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Herbs and botanicals are currently showing the most potential in functional foods and cosmeceuticals.
July 1, 2008
By: Joerg Gruenwald
With the advent of new segments such as functional foods and cosmeceuticals, the market for herbs and botanicals has changed significantly over the past decade. This has opened up new opportunities for manufacturers, allowing them to position botanicals and other natural ingredients in products that no longer have to compete with only synthetic medicinal ingredients. In fact, the greatest potential for new herb and botanical products currently lies in the food sectors, as companies harness the current global consumer interest in natural and functional foods. Some of the latest opportunities include exploring botanical alternatives to animal-sourced ingredients such as omega 3 fatty acids from fish, or finding natural alternatives to artificial additives such as preservatives or colorings. New varieties of fiber are also being discovered, opening up areas for new product development. Other growth sectors include cosmeceuticals and the emerging category of beauty foods. The growth and development of these new segments add to the diversity of the herbs and botanicals market. But, these developments also complicate market analysis because the definitions of segments and categories vary, therefore leading to diverging figures. As an example, if we include soy and algae in the herbal category, we would end up with figures much higher than those given here. In the drug segments, interest in herbal alternatives to synthetic drugs is increasing globally. This is reflected in an increasing interest in complementary alternative medicine (CAM) and traditional medicinal systems (TM) (i.e., Traditional Chinese Medicine, Ayurveda and other Asian systems). However, the growth of the herbal/ botanical drug market is not as pronounced as that of the food segments. One reason for that is the long product research and development time, most notably on the drug registration side. In spite of this, there has been a positive development in the U.S., opening up the herbal drug market, which is a sign for future growth of that segment. In Europe, the Traditional Herbal Medicinal Products Directive is expected to have a positive impact on the market because it allows access to the market via a simplified registration procedure without having to carry out unnecessary safety and efficacy assessments. Also, a registration in one country of Europe will apply to all other EC member states, eliminating the hassle of navigating different regulatory requirements for different countries, which was a major downside of the old system. On the supplement side, a new directive has come into effect. It is still not clear which herbs and botanicals will be able to remain on the market as supplements, so it is difficult to make predictions on successful future supplement ingredients at this time. However, many pharmacologically active herbs will probably need to be registered as herbal medicinal products.
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