The global herbal supplements market was valued at $48.1 billion in 2023 and is on track to reach $52.43 billion by the end of 2024. By 2032, it is projected to reach $87.98 billion at a CAGR) of 9% during the forecast period of 2024-20321Global Herbal Supplements Market Overview. Market Research Future. Retrieved July 30, 2024 from https://www.marketresearchfuture.com/reports/herbal-supplements-market-3231#:~:text=Herbal%20Supplements%20Market%20Size%20was,period%20(2024%20%2D%202032)..
This explosive growth may, in part, be attributed to the increased awareness of the health benefits provided by an herbal dietary supplement. Perhaps more than any other nutraceutical category, there are so many variations in the quality and form of a given herb, so it is vital to work with a qualified supplement contract manufacturing and development organization that can help ensure you’re using the right form, of the right herb, in the right dose to support the intended use of your formula and the claims you want to make about it as well.
This article will explore how to navigate the expanding herbal supplements market and how Vitaquest can help you create a high-quality product.
What are Herbal Supplements?
Herbal supplements are dietary supplements derived from one or more plant parts such as flowers, leaves, and roots. In this context, the plants in question are generally referred to as “herbs”.
Furthermore, the herbs in question typically have a history of traditional use by various cultures around the world. This may include (but is not limited to) herbs used for thousands of years in traditional Chinese medicine and Ayurvedic medicine from India, and herbs used by Eclectic physicians back in the early years of America2Mills S, Bone K. Principles and Practice of Phytotherapy. Edinburgh: Churchill Livingstone; 2000.3Blumenthal M, Goldberg A, Brinckmann J (eds). Herbal Medicine: Expanded Commission E Monographs: Newton, Massachusetts;Integrative Medicine Communications; 2000. .
Many of these same herbs, as well as others from cultures around the world, are used as herbal supplements by individuals seeking to enhance their health and well-being. Herbal supplements are commonly consumed in the form of capsules, tablets, powders, and teas. Although some topical cosmetics include select herbs, they are not herbal supplements. Herbal supplements must be ingested to absorb their valuable constituents and realize the benefits they have to offer.
Understanding the Herbal Supplement Market
According to Nutrition Business Journal, herbs and botanicals represented 19.8% of the market share for dietary supplements in 20234Montemarano M. Dietary Supplement Market Grows Again After Post-COVID Normalization. Nutraceuticals World. Markc 25, 2024. Retrieved August 1, 2024 from https://www.nutraceuticalsworld.com/issues/2024-04/view_online-exclusives/dietary-supplement-market-grows-again-after-post-covid-normalization/?widget=listSection.. Although the herbal supplements market experienced explosive growth in 2023 and 2024, this is a recovery from 2022 when overall herbal supplement sales fell 1.9% for the first time in almost 20 years. This was attributed to5Schultz H. ABC reports herbal sales fell 1.9% in 2022. Natural Products Insider. February 22, 2024. Retrieved August 1, 2024 from https://www.naturalproductsinsider.com/market-trends-analysis/abc-reports-herbal-sales-fell-1-9-in-2022-.post-pandemic market readjustment. The U.S. herb and botanical market is about $2 billion higher than pre-COVID-19 predictions and on track to reach $13 billion in sales this year6Montemarano M. Herbal and Botanical Supplements Continue to Outpace Broader Market Amid Economic Uncertainty. Nutraceuticals World. July 6, 2023. Retrieved August 1, 2024 from https://www.nutraceuticalsworld.com/issues/2023-07/view_features/herbal-and-botanical-supplements-continue-to-outpace-broader-market-amid-economic-uncertainty/?widget=listSection.. According to American Botanical Council7Smith T, Bauman H, Resetar H. US Sales of Herbal Supplements Decline Slightly in 2022. HerbalGram. 2024; 139: 52-69., the top-selling and most popular herbal supplements—or more specifically—the ingredients in those supplements in U.S. mainstream retail outlets during 2022 were:
- Psyllium
- Elderberry
- Apple cider vinegar
- Turmeric
- Ashwagandha
- Cranberry
- Ivy leaf
- Fenugreek
- Echinacea
- Ginger
This differed somewhat from the top herbal ingredients in the U.S. Natural Channel:
- Turmeric
- Elderberry
- Wheatgrass/barley grass
- Ashwagandha
- Quercetin
- Mushrooms
- Aloe
- Psyllium
- Milk thistle
According to Grand View Research8Dietary Supplements Market Size & Trends. Grand View Research. Retrieved August 2, 2024 from https://www.grandviewresearch.com/industry-analysis/dietary-supplements-market-report#:~:text=U.S.%20Dietary%20Supplements%20Market%20Trends&text=Factors%20fueling%20product%20interest%20in,in%20attaining%20wellness%20through%20diet., as part of the dietary supplements market, the projected growth of the herbal supplements market in the U.S. is impacted by various factors including growing healthcare costs, changes in food laws affecting label and product claims, rapid advances in science and technology, the rising geriatric population, and interest in attaining wellness through diet.
Emerging Trends in the Herbal Supplement Market
Demographics have also influenced the growing interest in herbal supplements. Globally, people over 65 are a key market for brands, as this group significantly drives industry demand. Although the highest sales come from the 25 to 65 age range, older adults account for about 30% of global sales, as they seek products to maintain youthfulness and vitality. Additionally, the younger, working population in regions like the Middle East and Africa has increased spending on health and wellness products. With higher disposable incomes, especially in the Middle East, this trend is expected to boost product sales and revenue.9Dietary Supplements Market Size & Trends. Grand View Research. Retrieved August 2, 2024 from https://www.grandviewresearch.com/industry-analysis/dietary-supplements-market-report#:~:text=U.S.%20Dietary%20Supplements%20Market%20Trends&text=Factors%20fueling%20product%20interest%20in,in%20attaining%20wellness%20through%20diet.
Sales of plant-based supplements, including herbal ones, are rapidly growing. This is partly due to a rising consumer preference for natural, plant-based ingredients, which are seen as gentler on the body and easier to absorb. Additionally, concerns about health and environmental sustainability are also fueling the shift toward these products.
Opportunities for Supplement Brands
New and existing supplement brands can expand into the herbal supplement market by focusing on growing consumer segments and offering innovative, unique products.
Growing Consumer Segments
Reviewing the top-selling condition-specific formulas of 2023, as reported by Nutraceuticals World10Montemarano M. Dietary Supplement Market Grows Again After Post-COVID Normalization. Nutraceuticals World. Markc 25, 2024. Retrieved August 1, 2024 from https://www.nutraceuticalsworld.com/issues/2024-04/view_online-exclusives/dietary-supplement-market-grows-again-after-post-covid-normalization/?widget=listSection., can offer insights into growing consumer segments for herbal supplements:
- Sports, energy, and weight management (33.1% market share)
- Immune-related (8.3% market share)
- Gastrointestinal health (6.5% market share)
- Heart health (5.7% market share)
Conditions that experienced the highest sales-growth rates were:
- Brain/cognitive health (+7.3%)
- Children’s health (+7.1%)
- Sexual health (6.5%)
- Sports/energy/weight management (+5.9%)
- Mood and emotional health (5.8%)
Some industry experts predict that herbs for women’s health (e.g., hair, skin, nails, PMS) and weight loss herbals (driven by the Ozempic craze) will likely experience significant growth11Montemarano M. Dietary Supplement Market Grows Again After Post-COVID Normalization. Nutraceuticals World. Markc 25, 2024. Retrieved August 1, 2024 from https://www.nutraceuticalsworld.com/issues/2024-04/view_online-exclusives/dietary-supplement-market-grows-again-after-post-covid-normalization/?widget=listSection..
Product Innovation and Differentiation
Personalization in healthcare is a growing trend. In herbal supplements, this means creating specialized formulations that target specific health needs important to the consumer. For example, a joint health formula with herbs like turmeric (curcumin) and Boswellia would be considered a personalized product for those interested in joint care. Many similar formulations can be developed to match consumer preferences and support personalization. Focusing on creating products that cater to these growing consumer segments is a smart strategy for personalization.
Challenges in the Herbal Supplement Market
Challenges to consider in the herbal supplement market include regulation and compliance, as well as quality control and sourcing.
Regulation and Compliance
It is well known among consumers and retailers alike that bad players exist in the industry and violate regulations. Consequently, it is vital to do all you can to demonstrate that your company complies with them. One way to do that is to ensure your contract development and manufacturing organization (CDMO) is GMP-certified. Manufacturers often claim to follow FDA nutraceutical guidelines, operate out of quality contract manufacturing facilities, or perform cGMP contract manufacturing. However, these claims do not guarantee adherence to cGMPs. True assurance comes from GMP certification.
A GMP-certified facility has been audited by a trusted third party to ensure it meets industry standards. One of the top certifications is NSF GMP certification, which should be the basic expectation. Manufacturers can go a step further by getting NSF Certified for Sport, which gives athletes, coaches, and consumers extra confidence in the safety of supplements. Additionally, manufacturers can offer Kosher, Halal, and certified organic products to meet consumer preferences.
Another consideration is the rare but globally recognized standard in the food and supplement industry known as FSSC 22000 certification for food safety. All these certifications can potentially give your products a competitive edge.
Likewise, you must ensure your herbal supplement labeling and claims avoid falling out of compliance. This is an important consideration for brand owners who sell their products outside the U.S. and face additional regulatory challenges.
In a Whole Foods Magazine article published in February 2023, Lesley O’Connor, the Senior Manager of Regulatory Affairs at Vitaquest explained that structure/function claims “that are accepted by the FDA in the U.S., may open a manufacturer up to additional scrutiny in other regions around the world. Many ingredients that are considered supplements in the U.S. may be identified as medicines in another country, which means the product will have to comply with a separate set of regulations.”
Quality Control and Sourcing
An important consideration in the herbal supplement market is ensuring product integrity vis-à-vis quality control and sourcing. Consider that Nutraceuticals World12Montemarano M. Herbal and Botanical Supplements Continue to Outpace Broader Market Amid Economic Uncertainty. Nutraceuticals World. July 6, 2023. Retrieved August 1, 2024 from https://www.nutraceuticalsworld.com/issues/2023-07/view_features/herbal-and-botanical-supplements-continue-to-outpace-broader-market-amid-economic-uncertainty/?widget=listSection. reported that the top-20 list of botanicals and fungi most frequently failing identity testing during early 2024 included Echinacea, Eleuthero, Reishi, Gynostemma, Lion’s mane, Apple, Lemon balm, Watercress, Olive, Rhodiola, Elderberry, Saw palmetto. Monk fruit, Stevia, Dandelion, Red clover, Nettle, Bakin gagai, Grape and Ashwagandha. It is vital to work with a good contract development and manufacturing organization (CDMO) that can help ensure the herbal ingredients are being obtained from quality sources that can pass identity testing using sophisticated fingerprinting and genetic barcoding methods.
Differentiation and Marketing
According to the FDA, there are over 4,000 brands that sell supplements, including herbal supplements13Lebsack L. How leading supplement brands plan to win market share as the category balloons in size. Glossy. January 6, 2024. Retrieved August 2, 2024 from https://www.glossy.co/beauty/wellness/how-leading-supplement-brands-plan-to-win-market-share-as-the-category-balloons-in-size/#:~:text=According%20to%20the%20FDA%2C%20which,supplements%E2%80%9D%20one’s%20diet%20with%20nutritional.. That means there is enormous competition in the herbal supplement market. To stand out, herbal supplement brands need to differentiate themselves by offering unique formulas, using targeted marketing, and highlighting specific benefits.
- Unique formulations – This may include the exclusive use of clinically relevant doses of each herb in the formula, since many companies “fairy dust” in many of the herbs being used. It may also include the use of some novel botanicals that are relatively new to the market, or newer to use in the U.S.
- Targeted marketing strategies – Today, the name of the game is digital marketing. Make sure you have someone on your staff or a well-qualified consultant who understands digital marketing and can help you develop a targeted plan.
- Focus on specific benefits – Consumers purchase herbal supplements for the specific benefits they offer, so make sure to convey those benefits. Of course, it’s easier to substantiate these benefits when you’re using clinically relevant doses of the right forms of herbs shown in human research to be effective for the purpose intended.
An extension of this last bullet point, it’s important to use responsible marketing practices based on scientific evidence and avoid making exaggerated claims. You should have someone on your team or hire a qualified consultant who understands the regulations for claim language and how to back up those claims. This will help you avoid problems with the FDA and FTC.
Working with Contract Manufacturers to Create Herbal Supplements
Given the challenges of regulation, compliance, quality control, and sourcing, it’s crucial to work with a qualified CDMO to successfully create your herbal supplement.
A skilled CDMO will handle the complex details of product development and manufacturing, allowing you to focus on key areas like marketing, branding, and business growth. This way, you can use your time and resources more effectively on what drives your business forward.
Scalability and Production Efficiency
When you introduce your herbal supplement to the market you don’t know how well it will sell. Certainly, it will be disappointing if sales are poor, but it can be even more disappointing if sales are great and you need to triple your next PO to meet demand—only to find out that your manufacturer is unable to scale up manufacturing of your PO to meet the larger number of bottles you’ve ordered. Unfortunately, this scenario isn’t rare. That’s why it is important to work with a CDMO that’s capable of scaling up in the first instance for a successful transition to improved sales and fulfillment.
How Can Vitaquest Help You Manufacture Herbal Supplements?
Vitaquest is a CDMO that has provided supplement brands with top-notch herbal supplement manufacturing, packaging design, and fulfillment services for over 45 years. Whether you’re a newcomer to the industry or aiming to diversify your product range, Vitaquest possesses the expertise, cutting-edge facilities, and solutions needed to swiftly and effectively turn your herbal supplement concept into reality. Vitaquest offers a variety of dosage forms, including capsules, tablets, chewable tablets, melts, and powders.
Vitaquest also has expertise in domestic and international regulatory standards. We are GMP-certified by NSF, assuring brand owners and consumers about our compliance with industry regulations and standards. In addition, Vitaquest can offer Kosher, Halal, and certified organic products, and FSSC 22000 certification for food safety.
To learn more about how Vitaquest can help you Deliver What’s Next in the herbal supplements market, call 800-526-9095 to speak with one of our knowledgeable sales executives or send us your request to receive a competitive nutraceutical manufacturing price quote if you’ve already finalized your project specifications.
Conclusion
After a slow-down in 2022, the global herbal supplements market has rebounded and is projected to reach a valuation of $52.43 billion by the end of 2024, and $87.98 billion by 2023. Consumer trends indicate an interest in personalized healthcare, which may translate into the development of herbal supplements addressing top-selling condition-specific categories including sports, energy, weight management, as well as immune, gastrointestinal, cognitive, sexual, mood, and heart health. Working with the right CDMO can make a big difference in addressing the challenges of regulation and compliance, as well as quality control and sourcing, not to mention navigating the complex regulatory landscape and ensuring product safety and quality.
Frequently Asked Questions About Herbal Supplements
Q: How big is the herbal supplement industry?
The herbal supplement market in the U.S. was valued at $48.1 billion in 2023.
Q: How many Americans use herbal supplements?
Thirty percent of the U.S. population uses herbal supplements each year.
Q: Can herbal supplements be sold without FDA approval?
The FDA does not approve any dietary supplements, including herbal supplements. Rather there are regulations—primarily those associated with the Dietary Supplement Health and Education Act of 1994—that must be followed to sell herbal supplements.
Q: How do I legally sell herbal products?
There are regulations—primarily those associated with the Dietary Supplement Health and Education Act of 1994—that must be followed to sell herbal supplements.
Q: How big is the US supplement market?
The U.S. dietary supplements market was valued at $66.75 billion in 2023.
