An herbal supplement is a type of dietary supplement that is composed of one or more herb and is also called a botanical product. These products are available in different forms such as capsules, liquids, tea bags, tablets, and powders. Some of the common examples of herbal products and supplements are Echinacea, black cohosh, ginkgo, garlic, and saw palmetto. Herbal products are manufactured for enhancing the health and treat the health-related problem but they are not regulated by FDA because FDA consider the herbal product as a food not drug. However, according to the FDA dietary supplements are not meant to diagnose or cure disease or its symptoms.
The Australia & New Zealand herbal supplements market was estimated to account for US$ 913 million in terms of revenue in 2018 and is anticipated to grow at a CAGR of 7.6% during the forecast period (2019-2027).
Increasing demand for an herbal supplement in the Australia and New Zealand country is a prime factor fueling the Australia and New Zealand market growth. Rising health awareness in the region has raised the demand for the herbal supplement as it offers various health benefits such as boosting the immune system, prevention of migraine headaches, protection from cold and flu, allergies, lower cholesterol, prevention of arthritis, rheumatic diseases, maintain triglyceride levels & blood pressure and cardiovascular diseases. These factors are projected to fuel the growth of the market over the forecast timeframe.
Increasing penetration of online retailing is projected to offer lucrative growth opportunities over the forecast period. Growing introduction of product through the online retailing channel is projected to foster the market growth of the herbal supplements through e-Commerce is further projected to increase the adoption of such products due to easy availability. Hence, this factor is expected to fuel the herbal supplements in Australia & New Zealand.
Rising demand for supplements that have instant result is expected to limit the adoption of herbal supplements in Australia and New Zealand region. Increasing adoption of conventional supplements as these products show rapid results as compared to herbal supplements is expected to impact the market growth negatively over the forecast period. Moreover, herbal medicines are not good for serious conditions such as heart attacks and fractured bones. This factor is also expected to restrict market growth.
On basis of product type, in 2018, digestive & heart supplements accounted the largest market share of 20.3% in terms of revenue, followed by beauty supplements and bone & joint supplements, respectively. This is mainly due to surge in demand for digestive & heart supplements due to rise of cardiovascular and blood pressure related diseases among people. Consumers are more health conscious as a result of which the herbal supplement market is expected to grow substantially in upcoming years.
The rising number of partnership among major players for herbal supplements is expected to augment the growth of Australia and New Zealand herbal supplement. For instance, in October 2016, Blackmores Limited entered into a joint agreement with Tasnim Pharma, which is a leading pharmaceutical company in Iran. Through this agreement, Blackmores is expected to offer high-quality natural health products and services to customers in Iran.
The growing export of herbal supplements from Australia is expected to fuel the growth of Australia and the New Zealand herbal supplements market. For instance, in April 2019, the Australian supplement industry surpassed its American counterpart to become the largest exporter of supplements and health food products to China. Around 22.3% of all supplements and health foods imported into China originate from Australia. Therefore, growing exports of herbal supplements in the region are projected to augment the growth of the market.
Players active in the market are Blackmores Limited, Vitaco Holdings Limited, Integria Healthcare, Bioglan, Deep Blue Health Co. Ltd., Phytomed, NZ Herbals, and Sanderson.
Few Recent Developments
By Product Type