Natural Products Insider

NOV-DEC 2018

INSIDER is the leading information source for marketers, manufacturers and formulators of dietary supplements, healthy foods and cosmeceuticals. Since 1997, INSIDER has been serving the needs of the global nutrition industry.

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10 INSIDER November/December 2018 In the News Retail sales of herbal dietary supplements in the United States experienced their strongest growth in 15 years, according to a new report from the American Botanical Council's (ABC) HerbalGram. The category exceeded US$8 billion in 2017, representing an increase of 8.5 percent compared to 2016. Other key fi ndings in the report included curcumin's strong performance in both mainstream and natural channels, a strong increase in direct sales of herbal supplements, and cannabidiol's (CBD) position among the 40 top-selling herbal supplements in the U.S. natural channel. The report relied on data from Nutrition Business Journal (NBJ), as well as data developed via a collaboration between market research fi rms SPINS and IRI. Both SPINS/IRI and NBJ data pointed to increased sales in the mainstream channel. NBJ's mass-market retail channel sales totaled an estimated $1.45 billion in 2017 (an 8.4 percent increase compared to 2016), compared to a total of $925.93 million for mainstream multioutlet retail sales of herbal dietary supplements (a 0.69 percent increase compared to 2016), as indicated by IRI/ SPINS data. Unlike IRI/SPINS, NBJ's mass-market channel analysis included convenience stores. In the natural channel, NBJ indicated herbal supplements achieved sales of $2.62 billion in 2017 (a 4.7 percent increase), while IRI/ SPINS data indicated sales of $405.15 million (an 8.9 percent increase). NBJ analysis of the natural channel included estimated sales from Whole Foods Market, which were not included in IRI/SPINS data. Strongest sales growth, however, was attributed to direct sale of herbal supplements, which totaled $4.012 billion in 2017, an 11.2 percent increase compared to 2016, according to NBJ. CBD Makes an Appearance CBD appeared on the herbal supplement map for the fi rst time in 2017, according to ABC's report. In the natural channel, CBD ranked No. 12 among the top-selling herbal supplement ingredients. Sales of CBD ingredients reached $7.58 million in 2017, representing impressive 303 percent growth compared to 2016. Products positioned for nonspecifi c health conditions achieved highest sales, though SPINS noted condition-specifi c CBD formulations, such as those for mood support and pain/infl ammation, are emerging. CBD has been a source of regulatory contention in the dietary supplement industry in recent years. Despite FDA's stance on CBD, which explicitly states the compound is not permissible as a dietary ingredient, products marketed as supplements and containing CBD continue to gain popularity in the market. Turmeric as a Top Performer Among top-selling ingredients is turmeric, which demonstrated strong performance in both natural and mainstream channels. In the natural channel, turmeric was the top-selling herbal supplement ingredient for the fi fth consecutive year, with sales of $50.35 million in 2017, and an increase of 12.2 percent compared to 2016. Products targeting pain/infl ammation represented the highest sales in the natural channel, followed by products for nonspecifi c health conditions, joint health and cardiovascular health. In the mainstream channel, turmeric also claimed the strongest sales growth of herbal supplements, topping $32.45 million in 2017—a 46.7 percent increase compared to 2016. ABC's report suggested increased awareness of Ayurveda among mainstream consumers, along with "viral popularity" of wellness tonics, as potential contributors of growth. Turmeric products positioned for nonspecifi c health conditions were top-sellers in the mainstream channel, though consumers are also buying products for joint health, immune health, and pain and infl ammation. Other Key Findings ABC's report indicated other key ingredient developments, including sales growth of more than 200 percent for nigella (Nigella sativa, Ranunculaceae) in the natural channel, and double-digit declines of various botanicals in the mainstream channel. Nigella, also known as black cumin or black seed, saw an increase of 202.5 percent in 2017 sales compared to 2016, making it the 23rd top-selling herb in the natural channel. SPINS data showed liquid seed oil preparations with nonspecifi c health focuses made up the majority of nigella supplement sales in both natural and mainstream retail stores in 2017. ABC's report cited only one other ingredient in the natural channel with more than 30 percent growth—moringa (Moringa oleifera, Moringaceae), which was sold mostly in powdered form, according to SPINS. In the mainstream channel, supplements with notable sales increases in 2017 as compared to 2016 included wheatgrass and barley grass supplements (44.2 percent), elderberry (34.7 percent), ivy leaf (30.2 percent) and fenugreek (33.5 percent). According to ABC's report, three herbal supplement ingredients in the 2017 mainstream channel experienced sales decreases of more than 30 percent: green coffee (-38.2 percent), coconut oil (-34.9 percent) and green tea (-30.4 percent). Coconut oil was the only ingredient in the 2017 natural channel with a signifi cant decline in sales (-23.5 percent). Report Highlights Herbal Supplement Market Trends: CBD, Turmeric, Direct Sales by Rachel Adams Despite the surging demand for hemp-derived products, the CBD industry continues to face myriad challenges. In the "CBD and Hemp Extracts: How Do We Move Forward?" Workshop on Wednesday, Nov. 7 at 1:30 p.m. at SupplySide West in Las Vegas, leading hemp executives and attorneys will review the current landscape for CBD, and strategies to mature as an industry and overcome hurdles to growth. Scan Here

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