Many herbs have health benefits and millions of people have already resorted to the use of herbal medicines with the conviction that these being natural are effective and safer than standard medicines. Herbal additives have begun to appear in conventional foods ranging from teas, juices, snack chips, energy bars, etc. The size of this tremendous market is not well understood. It is estimated by BCC research that the global market for functional food industry will reach 176.7 billion in 2013 with a current annual growth rate (CAGR) of 7.4%; specifically the functional food sector will experience 6.9% CAGR, the supplement sector will rise by 3.8% and the functional beverage sector will be the fastest growing segment with 10.8% CAGR.

In terms of reach of these products in different parts of the world, there are different routes to the consumer. According to a recent survey, the US functional food market is currently estimated to be approximately $18.5 billion. Here half of the consumers are buying their herbs from speciality food stores. On the other hand, in Europe, a much larger percentage goes through pharmacies or drug stores because of different regulations. In Japan over 50% are direct sales or multilevel marketing. In India too they are available at all levels as traditional/non-traditional herbal products on prescription and outside it. The market for foods positioned for their health benefits will continue to be strong for the next several decades given the consumer interest in self-care, aging demographics and increasing health care costs.