Global Herbal Supplements Market generated USD 56.1 billion in 2017 and is anticipated to grow at a CAGR of 10.8% during the forecast period. Herbal supplements, which are also called botanical products, are dietary supplements containing one or more herbs. Herbs are botanical parts used to treat health conditions and illnesses. Herbal supplements are available in a wide range of forms such as tea bags, capsules, tablets, liquids, and powders. Herbal supplements are intended to supplement the diet, and contain one or more dietary ingredients such as vitamins, minerals, herbs or other botanicals, and amino acids among others.
The major factors driving the growth of this market include increasing use of functional foods and increasing disposable income. The increasing need of consumers to stay healthy accelerates the overall growth of this market. The growth in geriatric population coupled with growing consumer awareness regarding preventive health care is pushing the market for supplements market.
Increasing demand from developing nations provide numerous growth opportunities to the companies operating in this space. The growth of e-commerce along with increasing shift of retailers to online platforms is also one of the major factors which is driving the growth. Rising health disorders along with increase in demand for dietary supplements from female and youth consumers is pushing its expansion. Growth in obese population, and sedentary lifestyle of consumers leading to lifestyle diseases drives the market for herbal supplements.
The overall market is segmented on the basis of source, functionality, application, distribution channel, and region. The source segment is bifurcated into leaves, roots, bark, fruits & vegetables, and others. The leaves segment dominated the overall market in 2017 owing to its high medicinal properties, and growing demand of herbal supplements from the pharmaceutical sector.
The functionality segment is categorized into medicinal, aromatic, and others. The medicinal segment dominated the market in 2017 owing to increasing health consciousness, and awareness among consumers regarding preventive care. The application segment is categorized into food and beverage, pharmaceuticals, personal care, and others. The pharmaceutical segment was one of the largest application segments in 2017.
The distribution channel segment is divided into offline stores, and online channels. The offline stores segment accounted for the highest market share in 2017. Growing presence of supermarkets and hypermarkets in developing regions of Asia and Latin America and increasing preferences of consumers to shop from large retail stores is fostering the market growth.
By Distribution Channel
Market Estimates and Forecast
This report comprises a detailed geographic analysis across North America, Europe, Asia-Pacific, Latin America, and MEA. North America is further segmented into U.S., Canada, and Mexico. Europe is divided into Germany, UK, Italy, France, and Rest of Europe. Asia-Pacific is bifurcated into China, India, Japan, and Rest of Asia-Pacific. North America is the major region contributing to the Herbal Supplements industry due to increase in obese and geriatric population in this region. High disposable incomes in this region, rising awareness about health benefits of herbal supplements, and sedentary lifestyle of consumers further fosters the market growth in this region.
The leading players in the Herbal Supplements industry include Herbalife International of America, Inc., Ricola AG, Archer Daniels Midland Company, Nutraceutical International Corporation, Bio-Botanica Inc., Arizona Natural Products, lackmores Ltd, The Himalaya Drug Company, Dr. Willmar Schwabe GmbH & Co. KG, and Rainbow Light Nutritional Systems. These leading players are introducing innovative products in the Herbal Supplements industry to cater to the growing demand for consumers.
Global players are entering new markets in developing regions to expand their customer base, strengthen market presence, and increase their market share. In September 2014, Herbalife introduced the Herbalife24 product line, which is aimed at providing comprehensive performance nutrition to athletes. This product can also be customized according the specific needs of athletes. The products are free of artificial sweeteners and flavors, and include dairy-based protein meal replacement shake, advanced hydration product with minerals, pre-workout product with creatine, post-workout muscle building product, and a night time product to support immune function.