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Herbal/Traditional Products in the US

US traditional products market: $4.4 billion industry in 2012

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2014-02-24 09:44:02 - Herbal/Traditional Products in the US - a new market research report on

Although perhaps not completely obvious, packaged foods company Mondelez International led sales in the US herbal products market with a 7% value, solely on the strength of its Halls medicated confectionery brand. Halls has a strong brand heritage, and, furthermore, consumers do not tend to specifically identify it as herbal/traditional versus standard. The Procter & Gamble Co and Ricola Inc ranked second and third with 3% value shares each. Metamucil, at one point recognised as a natural laxative and now positioned as a regular fibre supplement, is Procter & Gambles strongest brand. Unlike Halls, Ricola actively markets the herbal quality of its medicated confectionery line, giving it an advantage among consumers actively pursuing a naturaloption.

Paediatric dietary supplements is a rather



minor in herbal/traditional products, accounting for just 1% value share, so relatively small sales gains translate to fairly robust growth. Many parents feel comfortable giving their children herbal supplements because of a flawed perception that these items are inherently safe and free of side effects. The spread of attention deficit hyperactivity disorder (ADHD) diagnoses and the increasingly intense academic and extracurricular demands on children have given rise to calming supplements to alleviate anxiety and promote focus, particularly in school settings. Paediatric immunity supplements are also popular.

One of the main factors that makes herbal/traditional products profitable, aside from the relatively low cost of constituent ingredients, research and development and production, is the minimal investment required to comply with regulatory requirements, as compared to standard products. More lenient regulation also allows for greater flexibility in the marketing of herbal supplements. Thus, supplement manufacturers will face distinct challenges if initial signs of greater regulatory activism, spurred by legislators and consumer groups alike, mark the start of a major shift in the industry.

Key Headlines

- Current value sales of herbal/traditional products grow by 3% to reach US$4.4 billion in 2012
- Slow sales in supplements, cough, cold and allergy (hay fever) remedies and digestive remedies tempers overall herbal/traditional growth
- Herbal/traditional paediatric dietary supplements posts impressive 7% current value growth in 2012
- Herbal/traditional products remains fragmented, with top 10 companies contributing combined 20% value share in 2012
- Wellness trends and competitive position of top herbal/traditional topical analgesics/anaesthetic brands support growth with overall constant value CAGR of 2% over the forecast period

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Mike King
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