The US Botanical Market

7/27/2019 The US Botanical Market

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The US Botanical Market:Latest Consumer Insights

March 2011



2 © 2011 Natural Marketing Institute (NMI)

% of US general population adults indicating they have usedthe following nutritional supplements in the past 30 days

62%

% general population % GP

Current supplement users (past 30days)

62%

Vitamin/mineral (net) 57%

Multivitamins/minerals 48%

Single vitamins 23%

Single minerals 13%

Other (net) 29%

Other supplements 15%Condition specific 11%

Herbal supplements 11%

Homeopathic medicines 5%

Ayurvedic remedies 1%

Sizing the US Herbal Supplement Market

Source: NMIs Nutritional Supplement/OTC/Rx Database, 2009




U.S. Supplement Launches with Botanical/Herbal Claim; Upward Trend Growth?

(1996-2010)

# launches = 2231

Source: NMIs Product Trend Identifier (PATI)




Herbal Supplement Users Are An Intense Group…

64%

38%

58%

23%

49%

19%

Taking vitamins and

minerals

Taking herbal

supplements

Herbal Supplement Users

Supplement Users

General Population

% consumers indicating the following are extremely to very important in

how they maintain a healthy, balanced lifestyle

Source: NMIs 2010 Health & Wellness Trends Database (HWTD)®




Who Is Using Herbal Supplements?

Usage is moderately high across generations –

Boomers are significantly more likely to be using compared to younger

generations





Drivers of Initial Herbal Supplement Use


PRIMARY

To promote overall

health

SECONDARY

Promote immunity

Treat specific health issues TERTIARY

Improve digestion Reduce effects of stress

Increase energy Improve mental abilities

Prevent health issues Increase nutrient consumption

Maintain, lose weight


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Changes in Herbal Supplement Drivers from Past Year


DECREASES INCREASES



SupplementCurrent Supplement

UsersLapsed Users

Flaxseed Oil 8% 5%

Fiber Pills 7% 9%

Aloe 5% 20%

Cranberry Pills 5% 5%

Garlic Pills 5% 7%

Green Tea Pills 5% 5%Echinacea 4% 10%

Ginkgo Biloba 4% 6%

Milk Thistle 3% 3%

Lutein 3% 1%

Melatonin 3% 5%

Ginseng 2% 10%

Saw Palmetto 2% 2%

St. Johns Wort 2% 6%

Grape Seed Extract 2% 2%

Lycopene 2% 1%

Black Cohosh 1% 2%

Valerian 1% 2%

Kava Kava 0.2% 0.5%

Specific Herbal Supplement Usage


High Lapsed

Usage



Primary Reasons for Lapsed Usage HighlightCompliance Opportunities

Aloe Echinacea Ginseng

I only use it when Ineed it and I havent

needed it lately

I only use it when Ineed it and I havent

needed it lately

I got tired of taking it/got out of the routine

Not effective

Too expensive




Vitamins/Minerals Condition SpecificSupplements

Herbs/Botanicals

31%43%

18% 24%12%

31%

59%

54%

60%

66%

49%

59%

Supp

User

Herbal

User

Supp

User

Herbal

User

Supp

User

Herbal

User

Very effective

Somewhat effective

Perceived Effectiveness of Supplement Categories isStill An Issue (Not Just Herbals…)

Even Herbal

Users areuncertain

about

effectiveness




Condition Prevention Concerns Are Much Higher for Herbal Users




Quadrant Analysis for Condition Specific Opportunities:Consumer Concern & Perceived Effectiveness

Heart disease

Bone issues

E f f e c t i v e n e s s o f A v a i l a b l e

S u p p l e m e n t s

SECONDARY OPPORTUNITIES

Digestive

Cancer

High blood

pressure

Acid reflux

Intestinal irregularity

Highcholesterol

Arthritis

Weight

Joint pain

Lack of energy

Stress

Memory loss

Depression

Need to boostimmunity

Vision problems

Mental focus/

concentration

Sleep disorders

Blood sugar

imbalance

Anxiety

Indigestion

Inflammation

in body

Atherosclerosis

Aging skin

Skin health

LOW HIGH

VERY

NOT VERYPRIMARY OPPORTUNITIES

Heart disease

Cold & flu

Concern about Condition




Market Opportunity Summary

Cancer Aging skin High blood pressure

Memory loss Mental focus High cholesterol

Stress Anxiety Digestive conditions

Need to lose weight Skin health Joint pain

Heart disease Arthritis Lack of energy

Arthritis Vision Cold & flu

Depression Sleep disorders Acid reflux

Inflammation in body Bone issues

Need to boost immunity

Un-crowded market;

high need

Un-crowded

market;

lower need

Crowded market;

high need

Need to boost concern Need to differentiate productNeed very effective product




Preference for Other Formats is on the Rise

35% of Herbal Users

prefer supplements

in other formats




Growth of Supplement Formats: 2002-2010


WHATS GROWING WHATS NOT

Quick Dissolve Strips Softgels

Fizzing tablets Tablets

Chewables



Concern about Nutrient Absorption of Supplements:Format Connection?

I am concerned that when I take nutritional supplements, like vitamins,minerals, herbals, multivitamins, etc. my body does not absorb enough of the

nutrients the supplements are supposed to provide


Supplement User: 49% Herbal User: 54%



Physician Involvement and Influence with DietarySupplement Use Is Stronger With Herbal Users

I have discussed the dietary supplements I use with my doctor

Supplement User:

61%

Herbal User:

62%

I wish my doctor knew more about dietary supplements

Supplement User:

37%

Herbal User:

57%

My doctor is very knowledgeable regarding dietary supplements

Supplement User:

41%

Herbal User:

33%




Herbal Supplement Users Show Higher Belief in Safetyof Supplements Categories

57%

23%

42%

0%

10%

20%

30%

40%

50%

60%

Vitamins/minerals Herbs/Botanicals Condition specific

supps

Herbal User

Supplement User

% indicating the following are VERY safe




Desire for Supplements from Natural, Organic, andVegetarian Sources Trending Up

42%45%

31%28%

25%

27%

2010200920082007

I prefer to buy VMHS that are

derived from natural sources

I prefer to buy VMHS that arederived from organic sources

I prefer to buy dietary

supplements that are derived

from animal-free or vegetarian

sources




Sustainability and Environmental Health Cannot BeOverlooked

I am more likely to buy a dietary

supplement if it uses sustainable

or environmentally friendly

ingredients

I would be willing to pay 20% more

for a dietary supplement that uses

sustainable or environmentally

friendly ingredients

Supplement User:

28%

Supplement User:

19%

Herbal User:

38%Herbal User:

26%




Average Growth of Channels Where Consumers ShopMost Often for Nutritional Supplements

15.7%

5.3%

1.9%

1.0%

-1.2%

-3.6%

-10.1%

-10.3%

-16.7%

% CAG 04-10

Internet (5%)

Natural food supermarket (3%)

Warehouse clubs (9%)

Drug store (20%)

Mass merchandiser (26%)

GNC (4%)

Traditional grocery store (10%)

Nutrition store (3%)

Catalog or mail order (2%)

Percentage in parentheses is percentage of consumers (GP-

PGS) who shop most often in that channel

Source: NMIs 2010 Health and Wellness Trends Database (HWTD)®



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Harleysville, PA 19438

Steve FrenchManaging Partner

[email protected]

www.NMIsolutions.com

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The US Botanical Market