During a digital event celebrated earlier this year about “how to keep momentum post pandemic”, a group of industry experts presented market and consumer data extracted from reports published by NBJ. The panel of speakers highlighted some interesting and promising notes about the overperforming results seen by the segment of herbs & botanicals within the supplements industry. COVID may have been a major accelerant but, what does the future hold?
It is clear to all that this pandemic has accelerated a change in the rules. Consumers’ increased concern about health and wellbeing caused by COVID affected substantially their purchasing decisions and consequently, brands had to rethink their new launches and innovation strategies. This comes coupled with the e-commerce rush, putting together the bases of the new scenario that we are facing.
Vitamins and herbs lead the market share, with herbs representing a 17.4% in 2014 and estimated to reach a 22.4% by 2024. After all, we are talking about a category that has shown, year after year, a stronger growth than the industry average since 2013.
Sales of herbs and botanicals reached US$11.26 billion in 2020; on track to reach US$15 billion by 2025.
Growth surpassed records in 2020 and revenue in circulation reached triple digits, but herb and botanical companies may be watching the inevitable post-COVID slowdown with trepidation. However, smart players will look for opportunities to stay in consumers top of minds and find ways to help them reconnect with their active lifestyles and feel their best as we come out of the pandemic.
It is not surprising that if you are looking to innovate in the food supplements or functional foods industry, herbs and botanicals appeal to you as a category to watch out.
Want to keep the conversation open? Talk to Monteloeder’s team about your plans and how we can help your brand succeed in the most promising category within this thrilling industry.
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