Trade Policy, Sustainability, and Labelling Compliance to Shape Supplement Market by 2026
The nutraceutical industry is facing significant shifts driven by evolving trade policies, increasing demand for sustainability, and stricter labelling compliance. Industry leaders anticipate a heightened focus on Country of Origin accuracy and collaborative efforts to ensure product authenticity and efficacy.
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Country of Origin and Tariffs
By 2026, concerns regarding tariffs and Country of Origin (COO) will remain prominent, with increased emphasis on COO to ensure accurate tariff rate application. According to Wilson Lau, President of Nuherbs, customs authorities are expected to intensify their focus on how products are classified.
Lau questions whether sufficient transformation and added value occur for a product to legitimately claim origin from a country with a lower tariff rate, especially if the majority of components or ingredients originate elsewhere. He advises that if a product's nature is not significantly altered, the financial benefits of claiming a different origin may not materialise.
Sustainability Initiatives
Sustainability will continue to be a key driver, particularly for projects originating from growing or collection regions. There is a growing demand for regenerative and certified ingredients, as noted by Lau. Nuherbs has recently launched FairWild-certified schisandra and plans to add FairWild eleuthero root and leaves to its certifications in 2026. The company is actively exploring certifications for other ingredients in China and Peru, seeking customer input on preferred certified herbs and herbal ingredients.
"Consumers looking to improve their health and wellness efforts, some still in post-Covid mindset, are looking to beverages to support their mood and stress relief with adaptogens and other botanicals."
Functional Beverages Market Growth
The functional beverages market is experiencing rapid expansion, projected to reach $250 billion by 2030, presenting both opportunities and challenges for the botanical ingredient sector. Lau stresses the need for the wider industry to support this growth through collaboration, focusing on three key areas:
- Function: Efficacy and safety are paramount. Consumers, still influenced by a post-COVID mindset, seek beverages with adaptogens and other botanicals for mood and stress relief. Ingredient experts are urged to assist in formulating products with proper dosages to ensure effectiveness.
- Flavor: The industry should leverage food scientists and sensory experts to enhance the flavour profiles of functional beverages using natural ingredients like ginseng, hibiscus, or schisandra. This approach aims to help entrepreneurs avoid artificial flavours and colours.
- Regulatory Compliance: Many food and beverage companies require support with proper label claims for functional products. Lau highlights instances of inappropriate structure-function claims and disease state mentions, attributing these to a lack of regulatory knowledge rather than intentional deception.
Lau concludes that a major trend for 2025-2026 will be a collective industry effort to collaborate and address these challenges, citing observations from industry events where competitors expressed interest in partnerships.
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