Herbal supplements also known as a botanical products have numerous health benefits with strong effects on the body. These products are intended to maintain various health problems but are not helpful in treating any illness or disease. These products are claimed to reduce stress, enhance the immunity system and improve digestion. Moreover, herbal supplement is also beneficial for improving sleep quality, reduce anxiety, enhance appetite, and also manages diabetes. However, herbal supplements should not be consumed without doctor’s prescription as it may have unpleasant health effects.
The Australia & New Zealand herbal supplements market is projected to reach US$ 1751 million by the end of 2027, in terms of revenue, growing at CAGR of 7.6% during the forecast period (2019 to 2027).
The increasing population of a baby boomer in Australia and New Zealand is fueling the demand for herbal supplements, which in turn projected to propel the market growth over the forecast period. According to a report by the Australian Population Research Institution, the population aged above 60 years is estimated to increase by 86% during 2011 to 2031 in the region. This factor is also expected to drive market growth. Therefore, growing baby boomer population is expected to favor the market growth of herbal supplement herbal supplement.
Rising health awareness regarding the health benefits of herbal supplements in Australia is another major factor expected to propel the market growth. Shifting consumer preferences towards maintaining a healthy lifestyle has raised the consumption of herbal ingredients. Moreover, adults in Australia highly preferred herbal supplements as consumption of these supplements do not have any side-effects are rich in vitamins, and minerals. Thus, these factors are expected to propel the market growth of Australia and New Zealand herbal supplements.
Based on form, tablets emerged as the leading segment the Australia & New Zealand herbal supplement market in 2018, accounting for 36.4% share in terms of revenue, followed by capsules and powder form, respectively.
Figure 1.Australia & New Zealand Herbal Supplements Market, Revenue Share (%), By Form, 2018
Availability of pseudo natural herbal supplements is a prime factor projected to hinder the market growth of Australia and New Zealand herbal supplement. Pseudo natural herbal supplements are conventional herbal supplement products that are marketed as ‘herbal supplements’ due to the presence of some herbal ingredients and some time, many consumers find difficulty in identifying herbal and conventional supplements. This factor is expected to restrict the market growth of Australia and New Zealand herbal supplement.
Not all the herbal supplements are good for health some may also show severe allergic reactions as it may contain the active ingredient that has a strong effect on the body. Sometimes it can also increase the risk of bleeding is a person takes them after surgery. Furthermore, if these products consumed in combination with other drugs, it may impact the effectiveness of the drugs. This factor is expected to hinder the market growth of Australia and New Zealand.
Increasing application of herbal supplements in beauty care products is expected to open new growth opportunity to the market of Australia and New Zealand. Beauty supplements containing natural ingredients helps in repairing damaged skin and also treat other age-related skin conditions such as wrinkles etc. Moreover, growing awareness regarding the skin benefits of using herbal ingredients in skincare and cosmetic products are also projected to propel the market growth of Australia and New Zealand herbal supplements.
Expanding distribution channel from niche channels to the mass distribution network is projected to foster the market growth of Australia and New Zealand herbal supplements. Growing demand for green label products among consumer is encouraging manufacturers to shift their focus from niche distribution channels to mainstream mass retailers. Moreover, expanding supermarket chains in the country is further projected to fuel the market growth of Australia and New Zealand herbal supplements herbal supplements.
Figure 2. Australia & New Zealand Herbal Supplements – Market Opportunity Analysis
Based on product type, digestive & heart supplements was the estimated to account for US$ 185 million and is forecasted to reach around US$ 400 million by the end of 2027, growing at a CAGR of 10.2% during the forecast period (2019-2027).
Figure 3. Australia & New Zealand Herbal Supplements Market, Revenue Share (%), By Product Type, in 2018
Market Trends/Key Takeaways
Increasing launch of innovation in the herbal product by the manufacturer is a major trend in the region that is expected to propel the market growth. For instance, in September 2019, Swisse Wellness, a global premium wellness brand announced the launch of two new product lines in the U.S., including the Jelly range and Australian clay masks. This product is prepared by using premium quality botanicals, antioxidants, vitamins and naturally sourced ingredients, Swisse is thrilled to introduce a range of products.
The rising number of acquisitions among major players for expanding their presence in the market is expected to propel the growth of Australia and New Zealand herbal supplements market. For instance, in May 2016, Australia's leading vitamin maker Blackmores recently announced the acquisition of Chinese herbal medicine firm, Global Therapeutics. The US$ 23 million deal opens up Asia's doors for Blackmores in its new area of traditional and herbal medicines. Hence, the rising adoption of such a growth strategy by the major player is expected to fuel market growth.
Figure 4. Australia & New Zealand Herbal Supplements Market –Value Chain Analysis
Players active in the market are Blackmores Limited, Vitaco Holdings Limited, Integria Healthcare, Bioglan, Deep Blue Health (NZ) Co. Limited, Phytomed, NZ Herbals, and Sanderson
Few Recent Developments
Vitaco Holdings Limited
Herbal supplements are botanical based nutritional supplements which are consumed to avoid the nutritional deficiency in our diet. The rising number of cardiovascular and blood pressure related chronic diseases among adults has driven company towards increasing the production of these herbal ingredients based supplements. Consumers are becoming more aware about benefits of herbal supplements and transitioning towards inclusion of these supplements to enhance their immunity and avoid diseases.
The growth in demand for digestive & heart supplements, among health conscious consumers who are inclined towards maintaining a better and healthy lifestyle, is expected to fuel the market growth in forthcoming years. Herbal ingredient based products are being preferred by customers as the do not cause any side-effects and also helps in immunity enhancement.
Increasing awareness among people about the benefits of consuming herbal ingredients based cosmetic products is anticipated to propel the market growth of Australia and New Zealand herbal supplements. Companies are now focusing in developing and launching of innovative multi-functional beauty supplements to align with the changes in the consumer choices.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.