Issue:
119
Page: 62-71
Herbal Supplement Sales in US Increased 8.5% in 2017, Topping $8 Billion
by Tyler Smith, Kimberly Kawa, Veronica Eckl, Claire Morton, Ryan Stredney
HerbalGram.
2018; American Botanical Council
Strongest
sales growth in more than 15 years bolstered by continued popularity of
Ayurvedic herbs and new formulations of botanicals with general health and
nutrition benefits
Introduction
In 2017, retail sales of herbal dietary
supplements in the United States surpassed $8 billion for the first time,
reaching an estimated total of $8.085 billion. Consumer spending increased by
approximately $633 million, or 8.5%, from 2016 — the strongest US sales growth
for herbal supplements in more than 15 years. Total US retail sales have
increased every year since 2004, and since then, consumer spending on herbal
supplements has nearly doubled.
The information
presented in this report is based on retail sales data provided by the market
research firms SPINS and IRI, both based in Chicago, Illinois, and the Nutrition Business Journal (NBJ), part of the New Hope Network, a
Boulder, Colorado-based natural products industry-focused media company owned
by Informa. 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).
In addition to the
overall sales growth for herbal dietary supplements, total retail sales
increased in all market channels in 2017, according to NBJ estimates. The
strongest growth was seen in direct sales of herbal supplements, which totaled
$4.012 billion in 2017, an 11.2% increase from the previous year. Mass-market
retail sales grew by 8.4% to reach an estimated total of $1.449 billion in
2017, and herbal supplement sales in natural and health food stores, which
totaled $2.624 billion in 2017, increased by 4.7% from the previous year.
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
The figures in this report reflect the most current estimates (as of July 2018)
for herbal dietary supplement sales during the 52-week period that ended
January 1, 2018.
Mainstream Channel
According to SPINS/IRI data, mainstream multi-outlet retail sales of
herbal dietary supplements totaled $925,935,334 in 2017, a marginal increase of
0.698% from the previous year. The substantial differences between the
mainstream sales totals from SPINS/IRI and NBJ can be explained in part by the
organizations’ differing channel definitions. SPINS, for example, does not
include convenience store sales in its mainstream channel data.
For the fifth consecutive year, horehound (Marrubium vulgare,
Lamiaceae) was reported as the top-selling herbal dietary supplement ingredient
in mainstream US retail outlets. In this channel, horehound supplement sales
totaled $140,832,190 in 2017, a 12.3% increase
from 2016. Records of the medicinal use of horehound for respiratory
conditions date back to the first century,2,3 and the herb is still
commonly used for its expectorant and cough-suppressant properties, typically
in the form of cough drops and lozenges. (However, according to SPINS, one of
the top-selling horehound products in 2017 was in the form of a single-herb
extract marketed for respiratory health.)
With a 46.7% increase in sales from 2016, turmeric (Curcuma longa,
Zingiberaceae) experienced the strongest sales growth in the 2017 mainstream
retail channel. Consumers spent a total of $32,456,933 on turmeric supplements
in mainstream retail stores in 2017, an increase of roughly $10.3 million from
the previous year. This increase in sales earned turmeric a spot as the fifth
top-selling mainstream herbal supplement ingredient, up from its 10th-place
rank in 2016.
Consumer interest in turmeric has increased substantially in recent
years. In its 2016 Food Trends report, Google classified turmeric as the
“breakout star” of the functional food movement from 2011 to 2016, with Google
searches for the ingredient increasing by 300% during that time.4,5
The rise of this golden spice has coincided with increased consumer
familiarity with and interest in Ayurveda, a traditional medicine system of
India. In addition to being a widely used food ingredient (e.g., in curries),
turmeric has been used medicinally in Ayurveda to address a diverse range of
health issues, including ulcers, joint pain, skin conditions, inflammation,
respiratory conditions, and kidney and liver disorders, among others.6
Turmeric sales may have also benefited from the viral popularity of
“wellness tonics,” which Whole Foods named as one of the top 10 food trends of
2017.7 Golden milk and turmeric lattes, which typically contain
turmeric and other spices added to warmed milk or espresso, were among the
year’s trending tonics, with major coffee chains such as Starbucks and Peet’s
adding various turmeric-containing options to their menus in 2017.8
According to SPINS, the top-selling mainstream turmeric products in
2017 were marketed for non-specific health conditions. However, mainstream
consumers increasingly are seeking condition-specific turmeric supplements,
particularly those for joint health, immune health, and pain and inflammation.
Modern research on turmeric has largely focused on curcuminoids, a group of
biologically active compounds that includes curcumin. Evidence from human
clinical trials supports some of turmeric’s traditional Ayurvedic uses,
including for pain management, gastrointestinal disorders, and skin conditions.9
In addition to turmeric, four other botanical ingredients saw sales
increases of more than 30% in the 2017 mainstream channel: wheatgrass/barley
grass, elderberry, fenugreek, and ivy leaf.
Sales of wheatgrass (Triticum aestivum, Poaceae) and barley
grass (Hordeum vulgare, Poaceae) supplements, which experienced the
greatest mainstream sales growth in 2016, grew by 44.2% in 2017. These ingredients
likely have continued to benefit from the consumer desire for ingredients with
general health and wellness benefits, as discussed later in this report.
Sales of elderberry (Sambucus nigra, Adoxaceae) and ivy leaf (Hedera
helix, Araliaceae), which are typically used to support immune and
respiratory health,10 increased by 34.7% and 30.2%, respectively.
Increased sales of these supplements may have been related to the
higher-than-average number of flu-like illnesses in the United States from
mid-December 2016 to mid-March 2017, as reported by the US Centers for Disease
Control and Prevention.11
Fenugreek (Trigonella foenum-graecum, Fabaceae), an herb
traditionally used to stimulate breast milk production, saw an increase in
sales of 33.5% from 2016. Multiple human clinical trials published in 2016 and
2017 investigated a range of other potential uses for fenugreek, including for
age-related symptoms of androgen decline,12 menopausal symptoms,13
and low sperm counts.14 Sales of fenugreek supplements may have also
benefited from the increased familiarity with Ayurveda, in which it has been
used traditionally for millennia.15
Only three herbal supplement ingredients in the 2017 mainstream channel
experienced sales decreases of more than 30%: green coffee (–38.2%), coconut
oil (–34.9%), and green tea (–30.4%). Once touted for their weight-loss
benefits by the popular daytime television host Mehmet Oz, MD, green tea (Camellia
sinensis, Theaceae) and green coffee (Coffea arabica, Rubiaceae)
extracts peaked in popularity in 2014, and their sales have declined steadily
since then. This is likely due in part to increased consumer skepticism of
weight-loss products, whose marketing claims have been questioned publicly in
Senate hearings16 and consumer education campaigns17 in
recent years. Instead of turning to single-ingredient “miracle”
weight-loss supplements, consumers’ attitudes toward weight management products
appear to have shifted. “Consumers … are taking a more balanced, holistic
approach to managing weight as an attempt to improve health,” noted Informa
Managing Editor Rachel Adams in a recent publication from Natural Products
INSIDER.18
Coconut oil (Cocos nucifera, Arecaceae) exploded in popularity in
2013 with a roughly 4,000% increase in sales from 2012, but mainstream sales of
this ingredient started to decline in 2016. The continued decline in 2017 may
be due in part to a highly publicized Presidential Advisory released in June
2017 from the American Heart Association. The advisory, which suggested that
coconut oil was no healthier than beef fat in terms of potential cardiovascular
effects, noted: “Because coconut oil increases LDL cholesterol, a cause of
[cardiovascular disease], and has no known offsetting favorable effects, we
advise against the use of coconut oil.”19
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 2017,
despite a 25.6% decline in sales from 2016.
Natural
Channel
According to
SPINS, sales of herbal dietary supplements in the US natural channel totaled an
estimated $405,153,959 in 2017, an increase of 8.9% from 2016. NBJ, which,
unlike SPINS, includes sales from Whole Foods Market in its natural and health
food retail channel, determined significantly higher sales of $2.624 billion in
this channel. In general, natural channel sales come from so-called “core shoppers,” who tend to be committed
to a natural lifestyle. “Peripheral
shoppers,” who typically are less committed to natural products and wellness
trends, are more likely to purchase dietary supplements in the mainstream
channel.
For the fifth
consecutive year, turmeric was the top-selling herbal supplement ingredient in
natural retail outlets with sales totaling $50,346,121 in 2017, an increase of
12.2% from 2016. While mainstream consumers primarily purchased turmeric
supplements for non-specific health conditions, the greatest sales of turmeric
supplements sold in the natural channel were marketed for pain and
inflammation. Non-specific health conditions, however, still represented the
second largest market share of turmeric supplements sold in this channel,
followed by those for joint health and cardiovascular health.
For the first time, cannabidiol (CBD), a
naturally occurring, non-intoxicating compound in Cannabis species
(Cannabaceae), ranked among the 40 top-selling herbal supplement ingredients in
the US natural channel. CBD was the 12th top-selling ingredient in this channel
with total sales of $7,583,438 in 2017, an increase of 303% from the previous
year.
SPINS has been
tracking sales of CBD in both mainstream and natural retail channels since
2016, but the legality of this ingredient remains murky. The US Drug
Enforcement Administration considers “marihuana” and “marihuana extracts”
illegal under Schedule I of the Controlled Substances Act,20 but
certain allowances were made for the research and limited production of
industrial hemp when the Farm Bill of 2013 became law in early 2014.21 In
an effort to avoid potential legal issues, many manufacturers have chosen to
produce and market products with only “hemp-derived” CBD.
CBD preparations
are perhaps best known for their documented benefits for treatment-resistant
epilepsy,* but CBD is “attracting increasing interest as ‘a pharmacological
agent of wondrous diversity,’ with analgesic, anti-inflammatory, antioxidant,
antiemetic, anxiolytic,” and numerous other documented properties, according to
a recent review of CBD claims.23 The majority of CBD sales in 2017
were attached to products with non-specific health focuses, according to SPINS,
but sales of condition-specific CBD formulations, such as those for mood
support and pain and inflammation, are beginning to emerge. Nigella (Nigella
sativa, Ranunculaceae), also known as black cumin or black seed, also
experienced significant sales growth in 2017. Retail sales of nigella rose by
202.5% from 2016, making it the 23rd top-selling herb in this channel.
According to SPINS, liquid seed oil preparations with non-specific health
focuses made up the majority of nigella supplement sales in both natural and
mainstream retail stores in 2017.
Archeological
evidence suggests that nigella has been used as a food and medicine since the
third millennium BCE, and the herb is still commonly used in traditional
medicine systems in Asia. In Ayurveda, dried nigella seeds are used to treat
various digestive issues (e.g., gas and diarrhea), and in the Unani system of
medicine, nigella is used to treat a range of conditions, including asthma,
migraine, joint and back pain, and skin diseases. Evidence from human clinical
trials suggests that nigella preparations may have some benefits for
respiratory conditions, rheumatoid arthritis, and functional dyspepsia.24
Moringa (Moringa
oleifera, Moringaceae), which also made its debut among the 40
top-selling herbs in the natural channel in 2017, was the only other ingredient
with an increase in sales of more than 30% from 2016. Moringa, like nigella, is
a botanical commonly used in Ayurvedic medicine that has general health and
nutrition benefits. Also known as
horseradish tree (not related to the spice horseradish [Armoracia rusticana,
Brassicaceae]), moringa is cultivated and consumed widely in South Asian
countries. The leaves are rich in protein, beta-carotene, vitamin C, calcium,
and potassium, and various plant parts have been used traditionally in India to
treat inflammation and infection, as well as gastrointestinal, cardiovascular,
and liver conditions.25 According to SPINS, powders made up the
majority of moringa supplement sales in the 2017 natural channel.
Consumers suffering from “pill fatigue,” who increasingly are looking
for ingredients with general wellness and nutrition benefits in alternative
delivery forms (e.g., powders and liquids), likely contributed to the sales
growth of nigella and moringa in 2017.26 In addition, the herbs’
long history of use in Ayurveda may have added to their appeal, particularly
for core consumers in this channel who tend to be more familiar with natural
product trends. Several other botanicals with traditional Ayurvedic uses
experienced sales growth in the natural channel, including ashwagandha (Withania
somnifera, Solanaceae; 25.6%), ginger (Zingiber officinale,
Zingiberaceae; 19.8%), and garlic (Allium sativum, Amaryllidaceae; 16%).27
Coconut oil was the only ingredient in the 2017 natural channel with a
significant decline in sales (–23.5%).
Direct Sales
Direct sales of herbal supplements increased by 11.2% from 2016,
reaching an estimated $4.012 billion in 2017, according to NBJ. This is the
strongest percentage sales growth in this channel in more than a decade, and
the first time since 2012 that growth in the direct sales channel outpaced that
of the mainstream and natural/health food channels. 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.
Single-Herb vs. Combination-Herb Supplements
For the seventh consecutive year, sales growth of combination-herb
supplements was stronger than that of single-herb supplements. Across all
channels, sales of combination-herb supplements increased by 12.9% from 2016,
and sales of single-herb supplements increased by 5.6%. Combination-herb
formulas generally are intended for more specific uses than single-herb
supplements. Despite the continued growth for combination-herb products,
single-herb supplements have composed the majority of overall sales for more
than a decade.
Conclusion
After the highly publicized and controversial campaign against certain
herbal supplements led by the New York attorney general in 2015, the natural
products industry entered a period of self-reflection. Since then, many
responsible members of the dietary supplements industry have taken significant
steps to regain consumer trust by improving transparency along the supply
chain, enhancing traceability of raw botanical materials, and bringing
attention to ingredients with potential adulteration concerns, among other
efforts. The record 8.5% growth in herbal supplement sales in 2017 suggests
that these efforts may be paying off. Sales in both natural retail outlets and
mainstream stores reflect heightened consumer interest in once-obscure
botanicals and medical traditions. Increased familiarity with Ayurvedic herbs,
new formulation options, and consumer demand for culinary botanicals with
general health and nutrition benefits continued to drive sales of these
products in 2017.
References
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- Rao A, Steels E, Inder WJ, Abraham S, Vitetta L. Testofen, a specialised Trigonella foenum-graecum seed extract reduces age-related symptoms of androgen decrease, increases testosterone levels and improves sexual function in healthy aging males in a double-blind randomised clinical study. Aging Male. 2016;19(2):134-142. Available at: www.ncbi.nlm.nih.gov/pubmed/26791805. Accessed June 5, 2018.
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