Sleep Aid Products in the U.S. Market: Non-Prescription OTC, Natural and Alternative Remedies

Chapter 1: Executive Summary
: Scope; Methodology; Serious Sleep Disorders Affect 40 Million Americans; Total Sleep Industry Sales Conservatively at $20 Billion; Total OTC Sleep Aids Market Reaches $604 Million

Figure 1-1: Total U.S. Over-the-Counter Sleep Aids Market, 2004-2008 (in millions of dollars); OTC Sleep Aids Market to Reach $759 Million by 2013

Figure 1-2: Total U.S. Over-the-Counter Sleep Aid Market, 2008-2013 (in millions of dollars); Natural Sleep Sales Likely Slowed 2008

Figure 1-3: Total Natural Stress and Sleep Aids Market, 2004-2008 (in millions of dollars); Natural Sleep Aid Supplement Sales to Grow at a CAGR of 10%

Figure 1-4: Natural Stress and Sleep Aids Market Forecast, 2008-2013 (in millions of dollars); Factors to Growth; Prescription Sleeping Pill�Worth the Cost?

Perceived Emotional Benefits May Suffice

Potential for Backlash against New Wave of Prescriptions; OTC Sleep Aids Fill an Important Niche

OTC Sleep Aids Growth Threatened By Natural Sleep Aid Products; Alternative Products Market a Threat or a Companion?; Competitive Landscape; Chattem Emerges as a Player with Unisom; Small Companies to Watch; Trends: Challenges and Opportunities; Forces Are Converging on the Sleep Products Market; Average Weeknight Sleep is Six Hours and 40 Minutes; 30% of Americans Extremely Stressed

Women More Likely to Be Stressed

Table 1-1: APA�s Top Stress Symptoms, Female vs. Male, 2008 (percent)
Women Have Special Sleep Challenges; Only 20% of Children Get Optimal Sleep

Increasing Childhood Obesity Equals Increasing Sleep Issues; Environmental Cause: Urbanization Clouds Rest; Travel Impacted By Recession Fears; Trend toward Self-Care to Enhance Sleep Aids Market

Consumer Health Information Websites See Increasing Activity; Complementary and Alternative Medicine Growth; Increased Medical Costs; Is The Medical Community Fully Aware of Sleep Issues?; Product Trends and Innovations; 2008 Sleep-Related New Product Introductions

Upscale Was Top Package Tag; Alternative Delivery Systems; Products Work While You Sleep; Aromatherapy Sleep Aids Often In Bath and Body Products; Color Therapy Sleep Enhancement: Pseudo-Science or Chakra-liscious?; Listen Up to Sound Therapy; Alternative Beverages for a Refreshing Sleep; Bringing the Doctor�s Office In-home; Products That Readjust the Body Clock; Women-Focused Products Abound; Kid-Friendly Products; Products for Aging Population; Better Sleep During Travel; Sleep with the Environment in Mind; Marketing and Retail Dynamics; Marketing and Retail Trends Overview; Despite Economy There Is Opportunity for Marketers to Engage Loyal Consumers and Innovate; Major Marketers A Threat?; Best Avenues for Outreach in Challenging Economy

Direct Response TV Trends Upwards in Health and Fitness Arena

Could Recession Be a Boon for Internet Retailing?

CPG Growth in Search Functions

Behavioral Targeting Perfect for Diversified Sleep Market

Sleep Marketers and Etailers Can Make Best Use of Alternative Medias; Company Ethics Important to Consumers; Word-of-Mouth: Added-Value for Marketers and Consumers

The Ultimate WOM: Celebrity; Sleep Product Retail Distribution Overwhelmingly Diverse; Think Non-Traditional: Specialty Outlets vs. General Market
Chapter 2: Sleep Aids Market Introduction
: Scope

Sleep Aid Market Categories Diverse; Methodology; Sleep�a Primer

Cycles of Sleep: Stages 1, 2, 3, 4 and REM

Sleep, a Mysterious Key To Survival; Serious Sleep Disorders Affect 40 Million Americans; Insomnia

Sleep Apnea

Restless Legs Syndrome

Periodic Leg Movement During Sleep

Parasomnia

REM Sleep Behavior Disorder

Circadian Rhythms; Other Sleep Issues and Consumer Touchpoints Abound; Total Sleep Industry Sales Conservatively At $20 Billion
Chapter 3: The OTC Sleep Aids Market In Depth
: Total OTC Sleep Aid Market Reaches $604 Million

Figure 3-1: Total U.S. Over-the-Counter Sleep Aid Market, 2008-2013 (in millions of dollars)

Analgesic Sleep Aids Dominate, Growth Accelerates

Table 3-1: Total U.S. Over-the-Counter Sleep Sales and Year-over-Year Percentage Change, 2004-2008 (in millions of dollars)

Figure 3-2: Estimated Over-the-Counter Sleep Aids Share, by Dollar Sales, 2008 (percent); Analgesic Sleep Aids; Total IRI-Tracked Sales Growth Slows in 2008; Figure 3-3: U.S Over-the-Counter Analgesic Sleep Aid IRI-Tracked Dollar Sales, 2004-2008 (in millions of dollars)

Table 3-2: Total Over-the-Counter Analgesic Sleep Aid IRI-Tracked Dollar Sales and Year-over-Year Percentage Change, 2004-2008 (in millions of dollars)

IRI-Tracked Unit Sales Grew 11%

Figure 3-4: Total Over-the-Counter Analgesic Sleep Aid IRI-Tracked Unit Sales, 2004-2008 (in thousands units)

Table 3-3: Total Over-the-Counter Analgesic Sleep Aid IRI-Tracked Unit Sales and Year-over-Year Percentage Change, 2004-2008 (in thousands units)

Prices Increase Dramatically in 2008

Figure 3-5: Average Over-the-Counter Analgesic Sleep Aids, IRI-Tracked Price per Unit, 2004-2008(in dollars)

Table 3-4: Average Over-the-Counter Analgesic Sleep Aids, IRI-Tracked Price per Unit and Year-over-Year Percentage Change, 2004-2008 (in dollars)

Tylenol PM Rules, But Advil PM Makes Grabs Share

Table 3-5: Over-the-Counter Analgesic Sleep Aids, IRI-Tracked Sales in FDM by Brand, 2004-2008 (in millions of dollars)

Figure 3-6: Estimated Over-the-Counter Analgesic Sleep Aids Brand Share, 2008 (percent); Non-Analgesic Sleep Aids; Total IRI-Tracked Sales Rise Modestly in 2008

Figure 3-7: U.S Over-the-Counter Non-Analgesic Sleep Aids, IRI-Tracked Dollar Sales by Category, 2004-2008 (in millions of dollars)

IRI-Tracked Tablet Sales Higher, Liquid Sales Dry Up

Table 3-6: Total Over-the-Counter Non-Analgesic Sleep Aids, IRI-Tracked Dollar Sales, by Category and Year-over-Year Percentage Change, 2004-2008 (in millions of dollars)

Figure 3-8: Estimated Over-the-Counter Non-Analgesic Sleep Aids, IRI-Tracked Share, by Dollar Sales, 2008 (percent)

IRI-Tracked Unit Sales Grew 11%

Figure 3-9: Total Over-the-Counter Non-Analgesic Sleep Aids, IRI-Tracked Unit Sales by Category, 2004-2008 (in thousands units)

Unit Sales Suffer Double-Digit Declines

Table 3-7: Total Over-the-Counter Non-Analgesic Sleep Aids, IRI-Tracked Unit Sales, by Category and Year-over-Year Percentage Change, 2004-2008 (in thousands units)

Figure 3-10: Estimated Over-the-Counter Non-Analgesic Sleep Aids, IRI-Tracked Share, by Unit Sales, 2008 (percent)

Prices Increase Dramatically in 2008

Figure 3-11: Average Over-the-Counter Non-Analgesic Sleep Aids, IRI-Tracked Prices per Unit by Category, 2004-2008 (in dollars)

Higher Private-Label Prices Affect Tablets

Table 3-8: Total Over-the-Counter Non-Analgesic Sleep Aids, IRI-Tracked Prices per Unit, by Category and Year-over-Year Percentage Change, 2004-2008 (in dollars)

Private Label Dominates Mass Channels

Table 3-9: Over-the-Counter Non-Analgesic Sleep Aids, IRI-Tracked Sales in FDM by Brand, 2004-2008 (in millions of dollars)

Figure 3-12: Estimated Over-the-Counter Non-Analgesic Sleep Aids Brand Share, 2008 (percent); OTC Sleep Aids Forecast; OTC Sleep Aids Market to Reach $$759 Million by 2013

Figure 3-13: Total U.S. Over-the-Counter Sleep aids Market, 2008-2013 (in millions of dollars); Factors To Growth; Prescription Sleeping Pill�Worth the Cost?

Perceived Emotional Benefits May Suffice

Potential for Backlash against New Wave of Prescriptions

Media on Top of Issues with Prescription; OTC Sleep Aids Fill an Important Niche

OTC Sleep Aids Growth Threatened By Natural Sleep Aids Products; Alternative Product Markets a Threat or a Companion?; The OTC Consumer; Note on Simmons Market Research Bureau Data; Sleep Issue Consumer Penetration�12% of U.S.

Table 3-10: Percentage of Consumers Suffering from Sleep Issues in The Past 12 Months: Insomnia/Sleep Disorders and Snoring/Sleep Apnea, 2004-2008 (percent)

Non-Prescription & Prescription Product Usage Penetration Low

Consumer May Want More Than One Benefit

Table 3-11: Percentage of Consumers Suffering from Sleep Issues in The Past 12 Months: Insomnia/Sleep Disorders and Snoring/Sleep Apnea, by Remedy Used, 2004-2008 (percent)

Moderate Insomnia/Sleep Apnea Most Likely

Table 3-12: Percentage of Consumers Suffering from Sleep Issues in The Past 12 Months: Insomnia/Sleep Disorders and Snoring/Sleep Apnea, by Severity, 2004-2008 (percent)

Does this Data Contradict Other Sources?; Demographic Characteristics of Insomnia/Sleep Disorder Sufferers

Employed Individuals Less Likely to Have Sleep Issues

Relationships Make for Better Sleep

Renters More Sleep Distressed than Owners

Table 3-13: Demographic Characteristics of Insomnia/Sleep Disorder Sufferers, 2008 (index)
Demographic Characteristics of Insomnia/Sleep Disorder Sufferers Who Use Sleep Aids

Women, Students Pop For Prescription and Non-Prescription Usage

Single-Person, Low Income Greater Likelihood for Sleep Aids

Table 3-14: Demographic Characteristics of Insomnia/Sleep Disorder Sufferers Who Used Prescription and Non-Prescription Remedies in Past 12 Months, 2008 (index); Demographic Characteristics of Snoring/Sleep Apnea Sufferers

The Stereotypes Are True: Men Snore

Table 3-15: Demographic Characteristics of Snoring/Sleep Apnea Sufferers, 2008 (index); Demographic Characteristics of Snoring/Sleep Apnea Sufferers Who Use Sleep Aids

The Dry Southwest a Hotbed of Snorers

Higher Incomes Show Greater Likelihood to Use Product

Table 3-16: Demographic Characteristics of Snoring/Sleep Apnea Sufferers Who Used Prescription and Non-Prescription Remedies in Past 12 Months, 2008 (index); Demographic Characteristics of Nighttime Pain Sufferers

Headaches Are the Bane of Women

Multiple Responsibilities and Stress May Be Driving Pain/Sleep Product Use

Households with Children�Fewer Headaches?!

Table 3-17: Demographic Characteristics of Adults Who Used Non-Prescription Pain Relievers/Sleep aids in Past 12 Months, 2008 (index); Emerging and Fragmented Product Market Means Lack of Consumer Tracking Data

Select OTC and Prescription Sleep Aids Tracked

Table 3-18: Non-Prescription Headache/Pain Relievers Used In Past Month, 2008

Table 3-19: Prescription Sleep Aids Used In Last 12 Months, 2008
Chapter 4: Natural Sleep Supplements Market Snapshot
: Overview

Table 4-1: Description of Selected Natural Remedies; Natural Sleep Sales Likely Slowed in 2008

Figure 4-1: Natural Stress and Sleep Aids Market, 2004-2008 (in millions of dollars)

Table 4-2: Total Natural Stress and Sleep Aids Market and Year-over-Year Percentage Change, 2004-2008 (in millions of dollars and all channels)

Sales in Natural Store Channel Slow

Figure 4-2: Stress and Sleep Aid Medicine Sales through Natural Supermarket Channel, 2004-2008 (in millions of dollars)

Table 4-3: Natural Channel Stress and Sleep Aids Market and Year-over-Year Percentage Change, 2004-2008 (in millions of dollars); Natural Sleep and Stress Supplements Market Forecast; Natural Sleep Sales to Grow at a CAGR of 10%Natural Sleep Sales to Grow at a CAGR of 10%

Figure 4-3: Total Natural Stress and Sleep Aids Market Forecast, 2004-2008 (in millions of dollars); Factors to Growth; Health Concerns Impact American Purchase Habits

Table 4-4: American Consumer Level of Health-Consciousness, 2008 vs. 2004; A Good Night�s Rest, the Next Big Trend; �Or Sleeplessness, The Next Big Health Crisis?

Supplement Users Especially Interested in Health; The Natural/Organic Connection; Sleep Supplements Face Competition from Functional Foods; 2008 Natural and Herbal Sleep Aid Introductions

Table 4-5: Natural and Herbal Sleep Aid Supplement Introductions, 2008

Not Without Controversy; The Natural Supplements Consumer; Note on Simmons Market Research Bureau Data; Baby Boomers Important Component of Supplement Market

Figure 4-4: Percent of Adults Using Nutritional Supplements: By Age Bracket, 2008 (U.S. adults)

Figure 4-5: Number of Adults Using Nutritional Supplements: By Generational Cohort, 2008 (percent of total U.S. adult users); Consumer Interest in Non-traditional Treatments; More Than One in Three Consumers Use CAM; Herbal Supplements Most Commonly Used Treatment

Figure 4-6: Top 10 Natural/Herbal Supplements among U.S. Adults Who Use Natural Products, 2002 (percent)

Potential for Natural Sleep aids Growth
Chapter 5: Competitive Overview
: Competitive Landscape

Chattem Emerges as a Player with Unisom

Advil PM Reinvigorates Analgesic Sleep-Aids; Small Companies to Watch

Dream Essentials, LLC

Dreamerz Foods

Nature�s Way

SoothSoft Comfort Technology; Selected Corporate Profiles; Avon Products Inc.; Overview; Performance; Sleep Products Portfolio; Chattem, Inc.; Overview; Performance

Figure 5-1: Total Chattem, Inc. (Unisom) Sleep Aids, IRI-Tracked Sales, 2004-2008 (in millions of dollars); Sleep Products Portfolio; Glaxo SmithKline; Overview; Performance

Figure 5-2: Total GlaxoSmithKline Sleep Aid IRI-Tracked Sales, 2004-2008 (in millions of dollars); Sleep Products Portfolio; Green Pharmaceuticals Inc.; Overview; Performance

Figure 5-3: Total Green Pharmaceuticals Sleep Aids, IRI-Tracked Sales, 2004-2008 (in millions of dollars); Products; HoMedics, Inc.; Overview; Performance; Sleep Product Portfolio; Johnson & Johnson; Overview; Performance

Figure 5-4: Total Johnson & Johnson�s Tylenol PM Sleep Aid IRI-Tracked Sales, 2004-2008 (in millions of dollars); NBTY, Inc. (Nature�s Bounty); Overview; Performance; Sleep Product Portfolio
Chapter 6: Trends: Challenges and Opportunities
: Forces Are Converging on the Sleep Products Market; Dangers of Sleepless Nights: Short Term

Average Weeknight Sleep is Six Hours and 40 Minutes; Dangers of Sleepless Nights: Long Term; Increase in Stress-related Ailments Affects Sleep

Stress in America by the Numbers: 30% Extremely Stressed

Economic Woes Taking Their Toll; Economy Raising Stress Levels across Generations

Table 6-1: APA�s Top Stressors by Generation, 2008 (percent)

High Debt Stress Causes Sleep Trouble

Women More Likely to Be Stressed

Table 6-2: APA�s Top Stress Symptoms, Female vs. Male, 2008 (percent)

The Effects of Stress on Sleep

Smoking and Drinking Part of Negative Cycle; Time for Sleep Awareness; A Nation of Aging Boomers

Better Sleep Council Survey

Mattresses Age Too

Changing Behavior

Identifying the Problem

(Non)-Risky Business; Women Have Special Sleep Challenges

Menopausal Sleep Issues Under-Diagnosed

Sleep Apnea May Appear Due to Hormonal Changes

Effects of Poor Sleep on Women�s Cardiovascular Health; Only 20% of Children Get Optimal Sleep

Media Overload Leads to Overloaded Kids

How Much Sleep Is Needed?

Table 6-3: Average Recommended Sleep Requirements

Cut Back the Kids� Caffeine

Increasing Childhood Obesity Equals Increasing Sleep Issues

Additional Health Risks: Elevated Blood Pressure

Sticking to a Schedule

The City Never Sleeps�And Neither Do City Kids; Environmental Cause: Urbanization Clouds Rest

Busy Urban Days Lead into Busy Urban Nights

Urbanites Want to Take Back the Night; Travel Products Impacted By Recessionary Slump in Travel; Trend toward Self-Care to Enhance Sleep Aids Market

Table 6-4: American Consumer Level of Health-Consciousness, 2008 vs. 2004 (percent)

Consumer Health Information Websites See Increasing Activity

Table 6-5: Top 10 Health Information Sites by Unique Visitors of Total U.S. Home/Work/University Locations, July 2008 vs. July 2007

Table 6-6: Top 10 Health-Related Searches Conducted Using Major U.S. Internet Search Engines, Q1 2007 (in millions); Consumer Interest in Complementary and Alternative Medicine; Emerging CAM Treatments Utilize Improved Technology

Comprehensive Surveys Find More Than One in Three Use CAM

Figure 6-1: Complementary and Alternative Medicine Use by U.S. Adults, 2002 (percent)

Use of CAM for Specific Conditions

Figure 6-2: Conditions Most Commonly Treated by CAM*, 2002 (percent)

Reasons for Using CAM

Figure 6-3: Reasons People Use CAM, 2002 (percent); The Spa Spawns Cultural Imperative to Relax; Increased Medical Costs

Figure 6-4: Cumulative Percentage Price Index Increases for Medical Care Services, Medical Care Commodities and Annual Average of Median Weekly Earnings for All Wage and Salary Workers; Research Is Ongoing; Is The Medical Community Fully Aware of Sleep Issues?

Sleep Centers: Challenge or Opportunity?

Sleep Centers Already Offering Alternative Product; Health Savings Accounts (HSAs) May Be a Boon

About HSAs

HSA Growth

HSA Growth Leads to More Spending
Chapter 7: Product Trends and Innovations
: 2008 Sleep-Related New Product Introductions

Table 7-1: Selected New Product Introductions, 2008

Upscale Was Top Package Tag; Alternative Delivery Systems; Maximum Benefits: Functional, Sensory, and Emotional; Alternative Therapy Products; Aromatherapy Has Long History in Sleep

Aromatherapy Often In Bath and Body Products; Color Therapy: Pseudo-Science or Chakra-liscious?

Modern Color Therapy

Selected Color Therapy Product; Listen Up to Sound Therapy

Sound Therapy in Practice

Natural Sounds Inherently Relaxing; The Light�It Burns!; Next Up, Holograms?; Food and Beverage Sleep Aids; Alternative Beverages for a Refreshing Sleep

A Plethora of Drink Products; Opportunities in Food; Medical and Hi-tech Crossover; Bringing the Doctor�s Office In-home

Biofeedback and Ion Machines; Products That Readjust the Body Clock

A Clock for the Clock; Consumer-centric Product Innovations; Women-Focused Products Abound

Menopause a Cause; Beauty and Spa Crossover

JNJ�s Stress Relieving Skin Care

Pillow Cases That Do More Than Just Cover; Kid-Friendly Products

Music to Sooth Little Ears

Sound Oasis Sleep Bear

Other Baby Products; Products for Aging Population; Travel Products Made for Sleep; Better Sleep During Travel

Pillows for Support

Sound Conditioners on the Go; Green/Natural/Organic Influenced Market; Conscientious Consumerism Driving Force

Sleep with the Environment in Mind; Supplement Marketers Make Most of Green/Natural/Organic Trends

Demand for Green Products Is There

Buckwheat Pillows Are O.K.!
Chapter 8: Marketing and Retail Dynamics
: Marketing and Retail Trends Overview; Despite Economy There Is Opportunity for Marketers to Engage Loyal Consumers and Innovate

Down Time Good Time for Positioning; Major Marketers and Retailers A Threat?

Just the Beginning of Rollouts From Majors; Competition Is Complimentary; DMA Reports Uptick in Direct Expenditure Despite Economy

Direct Response TV Trends Upwards in Health and Fitness Arena

Consumer Direct Marketing Concerns; Internet Technology Changing Outreach

Could Recession Be a Boon for Internet Retailing?

Just Give Me the Bottom Line

CPG Growth in Search Functions

CPG Consumers Comfortable with Search

Behavioral Targeting Perfect for Diversified Sleep Market

Targeted End-User Marketing in Debate

Outside Pressure on Potential Google and Yahoo! Search Partnership

Sleep Marketers and Etailers Can Make Best Use of Alternative Medias; Evolving Media Consumption Opens Up Opportunities

Online Shoppers Still Need Wooing; Company Ethics Important to Consumers; Importance of Added Values; Word-of-Mouth: Added-Value for Marketers and Consumers

WOM a Real Business

Proof in the Numbers

Does WOM Need The Human Touch?

The Ultimate WOM: Celebrity

Sleep Holdings, Inc. on �The Rachael Ray Show�; Homedics and Sharper Image Deal Harbinger to Increased Licensing?; Sleep Innovation Should Open Eyes to Licensing; Retail Issues; Sleep Product Retail Distribution Overwhelmingly Diverse; Think Non-Traditional: Specialty Outlets vs. General Market

Retail Space Further Challenged By Influx of Durable Medical Equipment
Chapter 9: Looking Ahead
: Converging Trends Mean Opportunities in Sleep & Stress Relief; Short-Term Success Tied to Economic Trends; Sleep Aid Customization; Sleep Aids with Multiple and Higher Value Benefits
Appendix: Addresses of Selected Marketers