Techno burnout and other pressures of 21st century life appear to be fueling the growth of LOHAS’s Natural Health sector.
The Natural Health sector on the Green Stock Exchange (GREENSX) consist of vitamin and herbal supplements, natural personal care product manufacturers, yoga products/services, massage centers, spas, fitness products, natural diabetic friendly products, natural and preventive medicine, naturopathic, and Chinese medicines. Americans have health issues that are of great concern to them: for example, maintaining an ideal weight, preventing cancer, healing without doctor intervention and remaining well in old age. Cancer is another concern. Even though Americans always seem worried about getting cancer, they don't do all they should to prevent it.
"Wellness" may mean good health to consumers, but to drug retailers, it means big business and growing profits in certain key categories. "The emphasis today is on staying healthy rather than waiting until you're sick," said Michael Polzin, spokesperson for Walgreen Co. "That's one of the reasons for the rise in popularity of vitamins. People perceive them as a way to keep up their health."
'Healthy" may be a mantra for the U.S. population these days, but Americans are defining the term and pursuing the goal in their own way. True, today it's still virtually impossible to go anywhere without seeing someone running, jogging, walking or working out. On the other hand, the aging baby boomer population is turning to healing without doctors. Herbal medicines and other alternative cures, like homeopathic medicines, are appealing to people who want a cheaper and a safer way to treat chronic conditions.
According to the New England Journal of Medicine, Jan. 28, 1993, the top 10 reasons why adults seek non-traditional cures are: back problems, anxiety, headaches, sprains or strains, insomnia, depression, arthritis, digestive problems, high blood pressure and allergies.
Sociologist Paul Ray estimated the market for Natural Health is as follows in 2003:
- Alternative Healthcare (Acupuncture, homeopathy, naturopathy, holistic
disease prevention, etc.) US Market - $30.7 billion
- Personal Development (CDs, books, tapes, seminars, yoga, fitness, weight
loss, spiritual products and services) US Market - $10.63 billion; that there were 30 million people who practiced yoga.
- Healthy Lifestyles (Natural, organic nutritional and personal care products) US Market - $30 billion
The Natural Health sector is part of the LOHAS (Lifestyles of Health and Sustainability)) green movement. LOHAS is an acronym for Lifestyles of Health and Sustainability. It is a $230 billion market segment in the United States alone and a $546 billion market worldwide.
LOHAS consumers are those who are passionate about the environment, the planet, social issues, health, about human rights, relationships, fair trade, sustainable practices, peace, spiritual and personal development. The LOHAS numbers show that an enormous consumer market exists for sustainable and healthy products.
Here are some other findings on each sector category of the Natural Health sector:
Yoga
As many as 30 million people practice yoga in the United States alone. NAMASTA, the North American Studio Alliance, the organization for mind-body professionals, now estimates that there are 70,000 yoga teachers in North America.
Celebrities that practice yoga has given a certain credibility to making it yoga mainstream. Most of the yoga studios are independently run and even health clubs now have yoga classes. Yoga enthusiast are a strong part of the LOHAS green movement. Companies such as Lululemon, GAIAM and Whole Foods Market have cater to the yoga products market.
“The top-selling videos on Amazon.com are regularly yoga and pilates videos, and the number of health clubs offering yoga classes has doubled in the last 10 years,” she says Lynn Powers, president of lifestyle products company Gaiam (Nasdaq: GAIA).
.
The yoga practitioner are more likely to be interested in natural food, health, spiritual and personal development.
Supplements
Supplements (Vitamins, Minerals, Botanicals, Specialty) now represent a $13 billion business. Retailers and manufacturers the growth to almost daily revelations about the benefits of nutritional supplementation and widespread publicity about the long-term health benefits of vitamin consumption. Besides supplements is the $3 billion natural personal care products (skin, hari, HBC), which is natural care products and make-up that contains vitamins, antioxidants and anti-aging ingredients; it is expected to grow rapidly, but it is still an emerging sector.
Although some trade publications cite the opinion that the supplements industry is beginning to mature, high growth rates are still predicted for the foreseeable future. In the recent past, some have estimated that industry sales have been growing at a rate of 20 to 30 percent a year. The Nutrition Business Journal is predicting an average growth rate of 10 to 14 percent per year to the year 2000 across all supplements product types (Nutrition Business International, September 1998).
Within individual product categories, Nutrition Business Journal is predicting:
- 16 to 18 percent growth rates for herbals and botanicals
- 6 to 7 percent growth rates for vitamins
- 7 to 8 percent growth rates for minerals
- 14 to 16 percent for specialty supplements, and
- 6 to 8 percent for sports supplements.
Some drug retailers have created a wellness center in their stores. "The wellness categories offer a whole new dimension to drug stores," Striefel said, "because it's a category that will appeal to everyone--not just sick people. The wellness category appeals to people who want to stay well ... people who don't want to get sick to begin with, as well as people who want to make themselves healthier. Therefore, wellness is an area that can be explored and expanded in the future.
"We're moving in the direction of more health and wellness type products in our stores, with less emphasis on general merchandise items like housewares, hardware and automotive products," said Dianne Maffia, director of public relations for Jewel-Osco. Maffia also noted that beside emphasizing health and wellness and diagnostic products, American Stores will increase the role of the pharmacist in nutrition-related products.
So, even as Americans pursue the holy grail of "wellness," they are doing so through less orthodox approaches and less exercise. The concept will continue to flourish as long as consumers perceive physical and monetary benefits to be gained through the wellness approach to living.
Vitamins, herbs and homeopathic products appeal to health-conscious, wellness-oriented individuals. These consumers also recognize the importance of exercise and dietary supplements to enhance performance. Thus, the emergence of sports nutrition as a viable drug store category.
One of the hottest growth segments within vitamins has been antioxidants, led by Lederle's Protegra line. The firm's Centrum line also remains a top-seller with a 19 percent market share and a bright future.
To meet the anticipated demand for vitamins, retailers are devoting more space to the category, and manufacturers are responding with more offerings.
Herbal products are also part of this equation. "We've added 15 herbal products and have them located next to the vitamin section. Together, both sections encompass 20 feet. We don't see one herb selling stronger than another," said Leonard E. Marks, vice president of general merchandising and pharmacy for London Drugs Ltd. "There's a strong showing for the whole category." For example, he said, people are taking natural substances like ginseng, which has been available for thousands of years.
Diet Aids
About 133.6 million (66%) of U.S. adults are overweight or obese and waistlines are getting bigger worldwide as people move to a western diet of more fast foods, meats and processed foods.
In 2007, the U.S. weight loss market is valued at $55 billion (source: Marketdata Enterprises Inc.). Diet aids are a booming business in the mass market, showing double-digit gains in dollar sales across all three major channels of distribution.
The diet market includes: diet soft drinks, artificial sweeteners, health clubs, commercial diet center chains, mail order and multi-level marketing diet plans, diet books and exercise videos, children’s weight loss camps and adult residential facilities, medically supervised programs (weight loss surgery, MDs, RDs, and nutritionist-based diet plans, hospitals/clinic programs, Rx diet drugs, bariatricians), retail meal replacements and diet pills, low-calorie dinner entrees & low-carb foods.
As baby boomers grow older, their waist lines usually expand. Yet, the 30- and 40-something crowd is not ready to accept that aging inevitably changes a person's body shape. Consequently, Americans are constantly purchasing products that help them lose weight or stay thin. People are looking for the magic pill and diets to get them into shape.
Some of the market leaders in this category include: Weight Watchers, Jenny Craig, NutriSystem, eDiets.com, LA Weight Loss, Herbalife, Slim-Fast, Diet Center, Physicians Weight Loss, HMR, Optifast, Medifast, Lindora Clinics, Ballys, Curves, and Atkins Nutritionals.
Sweet Heart and diet drinks produced by the E=MC² Company, the owner of the Green Stock Exchange (GREENSX) aids dieters in losing weight; Sweet Heart is a organic zero calorie sweetener that burns calories. Sweet Heart helps people stay thin, while assisting them in making healthier and natural food choices. Imagine zero calories and naturally delicious: cakes, muffins, ice cream, pies, drinks, chocolates, and other goodies. It is up to your sweet imagination, to see the possibilities. Sweet Heart taste like sugar, plus it is also good for your heart and lowers the risk of certain types of cancer.
Diabetics
There are 20.8 million (7%) of children and adults in the United States are diabetic; while in Canada over 2.25 million Canadians are estimated to have diabetes and more than 60,000 new cases of diabetes come to light every year.
The potential for natural diabetic products is at an early stage of development, but there is a huge potential for this ready-to-purchase consumer market, with little choice when making purchase decisions. Imagine diabetic friendly and natural: cakes, muffins, ice cream, pies, chocolates, and other goodies. The list is endless.
Diabetic products manufacturers can also make dual market products with zero calories to also reach the 133.6 million (66%) of U.S. adults who are overweight or obese.
One great example is a product called Sweet Heart, produced by the E=MC² Company, the owner of the Green Stock Exchange (GREENSX; Sweet Heart is a organic zero calorie sweetener that burns calories; Sweet Heart taste like sugar, plus it is also good for your heart and lowers the risk of certain types of cancer. Sweet Heart reaches both diabetics, as well as the overweight or obese.
Spa
When you think about a spa, you immediately imagine your stress and worries melting away. Spas have been around in one form or another for thousands of years.
The U.S. spa industry generated an estimated $11.2 billion in revenues in 2003. On average, half (52%) of a spa’s revenue is derived from treatment rooms. Resort/hotel spas, despite the size of the segment, account for an impressive 41% of industry revenue while the largest segment, day spas, accounts for just under half (49%).
There were approximately 136 million spa visits made in the U.S. in 2003; sixty- percent (60%) of these were to day spas while 27% were to resort/hotel spas. The remaining 13% are spread across the other four spa types.
There are
is an estimated 12,100 spas throughout the U.S and 2,100 in Canada. In the U.S., the largest spa category, accounting for seven of every ten spas, is day spa. Resort/hotel spas are the second largest group, followed by club spas, medical spas, mineral springs spas and destination spas. Geographically, the distribution of spas in the U.S. generally reflects the distribution of the population with the North East being the largest region. In Canada, the distribution of spas is concentrated in Ontario, British Columbia and Quebec.
As lifestyles become more hectic, with the arrival of cell phones, emails, and home-fax machines, work and family chores are becoming a 24 hour affair. These endless stress inducing situations make people want to escape. The spa is the perfect place to maintain good health and will continue to be popular so long as stress exist.
Massage
Another version of the spa it the massage centers.
Many of your members are already getting massages. According to industry statistics, 12% of U.S. adults visited a massage therapist in 2005, receiving about 130 million sessions and generating $8 billion in revenue. Ninety-six percent surveyed reported having a positive experience.
By 2004,49% of Americans had ever experienced a massage from a massage therapist. 29% seek massage for stress relief and view massage as a component of their health and wellness regimen.
25% seek massage for injury-related reasons, muscle soreness or pain management
|