Kline Predicts Growth for Natural OTCs

More and more consumers are turning to natural alternatives for that bump or bruise. According to a new report from Kline & Company, while the US traditional nonprescription drugs industry registered an average CAGR of 2.5% between 2005-2010, the market for natural over-the-counter (OTC) remedies has grown at a CAGR of 5.9% per year from 2009 to 2011.

According to the research study Natural OTCs 2011: Impact of Non-drug Products on the U.S. OTC Market by the consulting and research firm, close to 40% of consumers are currently using more natural OTCs than in the previous year. This correlates with the finding that 47% of US consumers believe natural OTCs to be as effective as traditional OTCs.

With the growing popularity of natural remedies and the large number of retailers that embrace the market segment, the market is set to maintain healthy growth rates over the next five years and is forecast to reach nearly $750 million by 2016. By contrast, the traditional OTC market is forecast to grow as little as 3% per year. However, there is room for both types of OTCs on the market as 53% of consumers surveyed note that they use both natural and traditional OTCs to treat themselves or family members when sick.

More info: www.klinegroup.com