US Herbal Supplements Market Report

US Herbal Supplements Market Executive Summary

The US Herbal Supplements Market was valued at $2209.20 Mn in 2023 and is predicted to grow at a CAGR of 4.2% from 2023 to 2030, to $2946.52 Mn by 2030.

Herbal supplements are plant-based products used to treat diseases or maintain health. These supplements, which include herbal, botanical, or phytomedicines, are derived from plants or composed of one or more herbs. They are intended for internal use and are commonly found in solid forms such as capsules, pills, tablets, and lozenges, as well as in liquid or powder forms. However, herbal supplements can interact with prescription medications and may cause side effects like allergic reactions, nausea, and headaches. Popular herbal supplements include turmeric, ashwagandha, ginseng, echinacea, and valerian root.

Research from the National Institutes of Health estimates that people in the US spend approximately $13 Bn annually on natural product supplements. Stress levels have significantly increased among certain age groups, particularly those aged 35-44, where the average stress level rose from 5.2 in 2019 to 5.7 in 2023. The market is driven by significant factors like increasing health consciousness, rising stress levels, and an aging population. However, interaction with prescription drugs, safety and efficacy concerns, and competition from pharmaceuticals restrict the growth and potential of the market.

Prominent players in this field include Amway, Nature Made, Youtheory, Natrol, and Vitafusion among others.

Market Dynamics

Market Growth Drivers

Increasing Health Consciousness: Increasing awareness about health and wellness is prompting consumers to pursue natural and preventive healthcare solutions. This trend drives the herbal supplement market in the US as more people turn to these products for their perceived health benefits and preventative properties.

Rising Stress Levels: Rising stress levels, especially among certain age groups, are boosting the demand for natural remedies to manage stress and anxiety. Nearly half of U.S. adults, 49%, reported frequently feeling stress. This trend drives the herbal supplement market in the US as individuals increasingly seek herbal products for their stress relief and calming properties.

Aging Population: The US population is aging rapidly, with the number of adults aged 65 and older expected to more than double by 2040, and those aged 85 and older nearly quadrupling. This demographic shift drives the herbal supplement market as older adults seek natural solutions for age-related health concerns and overall wellness.

Market Restraints

Interaction with Prescription Drugs: The potential interaction of herbal supplements with prescription medications presents a substantial restraint on the growth of the herbal supplement market in the US. This concern arises from the health risks posed by interactions between herbal supplements and pharmaceutical drugs, influencing consumer confidence and adoption of herbal products.

Safety and Efficacy Concerns: Consumer doubts regarding the safety and effectiveness of herbal supplements, attributed to inconsistent quality and insufficient clinical evidence, represent a significant restraint for the herbal supplement market in the US. These concerns can impede market expansion by impacting consumer trust and adoption of herbal products.

Competition from Pharmaceuticals: Established pharmaceutical products providing comparable health benefits can restrict the market share of herbal supplements in the US. This competition presents a significant restraint by diverting consumer preference towards pharmaceutical options, potentially reducing demand for herbal alternatives.

Regulatory Landscape and Reimbursement Scenario

Herbal supplements are categorized as dietary supplements and regulated by the Food and Drug Administration (FDA) under the Dietary Supplement Health and Education Act (DSHEA). The FDA classifies these supplements as either dietary supplements or drugs, depending on their intended use and the claims made by manufacturers. Products that make drug claims must undergo approval as new drugs. Manufacturers bear the responsibility of ensuring the quality and safety of their herbal supplement products. In the US, unlike prescription drugs or certain medical services, herbal supplements are generally not included in insurance coverage. Health insurance plans typically cover treatments and medications deemed medically necessary and scientifically proven effective. Because herbal supplements often lack the same level of scientific validation, most insurance companies do not consider them essential for coverage.

Competitive Landscape

Key Players

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

• Amway
• Nature Made
• Youtheory
• Natrol
• Vitafusion
• Herbalife
• Vitaquest
• Gaia Herbs
• GNC Herbal Plus
• Amazing Herbs