Consumer demand boosting global sales
Since the earliest of times, humans have turned to the power of plants to support their health, with their use predating recorded history. One of the oldest recorded documents related to the use of herbs for health benefits is the Ebers Papyrus from Ancient Egypt, dating back to 1550 BC. Similarly, written records of Traditional Chinese Medicine (TCM) date back to the Huangdi neijing in the 3rd century BC, while the Charaka Samhita arose around 400 BC, and is one of the most important ancient authoritative writings on Ayurveda.
In more recent times, herbs and botanicals have been investigated for their active compounds, many of which have given rise to powerful pharmaceuticals, from paclitaxel to digitalis. They are investigated by pharmacognosists and championed by herbal practitioners. Found in products from food supplements to beverages, in skin creams and snacks, herbs and botanical extracts are attracting consumer interest around the globe, and sales trends reflect the growth potential.
A new report from Fortune Business Insights1 put the put the European dietary supplement market at $14.29 billion in 2018 with a projected compound annual growth rate (CAGR) of 4.89% to 2026 to reach $20.89 billion.
[The company added a caveat that it is revamping the report and projections to account for the impact of COVID-19.] Regarding the botanical space, the company notes demand for botanical and herbal supplements is growing at a rapid pace in many countries across the EU, supported by consumer interest in natural and clean-label solutions.
Supporting the Fortune Business Insights findings are data from Nutrition Business Journal (NBJ); in its 2019 Global Supplement Business Report,2 it projected CAGR for herb and botanical sales to run at a consistent 6.2% from 2020 through 2022, topping $44.4 billion by that point. Looking at some of the specific geographies, NBJ offered insights on market share of herbs and botanicals as a portion of supplement sales as well as growth projections; these include:
Germany: 38% market share; projected CAGR of 1.8% through 2022
France: 36% market share; projected CACR of 2.1% through 2022
Italy: 22% market share; projected CAGR of 3.4% through 2022
United Kingdom: 18% market share; projected CAGR of 2.8% through 2022
Belgium/Luxembourg: 19% market share; projected CAGR of 2.3% through 2022
Eastern Europe/Russia: 14% market share; projected CAGR of 6.2% through 2022
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Projecting even further out is a report from MarketsandMarkets,3 which expects the plant extracts market will grow at a 16.5% CAGR from 2019 to 2025, topping $59 billion.
The firm attributes the market growth to considerations such as increased research and development in the field, substantiation of the health benefits offered by phytomedicines and herbal extracts, and rising awareness among consumers of the side effects of synthetic products.
Consumers are seeking the benefits of herbal products across myriad categories. Reporting from Innova Market insights4 found a 7 percent average annual growth rate for food and beverage launches with botanical ingredients through 2019. Top categories seeing botanical ingredients included in finished products included offerings for babies and toddlers, in the sports nutrition area, around alcoholic beverages, and snacks and spreads.
According to Innova, this is driven by the healthy halo that natural extracts carry. Global consumers indicate, for instance, that floral or herbal drinks are associated with health, naturality and freshness. There is continued evolution of the types of ingredients, with rising interest in turmeric, maca and hemp.
1. “Europe Dietary Supplements Market Size, Share & Industry Analysis, By Type, Form, and Regional Forecasts, 2019-2026.” Fortune Business Insights. https://www.fortunebusinessinsights.com/industry-reports/europe-dietary-supplements-market-101918
2. “2019 NBJ Report – Global Supplement Business Report.” Nutrition Business Journal. https://store.newhope.com/
3. “Plant Extracts Market by Type, Application, Source, and Region – Global Forecast to 2025.” MarketsandMarkets. marketsandmarkets.com/Market-Reports/plant-extracts-market-942.html
4. Innova Database 2019. Innova Consumer Survey 2018. Average of US, UK and Chinese consumers.
