PARSIPPANY, NJ, DECEMBER 3, 2012 –Russia's rapidly growing over-the-counter market, posting a 12% increase to reach RUB 480 billion (USD 16.4 billion) at the manufacturers’ level in 2011, holds much potential for pharmaceutical companies. Although a slight decrease in growth was observed against the previous year, according to new analysis Emerging Markets Rx-to-OTC Switch: Forecasts and Opportunities by global consulting and research firm Kline & Company, the Russian market remains highly robust compared to the U.S. market’s 2.4% growth and comparable with the neighboring emerging market of China posting 15.0%.

The OTC drug segment in Russia accounts for a significantly larger share of sales compared to prescription medications claiming nearly 66% of the total pharmaceutical market. Similarly, the OTC segment posts a healthy 14.2% growth in 2011, while the prescription market, tempered by a decrease in state budget allocations, sees growth of a little under 9.0%.

Factors shaping current market dynamics in Russia are manifold, including an increase in medication costs. Equally of note is consumers’ growing purchasing power. Among the positive factors driving sales growth is the implementation of new regulations under the Pharma 2020 Strategy, a Russian pharmaceutical revitalization program. Specifically, this is attracting numerous pharmaceutical companies following the government's initiatives to modernize its national health care system and educate the public about illnesses and medicines.

Pharmaceutical innovations in Russia are largely driven by foreign companies, while local companies tend to focus on the manufacture of generic alternatives of innovative drugs. Local innovative brands claim only 20% of the market and one of Pharma 2020 Strategy’s goals is to increase the share to 50%. Nevertheless, the initiative is set to create and encourage opportunities for both foreign and local pharmaceutical companies.

There are some attractive prospects for Rx-to-OTC switch; however, the costs of pursuing approval can be daunting. With a lack of clear procedures for Rx-to-OTC switch set within Russia, one of the main criteria for the the Ministry of Health of the Russian Federation (Minzdrav) is whether the medication has gained OTC status in other countries. The challenge remains with the pharmaceutical industry to create new ways of meeting consumer needs, overcoming regulatory hurdles, and identifying which switch drugs will offer commercial success.

The Russian OTC market is estimated to increase by an approximate compound annual growth rate of 11.5% by 2016. Sales growth forecast for 2013 and beyond will come through price increases for products not included in the Vital and Essential Drugs List (EDL) and expansion of the Additional Medicines Supply (DLO) program which provides pensioners and low‐income families with free medicine.

The vast and growing Russian market offers much promise, but requires cautious assessment. For more information on key issues and implications regarding Rx-to-OTC switches and more in both Russia and China, inquire about Kline’s Emerging Markets Rx-to-OTC Switch: Forecasts and Opportunities. A web-based, interactive forecasting model which predicts switch probability and sales forecasts is also available to subscribers of this report.

About Kline
Kline is a worldwide consulting and research firm dedicated to providing the kind of insight and knowledge that helps companies find a clear path to success. The firm has served the management consulting and market research needs of organizations in the chemicals, materials, energy, life sciences, and consumer products industries for over 50 years. For more information, visit www.KlineGroup.com.

PARSIPPANY, NJ, NOVEMBER 27, 2012 –With vigorous 15% growth over the previous year and a confluence of factors encouraging even greater growth, the Chinese OTC market provides ample opportunities for OTC marketers. An aging population and increasing incidence of several chronic diseases makes several therapeutic classes appealing for future Rx-to-OTC switches in China, reveals recently published Emerging Markets Rx-to-OTC Switch: Forecasts and Opportunities report published by global consulting and research firm Kline & Company.

Indications such as cholesterol, asthma, osteoporosis, migraine, and peptic ulcer are currently excluded from the list of medications allowed to be approved for OTC status. Driven by the increasing incidence of these chronic diseases the Chinese State Food and Drug Administration (SFDA) is considering including these additional indications before 2015 opening the door for manufacturers to pursue Rx-to-OTC switches in these classes.

Laura Mahecha, Kline’s Healthcare Industry practice manager, notes, “To really put these incidents into context, China’s phenomenal growth is six times stronger than the United States over the same time, amounting to an astounding CNY 209.2 billion (USD 32.4 billion) for the 2011 retail OTC market. Moreover, China’s growing prosperity, aging population, and increasing adoption of Western lifestyles, abetted by imminent Rx-to-OTC switches for certain therapeutic classes, are expected to significantly increase market size and OTC demand.”

The registration procedure of a new active ingredient for prescription status is the same for local and multinational manufacturers. Even for an active ingredient which is registered and widely used in other countries, the registration procedure is the same as a new active ingredient in China. The potential for switch is determined by several factors.

A broad range of therapeutic products covered in this report represent top-selling prescription medications that could be appropriate switch candidates. For Rx-to-OTC switches in China, there is no market exclusivity for a brand once it makes the switch. Consequently, any pharmaceutical company that has manufacturing capabilities can also manufacture and sell the same OTC drug once the switch sponsor has received approval from the SFDA. In some cases, the costs of conducting clinical research to support safe use of a medication as an OTC are daunting for many companies in China and are likely to be undertaken by large local or multinational companies. Other smaller firms who are not interested in investing the considerable resources to support a switch application can manufacture OTC versions of these active ingredients once another company gains SFDA approval. The lack of market exclusivity can also be seen as a deterrent for some companies pursuing Rx-to-OTC switch in China.

“The many challenges of this market certainly cannot be ignored,” continues Mahecha, “but the sheer size of the market and its manifold expansion, targeted by astute marketing and carefully controlled brand management, mean the potential returns are real. China is opening up and although it can be a daunting market to navigate, the demand for effective and trusted OTC medications is a valuable foothold for companies with vision.”

Kline’s Emerging Markets Rx-to-OTC Switch: Forecasts and Opportunities report provides subscribers with objective, independent forecasts of future Rx-to-OTC switches in emerging markets, including China and Russia, and their expected impacts on the OTC market. This comprehensive report provides forecasts of future switches in both existing nonprescription drug categories and projections for new categories, as well as analysis of the Chinese nonprescription drugs industry. A web-based, interactive forecasting model which predicts switch probability and sales forecasts is also available to subscribers of this report.

About Kline
Kline is a worldwide consulting and research firm dedicated to providing the kind of insight and knowledge that helps companies find a clear path to success. The firm has served the management consulting and market research needs of organizations in the chemicals, materials, energy, life sciences, and consumer products industries for over 50 years. For more information, visit www.KlineGroup.com.

PARSIPPANY, NJ, NOVEMBER 14, 2012–With estimated sales of almost $1 billion at the grower level in 2011, the global nematicides market is expected to continue its steady increase, reaching $1.2 billion by 2016 with significant pockets of growth in the Asia-Pacific region and South America, according to the recently released Global Nematicide Market: Market Analysis and Opportunities report by consulting and research firm Kline & Company.

The United States, Brazil, and Japan are the largest nematicide markets among countries surveyed for the report, accounting for nearly 70% of total nematicide sales. Vegetables constitute the largest crop group market with $432 million or 44% of total 2011 sales, followed by field crops and specialty crops.

According to Dennis Fugate, Industry Manager of Kline's Specialty Pesticides consulting practice, “The ever greater pressure to increase yields from the same unit of land is universal in all countries so the control of nematodes is becoming imperative.” Nematodes are often described as the “unseen enemy” in crop production, responsible for an estimated $100 billion in global crop losses. While over 4,100 plant parasitic nematodes have been identified and some crops are attacked by multiple species, about 40 of these are documented as causing sufficient damage to merit a targeted nematicide treatment. Once nematode populations get established, they are near impossible to eradicate; they can only be managed by crop rotation, introducing genetic crop resistance, and the use of chemicals and biologicals.

Fumigants have been the traditional means of controlling nematodes. As the dominant means in the United States, France, Japan, Italy, and Spain, they account for 45% of total nematicides sales globally. However, the high cost of fumigants has restricted their use to high value crops in countries where these usually toxic products can be applied safely and effectively. Many countries have either severely restricted the use of fumigants or completely banned them. The consequence is that farmers in most countries have a very limited choice of products to control nematodes effectively by fumigation.

Chemical nematicides are the largest product type used globally in 2011, accounting for approximately 55% of total sales and being the leading nematicide product form in Brazil, the United Kingdom, Mexico, South Africa, China, and Argentina.

In many countries, seed treatment is found to be highly effective and efficient in field crops such as cotton, corn and soybeans, protecting developing seedlings and consequently achieving higher crop yields. Additionally, major crop protection companies are actively pursuing the use of biological seed treatments to supplement root and growth-enhancing benefits with nematode control.

Fugate notes, “The challenge for entrants with a new nematicide product is to offer economic and effective nematode control in a program that also controls soil pathogens, soil insects, and early foliar insects. Such products are available for seed treatment so an easy fit for a nematicide-only product should be feasible.”

To learn more about the key findings from Kline’s recently published Global Nematicide Market: Market Analysis and Opportunities, request the recording of Kline’s recently held webinar.

About Kline
Kline is a worldwide consulting and research firm dedicated to providing the kind of insight and knowledge that helps companies find a clear path to success. The firm has served the management consulting and market research needs of organizations in the chemicals, materials, energy, life sciences, and consumer products industries for over 50 years. For more information, visit www.KlineGroup.com.

PARSIPPANY, NJ, NOVEMBER 12, 2012 –Near half a billion U.S. industrial vegetation management market (IVM) for pesticides and fertilizers has seen a 5% decline on a same-segment basis since 2009, according to the recently published Industrial Vegetation Management Market for Pesticides and Fertilizers: U.S. Market Analysis and Opportunities report by global consulting and research firm Kline & Company.

The total IVM market includes forestry, rangeland and pastureland, aquatics, and traditional right of way (ROW) segments (utilities, pipelines, roadways, and railroads). The drop observed is mainly attributed to pressure exerted by the extensive use of lower cost generic herbicides, a fall-off in the housing market, and the reduced use of plant growth regulators and insecticides in the forestry sector.

Dennis Fugate, Industry Manager of Kline's Specialty Pesticides practice, notes, “The emphasis remains on accommodating lowered budgets and, in some cases, societal pressures to minimize pesticide applications. Growth will come from slow, steady spreading of noxious weeds; sporadic increases in invasive weed problems; or switching from mechanical to chemical control to save money.” Fugate continues, “This growth may be offset to some degree by the use of lower-cost generic versions of historically preferred products.”

Rangeland and pastureland, being the largest segment covered in this study, claimed almost 39% of total sales to IVM segments at the manufacturers’ level. But increased feeding costs, reduced herds, and profit squeezing on remaining producers have tempered growth in this sector. Roadways ranked second with a little over 17%. Herbicides, including aquatic herbicides, constituted the largest product category in 2011, accounting for over 97% of total sales.

Dow AgroSciences continued its dominance based on an unassailable position in range land and pastureland, as well as a strong showing in other sectors. The top three manufacturers, Dow, BASF, and DuPont, maintained a 60% total market share, but numerous generic companies occupying second tier positions are claiming an ever greater market prominence.

Kline’s Industrial Vegetation Management Market for Pesticides and Fertilizers: U.S. Market Analysis and Opportunities report presents the results of a comprehensive survey of the U.S. industrial vegetation management including rangeland and pastureland, forestry, aquatic areas, and the ROW segments, which include roadways, railroads, electric utilities, and pipelines. It analyzes in detail the products, weeds/brush they treat, their applications, estimated sales in 2011 at the manufacturers' level, suppliers' market shares, and qualitative issues. In addition, invasive weed details are included in the appropriate chapters with information about acres of key invasive weeds and the brands, volumes, and sales values of the products used to treat them.

About Kline
Kline is a worldwide consulting and research firm dedicated to providing the kind of insight and knowledge that helps companies find a clear path to success. The firm has served the management consulting and market research needs of organizations in the chemicals, materials, energy, life sciences, and consumer products industries for over 50 years. For more information, visit www.KlineGroup.com.

PARSIPPANY, NJ, OCTOBER 24, 2012–Kline & Company is a respected provider of world-class consulting services and high-quality market intelligence that consistently lead to client successes in growing or enhancing their business. Maintaining this hard-earned standard of excellence, Kline is proud to announce the promotion of Dilip Chandwani as Senior Vice President at Kline’s Manufacturing Competitiveness practice, and the appointments of Richard L. Buoni as Vice President and Jing Yuan as Director of Kline’s Management Consulting business.

As an integral part of Kline’s robust reputation, in his 20+ year career with Kline, Dilip Chandwani has been a resourceful and dedicated member of Kline’s multi-national team and a critical contributor to the success of Kline’s consulting business. He has assisted countless and varied clients with such critical issues as technology and manufacturing competitiveness, performance improvement, and identifying/evaluating new business opportunities. This promotion is recognition of Dilip’s exceptional competence, experience and dedication.

Through his work with Kline & Company, Dilip has directed or conducted hundreds of engagements that have included diagnosing clients’ internal operations, assessing competitors’ technology/manufacturing capabilities and costs, and providing recommendations to improve competitive position and profitability. These programs combine knowledge of the manufacturing and supply chain issues across various industry segments with skills in competitive intelligence, engineering, and business analysis.

“Dilip’s engaging, diligent and professional dedication to the interests of his clients has consistently resulted in significant contributions allowing the best results possible. Over the years, I have had many clients express their appreciation for his role in making their projects successful,” acknowledged Joe Tarantola, Chairman and CEO of Kline & Company. “This promotion is well deserved, and day-to-day operations are in good hands with Dilip at the helm of the practice."

To further strengthen its consulting business Kline has appointed Richard L. Buoni as the new Vice President – Chemicals, Kline Management Consulting.

Tarantola continues, "We are delighted to welcome Richard Buoni to our consulting business. Rich’s extensive career at the world's largest management consulting firm is a testament to his great understanding of the processes and strengths in finding innovative growth potential, which positively meshes with and augments Kline & Company's business strategy and client retention.”

In his latest positions as a Senior Manager at a leading global consultancy and a Senior Director at a leading global supplier of shrink management solutions, Richard has been responsible for strategy and operations, and enterprise applications practices focusing on serving clients in the consumer and industrial products industry and the execution of continuous improvement initiatives and delivery of business value across North American supply chain. Richard has over 20 years experience in consulting industry delivering solutions and leading initiatives across people, strategy, process and technology dimensions in the Manufacturing, Life Sciences, Consumer Products, Process Chemicals, Energy and Aerospace & Defense industries.

Richard holds an Executive Master’s in Technology Management degree from the University of Pennsylvania Wharton School, an MBA from Villanova University and BSChE from Drexel University.

Reinforcing Kline’s international credentials, reach and expertise, Jing Yuan brings invaluable business development experience accrued in China on behalf of several Fortune 500 companies for their consumer healthcare businesses, in addition to pertinent and prestigious brand and marketing management in the U.S. market. Jing's many consulting accomplishments were undertaken during her tenure with two of the world's largest consulting firms. In roles such as a Strategy and Business Architecture Manager and a China Strategy Group Consultant, she was assisting U.S. pharmaceutical businesses enter the European market, and was instrumental for various European and American companies establishing a lucrative foothold in China.

Her acumen, initiative and ability to accurately assess the bigger picture have seen her achieve great turnarounds and multiple high-value business successes.

Jing’s MBA in Marketing and Strategy was earned at the Katholieke Universiteit Leuven in Belgium, culminating a formal education pursued in China.

Tarantola observes, “Kline is growing. These are universally challenging but exciting times, and we are investing in undisputed talent to better serve and anticipate the needs of our clients. Dilip, Richard, and Jing all bring accomplishment, expertise, and value that will invariably strengthen Kline’s abilities, reputation, and most importantly, the client’s experience.”

About Kline
Kline is a worldwide consulting and research firm dedicated to providing the kind of insight and knowledge that helps companies find a clear path to success. The firm has served the management consulting and market research needs of organizations in the chemicals, materials, energy, life sciences, and consumer products industries for over 50 years. For more information, visit www.KlineGroup.com.

PARSIPPANY, NJ, OCTOBER 8, 2012 –With estimated 2011 sales of $1.4 billion at the manufacturers’ level, the U.S. turf and ornamental pesticides and fertilizers market began to experience some firmness, according to the recently released Professional Turf and Ornamental Markets for Pesticides and Fertilizers: U.S. Market Analysis and Opportunities report published by global consulting and research firm Kline & Company.

Fertilizers remain the largest product category, accounting for over 43% of total sales in 2011, with herbicides ranking second at a little over 26%, followed by fungicides with almost 16% of the total.

Golf courses, with sales estimated at near $440 million in 2011, represent the largest end-use segment among those covered by the study. Lawn care operators rank second largest with a near 28% share of sales, dropping five percentage points over the last few years. Dennis Fugate, Industry Manager of Kline's Specialty Pesticides consulting practice, observes, “Lawn care professionals and landscapers have suffered, and some have left the business due to difficult economic conditions. The market obviously depends on housing and people’s confidence in the employment picture, and these indicators have not bounced back as quickly as most experts predicted in 2008 and 2009. However, the decline in the overall market value has also been exacerbated due to continuing pressure from generic suppliers of all chemical categories.”

Supplying the turf and ornamental market, the big basics manufacturers continue to hold a strong share, claiming 50% of the market. However, this share is down an estimated 15% over the last five years as mainly second tier basics or aggressive generic companies have gained share. According to Fugate, “The big basics are continuing to adapt their newly commercialized actives for the turf and ornamental market while protecting their mature brands as strongly as possible. Despite this, the top five basics manufacturers have lost significant market share as savvy new or second-tier players using generic versions of long-time proven actives have quickly created profitable, and relatively high profile businesses.”

Due to highly competitive generic actives pricing and strong marketing efforts, the market is being devalued as cost-conscious end users in lawn care, golf, and ornamentals take advantage of the perceived cost savings. Moreover, this approach has led to extremely rapid product proliferation in all categories, but especially in golf course fungicides where the number of different products used by surveyed golf course respondents has doubled since 2006. While product offerings in other categories, such as herbicides and insecticides, have tripled, the number of product applications has remained relatively steady.

Syngenta consolidated its already strong leadership in sales with the recent acquisition of DuPont’s turf and ornamentals insecticide business. Bayer, BASF, and Dow round out the top four players, with relative newcomer John Deere (formerly Lesco) emerging strongly with the sector’s fifth largest market share.

For data and insights from the global market inquire about Kline’s upcoming Global Professional Turf and Ornamental Markets for Pesticides and Fertilizers: Market Analysis and Opportunities.

About Kline
Kline is a worldwide consulting and research firm dedicated to providing the kind of insight and knowledge that helps companies find a clear path to success. The firm has served the management consulting and market research needs of organizations in the chemicals, materials, energy, life sciences, and consumer products industries for over 50 years. For more information, visit www.KlineGroup.com.

PARSIPPANY, NJ, SEPTEMBER 17, 2012–As the second largest consumer of synthetic latex polymers in the world after North America, the combined states of the EU-27 consumed nearly 2.5 million dry tonnes of synthetic latex polymers, valued at approximately EUR 5 billion, in 2011, according to Synthetic Latex Polymers Global Series: Europe Business Analysis and Opportunities, recently published by global consulting and research firm Kline & Company. While consumption of polymer dispersions in Eastern Europe, Russia, and Turkey is significantly smaller compared with the major part of EU-27, higher growth potential is forecast for these regions in Kline’s detailed analysis of the Eastern European Synthetic Latex Polymers Market.

The leading synthetic latex polymer consuming applications in Europe are paper, paints and coatings, and adhesives and sealants. These respective demands are expected to grow at different rates, but generally the European synthetic latex polymers market is expected to grow modestly over the next five years.

As a consequence of regulatory and voluntary initiatives in Europe, the switch from solvent-based to water-based paints is expected to continue with already the majority of decorative paints sold in Western Europe now being water-based. This evolution is directly and positively affecting upon synthetic latex polymer demand. However, implementation within the industrial coatings sector is still lagging given that they are under stronger technical pressure to provide high performance finishes and, in many cases, only solvent-based finishes can presently meet these requirements. In Eastern Europe, the penetration rate of water-based paints varies widely from country to country, but remains low therefore affording much potential.

The generally depressed construction sector in most of Western Europe and the consequent curtailing of synthetic latex polymer needs contrasts with the positive situation in Eastern Europe, Russia, and Turkey. In 2011, all major construction markets in the Eastern region, with a few exceptions, returned to growth. Civil engineering construction work, especially in the new EU member states where the infrastructure is being upgraded, is the main market driver. The constant improvements in living standards and consequent increase in the purchasing power within Eastern Europe, Russia, and Turkey bodes well for all industries.

Carboxylated styrene butadiene is the leading synthetic latex polymer used in EU-27, followed by styrene-acrylics and pure acrylics. This contrasts with Eastern Europe, Russia, and Turkey where styrene-acrylics dominate, followed by PVAc and redispersible powders.

The European market is dominated by three international players, Dow, BASF, and Synthomer (including recently acquired Polymer Latex), which hold a combined share of approximately 55%. In Eastern Europe, Russia, and Turkey, local producers of polymer dispersions are conversely playing major roles in shaping the competitive landscape. Organik Kimya, Argon Kimya, Agakim, Akrilan, Kuban Polymer, Nord-Sintez, Voronezh Sintez Kauchuk(Sibur), Synthos and Duslo Šaľa all compete fiercely with international players in the markets where they operate. In an effort to be more competitive, large multinational companies have started the production of polymer dispersions in the East: Dow in Russia and Turkey, and Momentive in the Czech Republic are prime examples of this evolution. Dow in particular is the leading supplier in Russia aided by its production facility in Ramenskoe. This local facility with its lower transportation costs and custom fees is giving the company a significant logistical advantage.

About Kline
Kline is a worldwide consulting and research firm dedicated to providing the kind of insight and knowledge that helps companies find a clear path to success. The firm has served the management consulting and market research needs of organizations in the chemicals, materials, energy, life sciences, and consumer products industries for over 50 years. For more information, visit www.KlineGroup.com.

The metalworking fluids industry faces a decade replete with changes, challenges, and opportunities.

PARSIPPANY, NJ, SEPTEMBER 10, 2012 –The metalworking fluids market accounts for approximately 6% of the total estimated 38 million ton global lubricants market. Significant contractions in automotive and metals production as a result of the global economic crisis led to depressed metalworking fluids demand. However, the recent rebound of the automotive industry, particularly in North America, has brought a significant uptick in demand for metalworking fluid products according to a recent study covering the metalworking fluids industry by global consulting and research firm Kline & Company.

Looking to the future, such market drivers including regulation, application, and innovation will have an impact on the metalworking fluids industry. From a volume standpoint, the consultancy predicts a growth rate of 3%, but this will not be enough to compensate for the significant volumes lost in 2008-2009. However, from a revenue perspective, robust growth is anticipated from increased interest in higher quality metalworking fluids such as synthetics, semi-synthetics/synthetic blends and water soluble products. Asia (primarily China, India, South Korea, Indonesia, Thailand, and Japan), Russia, and Brazil are expected to be the growth engines of the industry in the near future.

The metalworking fluids market is extremely fragmented with over 50% of served by smaller players who are focused on particular end-use applications, geographic area or both. These smaller but well-established and trusted marketers potentially represent lucrative turn-key acquisition opportunities for strategic buyers not yet active in this business or those wishing to increase their market share. Considerable interest has also been generated in the private equity community for opportunistic buy and builds in this industry. For example, Houghton became the global market leader after the addition of the DA Stuart and Shell metalworking fluid businesses.

Kline’s comprehensive study of the global metalworking fluids industry is presented in multiple programs – as a standalone Metalworking Fluids Global Series and as a part of Global Lubricants: Market Analysis and Opportunities. These studies will assist subscribers in understanding the lasting impact of the recession on this industry in terms of size, regions, product, technology, and market trends, and "post-recession" growth. This analysis provides metalworking fluid formulators, marketers, additive suppliers, and end-users with the latest information on products, services, applications, and trends.

About Kline
Kline is a worldwide consulting and research firm dedicated to providing the kind of insight and knowledge that helps companies find a clear path to success. The firm has served the management consulting and market research needs of organizations in the chemicals, materials, energy, life sciences, and consumer products industries for over 50 years. For more information, visit www.KlineGroup.com.

PARSIPPANY, NJ, SEPTEMBER 6, 2012–Although it is estimated that there will be a 3% increase in tonnage carried by private fleet operators in the United States through 2016, this is expected to translate to a marginal increase in commercial lubricant consumption according to Opportunities in Lubricants, 2011-2013: North American Market Analysis - Volume I: Commercial Automotive recently published by global consulting and research firm Kline & Company.

On-highway activity saw a surge in the latter half of 2010 that continued well into 2011. Similarly, the lackluster performance of the construction industry between 2008 and 2010 has begun to show signs of a rebound. However increased service implementation of longer drain interval oils due to a higher penetration of synthetics, growth in oil analysis practices, and an overall increase in commercial vehicles’ mechanical efficiency, mean that commercial lubricant consumption is expected to fractionally increase by a compound annual growth rate of just 0.4% to 1.0% to 2016.

Shell remains the leading supplier of lubricants in North America and accounts for an estimated 12% of the market share in 2011, followed by ExxonMobil, Chevron, and BP.

With the growing realization of the multifarious benefits of synthetics and their consequent steady uptake, value is rising while overall demand is being suppressed through inherently longer service intervals. Similarly, oil analysis, the laboratory analysis of a lubricant's properties, suspended contaminants, and wear debris, is being increasingly performed during routine preventive maintenance to provide meaningful and accurate information on lubricant and machine condition. By tracking oil analysis sample results over the life of a vehicle, lubricant consumption is optimized.

Re-refined engine oils are slowly making their way into the commercial automotive segment; however a majority of respondents participated in survey for the research cited concerns about OEM approvals of such grades and the possible non-availability on the highways, as major deterrents. In particular, the U.S. commercial trucking industry generally appears not yet prepared to accept re-refined oils; with a majority of equipment/maintenance managers interviewed conceding that reliability and logistics issues are prime considerations and impediments.

A number of farmers and farm cooperatives interviewed for this study showed minimal interest in using re-refined oils, believing that lubricants made out of re-refined basestocks are of an inferior quality. However, Tushar Raval, Kline’s Energy Practice Project Lead, notes the opportunity, “An immediate connect can be made by the way of marketing re-refined oils as ‘sustainable’ products and consequently more easily find favor from the farmer community.” Raval continues by suggesting, “Another—and certainly critical—way of successfully propagating the acceptance of these grades is by way of approvals and recommendations from OEMs, such as John Deere.”

With the imminent launch of the PC-11 HDMO category by 2016, Kline sought in its research to assess the current level of awareness and knowledge of this significant change. The general consensus is that the commercial segment is moderately aware of PC-11 and intends to adopt and comply with OEM engine oil recommendations as applicable to their respective fleets and operations when PC-11 becomes a reality. In the interim, it’s simply business as usual.

Kline’s Opportunities in Lubricants, 2011-2013: North American Market Analysis - Volume I: Commercial Automotive is an industry respected in-depth analysis of automotive finished lubricant products, end-use industries/trade classes, major suppliers, and market trends in the United States plus summary coverage of Canada and Mexico.

About Kline
Kline is a worldwide consulting and research firm dedicated to providing the kind of insight and knowledge that helps companies find a clear path to success. The firm has served the management consulting and market research needs of organizations in the chemicals, materials, energy, life sciences, and consumer products industries for over 50 years. For more information, visit www.KlineGroup.com.

PARSIPPANY, NJ, JULY 30, 2012 –Manufacturers’ sales of over-the-counter (OTC) medicine through alternate retail channels have grown by a compound annual growth rate (CAGR) of 9.4% from 2006 through 2011, far exceeding the 2.4% overall growth rate through all retail outlets. Retail sales online saw the highest increase with a CAGR of 16.1%, according to the recently published OTC Retailing: U.S. Alternate Channel Analyses and Opportunities report by global consulting and research firm Kline & Company. Expanding sales through alternate retail channels is viewed as an opportunity for OTC drug manufacturers to increase their revenues.

Although among the eight alternate retail channels profiled in this study, sales of OTC drugs—estimated at just 2.2% of total corporate sales in 2011—are relatively small, total corporate sales in these alternate channels have experienced strong growth of 13.3% in 2011.

The U.S. retail industry remains highly consolidated with a fairly small number of large retail chains that continue to dominate OTC distribution. The three main retail outlets consisting of drug stores, mass merchandisers, and food stores combined account for about 84% of OTC sales; however, other outlets such as the Internet, convenience stores, dollar stores, and warehouse clubs are offering noteworthy competition across several categories and account for nearly 15% of the OTC retail market.

The Internet is increasingly becoming a popular distribution outlet driven by convenience, as online shopping through websites allows consumers to quickly compare prices of products and offers direct and discreet shipping to the consumer’s home. As a reflection of the Internet’s ever growing importance and to expand its online reach, Walgreens acquires Drugstore.com in 2011.

Online sales of OTC drugs are growing at a rapid pace, but not equally for all OTC categories. For example, vitamins, minerals, herbal products, and OTCs such as pain relievers—products that consumers like to stock in their medicine cabinets—have a high rate of online purchase. However, OTC products for an immediate need, such as allergy relief, cough and cold preparations, and digestive products, tend to be purchased more often at brick-and-mortar stores.

Kline’s Healthcare practice Industry Manager Laura Mahecha cautions that, “Growth opportunities within the retail environment should be explored on individual channel and category bases. While some of the alternate channels, such as warehouse clubs, dollar stores, convenience stores, and online, can offer opportunity for growth in select categories and for certain brands, several other alternate retail channels ostensibly aren't prime candidates for an increase of branded OTC sales.”

Kline’s new report OTC Retailing: U.S. Alternate Channel Analyses and Opportunities is an astute assessment of both growth opportunities and the relative importance of alternate retail channels for OTC sales. Approximately 21 key retailers are profiled within the report with specific discussions pertaining to OTC sales with these retailers.

About Kline
Kline is a worldwide consulting and research firm dedicated to providing the kind of insight and knowledge that helps companies find a clear path to success. The firm has served the management consulting and market research needs of organizations in the chemicals, materials, energy, life sciences, and consumer products industries for over 50 years. For more information, visit www.KlineGroup.com.