Global Herbal Supplements Market By Source (Leaves, Fruits & Vegetables, Barks, and Roots), By Function (Aroma, and Medicinal), By Form (Tablets, Capsules, Liquid, Powder & granules, Soft gels, and Others), By Ingredients, By Consumer Orientation, By Application, By Distribution Channel, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

The Global Herbal Supplements Market size is expected to be worth around USD 94.3 Billion by 2032 from USD 48.3 Billion in 2022, growing at a CAGR of 7.10% during the forecast period from 2023 to 2032.

The herbal supplements industry produces and markets dietary supplements derived from plant extracts or other botanical sources. These supplements are designed to give consumers additional health benefits such as improved digestion, immune system boosts, and reduced inflammation.

The COVID-19 pandemic has sparked interest in alternative and natural remedies, resulting in a surge in the demand for herbal supplements.

Key Takeaways

Market Growth: The Herbal Supplements Market is expected to grow at a Compound Annual Growth Rate (CAGR) of 7.10%. It is projected to reach a market size of around USD 94.3 billion by 2032, up from USD 48.3 billion in 2022.

Market Overview: Herbal supplements are derived from plant extracts and botanical sources. They offer additional health benefits such as improved digestion, immune system support, and reduced inflammation. The market for herbal supplements has witnessed a surge in demand, driven by interest in natural remedies amid the COVID-19 pandemic.

Driving Factors: Growing Health Consciousness People are seeking organic and natural alternatives to traditional pharmaceuticals, driving the demand for herbal supplements. Rising Chronic Diseases Diseases like diabetes, cancer, and cardiovascular conditions are on the rise, leading to increased demand for natural remedies. Healthy Aging An aging population is driving the need for products that support healthy aging.

Restraining Factors: Regulation Challenges The herbal supplement industry faces lower regulation compared to the pharmaceutical sector, resulting in the risk of low-quality products and inconsistent doses. Interaction with Prescription Drugs Herbal supplements can interact with prescription medications, posing potential risks. Stigma and Limited Availability Some consumers still stigmatize herbal supplements, and they can be challenging to find in certain regions.

Growth Opportunities: Customization Companies can tailor herbal supplements to individual needs, using data analytics to develop customized products targeting specific health concerns. Innovation The market offers opportunities for innovation, including products targeting specific demographic groups like pregnant women or children.

Trending Factors: Organic and Natural Products Growing demand for organic and natural products is a significant trend in the herbal supplement market. Ancient Healing Systems Systems like Ayurveda and Traditional Chinese Medicine have gained popularity in the West. Sustainability Companies are focusing on sustainability and transparency in sourcing and packaging.

Source Analysis: Leaves are the dominant source of herbal supplements, accounting for 28.5% of the market in 2022. Roots, particularly turmeric, are the fastest-growing source.

Functional Analysis: Medicinal herbal supplements hold a 60% market share. Aroma-based supplements are the fastest-growing segment, especially in aromatherapy and relaxation products.

Form Analysis: Tablets are the dominant form of herbal supplements, with a 31% market share. Soft gels and powders are the fastest-growing forms.

Ingredients Analysis: Turmeric is the dominant ingredient, with a market share of 36.8%. Echinacea is the fastest-growing ingredient.

Consumer Orientation Analysis: The adult consumer orientation segment dominates the market, with a 38.2% market share. The segment of pregnant women is growing the fastest.

Application Analysis: Weight loss is the most lucrative application segment, with a 22% market share. Cardiac health is the fastest-growing segment.

Distribution Channel Analysis: Health and wellness stores hold a significant market share of 34.6%, while online channels are growing rapidly with a 6.7% CAGR.

Regional Analysis: North America is the most lucrative market, with a 33.8% market share, driven by favorable government regulations and high customer awareness. Europe, particularly France, the UK, and Germany, is also a significant market.

Market Share & Key Players: The herbal supplement market is highly competitive and fragmented, with key players focusing on quality, safety, sustainability, and non-GMO and organic ingredients. Some prominent players in the market include Glanbia plc, Herbalife International of America Inc., Blackmores, and others.

Driving Factors

Health-conscious people are looking for organic and natural alternatives to conventional pharmaceuticals. Herbal supplements are a natural and safe alternative to prescription drugs driving the market demand. Chronic diseases like diabetes, cancer, or cardiovascular disease are on a growth trend. There is a rising demand for natural remedies to treat these conditions. These supplements are alternative and complementary approaches to managing chronic disease.

The world population is aging & this is driving the demand for products to support healthy aging. Herbal supplements are seen as a way to promote healthy aging. This is driving the market. Herbal supplements are a way of supporting overall health and well-being. The market is rising because consumers are taking a proactive stance toward their health and using herbal supplements to support their overall health and welfare routine.

Restraining Factors

The herbal supplement industry is not as tightly regulated as the pharmaceutical sector which means there is a greater risk of low-quality products & inconsistent doses. Although some studies support the benefit & safety of herbal supplements they are often limited and inconclusive. It can be difficult to convince skeptical consumers to try these products.

Many herbal supplements may interact with prescription drugs which can be harmful. In some circles, herbal supplements are still stigmatized despite the growing acceptance of natural remedies. Although herbal supplements are widely accessible, they can still be difficult to find in some areas. This can limit growth in certain geographical regions.

Growth Opportunities

The herbal supplement market offers companies many opportunities to innovate, expand their markets and create products that meet the changing needs of consumers. Even though the herbal supplement market is significant there are still many opportunities to expand into other markets. For example, companies are focusing on manufacturing products that are targeted at particular demographic groups such as pregnant women or children.

Herbal supplements can be tailored to individual needs. Companies can use data analytics to develop customized products that target specific health concerns. Companies have the opportunity to create innovative products that meet unmet market needs. Companies can, for example, focus on developing supplements to target specific health concerns such as mental health and immune support.

Trending Factors

The herbal supplement market is characterized by a growing demand for organic & natural products, a focus on adaptogens & plant-based ingredients, an emphasis on sustainability & transparency, and an interest in ancient healing methods. The herbal supplement market is driven by rising demand for natural and organic products. This trend will continue as consumers become more conscious of the environmental & social impact their purchases have.

Ayurveda, Traditional Chinese Medicine, and other ancient healing systems have gained popularity in recent years in the West market. Adaptogens include herbs and mushrooms which help the body adapt and improve health. The industry of herbal supplements is focusing more on sustainability and transparency as consumers become more conscious of the environmental and social impact their purchases have. Companies are increasingly using eco-friendly packaging and sourcing their ingredients from sustainable and ethical suppliers.

Source Analysis

The Leaves Segment Dominated the Herbal Supplement Market During the Forecasted Period.

The source segment is categorized as leaves, fruits and vegetables, barks, and roots. Among these segments, the leaves segment is dominated the herbal supplement market, with a market share of 28.5% and a CAGR of 7% in 2022. The leaves segment is a major player in the herbal supplement industry due to the versatility and convenience of leaf-based products as well as their wide range of health-promoting components.

The root segment is expected as the fastest-growing source in the segment of herbal supplement market, with a CAGR of 6.8%. Roots are popular herbal supplements because they contain high concentrations of specific compounds. Turmeric root, for example, contains curcumin which has anti-inflammatory properties and antioxidant properties. Valerian root also contains compounds that can help reduce anxiety and improve sleep.

Functional Analysis

The Medicinal Segment Dominated the Herbal Supplements Market During the Forecasted Period.

The functional segment is categorized as medicinal and aroma. Among these segments, the medicinal segment is dominated the herbal supplements market, with a market share of 60% and a CAGR of 6.9%. It is due to the herbal supplements are typically purchased by consumers to address specific health issues or to support their overall health and well-being. The perceived medicinal benefits of a herbal supplement are therefore a major factor in the purchase decision.

The aroma segment is accounted as the fastest growing function in the segment of the herbal supplement market, and it is expected to grow with a CAGR of 6.4%. Aroma analysis is also important, especially for certain herbal supplements used for aromatherapy and relaxation. In these cases, aroma can be a major factor in the perceived effectiveness of the product. The final decision on whether to use medicinal functional analysis or aroma will depend on both the product and the market niche.

Form Analysis

The Tablet Segment is estimated to be a Lucrative Segment in the Herbal Supplements Market.

Based on form, the market for herbal supplements is segmented into tablets, capsules, liquids, powders and granules, and soft gels. Among these segments, the tablet segment is dominant in the herbal supplement market with a CAGR of 7% and a market value of 31%. The tablets segment dominates the herbal supplement market due to their convenience, consistency, reliability, and ease of use. It’s important to remember that other forms of herbal supplementation such as liquids, powders, and capsules have their unique benefits and are popular with certain groups of consumers.

Soft gels and powder are the fastest growing form in segments of the herbal supplement market in 2022, with a CAGR of 6.8%. Soft gels and capsules are popular forms of herbal supplements that offer convenience and ease of use while allowing precise dosing and uniformity. In recent years, these forms have grown in popularity, especially for supplements that need higher doses.

Ingredients Analysis

The Turmeric Segment is Dominate in the Ingredients Analysis of the Herbal Supplements Market.

Based on ingredients, the market for herbal supplements is segmented into moringa, echinacea, flaxseeds, turmeric, ginger, and ginseng. Among these ingredients, the turmeric segment is dominant in the ingredients with a market share of 36.8% and a CAGR of 7%. Turmeric is popular in herbal supplements due to its anti-inflammatory and antioxidant properties. It is used to support digestive health and joint health.

Echinacea is accounted as the fastest-growing ingredient in the segment of the herbal supplement market in 2022, with a CAGR of 6.6%. Echinacea herb is commonly used to boost immunity and fight colds and flu. It is a member of the daisy family, and it’s native to North America. The flowers, leaves, and roots of the plant are used to make teas, capsules, and extracts.

Consumer Orientation Analysis

The Adult Consumer Orientation Segment is Accounted to Dominate in the Herbal Supplement Market.

Based on consumer orientation, the market for herbal supplements is segmented into pregnant women, adults, and pediatric geriatrics. Among these segments, the adult consumer orientation segment is accounted to dominate in the herbal supplement market with a share of 38.2% and a CAGR of 10.2%. The adult segment is a major player in the herbal supplements market. They are looking for natural, effective ways to support health and wellness & are willing and able to spend money to achieve their health goals.

The demand for herbal supplements among pregnant women is expected to increase with a CAGR of 9.7%. The segment of pregnant women is growing the fastest because many women are seeking natural ways to support both their health & that of their growing child during pregnancy. Herbal supplements are a great source of vitamins, minerals, and other nutrients to support a healthy pregnancy.

Application Analysis

The Weight Loss Segment is to be the Most Lucrative Application Analysis Segment in the Herbal Supplement Market.

Based on application, the market for herbal supplements is segmented into weight loss, cardiac health, sports nutrition, general well-being, immune & digestive health, bone & joint health, and heart health. Among these segments, the weight loss segment is having a significant share in the herbal supplement market with a market share of 22% and a CAGR of 7%. Weight loss is the largest segment in the herbal supplement industry due to the growing obesity rate, consumer preferences, availability and marketing strategies of different herbs & the increased demand for natural and safe solutions.

The cardiac health segment is accounted as the fastest growing segment in the herbal supplement market, with a CAGR of 6.2%. The factors that are driving the popularity of herbal supplements for cardiac health include an increased incidence of heart disease, a growing demand for natural products, the safety and efficacy of herbal supplements, and health benefits beyond heart health.

Distribution Channel Analysis

The Health and Wellness Stores Segment is Dominated in the Herbal Supplements Market.

Based on distribution channels, the market for herbal supplements is segmented into supermarkets, drug stores, pharmacies, health and wellness stores, and online channels. Among these channels, the health and wellness stores segment holds a significant share of the herbal supplement market, with a share of 34.6% and a CAGR of 6.8%. These stores are specialized in organic and natural products including herbal supplements. These stores are staffed with knowledgeable salespeople that can offer advice on the best supplements for an individual. Health food stores offer a wide range of products including organic foods and vitamins.

The online channel accounted for the fastest growth in the herbal supplement market in 2022 with a CAGR of 6.7%. This channel is rapidly growing due to the increasing adoption of e-commerce and increasing internet penetration. Online retailers offer a variety of products for competitive prices, which makes them a popular channel with consumers.

Key Market Segments:

Based on Source

• Leaves
• Fruits and Vegetables
• Barks
• Roots

Based on Function

• Aroma
• Medicinal

Based on Form

• Tablets
• Capsules
• Liquid
• Powder and granules
• Soft gels
• Others

Based on Ingredients

• Moringa
• Echinacea
• Flaxseeds
• Turmeric
• Ginger
• Ginseng
• Other Ingredients

Based on Consumer Orientation

• Pregnant Women
• Adult
• Pediatric
• Geriatric
• Others

Based on Application

• Weight Loss
• Sports Nutrition
• General Well-being
• Immune & Digestive Health
• Bone & Joint Health
• Heart Health
• Other specific requirements

Based on Distribution Channel

• Hypermarkets/Supermarkets
• Drug Stores and Pharmacies
• Health and Wellness Stores
• Other Retailers
• Online Channels

Regional Analysis

North America is estimated to be the most lucrative market in the global herbal supplement market, with the largest market share of 33.8% during the forecast period. North America is one of the biggest markets in the herbal supplements market in the world which is driven by favorable government regulations & high level of customer awareness.

The U.S. is the largest market in the region followed by Mexico & Canada. Another significant market for herbal supplements is Europe with the countries like France, UK, and Germany being major consumers. The European market is characterized by strict regulations & quality standards, which have helped to build consumer trust in the industry.

Key Regions and Countries

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Key Players Analysis

The herbal supplement market is very competitive. Many players are struggling for a share of the market. The key players in this market are distinguished by their commitment to quality and safety as well as their focus on sustainability and non-GMO and organic ingredients.

The herbal supplement market is highly fragmented. Many small and medium-sized businesses are active in the industry.

Market Key Players

• Glanbia plc
• Archer Daniels Midland Company
• Herbalife International of America Inc.
• Blackmores
• Nutraceutical International Corporation
• NBTY Inc.
• Arizona Natural Product
• Ricola
• Bio-Botanica Inc.
• Jarrow Formulas Inc.
• Solgar Inc.
• Ancient GreenFields Pvt. Ltd.

Recent Developments:

• The herbal supplement market is seeing an increased focus on sustainability, increased technology, new ingredients, a growing interest in Ayurveda, Traditional Chinese Medicine, and increased regulation.
• The market for herbal supplements is focusing more on sustainability as consumers are more concerned with the environmental and social impact their purchases have. Companies are using eco-friendly packaging and sourcing their ingredients from sustainable and ethical suppliers.
• As governments strive to ensure the safety of these products, they are increasing regulation. This includes new labeling standards, as well as increased scrutiny of manufacturing processes by supplement companies.

Report Scope: