Natural Health Seekers

Women and younger shoppers pick up homepathic brands, attracted to natural, safer attributes on labels.

An increase in homeopathic sales among mainstream retailers might be a case of what shoppers don't know can't hurt them and may be good for what ails them.

"We know many consumers don't understand they are using homeopathy at all," says Maryellen Molyneaux, president of the Harleysville, Pa.-based Natural Marketing Institute (NMI). "They might get into a conversation, and if they can pronounce it [many product names/ingredients are derived from Latin], they'll talk about it being nontoxic, not made of chemicals and all-natural. There is still confusion out there about homeopathy, just like organics."

Ever since homeopathy arose some 200 years ago, the healing method has been dogged by skeptics who challenge the practice and effectiveness of its remedies.

But lately, questions about the legitimacy of homeopathy — a branch of medicine aimed at triggering the body's natural system of healing — haven't affected product demand.

SPINS, the Schaumburg, Ill.-based researcher of natural, organic and specialty products, reports that homeopathic medicines are up 14 percent to $341.4 million in conventional food, drug and mass-market channels for the 52 weeks ending Feb. 16.

It's projected that overall homeopathic medicine sales will wax steadily, averaging 3.5 percent growth annually through 2015, according to the latest research from Chicago-based Mintel, which includes herbal remedies in its projections. In 2007, Mintel valued the homeopathic product segment at $800 million.

In a consumer shopping study, Boiron, maker of flu medicine Oscillococcinum, found 79 percent of U.S. shoppers trying to limit their overall usage of traditional OTC medications. "While they believe in the efficacy of OTCs, they feel these products aren't good' for them, especially when used frequently," Newtown Square, Pa.-based Boiron USA reports.

Skews Younger

Shopper demographics and psychographics indicate that the future bodes well for growth, especially among a younger demographic.

"Many younger people are using homeopathics right now because they see an overuse of prescription drugs," says David Gerhardt, VP sales at Asheville, N.C.-based King Bio. "They've seen their families use multiple prescriptions with all their side effects. They're looking for something that works fast and doesn't cause side effects or contradictions."

This is borne out by NMI's psychographics analysis of five health-and-wellness consumer segments asked about their homeopathic usage within the past year.

While it isn't surprising that 44 percent of "well beings," defined as the most proactive in health prevention and strong in alternative-care medication usage and education, said they used homeopathic products within the past year, it is surprising that nearly half (48 percent) offence sitters," a younger segment of singles and families striving to be healthy, said they used homeopathic products within the past year.

"If you look across all the data, fence sitters are trying a lot of healthy categories in natural and organic," Molyneax says. "This is a very good secondary target [group] in growing homeopathics. They've heard there can be problems taking drugs. They don't want their kids taking too many medicines."

Among homeopathic users, women are most likely to have used a homeopathic remedy within the past year, according to Mintel.

"This is consistent with the fact that women make more than 80 percent of buying decisions in all homes, and that women are the driving force behind more than 90 percent of all OTC purchases," says Thao Le, VP marketing at Hyland's Inc., a division of Los Angeles-based Standard Homeopathic Co. More than 90 percent of Hyland's customer base comprises women, Le notes.

"These women are largely influenced by word of mouth from friends and family in their final purchase decisions," Le says. "Supermarkets will benefit from supporting increased social media marketing efforts by their suppliers and partnering on awareness-generating initiatives."

Dr. Frank King, founder and president of King Bio, says historical demographics reveal the average natural food shopper has more college education than the mainstream shopper. "Now the public in general is becoming more educated and prefers natural when given a choice and will pay more for the natural," he says, adding that "more education is needed."

"They'll talk about it being nontoxic, not made of chemicals and all-natural. There is still confusion out there about homeopathy."

—Maryellen Molyneaux, Natural Marketing Institute