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The global botanical supplements market size was USD 36.76 billion in 2020. The market is projected to grow from USD 40.54 billion in 2021 to USD 80.54 billion by 2028, exhibiting a CAGR of 10.3% during the forecast period (2021-2028). The global impact of COVID-19 has been unprecedented and staggering, with botanical supplements witnessing a positive impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a higher growth of 12.90% in 2020 as compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
Moreover, the expansion of the dietary supplements industry, owing to rising disposable income and increased health consciousness, is projected to benefit this market. The product formulated using botanical ingredients is related to obesity, joint health, vascular system, and anxiety.
Supply Chain Disruptions amid COVID-19 to Hamper Performance
The COVID-19 pandemic has severely impacted global industrial production, owing to the lockdowns imposed across significant economies. Increasing preference for a healthy and active lifestyle coupled with growing awareness concerning immunity owing to the COVID 19 outbreak is projected to further fuel the product demand. This is further likely to increase the penetration of botanical ingredients in the market.
The outbreak of the COVID-19 pandemic in developing countries, such as India, Brazil, and China, has severely affected the dynamics of the international spice trade. However, retail sales of food & beverages witnessed considerable growth in the second quarter of 2020. Consumers preferred to maintain a stock of essential products in anticipation of lockdowns due to COVID-19. These key factors further led to a sudden increase in demand for botanical ingredients including spices.
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Innovation in Botanical Ingredient Industry to Augment Market Volume
The consumption pattern of consumers seeking natural flavors instead of synthetic has significantly increased over the past few years, owing to growing health awareness among consumers across the world. Consumers are on the lookout for options offering health & wellness benefits in the products they consume. Innovation in health supplements resulting in new flavors is projected to boost the market. The presence of branded products and private-labeled products coupled with the growth in retail channels is expected to fuel the demand for botanical-based supplements in the country. The use and promotion of botanical ingredients to develop these botanical type of supplements will support the market growth over the forecast period.
Rising Consumer Awareness Concerning Health, Wellness, and Nutrition to Bolster Market Growth
Numerous awareness campaigns introduced by government as well as non-government organizations have increased consumer awareness towards dietary supplements and their benefits. Furthermore, the consumption of high-quality nutrition-infused products symbolizes one’s social status in several countries. Some companies’ manufacturing dietary supplements include organic and natural products, further driving the market growth. The use of attractive packaging techniques has led to growing consumer awareness, which, in turn, has triggered the spending on botanical supplements.
Several consumers are now becoming health conscious and prefer products that contain minimal synthetic chemicals. Increasing preference for healthy food and willingness to pay a premium price for such products (with better nutritional value) are also significant factors expected to propel the demand for the product.
Shift from Pharmaceutical to Botanical Products to Increase Market Volume
The botanical industry is an evolving and dynamic sector, which offers novel opportunities to collaborate scientific discovery with increasing consumer interest in health-enhancing foods. It follows and observes consumer trends and relationships with mass distributors; therefore, the products designed in this industry respond to direct demand. It may be used to increase health, prevent chronic diseases, delay the aging process, raise life expectancy, and help the structuring and functioning of the body. Consumers' awareness of health and wellness is changing the "prevention is better than cure" ideology. These factors have resulted in more consumers relying on nutraceuticals and botanical supplements to lead a healthy & disease-free life.
Availability of Substitutes and Complexity Related With Assessment of Active Ingredients to Limit Growth
Botanical ingredients are being extensively used in various end-use industries ranging from food & beverage to supplements for their functional and medicinal benefits. Besides, their clean label source and minimal or no side effects compared to synthetic ingredients also augment their distribution channel in end-use industries. For instance, glucosamine compounds are extensively used in the dietary supplements industry to prepare supplements associated with osteoarthritis, glaucoma, weight loss, and joint pain.
Supplements made from botanicals are complex mixtures and can display a high degree of variability in the composition of active ingredients and associated impact on biological activity. This variability in the quality of botanical ingredients mainly arises from the plant material's location, climate, time & stages of harvesting, and the manufacturing process undertaken by the ingredient producer.
Besides, data from exploratory clinical trials and studies of natural products such as botanical dietary supplements have been highly inconsistent. Medical practitioners and consumers prefer or opt for chemically derived products. Therefore, the threat of substitution from animal and synthetic ingredients and the unavailability of robust processes to assess bioactive response and components of botanical supplements are expected to hamper their penetration.
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Tablets Hold Largest Botanical Supplements Market Share on Account of Easy Dosage Patterns
By form, the market is divided into powder, liquid, tablets, capsules, and others.
Tablets are the most commonly used botanical supplements due to their cost-effectiveness. Manufacturers can pack the most amount in a given space in tablet form, and tablets have a longer shelf life than capsules. High-quality supplements use excipients that assist in tablet absorption and disintegration. Although the natural coating provides better finish, other factors regulate the absorption based on efficacy and quality. All these factors are expected to surge the demand for natural health supplements in the form of tablets in the coming years.
High-quality supplements make use of excipients which help in the disintegration and absorption of tablets. However, natural coatings offer better dissolution, other factors determine the absorption based on efficacy and quality. All such aspects are likely to surge the demand for natural health supplements in the form of tablets over the forecast period. Tablets are the most commonly used these supplements due to their cost-effectiveness. Producers can pack the most amount in a given space in tablet form and tablets have a longer shelf life than capsules.
Spices Sector to hold Largest Market Share due to Increasing Concern of Obesity Disorders
By source, the market is segmented into spices, herbs, flowers, leaves, and others
The spice segment led the market and is expected to witness substantial gain over the forecast period on account of changing lifestyles coupled with an increase in the trend of experiencing novel foods that have led to the growth in the popularity of spices. Botanical ingredients are obtained using this raw material through the solvent extraction process. They are herbal and can exist in liquid, solid, and semi-solid states. Such ingredients fuel high demand for the production of cosmetics to enhance their quality. Furthermore, the spices are also gaining traction from the processed food & beverages industry to boost the nutritional value of their products.
Energy & Weight Management Sector to hold Largest Market Share due to Increasing Concern of Obesity Disorders
By functionality, the market is segmented across energy & weight management, general health, bone & joint health, gastrointestinal health, immunity, anti-cancer, and others.
Sports enthusiasts widely influence the product demand containing proteins and vitamins. These products help athletics restore energy, improve muscular endurance, and minimize body wear & tear. In 2018, nearly 6 in 10 adults used a sports nutrition product. Moreover, combined consumer sale of nutrition bars, sports nutrition supplements, and energy drinks are expected to fuel energy nutrition demand.
Vitamin B and D are used as weight management supplements due to their metabolizing fats, carbohydrates, and proteins. Rising awareness regarding weight management among working professionals, on account of increasing concerns over obesity disorders, is projected to amplify the utilization of botanical supplements.
Pharmacies Sector to hold Largest Market Share, Owing to Convenience of Direct Purchase and Cost-Effectiveness
By distribution channel, the market is broken down into supermarkets/hypermarkets, pharmacies/drug stores, online retail, and others.
The pharmacies and drug store industry comprises operators that provide a range of over-the-counter and prescription medication. The industry is anticipated to grow significantly despite the difficulties caused by external competition and regulating agencies. The upsurge in the geriatric population and increase in prescribed supplements by medical practitioners are expected to create opportunities for pharmacies and drug stores in the near future.
Convenience stores are gaining popularity as people spend more time in offices and create less time for shopping.
Europe Botanical Supplements Market Size, 2020 (USD Billion)
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North America to Exhibit Highest Growth on Account of Rising Awareness Regarding Consumption of Nutritional Products
In terms of geography, the market is categorized into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.
Growing technological innovation in the botanical ingredients sector offers new opportunities for the botanical supplements market growth in Europe. The Federation of European Nutrition Societies (FENS) funds and invests in various nutritional foods businesses. The federation operates and nurtures such business growth in 26 countries in the region. The European Society for Clinical Nutrition and Metabolism (ESPEN) governs and offers grants for businesses in the nutrition sector and accolades the industry's best-performing organizations. Such initiatives have encouraged participants to develop highly beneficial and new innovative products, thereby boosting the industry growth.
North America has a vast population facing increased obesity levels and lifestyle-related diseases due to dietary habits, high disposable income, and availability of several processed & ready-to-eat foods, which are not necessarily good for consumer health. Fibers & specialty carbohydrates emerged as a significant ingredient segment in the North American market for botanical supplements, owing to increasing awareness about their benefits in overall health & bodily maintenance. Fibers promote easy bowel movement while providing critical cleansing of internal organs and minerals, promoting high retention and passage of nutrients into cells, and helping blood flow and circulation.
The market in Asia Pacific is anticipated to witness increasing demand for botanical supplements as key participants are adopting strategies such as introducing their brands in untapped economies of Southeast Asian countries. Japan and Australia have heightened awareness of the product's health benefits over the years, which is projected to strengthen regional growth over the forecast period.
Companies to Focus on Growth in their Production Capacity to Meet Global Demand
The botanical supplements market is consolidated owing to a limited number of established and regional players. Key companies, such as Dabur India, NBTY Inc., and BASF SE, are prominent or major players in this market. These key players are focusing on increasing their production capacity to meet the global demand.
An Infographic Representation of Botanical Supplements Market
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The market report provides qualitative and quantitative insights into the market. It also offers a detailed analysis of the market size and growth rate for all possible segments in the market. Various key insights presented in the report are an overview of related markets and recent industry developments such as mergers & acquisitions, regulatory scenario in critical countries, and key industry trends.
Value (USD billion)
By Distribution Channel
Fortune Business Insights says that the global market size was USD 36.76 billion in 2020 and is projected to grow USD 80.54 billion by 2028.
Registering a CAGR of 10.3%, the market will exhibit steady growth during the forecast period (2021-2028).
The tablets segment is expected to be the leading segment based on type in the global market during the forecast period.
Rising consumer awareness concerning health, wellness, and nutrition to support the growth driving the market growth
BASF SE, NBTY, Inc., and Procter and Gamble are the key players in the market.
North America dominated the market in terms of share in 2020.
The pharmacies segment is set to lead the global market based on distribution channel.
Innovation in the botanical ingredients industry to expected to meet the global market growth.
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