Australia & New Zealand Herbal Supplements Market to Reach US$2.2 Bn by 2032 Driven by Health Awareness

The Australia & New Zealand herbal supplements market is witnessing robust expansion, fueled by increasing consumer awareness of health and wellness. According to recent industry assessments, the market size is likely to be valued at US$1.4 billion in 2025 and is projected to reach approximately US$2.2 billion by 2032, expanding at a compound annual growth rate (CAGR) of 7.4% during the forecast period from 2025 to 2032. This growth trajectory underscores the increasing preference among consumers for natural, plant-based products that support immunity, energy, and overall well-being.

The market's upward momentum can be attributed to several factors, including the rising adoption of preventive healthcare practices, growing incidences of lifestyle-related diseases, and the surging demand for nutritional products derived from natural sources. Moreover, the widespread acceptance of herbal formulations as safer alternatives to synthetic supplements is strengthening consumer confidence across the region. Evolving consumer lifestyles, greater exposure to global wellness trends, and the proliferation of e-commerce platforms offering a diverse range of herbal products are also key contributors to market expansion.

Australia and New Zealand's aging population, coupled with a growing focus on immune health post-pandemic, has further accelerated the adoption of herbal supplements. Government initiatives promoting sustainable agriculture and organic farming practices have also enhanced the quality and availability of herbal raw materials, thereby supporting the industry's long-term growth.

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What are the major factors influencing the growth of the Australia & New Zealand herbal supplements market?
The market's growth is primarily driven by increasing consumer inclination toward plant-based nutrition, the rise of clean-label product trends, and growing trust in traditional herbal ingredients such as turmeric, echinacea, and ginseng. Additionally, the ongoing shift toward preventive healthcare, along with advancements in formulation technologies, has enabled manufacturers to create more potent and bioavailable herbal supplements. Strategic marketing efforts, the integration of digital wellness platforms, and partnerships between nutraceutical companies and retail channels have further amplified consumer accessibility and product awareness.

As herbal formulations continue to gain mainstream appeal, the industry is also witnessing greater investment in research and development to validate health claims and improve product efficacy. This trend is anticipated to shape the next phase of growth for the herbal supplement industry in Australia and New Zealand.

Segmentation Analysis

By Source
The herbal supplements market in Australia and New Zealand is segmented based on source into leaves, roots, bark, fruits, and other plant-based components. Among these, leaf-based supplements dominate the market, driven by the growing popularity of green tea extracts, moringa, and aloe vera due to their antioxidant and detoxifying properties. Root-based supplements, such as ginseng and turmeric, are also gaining traction, particularly among consumers seeking energy enhancement and anti-inflammatory benefits. The increasing consumer shift toward organic and sustainably sourced plant ingredients continues to strengthen the dominance of natural leaf and root extracts across product formulations.

By Product Type
Based on product type, the market encompasses tablets, capsules, powders, soft gels, liquids. Tablets and capsules collectively hold the largest market share, primarily due to their convenience, longer shelf life, and precise dosage formulations. However, the gummy and powder segments are witnessing the fastest growth, supported by changing consumer preferences for flavored and easy-to-consume supplement formats. The rising trend of functional beverages infused with herbal ingredients such as ashwagandha, chamomile, and turmeric further complements this expansion. Manufacturers are increasingly investing in innovative product forms to attract younger demographics and fitness-oriented consumers seeking convenience without compromising on nutritional value.

By Application
In terms of application, the market is segmented into energy and weight management, immunity and digestion, bone and joint health, heart health, and general wellness. The general wellness segment currently dominates the market, fueled by increasing preventive health awareness and the adoption of daily nutritional regimens. However, the immunity and digestion segment is expected to exhibit the highest growth rate through 2032, as consumers prioritize gut health and immune resilience. Herbal supplements containing probiotics, ginger, and peppermint are gaining considerable attention for their natural healing properties.

By Distribution Channel
The distribution landscape is classified into pharmacies and drug stores, health and wellness stores, online retail, and supermarkets/hypermarkets. Among these, pharmacies and health stores remain the dominant distribution channels due to their established credibility and wide product range. Nonetheless, online retail is emerging as the fastest-growing channel, driven by the convenience of digital purchasing, attractive discounts, and the availability of detailed product information and reviews. E-commerce giants and direct-to-consumer nutraceutical brands are leveraging digital marketing to enhance customer engagement and expand market reach, particularly among tech-savvy and younger consumers.

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Regional Insights

Australia currently holds the largest share of the herbal supplements market in the region, driven by a strong focus on health-conscious lifestyles and the widespread acceptance of complementary medicine practices. The country's robust regulatory framework, ensuring product safety and efficacy, has bolstered consumer confidence and supported market maturity. New Zealand, on the other hand, is emerging as the fastest-growing market during the forecast period, propelled by rising health awareness, expanding organic farming initiatives, and increasing government support for natural product innovation.

The growing penetration of wellness retail chains, the rising number of local manufacturers, and collaborations with global nutraceutical brands have further enhanced product availability across both nations. Additionally, the influence of global dietary trends and an increasing preference for sustainable and eco-friendly products continue to shape consumer purchasing behavior in these regions.

Unique Features and Innovations in the Market

The Australia & New Zealand herbal supplements market is witnessing significant innovation, with companies integrating modern technologies to improve production efficiency, quality control, and traceability. Manufacturers are increasingly utilizing advanced extraction techniques to preserve the bioactive compounds of herbs, ensuring maximum potency and absorption. Artificial intelligence (AI) and data analytics are being adopted for personalized supplement formulation, enabling brands to tailor products to specific health goals and demographics.

Moreover, the use of blockchain technology in supply chain management is enhancing transparency and ensuring the authenticity of herbal ingredients. The incorporation of Internet of Things (IoT) in manufacturing and packaging processes is helping companies maintain quality consistency and regulatory compliance. As consumers become more educated and health-conscious, the demand for smart, traceable, and sustainable herbal supplements continues to grow across the Australia and New Zealand markets.

Market Highlights

The herbal supplements industry in Australia and New Zealand is characterized by strong consumer demand for preventive healthcare products, rising disposable incomes, and growing awareness regarding the harmful effects of synthetic alternatives. The sector's growth is further strengthened by an increasing focus on sustainable sourcing and eco-friendly packaging solutions. Businesses are investing in product transparency and clean-label claims to meet the expectations of environmentally conscious consumers.

Furthermore, regulatory support for herbal supplement manufacturing and labeling, coupled with a rise in health-conscious millennials and elderly populations, has created lucrative opportunities for market players. Many consumers now prefer supplements with clinically validated ingredients, aligning with the broader trend of science-backed natural health products. The growing influence of lifestyle-related health issues, such as obesity, stress, and fatigue, continues to fuel product innovation across categories like adaptogens, detox supplements, and immunity boosters.

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Key Players

NOW Foods
Transparent Labs
WOODBOLT DISTRIBUTION LLC
Dymatize Enterprises LLC
GymSupplementScience.com
RSP Nutrition
CytoSport Inc.
Iovate Health Sciences International Inc.
Quest Nutrition
THE BOUNTIFUL COMPANY
AMCO Proteins
Glanbia PLC
Others

Competitive Landscape

The competitive environment of the Australia & New Zealand herbal supplements market is highly dynamic, featuring a blend of global giants and regional players. NOW Foods continues to strengthen its market presence through an extensive product portfolio that caters to multiple health categories. Transparent Labs focuses on clean-label, additive-free formulations that appeal to the fitness and wellness segments. WOODBOLT DISTRIBUTION LLC and Dymatize Enterprises LLC leverage their strong brand recognition in sports nutrition to diversify into herbal-based performance supplements.

RSP Nutrition and CytoSport Inc. emphasize innovation in energy and recovery supplements infused with herbal extracts. Iovate Health Sciences International Inc. and Quest Nutrition are investing heavily in product diversification and online expansion to strengthen customer outreach. The Bountiful Company and Glanbia PLC, both key players in the global nutrition market, are advancing through mergers, acquisitions, and partnerships with local distributors to expand their regional footprint. Meanwhile, emerging local brands are capitalizing on the rising trend of organic and indigenous herbs, fostering healthy competition and innovation within the sector.

Outlook

Looking ahead, the Australia & New Zealand herbal supplements market is poised for sustained growth, supported by an evolving regulatory framework, expanding consumer base, and ongoing technological advancements. The integration of biotechnology and AI-driven formulation will continue to enhance product quality, efficacy, and personalization. Additionally, the growing influence of holistic health trends, coupled with a focus on sustainability and ethical sourcing, will redefine the competitive landscape.

As consumers increasingly prioritize wellness and natural living, manufacturers are expected to innovate across delivery formats and formulations to cater to evolving demands. The market's long-term prospects remain strong, with continued emphasis on quality assurance, transparency, and digital engagement driving future success across the herbal supplement industry in Australia and New Zealand.

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