmentations
    • Using Romantic Images
    • Brand Extensions
    • Segment Extensions
    • All Natural and Pure

    New Product Trends
    • Number of Herbal Introductions by Year
    • Table 4-10: The U.S. Herbal Supplement Market: Number of New Product Introductions, 1996-May 2001* (stock-keeping units)
    • Symptom Specific Products
    • Women's Products for Menopause . .
    • . . . and Menstruation
    • Bone Loss and Energy
    • Herbal Aphrodisiacs
    • Keeping the Mystery Alive
    • Breast-Enhancing Products
    • Joint Products
    • Joint Herbs from India
    • New Brain Supporters
    • Children's Products
    • Alcohol-Free Alternatives
    • Innovative Delivery Systems
    • Candy Is Quicker
    • Time-Release Herbs
    • Whole Health Immune Support
    • Novel New Combos
    • Herbal Multivitamins
    • Random Collections of Popular Herbs
    • Educated Consumers Move Toward Singles
    • Standardization Still Hot
    • Whole Herb/Standardized Combos
    • Ayurvedic
    • Culturally Specific Herbs
    • Traditional Chinese Herbs
    • Certified Organic
    • Table 4-11: The U.S. Market for Herbal Supplements: Selected Product Introductions, May 1999-April 2001

    Consumer Advertising Expenditures
    • Less Spent on Herbal Supplement Advertising in 2000
    • Top Advertisers—$10 Million +
    • A New $20 Million+ Advertiser
    • The $5 Million-$10 Million Tier
    • Other $1 Million+ Advertisers
    • Big-Scale, Big-Money Campaigns

    Advertising Positioning
    • Disease Prevention and Cure Covertly Advertised
    • Structure/Function Claims: Limited Medical Language
    • Skirting the FDA
    • Educational Advertising
    • Price Sells Product . . . Again
    • . . . as Does Fear . . .
    • . . . and Visions of Nature's Bounty
    • Beautiful Bodies, Joyous Images
    • Examples of Consumer Advertising

    Consumer Merchandising and Promotions
    • Educational Materials
    • Free Samples and Special Offers
    • Coupons and Rebates
    • Sweepstakes and Contests
    • Consumer In-Store Magazines
    • Radio Health Shows
    • Endorsements
    • Marketing on the Web
    • Spam E-mails
    • Examples of Consumer Promotions

    Trade Advertising and Promotions
    • Trade Ads Used by Most Marketers
    • Trade Advertising Positioning Is Technical
    • Potency and Standardization
    • Emotion Also Sells
    • Co-op Advertising
    • Retail Displays Compete for Space
    • Trade Shows
    • Pricing Strategies
    • Examples of Trade Advertising and Promotion
  5. Distribution And Retail
    At the Distribution Level
    • Distinct Channels of Distribution
    • Warehouse Delivery Used in Mass Market
    • A Few Mass Marketers Deliver Direct
    • Independent Distributors to Health and Natural Product Stores
    • Several Large Distributors Dominate Health Product Sector
    • Health Product Distributor Services
    • Forward Buying by Distributors
    • Benefits of Direct Shipment
    • Leading Mass-Market Drug Wholesalers
    • Drug Wholesalers Agree to Merge
    • Cardinal Health Acquires Bindley Western
    • Margins for Health Product and Mass Market
    • Brokers Support Marketers' Sales Efforts
    • Marketers' Sales Forces Work with Brokers

    At the Retail Level
    • Health and Natural Product Stores Retain Largest Share
    • Direct Sales Hold Second-Highest Share
    • Mass Merchandisers and Drugstores Vie for Third-Place Market Share
    • Food Stores and Mail Order/Internet Show Slight Increase in Share
    • Table 5-1: Share of U.S. Herbal Supplement Sales by Retail Outlet Type, 2000 (percent): 6 Retail Outlets
    • Tips for Stronger Herbal Supplement Sales
    • The Well-Stocked Herbal Supplement Section
    • Category Management: Grouping Products by Function
    • Placing Herbs Next to Vitamins
    • Margins by Retailer Type
    • Store Brand Product and Price Comparison
    • Table 5-2 Private-Label Herbal Singles: Product and Price Comparison by Retail Outlet (7 herbs, 4 stores)

    Retail Focus: Health and Natural Product Stores
    • Retail Sector Essential to Herbal Supplement Industry
    • Herbal Products Important to Stores
    • Supplement Chains Oriented to Herbal Supplements
    • Supplement Chains Push Out Independents
    • Educated Personnel
    • Mass Market Poses Greater Competition for Health and Natural Product Stores
    • Meeting Mass-Market Competition
    • Stores Growing Larger, Reaching Broader Customer Base
    • Number of Full Lines Carried Decreasing But Brand Selection Growing
    • The Whole Foods Approach
    • Outsized Bulk Section in a Small Supplement Store
    • Liquid Extracts Both Bulk and . . .
    • . . . Brand-Names
    • Capsules and Tablets Are Few
    • Herbal Selection in a Natural Food Supermarket
    • Full Lines at the Co-op
    • Herbal Selections at GNC . . .
    • . . . and Vitamin World
    • Private Label Growing in Importance
    • Major Promotional Tools

    Retail Focus: Mass Merchandisers
    • Competing on Price, Selection, and Advertising
    • Space Devoted to Herbal Supplements
    • Private Label Key to Product Mix
    • Expanded Efforts to Reach Herbal Supplement Consumers

    Retail Focus: Drugstores
    • Herbal Supplements Remain Important to Drugstores
    • Medical Connection Lends an Edge
    • Responding to Competition from Discounters
    • Organization of Herbal Supplement Selection
    • Herbal Supplements Usually Placed Near Pharmacy
    • Drugstore Staff Typically Not Trained
    • Stores-Within-Stores
    • In-Store Education
    • Stores Go Private Label
    • Herbs at a Typical Chain Drug

    Retail Focus: Supermarkets
    • Share of Sales Small from Herbal Supplements
    • Herbal Supplements Usually Located in HBC
    • Herbal Selection in a Supermarket
    • Full "Health Food Store" Departments and a Whole-Health Approach
    • Private-Label Efforts
    • Who Answers Consumer Questions?
    • Attractive Margins and Higher Prices

    Retail Focus: Direct Selling, Mail Order, and Internet Marketing
    • Direct Selling Works for Herbal Supplements
    • Major Multi-Level Marketers Offering Herbals
    • Personalized Service and Sales Techniques
    • Mail Order Moves Toward Internet
    • Top Mail-Order Companies
    • Herbal Supplement Products Are Naturals on the Internet
    • Companies Lured by Internet Dreams
    • Internet Bubbles Burst
    • Makes Deals
    • Acquires
    • Questionable Products Find Outlet
  6. The Consumer
    Consumer Usage of Herbal Supplements
    • The Simmons Survey System
    • Use of Herbal and Garlic Products Decreasing
    • Used by One-Third of Consumers or More
    • Aging Consumers, Women, and Westerners Use Herbal Supplements
    • Professionals With Some Education
    • Retirement, High Education, and Low Income Linked with Garlic Supplement Use
    • Divorced or Separated, Westerners, and Two-Person Households
    • Table 6-1: Demographic Characteristics Favoring Use of Herbal and Garlic Supplements, 2000
    • Herbal Purchases by Retail Outlet
    • Herbal Purchases by Region

    Usage by Product Type
    • Most Commonly Used High-Profile Herbs
    • The Whole Foods Survey of Health and Natural Product Shoppers
    • Five Top Herbs Used
    • Trends in Use a Mixed Picture
    • Products Used by Increased and Decreased Percentage of Respondents
    • Nearly All Products Have Lost Users in Last Year
    • Decreases in Singles Could Be Due to Formulas
    • Table 6-2: Percent of Health and Natural Product Store Shoppers Who Purchased Herbal Products: By Product Type, 2000, 1999, 1998, 1997, 1996 (35 herbs, other)

    Consumer Behavior
    • Herbs in Combination with Drugs
    • Consumers Talking to Friends, Family . . .
    • . . . But Not Their Doctors
    • Role of Doctors Recommendations
    • Pricing Prods Use of Mass Market, Internet, Mail Order

    Consumer Attitudes
    • Reasons for Using Herbs
    • Most Herb Use to Treat Specific Symptoms
    • Herbs Have Introduced Perceived Needs
    • Usage Affects Attitude
    • Products Considered Safe by Majority of Users
    • Concerns with Drug Interactions
    • Consumers Want Efficacy Testing
    • Consumers Favor Pills and Capsules
    • Perceived Quality Differences Between Store Brand and Name Brand
    • Calls for Regulation

    Appendix I: Examples Of Consumer Advertising
    Appendix II: Examples Of Consumer Promotions
    Appendix III: Examples Trade Advertising And Promotions
    Appendix IV: Addresses Of Selected Marketers

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