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Herbs & Botanicals

Herb Outlook 2019

by Lisa Schofield | January 30, 2019

Herbs are hot, no question. Here’s what topics are driving innovation and consumer demand.

The plant kingdom is having a shining moment. Plants are being used for exotic new foods and beverages. Spices from remote corners of the globe are on supermarket shelves and featured in cooking media. And mainstream consumers are embracing herbal supplements.

According to Texas-based American Botanical Council (ABC), total consumer spending on herbal supplements in the U.S. amounted to nearly $8.1 billion in 2017. According to an ABC press release (September 11, 2018), “this is the first time total U.S. retail sales of herbal supplements have surpassed $8 billion. In addition, the 8.5 percent increase in total sales from 2016 is the strongest growth for these products in more than 15 years.”

Transparency

There are significant and strengthening trends driven by consumers. One is transparency, and botanical brands are stepping up by adapting and responding to this demand.

HR Payne, chief sales & marketing officer for Texas-based Quantum Nutrition Labs, observed that with demand for herbal supplements rising, increasing prices and limited availability of raw materials, “substandard quality is becoming more common and harder to detect when manufacturers are reading a typical certificate of analysis. Toxic ingredients in nutritional products are now commonplace.”

Several manufacturers, he contended, are using ingredients that are too old or that have been poorly grown, irradiated, fumigated or contaminated with pesticide/insecticide residues. “Unfortunately, this has led to our supply chain’s traceability being corrupted with deceitfulness and fraudulence, making it awfully difficult for dietary supplement manufacturers to achieve and assure the quality of their finished products,” he commented.

DNA testing, a newer manner of identification, is being used more frequently, and elevates transparency by allowing detection of obscure compounds. For example, Payne provided, Quantum Nutrition Labs’ asafetida was found to have wheat flour (a known allergen) through the use of highly sophisticated DNA sequencing-based species identification. Thin layer chromatography (conventional testing) had not revealed this allergen.

Although thin layer chromatography is a scientifically valid and accepted method of testing identity, Payne said, it is not capable of showing a presence of wheat when it is used to confirm identity. “DNA testing is one of the most specific, sensitive, and accurate botanical identification methodologies available on the market,” he commented. “DNA testing is not an industry requirement or an industry standard and is generally more expensive than TLC testing.”

Anecdotally, said Shailinder Sodhi, ND, president of Ayush Herbs, Washington, those in the industry who have not adopted transparency nor provide clean labels have found their business declining and their customers have switched to companies that have embraced the honesty that transparency brings. “Therefore, many companies are reinventing themselves to change with this trend. We hesitate to use the word trend because this level of openness should not be a fad. It should be industry standard,” he opined.

In the viewpoint of Brittani Gehring, chief botanical officer for Utah-based Ridgecrest Herbals, the industry faces several challenges as it adapts to the market demand for information. Manpower is an issue for small companies, while responding to this trend can mean the need for a complete restructure for larger and established companies.

“Some herbs are difficult to source, and training local farmers about international transparency requirements poses another challenge. Maintaining a set of standards from a farm to a shipping company to a manufacturer in a chain spanning the globe can add costs to the process that can become prohibitive,” she said. “Finding the balance to ensure the product is clean, safe and transparent at a price consumers are willing to pay for it could be one of the biggest challenges yet.”

Texas-based LifeSeasons avoids use of proprietary blends, according to Robin Rogosin, vice president of product development, because the company wants its consumers to know precisely how much of each ingredient is in the supplements. “Accuracy in labeling is as important as full disclosure of ingredients, and thorough testing is the only way to verify product potency and safety,” she noted.

Transparency has become almost a basic requirement—it’s too easy to get caught. “With consumers accustomed to ready access to whatever information they desire, it makes sense that ‘transparency’ is even more essential,” opined Beth Lambert, CEO, Herbalist & Alchemist, New Jersey. “We see Millennials driving these trends as they exercise purchasing power. They have more information than ever before at their fingertips. In addition, they look to independent nonprofits and social media influencers before making a purchase.”

Sustainability

Another growing concern among consumers is that herbal products are sustainable for both people generationally, and the planet. There are some truly heartwarming stories brands have that may be passed along to customers.

For example, Ayush’s farmed herbs are grown by farmers that Sodhi said are paid well and have good living conditions. “These farmers are careful to not stress the earth in which the herbs grow, respecting the gifts of Mother Nature. Herbs are only harvested in the right season to ensure optimal yield,” he described. Local harvesters only collect herbs that are ready for gathering, he added. “They are careful not to over harvest and allow nature to replenish herself. Because we trust ancient growing and harvesting traditions that have passed down for generations, we do our part to reduce our environmental footprint while providing quality herbs to our customers,” he commented.

Ayush completed a hydroelectric facility in the foothills of the Himalayas to provide clean, environmentally sustainable electricity to the herb farms and the surrounding communities.

Herbalist & Alchemist works with organic farmers and sustainable wildcrafters who undergo a rigorous supplier certification to ensure that they meet the company’s quality standards, according to Lambert. The company is also a Certified B Corp since 2010; the first herbal company to be certified by the independent non-profit B Lab. “As a Certified B Corp, one of our priorities is to source from local suppliers,” she explained. “Because we’re an herbal company with a wide range of products, we cannot always source from our bio-region but do so as much as possible. We adapted our company policy to include location as one of the criteria. This means that we can give back to our community by supporting local herb growers when possible.”

Further, Lambert added, Herbalist & Alchemist also believes in working with organizations that support the sustainable cultivation and harvesting of herbs, as well as protecting endangered species. For example, the company supports United Plants Savers, whose initiatives have helped build awareness for preservation of native plants and protection of their habitats.

Other Trends

This New Year is also starting to see positive, long-awaited shifts in how the medical community views botanical supplements. Predicted Rogosin, “Caring and open-minded medical doctors will become more educated about natural alternatives to prescription drugs for chronic, degenerative illness. Many physicians have already realized the limitations of drug therapies for chronic illnesses. They will look for credible nutraceutical companies to partner with, and collectively, they will provide effective strategies to help optimize the health of their patients outside the conventional allopathic methodologies.”

Holistic veterinarians too are increasingly recommending herbs for pets, noted Lambert. When consumers are happy with the results they get, they naturally think of extending that modality of care to their pets.

Indeed, Sodhi observed that the increasing number of conventional practitioners contacting Ayush about how to use its products, the herbal supplement market will expand significantly in 2019 and beyond. And in agreement with Rogosin, he noted, “Education about herbs and how to use them in disease states will be one of the biggest issues that we will face.”

Education has been a mainstay edict in the industry for decades and the need for continued communications with customers has never been greater, despite many people having deeper knowledge than ever. The expansion of products and emerging sub-categories place the need for continued education as a priority from suppliers through the retailer.

For example, Lambert pointed out, adaptogens are becoming even more popular as consumers seek ways to manage stress, and interest in nootropic herbs is on the rise. Consumers, she noted, are also gravitating to functional foods and beverages containing botanicals, as well as condition specific remedies for digestive disturbances, pain and discomfort, fatigue and lack of energy, and immune boosting.

“The way that people are purchasing is also changing,” she observed. And this means retailers need to work harder to market experiences. The boom in E-commerce combined with constant use of social media now makes it easier and more common for consumers purchase supplements through their smartphone after seeing an ad on their favorite social media platform than it is for them to drive to a store and look for that product. And here’s where that education comes in handy—faceless ads can’t do that job, increasing risk of dissatisfaction with the product.

Lambert added that she still sees the “old-school” behaviors—people discovering herbal products through word of mouth: because a friend, their practitioner, doctor or health coach encourages them to take it. You can capitalize on this as well—create a program that encourages referrals for botanical (or other) products and reward those whose word-of-mouth suggestions were acted on.

Consumers still look for immediate effect, as they are still conditioned by over-the-counter products that halt heartburn, for example, or kill a headache. This will likely be a continuing challenge this year as many customers come in, new to the category. “Retailers sometimes find it challenging to market something like a tonic herb that is intended for long term use, because results are experienced over time and consumers may forget how they felt before they began using the product,” commented Lambert.

She added that many consumers ask about how to take herbs—which form is better (tablet or capsule? Glycerite or alcoholic extract?) Consumers are getting mixed messages that generalize, “when in reality the best solution for them should be personalized,” she emphasized. The well-informed herbal supplement user knows there is quality research showing distinct efficacy and safety for many herbs, and that there are many herb supplement manufacturers that make products based on that science and that also follow GMP (good manufacturing practice) guidelines and are inspected by the FDA (U.S. Food and Drug Aministration) to ensure safety and consistency of quality. And this can be easily communicated to new customers, as can the ideals of transparency and clean labeling, as exemplified by many of the herbal brands you carry.

“Transparency and clean label are no longer a trend or a buzz word within our marketplace, but have evolved as standards in the current conversation,” Payne asserted. “With no secrets, customers fully expect and deserve supplement manufacturers to be able to fully define and document the evolution of each and every ingredient within the end product delivering full traceability—from the farmer to the end product and all the testing in between.”

In 2019, Chris Herbert, chief sales officer for RidgeCrest Herbals, said he imagines the industry will see more innovation in different forms of administration, for example, nutrient patches, herbal on-the-go drinks and herbal-enhanced foods. “The major concerns here would be the efficacy and green stamp these types of products have,” he said. “The market is definitely going to continue to move toward sustainability, transparency, and ethical practices regarding supplement sourcing and manufacturing.”

CBD Influence

CBD is huge and is affecting sales of other botanicals, it appears. At Cambridge Naturals in Massachusetts, owner Michael Kanter said he is seeing an overwhelming demand for CBD, almost at the expense of other herbal supplements. “We’ve been talking a lot about this phenomenon lately,” he related. “People who are coming in for joint issues, other discomforts, stress and sleep issues are going straight for CBD. As much as we love selling our CBD brands, there are often potentially other herbs that may be more appropriate and less expensive.”

He provides anxiety and kava as an example. If the customer experiences high tension with his or her anxiety, kava kava in liquid form can help immediately give a physical sense of relaxation and would often thus be preferable to CBD. Other times, Kanter and his staff like to recommend herbs for the reason why the customer wants CBD to try in tandem if not instead. “We like to have discussions about the merits of other herbs such as ashwaghanda, turmeric, [and] lemon balm that can enhance the benefits of CBD.”

New Products

Herbalist & Alchemist launched two new products this year. David Winston’s Metabolic Support supports healthy blood sugar levels already in the normal range. Bitter melon fruit (Mormordica charantia) is eaten as a food and used as a medicine throughout India, China, Southeast Asia and the Caribbean, Lambert pointed out, and it too also supports healthy blood sugar levels already in the normal range. While the vast majority of bitter melon extracts on the market are powdered herbs, she noted, this extract is made in relatively small batches from dried fruit in the traditional Herbalist & Alchemist process.

The company’s Compound Arnica Oil, a topical blend of herbs providing penetrating body relief, has been reformatted “for delivery in a convenient no-mess roll-on bottle,” she described. “Each botanical in this product is infused separately into certified organic olive oil for maximum quality, then blended together to make this soothing formula.”

LifeSeasons, reported Rogosin, has begun the process of proving the efficacy of its products through clinical trials. The first randomized, double-blind, placebo-controlled clinical trial has just been completed on LifeSeasons Glucose Stabili-T, which demonstrated the product’s efficacy in individuals with metabolic syndrome. Eight additional LifeSeasons products will be the subject of randomized, double-blind, placebo-controlled clinical trials in 2019.

Additionally, she announced, LifeSeasons will be partnering with Dale Bredesen, MD, an internationally recognized expert in neurodegenerative diseases, to launch products that have been clinically shown to help prevent and reverse cognitive decline.

Although QNL has been around for more than 30 years as B2C, “we are hard-launching into retail during the first quarter of 2019,” Payne said. “We will have merchandising solutions, display options, educational material (for both store and consumer), advertising and more to support the retailer and inform the consumer.” He added that its exclusive manufacturer has also recently been awarded the prestigious USP (U.S. Pharmacopeia) Quality System GMP (good manufacturing practice)—Audited Certificate for the second year in a row.

New from Vinomis Laboratories, Pennsylvania, is a once-daily herbal formula called VinThin. According to a company release, the product is a modern update of a traditional Greek-Arabic botanical blend that helps the body combat the set point effect. It features lady’s mantle leaf extract, olive leaf extract, wild mint leaf extract and cumin seed extract plus propol to stimulate metabolism, control appetite and reduce cravings for sweets.

New from Florida-based Enzymedica is Berberine, made from sustainable sources and produced from barberry seeds. According to the company, it can promote a healthy microbiome, balance intestinal function and support heart health as well as to help maintain blood sugar balance.

Two new TCM-based Herb Pack products were launched in 2018 by Pacific Herbs. Immune Boost contains medicinal mushrooms reishi and Ganoderma lucidum, astragalus root, jujube fruit, ginger root, licorice root and stevia. Sugar Control is a blend of rehmannia root, trichosanthes root, astragalus root, and a proprietary blend of 13 Chinese herbs. According to the company, each Herb Pack contains unsulfured herbs free from unnecessary fillers.

Florida-based Garden of Life has entered a new botanical category with its aromatherapy essential oils line. Its new organic essential oils are sourced from all over the world and include lavender, peppermint, lemon, tea tree, eucalyptus, sweet orange, geranium, lemongrass, rosemary and frankincense.

The world of herbs is rich and as sustainability practices soar to protect species, the industry will continue to innovate and launch new botanical products. Further, more plants are being discovered to provide human health benefits, and more research is being performed to reveal and/or validate their worth in health and wellness initiatives. In other words, retailers may need more shelf space! VR

For More Information:

Ayush Herbs, www.ayush.com
Enzymedica, www.enzymedica.com
Garden of Life, www.gardenoflife.com
Herbalist & Alchemist, www.herbalist-alchemist.com
LifeSeasons, www.lifeseasons.com
Pacific Herbs, www.pacherbs.com
Quantum Nutrition Labs, www.qnlabs.com
RidgeCrest Herbals, www.rcherbals.com
Vinomis Laboratories, www.vinthin.com

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