Because of the pandemic, herbal products are “in season” with consumers!
There is indeed a silver lining to everything, even something as universally reviled as the pandemic. COVID-19’s sliver of silver is the fact that people worldwide are not only paying much more attention to their health, they are switching to a preventive mindset and practice rather than a reactionary help-me-fix-this-health-problem habit.
Proactive health means natural health, and thus, an increased traffic for you—especially when restrictions are lifted.
Innova Market Insight’s annual Top 10 Trends report has shown that COVID-19-induced anxiety (and related conditions) will remain key this year. Immune health is opening the door for the first time for many newcomers to botanical supplements and overall natural health products.
“Ongoing anxiety stemming from the COVID-19 pandemic is continuing to push consumers toward prioritizing their immune health,” observed Lu Ann Williams, insights global director at Innova Market Insights.
Innova’s Consumer Survey 2020 found that one in three respondents acknowledged that in 2020, they were more concerned about their immune health than they were the previous year. In addition, consumers reported being increasingly interested in using botanicals.
The immune-support priority is an absolute boon for retailers who provide a hefty assortment of botanical supplements. Nutrition Business Journal’s annual Condition Specific Report (2020) asserts, “As awareness grows about how the pandemic upended lifestyles beyond immunity and basic health, consumers may be ready to listen about conditions more tangentially related to immunity.”
There are many new consumers in this category because of the pandemic and a general re-emergence of interest in alternative types of healthcare, observed Mike Goeman, national sales manager for Oregon’s Wild Harvest. “A younger demographic is emerging who will further shape the botanical industry throughout the next few years. Women, in particular, are searching for herbal products that restore and balance stress levels during these uncertain and challenging times. Nervines play an instrumental role in assisting here: passionflower, lemon balm and skullcap are all known to be very effective in this realm.”
Market Drivers
The herbal market is, without a doubt, poised to enjoy a renaissance of consumer adoption and reliance for self-care. In the viewpoint of Adam Goodman, vice president of sales, Korea Ginseng Corp., California, the current market conditions, largely created by the pandemic, are driving more people to search for remedies that will help support them through this time and beyond. “This is especially true within the immune support category,” he stated. “This is especially true considering the available conventional options are limited. Even in a more generalized sense, the population is increasingly looking for alternative remedies either as opposed to, or in addition to conventional medical treatment.”
Katherine Cole, R&D manager, Childlife Nutrition, California, has observed that in the past five years, the herbal market has seen many changes; factors transforming the market are the increased demand for functional foods/beverages and the as-of-yet unabated global pandemic with its ripple effects. “We see three main areas where botanicals will continue to dominate the next few years,” she predicted: immune support, stress management and sleep support.
Beth Lambert, CEO, Herbalist & Alchemist, New Jersey related that adaptogens are in high demand with growing awareness setting the stage for that demand to increase. “Support for stress, immune system and energy fit consumers’ most pressing needs.” Cole, meanwhile, agreed, noting that adaptogens seem to be very popular among Millennials. “During these difficult times oscillating between high stress and exhaustion, we see young and middle-aged consumers turning to supplements and functional foods including botanical formulations to help stay grounded.”
Goodman added, “As part of the continued evolution of the herbal health product landscape, both the awareness and usage levels continue to grow. In addition, the overall demographics are expanding. More children are consuming botanical products, while men and women are both using products with greater frequency. Even the pet botanical market has exploded.”
Historically, the botanical market has seen more “hot products” that tend to fade – e.g., Ginkgo biloba, horny goat weed, kava. But there also seems to be notable resurgences. “Medicine Hunter” Chris Kilham, who is largely credited for introducing kava kava from Vanuatu, sees this calming herb poised to enjoy renewed market interest. “The kava scene is so much better organized today than it ever was,” he reported. “And as we are seeing continued increases in demand for and sales of stress-relieving botanicals, it’s a great time for kava.”
Other herbs that Kilham predicts will see comebacks are nootropics such as vinpocetine and cat’s claw for inflammatory support.
Prior to the pandemic, cognitive supporting ingredients such as Rhodiola rosea and Bacopa monniera were on the rise and are still climbing, added Brittini Gehring, chief botanical officer of Utah-based Ridgecrest Herbals. She also sees coffee fruit extract will likely be a hot product for 2021. Additionally, immune-supporting herbs, especially those with lung and respiratory effects will continue to be in demand. One of these include andrographis, which seems to have studies popping up all over and was recently approved in Thailand to address the body’s immune system during COVID outbreaks.”
Cole related that she anticipates consumers will demand more offerings “on the sleep and stress management front. We expect consumer demand for calming herbs and adaptogens. Ingredients such as ashwagandha and lemon balm will likely find their way into new products and functional foods in 2021,” she predicted.
Goodman, however, doesn’t look at the current herb market as one with “hot ingredients,” but rather views it as a “category evolution.” KGC has been providing its signature herb, Korean ginseng, for more than 120 years. “We are now combing the 120-plus years’ of ginseng experience and combining with other synergistic ingredients to develop our Koreselect brand of condition-specific ginseng products,” he revealed. “This is such an exciting and timely evolution for us.”
He added that other trends worth watching are alternative delivery methods (transdermals, sublinguals, etc.), as well as varied strengths and concentrations of herbs.
Immune and adaptogens are the category frontrunners—and this is likely to continue. For example, North Carolina-based Gaia Herbs recently launched a line of herbal respiratory health-supportive products: Mighty Lungs, Sinus Comfort, and Black Seed Oil. Mighty Lungs is a blend of adaptogens and other herbs (mullein, plantain, schisandra and elecampane) to support healthy lung function and long-term lung health; Sinus Comfort is a combination of respiratory and sinus support herbs including yarrow, plantain, bayberry, and Gaia-grown nettle; and black seed oil is an ayurvedic herb for lung and respiratory health.
“With poor air quality due to wildfires across the West and other environmental pollutions, as well as COVID-19 cases continuing to climb, we have seen a heightened focus on respiratory health this year. For all of these reasons and more, people are increasingly seeking plant-based, natural wellness solutions to help support their lung health,” said Angela McElwee, president and CEO of Gaia Herbs. “Our new formulas provide effective, plant-based support before and during a respiratory challenge and also help people maintain lung health all year long.”
Similar products from Ridgecrest Herbals have seen increased demand, according to Cole. The company’s Clearlungs is based in traditional Chinese medicine and blends 13 herbs to support free breathing, keep airways open, and help maintain balanced mucus levels. Its SinusClear contains 12 herbs from around the globe for maintaining healthy sinus passages, promoting balanced moisture and supporting immune function.
Korean Ginseng Corp., said Goodman, is highlighting its Koreselect Immune, “a convenient, great-tasting way to get a double-shot of immune support in challenging times,” he described. The supplement is made from the maximum potency of six-year-old Korean red ginseng combined with European black elderberry fruit juice concentrate and available in a box of 10 liquid stick packs.
Herbalist & Alchemist is known for herbalist David Winston’s blends of precisely calibrated botanical blends. The company’s Adapt line includes Calm Adapt, Daily Adapt, Fit Adapt, Energy Adapt, Immune Adapt, Men’s Adapt and Women’s Adapt. “We continue to see adaptogens in high demand, with awareness growing. Support for stress, immune system and energy fit consumers’ most pressing needs,” said Lambert. “Because our founder David Winston RH(AHG) is one of the world’s foremost experts on adaptogens, it’s an important category for us.”
The Sustainability Factor
According to Euromonitor International’s report, Impact of Coronavirus on Sustainability, despite the somewhat dramatic interruptions in industry caused by the pandemic, “action on climate change remains a priority for companies, with 63.6 percent of businesses defining sustainability as “incorporating energy saving processes in their production” and 61.1 percent of them planning to invest in energy-related sustainability initiatives over the period 2020–2025.”
And in the botanical supply industry, sustainability is also ensuring supply remains bountiful for the long-term; it also means sustaining the health of the work force on all levels.
Herbalist & Alchemist, said Lambert, is a B Corp, which requires proof of rigorous high standards including sustainability. “The extensive B Corp recertification process we go through every few years includes reporting upon our sustainability efforts, which gave us the idea to begin developing an annual sustainability report that we make public.”
As part of this, she reported, last year Herbalist & Alchemist focused upon reducing its impact in the areas of agriculture and packaging. In the agriculture area, the company is gathering more detailed information from its herb suppliers about how they farm, and what regenerative practices they use. “We already know that many of our growers practice regenerative methods which keep carbon in the soil. This is very much a focus on ensuring we increase ‘carbon farming’ in our supply chain,” she explained.
In packaging, Herbalist & Alchemist re-uses boxes and fillers from incoming shipments to ship out product, decreasing the amount of virgin cardboard boxes used. The company also made several packaging adjustments to significantly reduce single-use plastic, replaced the plastic film seals that used more energy because they required a heat application, and also eliminated the plastic seal on our kit boxes.
She elaborated, “We are focusing on secondary packaging (shipping containers etc.), finding ways to reduce the overall footprint of shipments. Our products ship in glass bottles, so they have to be protected. We’ve researched alternatives to bubble wrap, such as a paper-based wrap that is 100 percent recyclable. It’s a slower process right now since we can’t meet with vendors in person to examine the options, but we’re working though those speed bumps.”
ChildLife Nutrition, reported Cole, uses amber glass bottles that can be recycled. “Many of our botanical products include sustainably sourced wild crafted and organic botanical ingredients,” she said.
Oregon’s Wild Harvest’s sustainability philosophy is a simple one, said Goeman: to provide long-term, widespread access to traditional herbal medicine without sacrificing the health of the planet. The brand’s farming practices include certified organic and biodynamic methodologies that “regenerate the earth by replenishing more than what is taken in the earth. Planting year-round cover crops and utilizing various biodynamic preparations to both the soil and plants increases biodiversity and soil nutrient density. She explained, “these farming techniques provide powerful ways to pull or sequester excessive carbon from the atmosphere and put it back into the soil where it’s needed. We’re farming for a healthier planet and to combat climate change. Everything we do today is designed to leave the land better than we found it for tomorrow.”
Oregon’s Wild Harvest also creates cross-promotions with other farms and companies that share the same philosophies or certifications, such as Demeter or Oregon Tilth organic. According to Goeman, cobranding gives the brand more leverage in stores. “Blogging, affiliate marketing and giveaways with other in-step brands help generate more consumer interest,” he described. “Certainly, a community of folks will have a greater impact on important issues like reducing fossil fuels, seed saving and supporting organic agriculture and family farming. After all, a rising tide lifts all boats.”
Challenges
As with any category or industry that experiences rapid growth, challenges rise up. In the herbal market, pointed out Goodman, the biggest challenge in 2021 will be in the supply chain. “There will continue to be shortages and interruptions. What retailers can do is to be nimble and keep options open,” he advised. “Look for quality, alternative suppliers. However, as with anything, do your homework.”
Cole agreed adding that any time there is a massive increase in demand for botanical ingredients, there is also an increase in potential for adulteration. She believes that the best action reputable brands and suppliers can take is to continue to hold high-quality testing standards for identification and purity of these botanicals and share their rigorous quality standards with their retailers. “Retailers can then feel confident the products they are selling are authentic,” she commented.
Another challenge is reduced foot traffic, according to Goeman, as customers seek to reduce physical visits and errands. His suggested solution is to increase inventory of value sizes, as well as to check in more regularly with distributors and manufacturers to ensure that critical botanical products are not going to be in short supply. “In addition, there will also be challenges to retain the influx of new customers to this segment of the marketplace. Continuing education and interest for the younger population will be key to creating loyalty and lifetime value with this demographic,” he said.
Although 2020 is indeed over, 2021 isn’t a sure shot in full recovery. There are still many unknowns and uncertainty, Lambert pointed out. Normality will likely return to a significant degree, but in the meantime, she asserted, “we must continue to adapt as things change and more information is made available. Communicating clearly and honestly is especially important when things feel uncertain, from forecasting quantities to shipping delays. We’re all in this together, so sharing information to help businesses make decisions is helpful.” VR
For More Information:
Gaia Herbs, www.gaiaherbs.com
Herbalist & Alchemist, www.herbalist-alchemist.com
Korean Ginseng Corp., www.kgcus.com
Oregon’s Natural Harvest, www.owharvest.com; www.oregonswildharvest.com
Ridgecrest Herbals, www.rcherbals.com
