As part of Nutraceuticals World’s 2026 State of the Industry review, Beth Lambert, CEO of Herbalist & Alchemist, discussed how tariffs, labor shortages, and climate uncertainty are impacting the business of botanicals. She noted tension between supporting U.S. growers, maintaining product quality, and managing rising costs as consumers seek affordable, authentic herbal products.

As I reflect on this year headed to next, we mark the passing of an industry giant, Michael McGuffin, the former president of the American Herbal Products Association. AHPA’s new leader, Graham Rigby brings his unique set of skills in this turbulent time. His knowledge of the subject matter from his career and former AHPA board member experiences gave him the ability to jump right in and pick up the reins. 

This year we have seen the effect of tariffs on our industry. The uncertainty of their timing, application, adjustment, and what the future brings continues to raise many questions. In talking to colleagues at Supply Side Global, I heard from those who import raw materials that they are extremely cautious about importing and keeping inventory for the next year. Most had imported significant stocks before the tariffs hit and have spent this year working those inventories down. We followed this path ourselves.

The uncertainty with the current tariff case at the Supreme Court and government responses to its outcome are leading many to be extremely cautious with imports over the next few months. For those botanicals that can be grown in our climate, this may be an opportunity for American farmers and wild crafters.

However, due to labor shortages and weather uncertainties it remains to be seen whether domestic buyers will pay the higher prices for U.S. grown botanicals. Because we process many extracts from fresh botanicals, Herbalist & Alchemist has always made a commitment to first try to source locally and then from U.S. growers and suppliers, although a number of botanicals we use don’t grow well in North America.

I am hearing requests from farmers earlier this year to discuss contracts due to interest from new parties in their production. I am not sure this will reflect long-term growth for farmers or produce any short-term disruption to meet domestic manufacturers’ needs due to the higher cost of U.S. sourced material. If the tariffs continue, there is concern from colleagues that adulteration or addition of excipients in order to meet price expectations could be an issue.

And lest we forget, climate uncertainty is a critical concern. Losing or reducing access to botanicals from around the world, especially those that do not grow well here, puts our industry under increased pressure. AI solutions of robot weeders and climate-controlled greenhouses are interesting, but not a short-term answer.

Consumers continue to increase their use of botanicals in their wellness plans but are concerned about costs. Their resistance to increased prices often results in their waiting for sales and then stocking up. The costs of tariffs and domestic labor will continue to pressure prices and tighten margins.