Issue:
115
Page: 56-65
Herbal Supplement Sales in US Increase 7.7% in 2016
Consumer preferences shifting toward ingredients with general wellness benefits, driving growth of adaptogens and digestive health products
by Tyler Smith, Kimberly Kawa, Veronica Eckl, Claire Morton , Ryan Stredney
HerbalGram.
2017; American Botanical Council
PDF available here
Introduction
Total sales of herbal dietary supplements in
the United States increased by 7.7% in 2016 — the second highest rate of growth
for these products in more than a decade. Consumers spent an estimated $7.452
billion on herbal supplements in 2016, an increase of approximately $530
million from 2015 (Table 1). This marks the 13th consecutive year of overall
sales growth for herbal supplements and the first time that total US retail
sales of these products have surpassed $7 billion.
The information presented in this report is based on retail sales data
provided by three organizations: the market research firms SPINS and IRI, both
based in Chicago, Illinois, and Nutrition Business Journal (NBJ), part
of the New Hope Network (now part of Informa), a natural products
industry-focused media company based in Boulder, Colorado. SPINS collaborated
with IRI to determine total retail sales of herbal dietary supplements in the
mainstream multi-outlet retail channel. NBJ calculated total overall sales of
herbal supplements as well as breakdowns by market channel and product type
(single-herb vs. combination-herb supplements). The figures in this report
reflect the most current estimates (as of July 2017) for herbal dietary
supplement sales during the 52-week period that ended January 1, 2017.
In addition to the 7.7% increase in total sales of herbal supplements in
2016, retail sales increased for the eighth consecutive year in each of the
three primary market channels, as defined by NBJ (Tables 2 and 3). Mass-market
sales of herbal supplements in 2016 totaled an estimated $1.336 billion — an
11% increase over 2015 sales in this channel. Sales of herbal supplements in
natural and health food retail stores increased by 6.4% from the previous year
to a total of $2.506 billion in 2016. Direct-to-consumer sales of herbal
supplements also increased substantially, with a total of $3.609 billion in
sales in 2016, a 7.3% increase from 2015.
The SPINS/IRI sales data for individual herbs discussed in this report,
and those listed in Tables 4 and 5, reflect sales of dietary supplements in
which that herb is the primary ingredient. This includes only products that
meet the legal definition of a dietary supplement, per the US Food and Drug
Administration.1
Mainstream Channel
SPINS, which does not include convenience store sales in its mainstream
retail channel, determined total mainstream multi-outlet sales of herbal
supplements to be approximately $943.9 million in 2016. Compared to NBJ’s
mass-market channel calculations, this represents a significantly less robust
increase of 0.1% in mainstream herbal supplement sales in 2016.*
For the fourth consecutive year, horehound (Marrubium vulgare,
Lamiaceae) was the top-selling herbal supplement in mainstream retail outlets
in the United States. Sales of horehound supplements, which include cough drops
and lozenges with horehound as the primary ingredient, totaled $125,468,033 in
2016. This is approximately $10.7 million, or 9.3%, more than was spent on
these products in 2015.
A member of the mint family, horehound has been used as a medicine since
ancient times. One of the first recorded uses of horehound dates back to the
first century, when a Roman physician described using the juice of the herb to
treat respiratory conditions.2 Human clinical trials of horehound
for respiratory conditions are limited, but the herb’s expectorant and
cough-suppressant properties make it a useful addition to natural cough drops
and lozenges.3
Wheatgrass (Triticum aestivum, Poaceae) and barley (Hordeum
vulgare, Poaceae) experienced the strongest mainstream sales growth in 2016
with a 131.9% increase in sales from 2015. SPINS, which groups these two
members of the grass family as a single item in its data set, reported total
mainstream sales of $5,770,618 for these ingredients in 2016, making them the
38th top-selling herbal supplement in this channel.
Both barley and wheatgrass, the name commonly used for the young leaves,
or cotyledons, of the wheat plant, contain a variety of vitamins, minerals, and
phytochemicals (e.g., flavonoids and chlorophyll).4,5 Wheatgrass has
been promoted for a wide range of potential health benefits, including
detoxification, digestive and immune support, and improved energy.6
Barley has been marketed for cardiovascular and digestive health, improved
strength, and other benefits.7 The significant sales increase for
these ingredients may reflect broader consumer trends toward whole-food
supplements and products that promote general wellness.8 In its 2016
Annual Survey on Dietary Supplements, the Council for Responsible Nutrition
(CRN), a natural products industry trade association, reported “overall
health/wellness benefits” as the number one reason why consumers take dietary
supplements.9
“Condition-specific supplements have long been the cornerstone of [health
and beauty departments]…. But the new way forward isn’t predicated on any
single health condition,” noted an October 2016 article from Natural Foods
Merchandiser, a New Hope Network publication.8 “Rather, it
focuses on supplements that support whole-body health.”
The nutrient
density of wheatgrass and barley has earned them a reputation as so-called
“superfoods.” These grasses are available in various forms, including as
juices, capsules, and powders, as well as in combination products marketed as
“supergreens” (a term that refers to various nutrient-rich leafy greens) that
are used to boost the nutritional content of smoothies and other beverages.
According to CRN’s 2016 survey, “filling in nutrient gaps in the diet” was the
third most common reason for consumers to take supplements.9
Suffering from “pill fatigue,” health-conscious consumers have turned to these
easy-to-consume sources of nutrition that can be incorporated into beverages.
As such, wheatgrass and barley sales likely were impacted by the “green
beverage” trend that took hold in 2016.10
Three other
ingredients experienced mainstream sales increases of more than 50% in 2016:
boswellia (Boswellia serrata, Burseraceae; +118.7%), turmeric (Curcuma
longa, Zingiberaceae; +85.5%), and fenugreek (Trigonella foenum-graecum,
Fabaceae; +52.1%). This growth is less pronounced than the sales increases seen
in 2015, in which mainstream sales for each of these herbs more than doubled
from 2014. (Sales of boswellia, for example, increased by a remarkable 673.6%
from 2014 to 2015.) Boswellia, turmeric, and fenugreek have been used
traditionally in Ayurveda, an ancient system of medicine in India that has
become increasingly well-known to consumers in the West.11,12 The
continued popularity of these ingredients in 2016 may be due in part to the
growing consumer awareness of Ayurvedic herbs.13
Bioflavonoid
complex, the 29th top-selling herbal supplement in the mainstream channel in
2016, experienced a 58.8% decrease in sales from 2015 — the largest sales
decline of any of the top 40 herbs in the mainstream channel. Bioflavonoids are
a group of phytochemicals that have been studied for a range of potential
health benefits. These compounds have been shown to increase vitamin C
absorption, and researchers have examined their ability to lower cholesterol,
promote circulation, and reduce inflammation.14 In 2015,
bioflavonoid complex was the 10th top-selling herbal supplement in this
channel, and it experienced a 24.5% increase in mainstream sales from 2014 to
2015. The reasons for the sharp decline in sales in 2016 are unclear, but they
may be related to consumer preferences for easily recognizable ingredients that
promote general wellness.10 According to SPINS, some of the
top-selling bioflavonoid products included in the 2016 data set were marketed
for specific health conditions, which likely limited their general appeal.
With a 54.3%
decline in sales from 2015 to 2016, goji berry (Lycium barbarum and L.
chinense, Solanaceae) was the only other herbal ingredient with a decrease
of more than 50% in mainstream sales during this period. Goji berry dropped
from the 26th top-selling supplement in 2015 to the 39th in 2016. Goji berry,
also known as Chinese wolfberry, is popularly regarded as a superfood. Goji
berry’s sales decline may be due in part to its steep price and the
proliferation of new superfoods, as noted in HerbalGram’s 2015 Herb
Market Report.15 An article published in The Wall Street
Journal in January 2016 summarized the declining interest in goji berry in
its opening sentence, noting that “Some food trends fade faster than you can
say ‘goji berry.’”16 Fox News also mentioned the fruit in a
December 2016 article titled “2016 food trends we’re so over....”17
It appears that
US consumers have continued to distance themselves from certain herbs with
alleged weight-loss or metabolism-boosting benefits in 2016.18-21
This was reflected in mainstream sales declines for green coffee (Coffea
arabica, Rubiaceae) extract (–40.6%), which had the third highest percent
sales decrease from 2015; yerba mate (Ilex paraguariensis,
Aquifoliaceae; –36.5%), which had the fourth highest percent sales decline; and
garcinia (Garcinia gummi-gutta, Clusiaceae; –29.6%), which experienced
the sixth highest percent sales decline. However, in 2016, boosting energy
remained the second most common reason for taking supplements, according to
CRN’s annual survey.9 As an alternative to these ingredients,
consumers may be turning to a different class of herbs: the adaptogens, which,
as discussed later, have been shown to have many effects on the body, including
an impact on energy levels.22
As in previous
years, HerbalGram chose to exclude certain ingredients from SPINS and
IRI’s tally of the 40 top-selling herbal supplements in the US mainstream
retail channel. As the only branded supplement on the list, Relora (InterHealth Nutraceuticals Inc.; Benicia,
California), a proprietary blend of magnolia (Magnolia
officinalis,
Magnoliaceae) and phellodendron (Phellodendron amurense, Rutaceae) bark extracts, was not included in this
year’s report. Had it been included, Relora would have been the 38th
top-selling supplement in the mainstream channel in 2016, despite its 46.7%
decline in sales from 2015. Menthol, which would have ranked 15th in the 2016
mainstream channel, was the only other excluded ingredient. Although menthol
can be naturally derived from mint (Mentha spp., Lamiaceae) species,
much of the supply is now produced synthetically,23
and therefore is not considered by ABC to be an “herb.”
Natural Channel
Retail sales of
herbal supplements in the US natural channel totaled $382,955,108 in 2016, a
4.89% increase from 2015, according to estimates from SPINS. This is
substantially less than NBJ’s estimated total of $2.506 billion for its natural
market channel, which also includes sales from independent retailers and other
large retailers, such as Whole Foods Market. Sales in the natural channel tend
to come from what marketers call “core
shoppers,” who are committed to a natural lifestyle. So-called “peripheral shoppers,” who have less of a
personal commitment to a natural-health philosophy, are more likely to purchase
dietary supplements in the mainstream channel.
Turmeric was the
top-selling herbal supplement in natural retail stores for the fourth
consecutive year with sales of $47,654,008 in 2016. Sales of turmeric in
natural retail stores increased by more than $11.5 million from 2015. This 32%
increase in sales was the third highest percent sales increase of any of the 40
top-selling herbs in this channel.
The popularity of
turmeric has been increasing steadily in recent years, but consumer interest in
this yellow-gold spice spiked in 2016.24 Based on an analysis of
search engine queries, Google classified turmeric as the “breakout star” of the
functional food movement of the past five years. During that time, Google
searches for turmeric increased by 300%.25
Ashwagandha (Withania
somnifera, Solanaceae), the eighth top-selling herbal supplement in the
natural channel, had the largest percent sales growth in 2016, with a 55.2%
increase from 2015. Ashwagandha’s popularity may be due in part to growing
consumer awareness of two natural product trends: Ayurvedic herbs, as discussed
previously, and adaptogens.8 Natural channel shoppers, who tend to
follow developments pertaining to natural ingredients more closely than
peripheral shoppers, are perhaps more likely to have been familiar with these
trends in 2016.
Adaptogenic
herbs, sometimes referred to as “superherbs,”26 were listed among
2016’s top health and wellness trends by many major media outlets.27,28
The term “adaptogen” first appeared in the scientific literature in the late
1950s, when it was loosely defined as any substance that promoted “non-specific
resistance” to stress.29 (Subsequent publications have honed in on
more specific physiological responses, but the term is still somewhat
ambiguously defined.) In general, adaptogens are non-toxic substances that
promote the normalization of bodily functions and support a healthy response
and resistance to “noxious factors” or stressors. Several other ingredients
with adaptogenic properties experienced natural channel sales growth in 2016,
including mushrooms (+13.8%), “ginseng” (Panax spp., Araliaceae; +9.3%),
rhodiola (Rhodiola spp., Crassulaceae; +5.5%), and holy basil (Ocimum
tenuiflorum, Lamiaceae; +2.8%).
The top-selling
herbal ingredients in the 2016 natural channel were the same as those that made
the top-40 list in 2015, with one exception: dandelion (Taraxacum officinale,
Asteraceae). Natural channel sales of dandelion in 2016 totaled $2,520,049, a 15.4%
increase from 2015. (Dandelion, which came in as the 38th top-selling herb in
2016, displaced St. John’s wort [Hypericum perforatum, Hypericaceae]
from the list.) Although dandelion may be better known as a weed, preparations
of the root30,31 have been used for millennia as a medicine for
liver and kidney diseases, upset stomach, and heartburn, among other
conditions.32 As an ingredient in herbal dietary supplements,
dandelion is commonly found in teas marketed for detoxification, weight loss,
digestive health, and stimulation of urine flow and appetite.33
Dandelion30
is one of several herbal ingredients with bitter properties to make the list of
top-selling herbal ingredients in 2016. Other herbs include green tea (Camellia
sinensis, Theaceae; +8.5%), aloe (Aloe vera, Xanthorrhoeaceae)
+6.6%), echinacea (Echinacea spp., Asteraceae; +6.3%), burdock (Arctium
lappa, Asteraceae; +4.8%), and milk thistle (Silybum marianum,
Asteraceae; +2.1%).34 Bitterness as a flavor also ranked among the
food and beverage trends of 2016. Herbs, including some of the previously
discussed leafy greens, produce a wide variety of compounds that humans
perceive as bitter-tasting. The consumption of certain bitter phytochemicals
has been linked to a wide range of health benefits, but the compounds are
perhaps most closely associated with digestion. The scientific explanation
behind this relationship is well established. “As most naturally
occurring bitter tasting stimuli are toxins at some concentration,
the body responds to strong bitter tastes as if toxins are about to
be ingested,” explained the authors of a 2013 review article.35 As
part of the body’s first line of defense, the gastrointestinal system responds
by attempting to limit the impact of the potential toxin.
Emerging research
on the “gut-brain connection” and the importance of intestinal microbiota to
overall health has likely fueled consumer interest in bitter and digestive
health products.36 However, according to some sources, consumers are
still buying digestive health products primarily to address specific issues,
such as constipation and diarrhea. “While these reactive digestive issues are
the main reason for using these types of products, there are many opportunities
for category expansion based on a prevention platform,” a 2016 “Mind of the
Consumer” report by Natural Products INSIDER noted.37 “Within
this white space are conditions such as immunity, mental focus, weight loss,
energy and joint issues — all of which can be linked back to digestive health.”
Direct Sales
Direct sales of herbal supplements totaled $3.609 billion in 2016, a
7.3% increase from 2015 sales in this channel, according to NBJ. This is the
highest percentage increase in direct sales of herbal supplements in more than
a decade, according to previous HerbalGram herb market reports. Direct
channel sales of herbal dietary supplements include multilevel marketing
companies (also known as network marketing companies). This channel also encompasses
mail- and internet-order sales companies, direct-response TV and radio sales,
and sales by health practitioners.
According to a NutraIngredients-USA article from October 2016: “Network
marketing continues to be a huge outlet for nutritional products, and direct
selling companies with supplements in their portfolios are among the best
performing of these companies.”38
Single-Herb vs.
Combination-Herb Supplements
Since 2011, sales growth of combination-herb supplements has outpaced
that of single-herb supplements, and this trend continued in 2016.
Combination-herb supplement sales in all channels grew 10.1% from 2015, and
single-herb supplement sales increased by 6.1%. However, as noted in Table 6,
total sales of single-herb supplements were higher overall than sales of
combination-herb supplements in 2016, according to NBJ.
Conclusion
2016 marked the
13th consecutive year of overall sales growth for herbal supplements and the
eighth year of increased sales in each of the three market channels. This
suggests that consumers — from casual shoppers in mainstream retail outlets to
core consumers of natural products — are continuing to turn to plant- and
fungi-based options for their health care and self-care.
The shifts in
sales of certain ingredients in 2016 point to the evolving preferences and
priorities of consumers. Although shoppers are still buying supplements to
address specific health concerns, increased sales for herbal ingredients
marketed for overall wellness and vitality suggest that some are taking a more
proactive, holistic approach to wellness. In particular, sales of adaptogenic
herbs, a category of plants with broad and appealing effects, seem to have
benefited from this trend. As scientific research continues to explore the
connection between the digestive system and overall health, the rise of bitter
herbs and other products marketed for gastrointestinal health may also be a
component of this “systemic wellness” trend.
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