• 
  • Company Bios
  • Jobs
• 
  • Industry Definitions
  • Product Library
  • SPINSscan Reporting
  • SPINSsight Consulting
  • SPINSsystems
• 
  • Partner Benefits
  • Reporting Suite
  • Get Started
• 
• 
  • PR Requests
  • Market Trends
  • Newsletter
  • Event Calendar
  • Press Releases
• 

Will Echinacea Sales Take A Hit from New England Journal of Medicine Study?

And if so, what natural remedy may cold-sufferers turn to next…

By David Browne, SPINS' Director of Content Services

Last week, in a highly publicized study, the New England Journal of Medicine reported that echinacea was ineffective in both preventing colds and treating cold-related symptoms. With the herb ranking number one in sales of medicinal, herbal-based supplement formulas (52 weeks ending 6/11/05, SPINSscan Natural and Conventional Channels), and appearing in food products ranging from teas to functional beverages, it is likely that these findings will have a noticeable effect on the Natural Products Industry. SPINS' Director of Content Services, David Browne takes a closer look at the industry's response to the study, echinacea sales, and potential growth opportunities for alternative natural cold remedies and prevention.

On July 28th, the New England Journal of Medicine (NEJM) published a joint US-Austrian study, funded by the National Center for Complimentary and Alternative Medicine (NCCAM), on the efficacy of echinacea in the prevention and alleviation of cold symptoms. Researchers administered extracts of echinacea angustifolia or a placebo to 437 volunteer college students seven days prior to exposing them to the rhinovirus, a virus that causes the common cold. Then echinacea or a placebo was given to other participants in the group at the same time as exposure. The symptoms of both groups were observed for five days following exposure.

Researchers found that administering the echinacea preparation had no affect on rates of infection or the severity of cold symptoms, leading them to conclude that "extracts of E. angustifolia root, either alone or in combination, do not have clinically significant effects on infection with a rhinovirus or on the clinical illness that results from it".

The Industry Response
Ultimately the reaction from the Natural Products Industry has been focused on the study's choice of echinacea variety as well as the potency of its dosage.

The extracts used in the study were produced in a university laboratory and are not commercially available to consumers. The dosages were equivalent to 900 milligrams of dried echinacea root per day, which is three times lower than the dosages recommended commercially and by organizations such as the World Health Organization (WHO) and the Canadian Natural Health Products Directorate. The study's dosage was determined under the direction of Dr. Rudolph Bauer, a professor of pharmaceutical biology at the Karl-Franzens University in Graz, Austria and it corresponds to levels set by the German government based on echinacea research done in the early 1990s.

Other industry players have also responded to the results of the NCCAM study. The American Botanical Council (ABC) has posted a highly visible link on their website to a 12-page extract from their book “The ABC Clinical Guide to Herbs”. They have made the entire chapter on echinacea available for download, including the Clinical Overview, Patient Information Sheet, and a complete monograph reviewing 21 clinical studies and involving over 3,500 participants. The monograph affirms that 18 of these studies demonstrated the positive effects of echinacea for the prevention and alleviation of symptoms from the flu and the common cold.

The message from the American Herbal Products Association (AHPA) as well as the ABC is that this study is only one trial of many on the efficacy of echinacea, and that all commercial echinacea products will not have the same results. Additionally, consumers should be certain to follow dosage recommendations when using their favorite brand of echinacea.

Some Clinical Herbalists have questioned whether researchers compared levels of chemical constituents in the study's echinacea preparations to those in an equivalent amount of a fresh root preparation of the same plant. Dried plant preparations of echinacea are commonly scrutinized among herbalists as having chemical constituents that do not remain stable through conditions such as heat drying, exposure to oxygen, and other environmental factors. Therefore a fresh plant extract of the root may have much higher levels of certain constituents than a dry plant extract which may have little or none of the same constituents.

Sales of Echinacea
Echinacea can be found in a variety of food products ranging from teas to functional beverages, and is used medicinally in capsules, liquids, syrups, and throat lozenges. Echinacea sales in food, beverage, and supplement categories exceeded $67.9 million for the 52 weeks ending 6/11/05, across U.S. A-sized Natural Products Supermarkets and Food/Drug/Mass combined. While year-over-year growth is down -7.7%, the herb ranks among the best selling of all medicinal herbal-based supplement singles and blends.

*Percentage growth information represents Year Ago sales

Other Key Immune Boosters
Consumers that wish to purchase natural cold and flu remedies have a wide variety of options and are often motivated by label claims. SPINS tracks the sales of dietary supplements marketed for the treatment of over 80 health concerns. According to data covering the natural and conventional channels combined, echinacea is number three in dollar sales after Vitamin C and homeopathic remedies for the Common Cold health concern. Despite echinacea’s success, its sales may be adversely affected by this new study. If media attention continues into the fall and winter months, consumers are likely to look for natural alternatives to the herb. Several of these alternatives are experiencing growth in the cold and flu supplements segment:

For the 52 weeks ending 6/11/05,
	Herbal extracts of elderberry are growing at more than 35% across natural and conventional retail channels in Food, Beverage, and Supplements categories. Elderberry has anti-viral properties and it has long been used in Europe to treat the flu.
	Herbal cold and flu formulas containing maitake and other mushrooms have experienced sales growth of over 21% in the natural channel. The ‘power' mushrooms have strong immune-boosting effects and are used in dietary supplements for a variety of immune support functions.
	Homeopathic cold and flu combination remedies account for $118 million in sales in both channels with a diverse array of brands and items driving sales. In the conventional channel, best-sellers include Zicam and Cold-eeze, two formulations made with a homeopathic zinc preparation. The formulas are nasal sprays and lozenges respectively, and claim to shorten the duration of colds dramatically. In the natural channel, one of the more recent and promising entries in the category is from Nature's Way. Their Umcka ColdCare line is made from Pelargonium sidoides - a geranium species from South Africa.
	Despite its challenging name, Boiron's Oscillococcinum flu medicine has had long-standing success in the natural channel, is a top-seller in the conventional channel, and is among the fastest-growing items in the conventional channel.

Monitoring Industry Trends
SPINS will continue to follow the sales trends for echinacea and other cold and flu remedies that may be affected by the NEJM report. Contact SPINS to find out how our retail and consumer measurement services can help you make informed business decisions in response to trends in the dynamic Natural Products Industry.


References
1. Turner RB, Bauer R, Woelkart K, et al. An evaluation of Echinacea angustifolia in experimental rhinovirus infections. The New England Journal of Medicine. 2005 353(4): 341-348.
2. Kolata, Gina. "Study Says Echinacea Has No Effect on Colds", New York Times 28 July, 2005.
3. The American Botanical Council: http://www.herbalgram.org

About SPINS
San Francisco-based SPINS was founded in 1995 as the first company to offer Natural Products movement data to the industry. Today, it is the premier provider of industry reporting and consulting services for this rapidly expanding sector. SPINS' comprehensive offering includes retail measurement services, content-based reporting, consumer information and consulting services. Learn more at www.spins.com.