UAE Herbal Supplements Market Report

UAE Herbal Supplements Market Executive Summary

The UAE Herbal Supplements Market was valued at $26.30 Mn in 2023 and is predicted to grow at a CAGR of 7.2% from 2023 to 2030, to $42.79 Mn by 2030.

Herbal supplements, also known as botanicals, are dietary supplements that contain one or more herbs. These products, which include herbal, botanical, or phytomedicines, are derived from plants or botanicals to promote health or treat illnesses. Herbal supplements are intended specifically for internal use and are commonly available in solid forms such as capsules, pills, tablets, and lozenges, but can also be found in liquid or powder forms. Some popular herbal supplements include Echinacea, Garlic, Ginkgo, Ginseng, St. John's Wort, Saw Palmetto, and Valerian.

In a national survey in the UAE in 2022, 98.7% of individuals reported using herbal medicines (HMs). The primary reasons for HM use were to boost immunity (26.8%) and for relaxation (23.5%). Most participants were female (70.3%) and generally reported having fair health status. The market is driven by significant factors like health and wellness trends, cultural influence, and supportive government initiatives. However, the prevalence of counterfeit products, competition from functional and organic foods, and high ingredient costs restrict the growth and potential of the market.

Prominent players in this field include Himalaya Wellness, Dabur, Herbalife Nutrition, and Healwell Pharma among others.

Market Dynamics

Market Growth Drivers

Health and Wellness Trend: As consumers in the UAE become increasingly health-conscious, there is a rising awareness and preference for natural and organic products. This trend has greatly elevated the demand for herbal supplements, driving market growth as more individuals seek healthier, natural alternatives for their wellness needs.

Cultural Influence: The UAE's long-standing tradition of using herbal remedies continues to shape consumer preferences. This cultural heritage drives the herbal supplement market, as many individuals naturally turn to these time-honored solutions for their health needs.

Supportive Government Initiatives: The UAE government actively promotes health and wellness through various initiatives, including regulating and endorsing safe and effective herbal supplements. This governmental support is a significant market driver, as it ensures product quality and safety, thereby increasing consumer confidence and boosting demand.

Market Restraints

Prevalence of Counterfeit Products: The widespread presence of counterfeit products in the market can erode consumer trust in the quality and effectiveness of herbal supplements. This issue serves as a significant market restraint, as it discourages potential buyers and can lead to reduced demand for authentic products.

Competition from Functional and Organic Foods: Competition from the functional and organic foods market in the UAE presents a restraint for the herbal supplement market due to overlapping consumer bases and perceived effectiveness. The continuous innovation and product development in functional and organic foods also attract consumer attention and investment that might otherwise be directed toward herbal supplements, further limiting the herbal supplement market's growth potential.

High Ingredient Cost: High ingredient costs are a market restraint for the herbal supplement market in the UAE because they lead to higher product prices, making supplements less affordable for consumers. This limits market growth, particularly among price-sensitive segments, and can reduce overall demand.

Regulatory Landscape and Reimbursement Scenario

The Ministry of Health and Prevention (MOHAP) regulates herbal supplements in the UAE. Before herbal and dietary supplements can be imported, distributed, or sold in the UAE, they must undergo registration with MOHAP. This process includes providing comprehensive product details, and certificates of analysis, and submitting samples for evaluation to ensure that the supplements comply with stringent safety and quality standards enforced by MOHAP. Health insurance in the UAE generally does not cover herbal supplements because they are classified as over-the-counter (OTC) products and not deemed essential for medical treatment. Insurance plans in the UAE prioritize coverage for medically necessary treatments and medications that are supported by scientific evidence for specific conditions. Herbal supplements, lacking comparable scientific validation, typically do not meet the criteria for medical necessity recognized by insurance providers.

Competitive Landscape

Key Players

Here are some of the major key players in the UAE Herbal Supplement Market:

• Himalaya Wellness
• Dabur
• Herbalife Nutrition
• Healwell Pharma
• Gaia Herbs
• Patanjali Ayurved
• Botanic Supplements
• NOW Foods
• Be Well Remedies
• Forever Living