The Impact of Natural Within Core OTC Categories  1/17/2018

Given impressive growth across natural and organic product categories, retailers should be looking for ways to strengthen their assortments and create appeal beyond core shoppers. This can lead to a shared objective for suppliers and retailers that can be mutually beneficial.

Kline & Company’s soon-to-be-released market research (Natural OTCs: Impact of Non-drug Products on the U.S. OTC Market) suggests that supply-side interest in natural products is mirroring widespread consumer desire for less synthetic products across categories, from food and beverages, to personal care products, to OTCs. The focus of my presentation at the upcoming ECRM Cough, Cold, Analgesics & Allergy EPPS -- to be held February 11 to 14 in Chicago -- will be to cover the impact of natural and organic products within traditional OTC categories. Natural OTCs are drug-free and may contain natural, plant, or herbal ingredients, or be homeopathic, and are used to support, prevent, maintain, or treat minor ailments such as colds, insomnia, aches and pains, or skin problems.

By introducing more of these products to their customers, mainstream retailers can capitalize on a movement that does not appear to have an end in sight. The most significant hurdles to achieving this is gaining visibility – and access – to the expanding array of products in the market, and freeing up the required shelf space to accommodate them.

As part of ECRM’s upcoming session, I’m looking forward to sharing ideas on how to take advantage of this unprecedented growth. I’ll discuss topics such as the impact the natural trend is having on sales, category management, promotions, and product introductions. In addition, I’ll comment on key areas retailers need to address, including consumer expectations, balancing traditional options, and product placement strategies. Finally, no presentation would be complete without several bold predictions for the future of natural.

It’s no secret that natural and organic products are responsible for driving sales in most every category. Furthermore, shoppers are now able to find natural products in most retailers in drug, mass, and convenience. We all need to provide more attention to this opportunity and put additional resources against the natural product segment.


Contact Dave Wendland

Vice President of Strategic Relations
Hamacher Resource Group

Dave Wendland is a 25+ year veteran of the consumer packaged goods industry and is passionate about optimizing the health, beauty, and wellness (HBW) retail experience for shoppers. A sought-after speaker for industry conferences and corporate events, Dave is also a regular contributor to HealthCare Distributor, Chain Drug Review, Drug Store News, Forbes Agency Council, and serves as a brain trust panelist for RetailWire.

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