At $29+ Billion, the Global Natural Personal Care Market is Naturally Strong, sees Kline

At $29+ Billion, the Global Natural Personal Care Market is Naturally Strong, sees Kline

PARSIPPANY, NJ, DECEMBER 10, 2013 –Despite variable economic conditions, the natural personal care market continues to see strong growth, posting a healthy 10.6% increase globally to reach USD 29.5 billion at the manufacturers’ level in 2013. Brazil and particularly China are the fastest-growing natural personal care markets, with sales in China increasing nearly 24% in 2013 and slowly challenging the United States’ global market share, according to recently published Natural Personal Care: Global Market Brief by worldwide consulting and research firm Kline & Company.

Growth within mature markets, driven by the large number of brands present in the regions competing on products, price, and product efficacy, remains impressive as exemplified by a 7% increase in the United States and 6% in Europe.

Zachary Ferrara, Project Lead for Kline in China, notes, “Within the flourishing Chinese market, while both domestic and foreign brands are enjoying growth, domestic ones still claim an estimated 80%+ share of the market. Notably, of these local players, those offering mostly TCM (traditional Chinese medicine) products account for approximately less than two-thirds of the Chinese natural personal care market. However, international natural brands are becoming more accepted by Chinese consumers as they are considered to be of a higher quality.” Remarkably, the last five years have seen several global brands enter the Chinese natural beauty market including Jurlique (2009), Kiehl’s (2009), and Origins (2010).

The strength of the Brazilian market is being driven by leading marketers Natura and O Boticário, which collectively claim an estimated 85% total market share. The Brazilian market is well-developed with regards to sourcing of organic and natural ingredients, but companies still have a high concentration of synthetics in their formulations.

The natural beauty market across the globe is extremely fragmented, with only six companies enjoying a share of 3% or more. The leading brands differ regionally with Aveeno and Bare Escentuals leading in the United States, L'Occitane and Saishunkan in Japan, Chando and Inoherb in China, and Yves Rocher and Oriflame in Europe.

The channel mix also varies significantly between regions. In Europe, pharmacies dominate the scene while mass outlets post the highest growth. Direct sales lead in Brazil, and health and natural food stores rank first in the United States.

Due to high manufacturing costs and limitations of natural preservatives, natural-inspired products are preferred by many manufacturers and they dominate the market. However, encouraged by growing consumer awareness and improved technology, several companies are seeking to reformulate their existing product lines to remove synthetic ingredients. With no strict government-mandated directives and standards, various certifying agencies are taking initiatives to regulate the market, but the challenge is to scan for its naturalness. Additionally, only a few marketers take the initiative to approach the certifying agencies to get their products certified.

Experiencing double-digit growth since 2008, the natural personal care market has seen a compound annual growth rate (CAGR) of 11.3% over the last five years and is projected to post an increase of 9.2% to reach $46 billion in 2018. Carrie Mellage, Vice President of Kline’s Consumer Products practice, notes “Although growth numbers have settled, many factors, including a focus on new natural ingredients, the opening of new channels of distribution, and consumer movement demanding greater transparency in labeling, are stimulating the industry. Moreover, marketers are offering products specifically designed for specific demographic groups like men and babies, thereby opening up greater opportunities.”

Natural Personal Care: Global Market Brief analyzes industry trends and development, market size and growth, product trends, major brand synopses, and competitive forces within the global natural personal care market. The report encompasses two optional in-depth companion reports, with comprehensive details and deep insights into the natural personal care markets in China and Japan.

About Kline & Company
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.

Sales Grow 6.2% for Crop Protection Distributors during 2013, Reports Kline

Sales Grow 6.2% for Crop Protection Distributors during 2013, Reports Kline

PARSIPPANY, NJ, DECEMBER 4, 2013 –With growth of 6.2%, the U.S. crop protection chemical industry is projected to become an $11 billion market at the distributor cost of goods sold (COGS) level during 2013, according to the recently published report Leading Distributors in the U.S. Crop Protection Industry: A Strategic Market Analysis by global consulting and research firm Kline & Company. By tracking the leading 17 distributors, the report covers over 96% of total crop protection chemicals sales within the United States. Sales reported include both private-label crop protection chemicals and adjuvants, which include surfactants, oils, water conditioners, and drift control agents.

Among the factors shaping the value of the 2013 industry are slight increases in corn, soybean, and wheat acres planted, growing biotechnology through seed and traits, as well as consolidation.

The 2013 season began cold and wet, delaying corn and soybean planting across many major corn-producing regions. Major crop acres planted increased by just 436,000 acres, less than 1% of the total; consequently, crop protection growth was driven by pre-season demand for herbicides, reinforced by strong concern over glyphosate-resistant weeds. Wet conditions throughout much of the United States contributed to reduced insecticide usage, but created demand for fungicides.

Distributor consolidation/expansion activity continued throughout 2013 with multiple acquisitions from both Wilbur-Ellis and Pinnacle Agriculture Holdings. Wilbur-Ellis acquired several agribusiness retailers including S&S Ag Supply, Blue River Ag Supply, Orchard Fertilizer, in addition to building a new agronomy center in Mott, ND. Pinnacle Ag Holdings, through its subsidiary Jimmy Sanders, acquired the assets of the Mayfield Grain Company, Freeman & Son Seed Company, 3-D Chemicals and Fertilizer, Mathis Farm Supply and Acuff Farm Supply. The “Big Three” national distributors—Agrium, Helena, and Winfield—have continued to follow a somewhat similar growth strategy.

Leading Distributors in the U.S. Crop Protection Industry: A Strategic Market Analysis identifies the U.S. crop protection industry as mature yet dynamic on a year-to-year basis with plenty of business opportunities for companies willing to take educated risks. Growth within this segment is being further driven by newer formulations and technology that support the highest-value crops. Biopesticide use will continue to grow as new regulations and effective use combinations with traditional chemistry are adopted.

This perennial report is written and developed as a tool for marketing professionals and executives to accurately assess the performance of the 2013 crop protection chemical market. By providing distributor COGS, the report affords industry professionals an actionable perspective of industry sales at the manufacturers’ level.

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.

Big Players Lead, but Smaller Ones Claim More of the Global Lubricants Market Turf, Sees Kline

Big Players Lead, but Smaller Ones Claim More of the Global Lubricants Market Turf, Sees Kline

PARSIPPANY, NJ, NOVEMBER 19, 2013 –With total 2012 global lubricant demand estimated at 38.7 million metric tons, the market is effectively flat over 2011; however, this belies many changes within. Both North America and Western Europe continue to stagnate below pre-recession levels, and despite Asia picking up in 2011, this market also waned in 2012, with the most significant change being a net decline in demand in China, according to recently published Global Lubricants: Market Analysis and Assessment by international consulting and research firm Kline & Company.

The United States remains the largest lubricant market, but its estimated 22% global share continues to decrease. The Asia-Pacific region is the leading region in terms of volume, but the high value markets remain predominantly Western Europe and the United States. Globally, Shell remains the market leader claiming 12% total market share, down slightly from 13% in 2011. Kah Peng Aw, General Manager for Shell Global Commercial Strategy Development said, “Our brands are important to us and it is reassuring that our strategy to enhance value is seeing results. We continue to drive our business forward with a value-led approach, be it in our world-class global supply chain, investments in cutting-edge technical innovation or market-leading products.”

ExxonMobil and BP follow with 10% and 7%, respectively. While Shell is expected to remain among the market leaders in the immediate future, it is the middle pack—regional majors and NOCs—that are anticipated to see the most changes, with companies like Fuchs and Gazprom expected to claim some market share from the top five leaders. In 2012, for example, Fuchs finds itself within the global top ten for the first time.

With the lubricant demand being sluggish worldwide, Group I base oils have been mostly squeezed out of automotive lubricants, particularly in North America, by low-sulfur content mandated reformulation trends and increasingly cost-effective Group II alternatives. Consequently, Group I producers are being impelled to focus more on the industrial sector despite the competition from low-cost naphthenics and Group II oils in some applications. As a result, the proportion of Group I stocks in global base oil consumption has been falling steadily from around 70% in 2000 to 54% in 2012, and it is expected to continue declining to approximately 30% by 2030.

A combination of increasingly stringent emission and fuel-consumption norms, more exacting OEM specifications, and volume allowing a more attractive cost-proposition, are among the leading factors promoting an increased market share of synthetic and semi-synthetic alternatives.

Although presently satisfying a modest demand, regulations in Europe—and increasingly in North America—are supporting growth in the re-refining sector. Already strong basestock prices prior to the recession caused a significant interest in re-refined basestocks. With OEMs generally not objecting to the use of re-refined basestocks, as long as the quality and performance of the final product meets its specifications, astute marketing and consumer education are key to realising this stream's significant potential.

Kline’s Global Lubricants: Market Analysis and Assessment offers a comprehensive assessment of the global markets for finished lubricants and the suppliers that participate in them.

About Kline & Company:
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.

Smile – The U.S. Professional Oral Care Market is Showing its Teeth, Sees Kline

Smile – The U.S. Professional Oral Care Market is Showing its Teeth, Sees Kline

PARSIPPANY, NJ, NOVEMBER 13, 2013 –With a compound annual growth rate (CAGR) of 5.1% over the last three years, manufacturers’ sales of professional oral care products in the United States are offering much to smile about with sales in 2013 alone estimated at $426.5 million, according to Professional Oral Care USA, which includes extensive research with dentists and dental hygienists by worldwide consulting and research firm Kline & Company.

Caries remain the leading therapeutic indication within the professional oral care market in 2013, claiming sales of over 43% of the total U.S. market due to sales gains of fluoride varnishes. Fluoride varnishes are preferred over other topical fluoride therapy treatments such as gels and foams due to their ease of application, efficacy, and safety of these products. Abetting the popularity of fluoride varnishes has been the addition of amorphous calcium phosphate (ACP), allowing a greater fluoride uptake to the tooth. However, this market dominance is being slowly eroded by the rapidly growing whitening therapeutic indication, with sales estimated at over $117 million at the manufacturers’ level in 2013, reflecting a CAGR of 10.5% from 2010. Encouraged by convenience, cost advantage, and technological advances, take-home whitening treatments dispensed through dentists’ offices have been gaining popularity over in-office treatments.

Laura Mahecha, Kline’s Healthcare industry manager, has pointed out a consequence of this success: “With newer whitening treatment formulations having built-in desensitizing ingredients, one of the biggest disadvantages of take-home whitening alternatives has been addressed. However, the increased sales of advanced whitening treatments containing desensitizers have had a detrimental effect on sales of sensitivity products given that consumers no longer need to purchase additional sensitivity products.”

Despite this challenge, manufacturers’ sales of anti tooth-sensitivity products have seen a CAGR of 3.4% over the last three years. Other significant trends observed include the introduction of periodontal products targeting pediatric patients. With a view to fostering good oral hygiene habits early, companies such as Procter & Gamble are offering products catering to specific age groups/development ages of children including Oral-B Pro-Health Stages 4-24 Months Toothbrush, Oral-B Pro-Health Stages 2-4 Years Toothbrush, and Oral-B Pro-Health 5-7 Years Toothbrush.

Given Kline’s findings on the high importance of brand loyalty, this early engagement is a worthy long-term strategy. Kline’s research has found that consumers tend to purchase brands that they have used since childhood; moreover, they are likely to pass on their habits to the next generation. Conversely, dental professionals will often recommend oral care products based on their active ingredients rather than specific brands.

An estimated 60% of total U.S. professional oral care market sales in 2013 is claimed by the top five marketers, with Colgate-Palmolive leading with 14.6% market share, followed closely by 3M and Philips.

Kline’s comprehensive report also analyzes unmet needs and new technologies of interest as expressed by dental professionals. These include air flossers, better plaque removal methods, calcium augmenting products with low antibiotic content, and oral cancer detection products.

Kline’s Professional Oral Care USA is a comprehensive assessment of the U.S. market for professional oral care products used and sold to consumers through dental professional offices. The combination of information from the marketers and dental distributors with that from dental professionals makes this report unique and indispensable. Mahecha notes, “Successful marketers need data on volume and value changes, brand dynamics and distribution trends in order to effectively plan strategies. This timely research will allow first-hand insights from dental professionals about categories/brands and reveal dental professionals’ unmet needs for professional oral care products.”

About Kline & Company:
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.

50 Years Old and Still Looking Fabulous – Kline’s Cosmetics & Toiletries USA Study Celebrates a Golden Jubilee

50 Years Old and Still Looking Fabulous - Kline’s Cosmetics & Toiletries USA Study Celebrates a Golden Jubilee

PARSIPPANY, NJ, NOVEMBER 7, 2013 –Celebrating half a century of authoritative personal care market insights in the United States, worldwide consulting and research firm Kline & Company is further expanding its comprehensive Cosmetics & Toiletries USA research with an enhanced database yielding even greater flexibility to users. With a granularity extending to consumer insights, an assessment of the ever-growing naturals trend, male grooming segment, and professional segments of skin, hair, nail care, and aesthetics markets, Kline’s five-decade-old vigor remains unabated.

From the first antibacterial soap Dial introduced in the United States in the 1940s, through to packaging shifts from glass bottles and jars to plastics and cardboard boxing, from the heavy makeup disco era and surge of women entering the workforce in the 1970s and 1980s, the U.S. cosmetics and toiletries market has continually undergone societal, economic, demographic, and—more than ever— ecological changes. Kline has observed and diligently tracked these for 50 years, expanding its remit as consumers’ expectations have evolved.

Many factors have shaped this market over the last 50 years. Most recently, it was the spillover from the latest economic crisis resulting in weakened consumer confidence and more modest spending habits; however, this helped to spawn many new trends including products with multiple benefits and value packaging, and “professional results at home” as a popular claim.

Additionally, the landscape for retailing and marketing beauty products has changed dramatically over the last decade owing to new technology. Brands, going omni-channel, are utilizing all types of technology from mobile apps and social media to in-store and online tools to engage the consumer. Direct sales—driven by e-commerce—and specialty stores, engendering a fun retail environment with new products and exciting services are now posting the highest growth rates.

To embark on most recent trends, 2012—a year notable for the success of smaller niche personal care brands and an increasingly attractive M&A environment with large companies continuing to emphasize growth agendas—saw resilient growth of 3.4%.

When sales of lipstick and lip gloss—usually a good performing category during hard times—declined in 2009 by 5.3%, the nail polish trend emerged with the category posting double-digit growth due to the return of nail colors in the fashion world, as well as consumers’ shift from nail salons to at-home applications. Fueled by innovation, the nail polishes category is continuing its success, shining with 17.4% growth in 2012.

As part of the multi-functionality trend, SPF is enjoying popularity within many segments. With sun exposure linked to premature aging, skin care and makeup marketers are adding SPF functionality to many products; however, this tendency is cannibalizing sales from the 2011 growth leader—the sun care products category.

While a natural look was promoted in the 1990s, the new millennium saw the new ecologically inspired natural trend emerge with consumers seeking safer and more environmentally friendly products, driving this nascent segment more mainstream. By 2009, natural products were no longer exclusive to the premium market and they continue to proliferate through mainstream channels. Although not immune to the downturn in the global economy, the natural personal care market has recovered quicker than any other segment. More telling is the surge in truly natural product sales, which shot up over 13% in 2012, with natural-inspired products seeing just over 11%. Beauty products targeting specific demographic groups were successfully initiated in the 1980s, and the trend continues to evolve. Recognizing the increasing importance and specific needs of given demographics, this year Kline extends its U.S. personal care portfolio with the Multicultural Beauty and Grooming Products series of reports.

Often described as the industry’s “bible,” Kline’s flagship study Cosmetics & Toiletries USA encompasses market size and share data, retail sales, channel breakdowns, trends, and forecasts for 26 major product categories and detailed profiles of 30 leading marketers and 150 smaller and up-and-coming players.

About Kline & Company:
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.

Injectibles – the Pointy Edge of the Non-invasive Aesthetic Products Market, but Body Contouring is Shaping it, Feels Kline

Injectibles – the Pointy Edge of the Non-invasive Aesthetic Products Market, but Body Contouring is Shaping it, Feels Kline

PARSIPPANY, NJ, OCTOBER 8, 2013 –Growing by almost 500% over the last 20 years, non-surgical cosmetic procedures are mirroring consumers’ preferences for minimally-invasive treatments. In line with demand for these non-surgical procedures, 2012 sales of professional aesthetic products saw an increase of 7.5%, according to the recently published Professional Aesthetics: U.S. Market Analysis and Opportunities study, by worldwide consulting and research firm Kline & Company.

Key factors driving growth include greater awareness of in-office treatments and their benefits, less down time and discomfort, with a whole body of treatments and increased distribution similarly contributing to the market’s overall growth.

“Enhancing Kline’s long respected skin care market research portfolio, we felt this was an important market to thoroughly assay as it is the missing link within the professional skin care equation. There are essentially three levels of how skin care concerns can be addressed on a professional basis - with topical products purchased at a spa or from a doctor, using an at-home device, or having an in-office treatment performed using a laser, IPL, or injectible. This report completes the loop,” explains Karen Doskow, Industry Manager at Kline’s Consumer Products Practice.

The considerably consolidated injectibles market continues to drive overall market growth, with new products such as Belotero Balance from Merz entering the market in 2013, while body contouring and cellulite reduction is the most dynamic addressed skin concern. Injectibles account for just over half of total market sales while body treatment products are growing at close to 20% in 2013 due in part to good alternatives now offered to liposuction. Additionally, the first FDA-approved laser system for cellulite treatments, Cellulaze by Cynosure, was introduced recently.

Several key marketers are offering devices with upgradeable features to accomodate a larger number of skin concerns. For example, Cutera’s Xeo Platform offers upgradeable capabilities that include specialized attachments enabling skin fitness, hair removal, and vascular therapies using the same device. Some aesthetic devices are claimed to address as many as 22 skin care concerns. Professional aesthetic devices providing multiple benefits is an increasing trend particularly within the energy and mechanical devices category. This category is also showing the fastest growth due to its technological advances, and consequently more effective and permanent results.

Aesthetic devices manufacturers are keenly interested in expanding their direct reach into the consumer market by launching devices for at-home use. To this end, several professional aesthetic products manufacturers have partnered with consumer goods marketers, as exemplified by Unilever’s partnership with Cynsoure to introduce at-home beauty devices for skin rejuvenation treatments, and the Syneron/Procter & Gamble partnership to utilize Syneron’s proprietary ELOS technology for at-home devices applications. Syneron has been successful in building its own at-home device franchise, Tanda. This year, the company has expanded by creating an at-home device market for teeth whitening with the launch of Tanda Pearl.

What’s next? New areas for at-home products? Patches that replace injectibles? Will Micro-needling become the new low-cost alternative to laser and IPL procedures? Kline is already finding that micro-needling is the fastest growing segment, with sales increasing by 87.5%.

After successful reporting on the professional skin care products and at-home beauty devices markets, Kline now completes the full loop of how skin care concerns are being addressed, with Professional Aesthetics: U.S. Market Analysis and Opportunities. This new report enables subscribers to better target opportunities in one of today’s most vibrant markets of the beauty industry – lasers and energy devices, and injectibles for aesthetic skin care use.

About Kline & Company:
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.

Synthetic Latex Polymers – A USD 30 Billion+ Market that’s Building Globally, Sees Kline

Synthetic Latex Polymers – A USD 30 Billion+ Market that’s Building Globally, Sees Kline

ARSIPPANY, NJ, SEPTEMBER 30, 2013 –Consisting of a 10 million dry tonne, USD 30 billion+ market, the global synthetic latex polymers (SLP) market is a sizeable one. Although the North America and European markets remain the largest consumers of synthetic latex polymers, claiming some 56% of global volume, strong shifts are being seen in markets as diverse as China, India, and the Middle East according to recent findings within the Synthetic Latex Polymers Global Series: Business Analysis and Opportunities report by international market research and management consulting firm Kline & Company.

Nikola Matic, Kline’s Chemicals & Materials Practice industry manager, notes, “With growth notably outpacing mature markets, China now claims a quarter of global SLP consumption, but it’s the comparatively smaller markets of India and the Middle East that are gaining significantly greater importance and rank among the fastest growing.” While global SLP consumption is expected to grow 2.3% through to 2017 - with both the United States and Europe anticipated see growth of less than 2% - China, India, and the Middle East are forecast to comfortably exceed this average by growing 7.1%, 12.4%, and 5.4%, respectively.

Although buffeted by the sluggish economies of North America and Europe, China’s domestic reorientation, increasing standards of living, and infrastructure investment has seen it consume 2.4 million dry tonnes of synthetic latex polymers, with an estimated value of USD 7.2 billion. With an increasing level of competition and subsequent decreasing profit margin for the majority of synthetic latex polymers, acquisitions with a view to drive economies of scale have been a notable market trend within the Chinese market.

India’s SLP market is particularly notable for the strength of its domestic manufacturers. The leading five suppliers of synthetic latex polymers in India claim over 60% market share, with the top three players in the market being Indian, competing with significant success against large multinational companies, such as Dow Chemical, BASF, and Wacker.

While China and India certainly afford impressive potential, it is the Middle East that is becoming a particular area of interest for a growing number of notably European suppliers given the region’s proximity. As elaborated within Kline’s Synthetic Latex Polymers: Middle East Market Analysis and Opportunities, the Middle East represents a singular region both in terms of consumption and supply of SLP. SLP consumption differs here in comparison to many regions, with, as an example, the consumption of styrene butadiene latex being exceptionally low given the near non-existent paper industry within the region. Another Middle Eastern regional singularity can be sourced to the large share of building construction and its related applications (notably paints and coatings, and adhesives and sealants). After the construction boom of the last decade, and its large slow-down after the global crisis, the industry (notably in the United Arab Emirates and Saudi Arabia) is recovering and stimulating the growth of SLP consumption.

Claiming a total of 87% of the region’s demand, Egypt, Israel, Saudi Arabia, and the United Arab Emirates, are the major markets within the Middle East. The supplier landscape is also noteworthy within the Middle East, with a mix of strong local companies competing with multi-national concerns. Despite the threat of geopolitical volatility within this region possibly crimping growth potential, SLP consumption is still expected to see a far above-average growth rate of 5.4% growth until 2017 with acrylics and VA copolymers being the fastest growing products, and the paints and coatings application sector is expected to enjoy growth of 7.7%.

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.

50 Years Old and Still Bounding Over the Counter: Kline’s Healthcare Practice Continues to Deliver Unmatched OTC Market Intelligence

50 Years Old and Still Bounding Over the Counter: Kline’s Healthcare Practice Continues to Deliver Unmatched OTC Market Intelligence

PARSIPPANY, NJ, September 24, 2013 With over half a century of market insights on the U.S. consumer healthcare market, Kline & Company expects that new paradigm shifts in regulations, retail, and technology will create new opportunities for medications to move along the Rx-to-OTC continuum and more growth prospects for the U.S. OTC market. Additionally, with the OTC medication market in the United States nearing $23 billion in 2012 alone and with the FDA - through its recent NSURE (Nonprescription Safe Use Regulatory Expansion) initiative - showing encouraging indications that it is becoming more receptive to allowing more Rx-to-OTC switches, the U.S. OTC market is fast returning to pre-recession health.

Celebrating its 50th anniversary, Kline’s distinguished Nonprescription Drugs USA report continues to provide the most comprehensive market intelligence expanding its longstanding OTC drugs industry know-how to include indispensable research on related topics including Natural OTCs, OTC Retailing, OTC Innovations, Impact of Recessions on the U.S. OTC Market, OTC Drugs: U.S. Competitor Cost Structures, OTC Consumer/Shopper Insights and a series of reports on Rx-to-OTC Switch.

In recent years, the U.S. OTC market has been hindered by significant product recalls by major players, with the resultant vacuum - abetted by recession-affected ever cost-conscious consumers - largely claimed by private-label alternatives. Laura Mahecha, industry manager at Kline’s Healthcare Practice, adds, “The impact and profound magnitude of ongoing economic uncertainty is borne out by more than half of respondents in a recent Kline survey disclosing that they’d changed how they purchased OTC drugs. Specifically, nearly a quarter of those surveyed choose private label OTC drugs whenever possible because of their perceived cost advantage.”

Despite the stronghold private-label products have on the market and the highly competitive nature of this market, there is still room for OTC brands to grow and prosper in the coming years with increased focus from major companies on innovations, new product launches and line extensions, and strategic marketing plans.

Currently, Rx-to-OTC switches continue to be a major force driving the OTC market as they increasingly involve large widely used products and drive demand by bringing ex-Rx users to the OTC market. Major Rx-to-OTC switches introduced since 1976 account for nearly $4,555 million in sales in 2012 and represent 32.8% of overall OTC sales (excluding home diagnostics, vitamins and minerals, and herbal products). The increased numbers of switch approvals by the FDA are expected to lead to future gains for the U.S. OTC market and could even create brand new, never-before-available-without-a-prescription categories.

The U.S. OTC market has evolved markedly, beginning with the FDA establishing an OTC review/Monograph system in the 1970s and the landmark Rx-to-OTC switch of hydrocortisone and its subsequent inclusion in OTC first-aid and anti-itch medications. The 1980s saw a recession fuelled spike in private-label OTC sales and the approval of ibuprofen as an OTC drug, in addition to the approval of many allergy, cough, and cold ingredients bringing brands like Nyquil, Benadryl, Triaminic, and Actifed to market.

View our 50 year overview graphic on
EVOLUTION OF THE U.S. OTC MARKET 1963-2013.
Download the file HERE or copy paste http://bit.ly/50yearsNPD.

There are challenges for OTC marketers including but not limited to private-label competition, retailer SKU rationalization, cost-conscious consumers, consolidated number of competitors, and increased scrutiny of manufacturing and quality assurance procedures. However, opportunities exist to see increased levels of growth over the next few years for the companies that have solid brands, good claims, strategic marketing, a steady stream of innovations and line extensions, and efficient and compliant processes.

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.

Kline Marks 10th Anniversary of Professional Skin Care Research with an Exclusive Look at Seven New Untapped Markets

Kline Marks 10th Anniversary of Professional Skin Care Research with an Exclusive Look at Seven New Untapped Markets

PARSIPPANY, NJ, SEPTEMBER 17, 2013 –With a decade of experience in presenting indispensable market insights and analysis that have propelled the global professional skin market forward, worldwide consulting and research firm, Kline & Company, is celebrating the 10th anniversary of its Professional Skin Care Global Series report with its newly expanded coverage of seven of the world’s up-and-coming markets.

The 2013 edition of the industry’s longest-running report of its kind will examine emerging market opportunities in Thailand, Indonesia, Benelux, Poland, Russia, South Africa, and Canada, along with continuing coverage of Brazil, the United States, and India.

“Over the past decade, our Professional Skin Care Global Series study has provided a comprehensive and accurate coverage of market shifts, challenges, and opportunities in the industry, enabling our clients to access the critical data they need to stay ahead of competition,” says Karen Doskow, Kline’s industry manager. She adds, “As the mature markets have stabilized, we’re harnessing that knowledge and expertise to shift our focus toward those markets where we expect to see the greatest potential.”

Among the most notable trends of the past 10 years, according to Doskow, market consolidation and technology evolution have been hallmarks of the industry. In the United States, for example, the top five brands now account for nearly 40% of market share, and beauty leaders, like Procter & Gamble and L’Oréal, have acquired professional brands to add these products to their portfolios. As a result, the technologies and active ingredients once found exclusively in professional skin care lines have infiltrated the mass market, giving consumers broader access to professional-quality products across a wider range of price points, while also expanding the reach of mass-market manufacturers. This has kept professional product manufacturers on their toes, driving continuous innovation to develop new products that promise greater efficacy, novel delivery systems, and other breakthrough developments.

From a regional perspective, Kline has documented the global wave of market growth in detail as it peaked in North America and built momentum in Western Europe and the BRIC countries. Industry growth in the United States peaked in 2008 at 7.5%, before levelling off at 3% in 2012. In Europe, 2007 saw growth surge to a 9.5% CAGR, followed by a steady decline to a CAGR of just under 2% in 2012 in the wake of the global recession. China and South Korea have both continued to post stellar increases of over 9% CAGR respectively, to buoy global markets with an overall 5.3% growth rate.

On the new untapped markets, Kline Vice President Carrie Mellage, says, “Kline is uniquely positioned to continue providing competitive insights into the market channels, and brands that the industry has come to depend on.” Mellage continues, “These new markets display similar characteristics to those we saw in China, South Korea, and Brazil that tipped us off to growth opportunities—a rich tourism industry, a growing middle class, and increasing Internet and mobile connectivity that exposes consumers to new products and creates organic demand. As we take our first deep dive into these new regions, we expect to uncover data that will be invaluable for skin care product marketers across the spectrum.”

Kline’s Professional Skin Care Global Series report is a comprehensive analysis focusing on market size and growth, key changes in sales channels, the distribution and competitive landscape, and new product trends. The report includes country-level demand data, as well as regional and world overviews by country, channel, product category, product segment, company, and brand. Subscribers also gain access to Kline’s interactive online database, which aids in competitive intelligence, strategic planning, new business development, and screening potential acquisition and alliance partners.

About Kline & Company:
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.

A Market with Bite – Kline Announces Professional Oral Care USA Report

A Market with Bite – Kline Announces Professional Oral Care USA Report

PARSIPPANY, NJ, July 10, 2013 –Increasing awareness of the importance of proper oral health and hygiene and its link to overall health and the mainstreaming of aesthetic dentistry are resulting in a market for professional oral care products with teeth. With the American Dental Association’s educating and increasing awareness among Americans regarding their oral health, the market for professional oral care products is even more pertinent.

Identifying the importance and yet inadequately assessed professional oral care market, internationally recognized market research and management consulting firm Kline & Company is announcing the undertaking of a comprehensive study Professional Oral Care USA providing authoritative and granular data on the professional oral care products used and sold to consumers through professional dental practices. The report will fill the holes within marketers' understanding of trends and the components of change behind them.

Based upon extensive primary and secondary research with marketers and dental distributors along with structured interviews with dental professionals this report will allow marketers to confidently update their strategic and tactical plans. Laura Mahecha, Kline’s Healthcare Industry authority, notes, “Successful marketers need data on volume and value changes, brand dynamics and distribution trends in order to effectively plan strategies. This timely research will allow first-hand insights from dental professionals about categories/brands and reveal dental professionals’ unmet needs for professional oral care products.”

This exclusive edition will provide a combination of dental professional insights and market size data and market trends on professional oral care products across major therapeutic indications including caries, sensitivity, perio/gum health, and whitening. The report will include in-office vs. take-home use of these products. This report will exclude consumer oral care products sold at mass retail outlets, such as drug stores, mass merchandisers, food stores, warehouse clubs, online, and other retail outlets.

Subscribers to Professional Oral Care USA report will benefit by accessing a comprehensive, independent source of information and insights on the U.S. professional oral care market, and accurate sales data through professional outlets based on primary research with knowledgeable industry participants. In addition to being a source of valuable competitive information and intelligence, the research will identify potential acquisition candidates within the professional oral care market.

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.