The US herbal supplements market size was USD 8.03 billion in 2017. Various health benefits associated with the consumption of herbal supplements is increasing its commercial importance and hence the market is projected to grow optimistically over the forecast period.
U.S. Herbal Supplements Market Revenue, 2015-2025 (Usd Billion)
The growing importance of herbal supplements in health food has resulted in an increase of direct sales of these products. The number of health-conscious people favoring easy-to-consume nutrition is increasing. These factors are projected to support the growth of the US herbal supplement market over the forecast period between 2018 and 2025.
Additionally, herbal supplements are not strictly regulated by the FDA as they fall under the category of dietary supplements. Thus, manufacturers need not necessarily seek FDA approval to bring the product in the market. However, manufacturers must follow the Current Good Manufacturing Practice (CGMPs) norms to prevent incorrect ingredients and contaminants in herbal supplements.
US consumers are cutting down on fats and prefer to eat smaller portions that contain higher protein and nutrition, owing to rising awareness regarding general health. Majority of the US population relies on exercise and diet to lose weight. Bearing in the fact that the US has one of the largest obese populations in the world, the scope of opportunity for the US herbal market is humungous. These factors are likely to play an important role in driving the growth of the US herbal supplement market over the next seven years.
Herbal supplements associated with mood swings, pain, and inflammation are gaining popularity, hence, the introduction of new herbal supplements such as cannabidiol (CBD) is projected to further aid the growth of the U.S. herbal supplements market. Traditional herbs such as echinacea, ginseng, gingko biloba, and garlic are still dominating the market on account of their superior properties.
Availability, acceptance, pricing, and delivery of the products are some of the factors that are likely to impede the market from expanding seamlessly. However, the demand for natural products is increasing to avoid high healthcare costs, later in life, due to consumption of high volumes of processed foods and an inactive lifestyle.
US Herbal Supplement Market, By Channel, 2017 (%)
The Federal Government is introducing and implementing regulations for herbal supplements which is favorably changing consumer perception. For instance, FDA has recently enforced a regulation “Current Good Manufacturing Practice (CGMPs)”. Drugs that do not comply with CGMP standards are considered to be adulterated. However, consumers using drugs before the enforcement of this CGMP regulation are advised to continue with the drug therapy by FDA to avoid any serious health implication.
Of the numerous herbs available in the market, echinacea accounted for the largest share of 24.4% of the U.S. herbal supplement market in 2017. Sales of echinacea supplements are estimated to rank among the top 10 herbal supplements sold in the U.S. and this trend is expected to continue over the forecast period. This segment is of particular interest as there are a handful of producers of this herb resulting in high concentration.
A few threats associated with this market are seasonality, plant establishment failure, organic practices, and fluctuating prices. For instance, it takes minimum two to three years for Echinacea roots to be merchandisable. This time frame extends under uncertain natural conditions and might put the two to three years of investment at risk.
In terms of marketing channel, direct sales led the U.S. herbal supplements market followed by natural & health food stores. Direct sales accounted for a dominant market revenue share of 56.0% and are projected to a show similar trend over the projected period. The rising trend of shopping via e-commerce portals is expected to augment the growth of this sales channel.
Application of herbal supplements in the U.S. is gaining pace in the pharmaceutical sector. Enforcement of Current Good Manufacturing Practice (CGMPs) is proposed to regulate the quality of pharmaceuticals very carefully, giving an advantageous edge to the pharmaceutical sector over the personal care and food & beverage sectors. Personal care accounted for 30.3% of the U.S. herbal supplements market in 2017.
ABH Pharma, Vitakem Nutraceutical Inc., Sunfood Nutraceuticals, Arizona Natural Products, Herb Pharm, and Gaia Herbs are some of the key players operating in the U.S. herbal supplements market.
Key segments of the US herbal supplements market
Type Overview, 2015-2025 (USD Billion)
- Gingko biloba
- St. John's wort
Channel Overview, 2015-2025 (USD Billion)
- Mass Market
- Natural & Health Food
- Direct Sales
Application Overview, 2015-2025 (USD Billion)
- Food & beverage
- Personal care
Reasons for the study
- While studying the demand for herbal supplements, we came across the fact that high nutrition content and low cost herbal products are preferred in the U.S.
- Among various herbal supplements Echinacea holds major market share and combination herbs is projected to gain major market revenue share over the forecast period.
- New herb type, such as CBD and others are gaining major consumer attention hence other segment is the fastest growing segment in the U.S. herbal supplements market
What does the report include?
- The U.S. herbal supplements market study provides an in-depth analysis of the various type of herbs, channel of distribution, and application of herbal supplements.
- The study also involves in-depth insights about various regulations adopted by FDA to improve the sale of herbal supplements in U.S.
- Drivers, restraints and opportunities for the market have been covered in the study
- The study covers the different aspects of the value chain including the trends of the U.S. herbal supplements market.
- The U.S. herbal supplements market report covers qualitative and quantitative analysis of the market segmented on the basis of type, channel and application
- Historical, current and forecast market data is provided for all the segments on a country basis
- The study includes detailed profiles of key participants of the market based on product offerings, geographical presence, financial performance and recent initiative
Who should you buy this report?
- The U.S. herbal supplements market study meets the needs for various parties including government and non-government associations, consultants , analysts, researchers and academicians
- The report is also suitable for companies that are currently operating in the market as well as those looking to integrate their operations from herb production or downstream herbal products
Moreover, the study can also help new entrants take informed decisions about venturing into the market.