Supplements Sales Surge in Recession

SAN JOSE, Calif.The global herbal supplement market did not decline during the worldwide recession. The world market in fact, exhibited steady growth for the crisis-ridden period of 2008 to 2009, and market will reach US$93.15 billion by the year 2015, according to a new report by Global Industry Analysts Inc. In the United States alone, the sales of vitamins and supplements at the retail level recorded a significant increase of more than 10 percent in 2008, as compared to the previous year.

The recession may have actually prompted increased preference for dietary supplements. Escalating prices, tighter budgets and high health care and lifestyle costs have driven consumers towardsthe more economical, healthier and safer option of alternative medicine and dietary supplements for relief from physical and mental disorders.

This growth is also spurred by greater efficacy and safety, however scientific research and clinical trials corroborating safety claims of herbal supplements and remedies remain a critical factor in determining long-term success of the market.

Other factors that bode growth in the market include widespread acceptance of functional foods, preventive health and alternative medicine regimens, supplier innovations, increased number of retail outlets along with e-commerce, support and cooperation of medical and health professionals and the current GMP (good manufacturing practices) for dietary supplements by FDA.

In addition, demographic preferences have also prompted demand for herbal supplements. As the Baby Boomer generation ages, there is a greater urgency to maintain healthy lifestyles, focusing on alternatives for conventional medicine and general health. Herbal and botanical supplements offer these consumers natural alternatives for hormone replacement therapy; prostate health; brain health and cognitive function; and joint and connective tissue health. Women, particularly in the middle-aged bracket, form the major consumer group owing to their growing health-consciousness, increased concern for diet and enhanced attention toward preventive healthcare.

Phytosterols, green teas, antioxidant herbal extracts and natural sweeteners are the few supplements that successfully crossed the threshold of functional foods. Several botanicals such as ginseng, acaí and guarana are already recognized as crossover ingredients.  Soy and specialty herbs are also expected to display strong growth potential in the future.

A major trend observed in the market is a shift from single ingredient market to multiple ingredient-based medications for a particular condition. There is also an increased demand for herbal and botanical products in multi formula and combo packed format, as well as for chewable capsules and tablets. Multi-Herbs dominates as the largest segment, capturing a significant share of the overall herbal supplements and remedies market worldwide. The segment is also forecast to race ahead of the other markets at the fastest compounded growth rate of 9.0 percent over the analysis period.

The market for herbal supplements varies by region based consumer awareness, product availability, and forms of delivery, product acceptance and regional regulations. In the United States and Europe, herbal medicines represent a major share of pharmaceutical market and are included in regular medical practice. However, the market is highly regulated and extremely difficult to enter, as companies need to pass through rigorous tests before mass production. In countries such as France, Germany, U.K. and India, herbal supplements along with pharmaceuticals are sold in drugstores.

Major manufacturers of herbal supplements and remedies are situated in developed countries, and include giant multinational pharmaceutical companies. Some of the smaller companies specializing in herbal products pose strong competition to these multinationals. Herbal supplements made in China have experienced significant demand in the EU and the United States.

Europe represents the largest regional market, while the Asia-Pacific market, led largely by China and India, is set to pave the way with the highest CAGR of 10.7percent through 2015.