HERBAL NUTRACEUTICALS MARKET ANALYSIS

The global herbal nutraceuticals market size was valued at US$ 33.75 Billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 7.5% from 2023 to 2030. The herbal nutraceuticals market is gaining traction as key players are focusing on the development of functional foods and herbal extracts for prevention and management of viral infections such as coronavirus. The e-commerce sector continues to grow at a rapid pace, offering manufacturers with a platform to expand their market reach and boost product uptake. Moreover, growing awareness regarding the benefits of herbal supplements among consumers is again supporting the growth of the market. Manufacturers in the herbal nutraceuticals market are also investing heavily in research and development projects to find innovative approaches and develop a wider range of herbal products.

Global Herbal Nutraceuticals Market: Regional Insights

Based on geography, the global herbal nutraceuticals market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

North America is expected to dominate the global herbal nutraceuticals market over the forecast period owing to the rising prevalence of chronic disease with increasing geriatric population. Moreover, growing awareness regarding the health benefits of herbal products is also expected to propel regional market growth. The North America herbal nutraceuticals market was valued at $7,790.7 million in 2019, and is projected to reach $12,450.8 million by 2027, growing at a CAGR of 6.6% from 2021 to 2027. The ginger was the highest contributor with $1,206.6 million in 2019, and is estimated to reach $1,765.8 million by 2027, registering a CAGR of 5.5%.

The herbal nutraceuticals market is growing at a significant rate in Europe, due to increasing focus of European population toward a healthy lifestyle. The Europe herbal nutraceuticals market was valued at $8,697.2 million in 2019, and is projected to reach $13,613.5 million by 2027, growing at a CAGR of 6.4% from 2021 to 2027. The ginger was the highest contributor with $1,407.4 million in 2019, and is estimated to reach $2,012.6 million by 2027, registering a CAGR of 5.1%. The green tea is estimated to reach $1,881.8 million by 2027 at a CAGR of 7.7%. The Ginger and Garlic segments collectively accounted for around 31.5% share in 2019, with the former constituting around 16.2% share.

Figure 1. Global Herbal Neutraceutical Market, By Region 2023

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Global Herbal Nutraceuticals Market Drivers:

Growing number of people suffering from chronic disease to augment market growth

Herbal or botanical extracts are more easily absorbed by the body and are more effective in treating various disease. They are also cheaper and easier to produce than whole herbs. Herbal extracts are used in a wide variety of health and wellness products such as supplements, drinks, and cosmetics ingredients. They are more popular in the United States, where consumers are highly health-conscious and actively seek organic ingredients in their products.

Ongoing product innovation in market to propel market growth

Key players are introducing new product in market in order to gain competitive edge. For instance, in September 2022, Pharmagreen Biotech, Inc., has announce that it has developed its first formulated nutraceutical product and is in the process of organizing the retail sales distribution channels for its new product.

Global Herbal Nutraceuticals Market Opportunities:

Growing importance of herbal products across developing countries is expected to provide significant growth opportunities. Herbs are used in herbal nutraceuticals to enhance the quality of life by providing several health benefits such as weight loss, boosting immune system and combating stress. The herbs used in herbal supplements are also known to have anti-inflammatory, antioxidant and anti-viral properties. They are also used to treat various ailments including gastrointestinal disorders cardiovascular diseases, and respiratory problems. Besides, herbs are also effective in lowering cholesterol levels and preventing heart disease.

Increased millennial population is projected to provide additional market opportunities. The shifting inclination of consumers towards herbal products and the increase in discretionary spending are fueling the growth of the market. Millennials have shown a greater preference for products that facilitate the preventive healthcare approach. In addition, the growing number of aging adults and the declining fertility rates in developed countries have led to an increased demand for herbal products.

Global Herbal Nutraceuticals Market Trends:

Growing trend of organic products

Consumers are shifting towards organic and natural ingredients, due to growing concerns over the harmful effects of chemical pesticides, fertilizers, and other chemicals on human health. Additionally, the increasing number of chronic diseases and a shift in lifestyles are fueling the demand for these products. Moreover, the increasing popularity of herbal supplements among people with weight-related problems is again boosting the demand for these products. This is primarily due to their ability to help lose weight without the need for rigorous exercise or diet control.

Growing popularity of consumer health products

Herbal nutraceuticals can be consumed to improve overall health, increase life expectancy, and slow down the aging process. Herbal nutraceuticals are made from plants and contain various medicinal properties. They are a popular alternative to pharmaceutical medicines and help maintain cholesterol levels, regulate the digestive system, and reduce stress.

Global Herbal Nutraceuticals Market Restraints:

High cost of herbal products to hinder market growth

The price of herbal and organic products are generally high when compared to conventional nutraceuticals. This is attributed to the high production cost. This in turn is expected to hamper the market growth over the forecast period.

Lack of standard regulations to restrict market growth

Herbal remedies are not as well regulated as traditional medications, and they may not have undergone the same testing as drugs approved by the Food and Drug Administration (FDA). Many studies of herbal remedies have found that the claims for them to cure or treat conditions are often unfounded. Furthermore, some of these supplements have been found to contain dangerous contaminants and heavy metals such as lead, mercury, arsenic, and cadmium.

Figure 2. Global Herbal Neutraceutical Market, By Product Type 2023

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Global Herbal Nutraceuticals Market Segmentation:

The global herbal nutraceuticals market report is segmented into product type, nature, form, sales channel, and region

Based on product type, the market is segmented into Ginger, Garlic, Turmeric, Aloe Vera, Green Tea, and Others. Out of which, Ginger is expected to dominate the global market over the forecast period and this is attributed to its medicinal value and is widely used as a traditional medicine. It is extensively used for various health conditions and hence manufacturer are introducing it in making nutraceuticals. 

Garlic segment is also expected to witness significant growth in the near future. It is widely used herb for medical condition related to blood and heart system. Also, Patients with coronary heart disease, atherosclerosis,and hypertension are benefited by using garlic pure extract capsules

Based on nature, the market is segmented into Conventional and Organic. Out of which, Organic is expected to dominate the global market over the forecast period and this is attributed to the growing trend of consuming herbal and organic products

Conventional segment is also expected to witness significant growth in the near future and this is owing to its low cost and easy availability of raw materials used in the preparation.   

Based on form, the market is segmented into Capsules & Tablets, Powder, Liquid, and Others. Out of which, Capsules & Tablets is expected to dominate the global market over the forecast period and this is attributed to the ease of consumption and the convenience associated with this form. These products do not require any measurement for specific dose, thus facilitating easy consumption. Additionally, they are easier to encapsulate essential oils and herbal extracts

Powder segment is also expected to witness significant growth in the near future and this is owing to their convenient packaging such as sachets, jars, packets, and bottles. The powder herbal nutraceuticals market was valued at $6,589.1 million in 2019, and is projected to reach $12,220.9 million by 2027, growing at a CAGR of 8.6% from 2021 to 2027.

Based on sales channel, the market is segmented into Pharmacy, Online store, Supermarket/Hypermarket, and Others. Out of which, Pharmacy is expected to dominate the global market over the forecast period. The large share of this distribution channel is primarily attributed to the improvement in healthcare infrastructure and the surge in number of consumers visiting pharmacies and drug stores.

Online store segment is also expected to witness significant growth in the near future and this is owing to the emergence of digital platforms is opening up opportunities for herbal nutraceuticals, as consumers are increasingly using mobile apps and telemedicine services to access their preferred brands and track their orders online.

Global Herbal Nutraceuticals Market: Key Developments

In March 2019, Nature's Bounty launched a new line of premium pet supplements. This product has been launched for dogs with formulas for joint health, digestion, and mood

In July 2018, Gaia Herbs expanded its operations in North Carolina. This expansion was done to improve its production capacity and strengthen its presence in North America.

Global Herbal Nutraceuticals Market: Key Companies Insights

The global herbal nutraceuticals market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global herbal nutraceuticals market are Bio Botanica, Inc, Gaia Herbs Farm, Herbochem, Nature’s Bounty, NUTRAMARKS, INC., Now foods, OREGON'S WILD HARVEST, Pharmaca, Pure Encapsulations, LLC, and Sydler India Pvt

*Definition: Herbal nutraceuticals are a combination of nutritional and medicinal substances. They are derived from natural plant resources and have slight or no side effects. The rising focus on health and wellness among customers across the world has driven the demand for herbal supplements.