The demand for botanical extracts in the sleep health market is rising, driven by a shift towards ingredients that promote systemic balance and address stress rather than solely inducing sleep. Ashwagandha and bacopa have emerged as key players in this trend, as studies indicate their effectiveness in improving sleep quality, latency, and efficiency by modulating cortisol levels and hypothalamic-pituitary-adrenal (HPA) axis activity.
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According to Fortune Business Insights, the global sleep supplements market was valued at $8.55 billion in 2025 and is expected to grow at a compound annual growth rate (CAGR) of 8.38% to reach $17.65 billion by 2034. This market expansion reflects a growing consumer interest in natural ingredients that support relaxation and stress management.
Maggie McNamara, vice president of global marketing at Saanroo, highlighted a change in the conversation surrounding sleep products: "The conversation is shifting from simply inducing sleep to addressing the underlying causes of restlessness, such as stress, nervous system imbalance, and physical discomfort."
Botanicals like ashwagandha and bacopa target the underlying stress responses associated with sleep disturbances. Kartikeya Baldwa, CEO of Ixoreal Biomed Inc., explained that ashwagandha helps manage cortisol levels, which can disrupt sleep patterns when elevated. For instance, a clinical study showed that 300 mg of KSM-66 full-spectrum ashwagandha extract taken twice daily resulted in a 27.9% decrease in serum cortisol over 60 days.
Bacopa monnieri, another adaptogen, has been shown to similarly affect the HPA axis. Research indicates a significant reduction in cortisol and improvements in self-reported sleep quality. In a follow-up study utilizing wrist actigraphy, participants experienced a notable increase in total sleep time and sleep efficiency.
Saffron also plays a crucial role in natural sleep support. Clinical findings from Saanroo's Affron indicate that saffron can improve various sleep metrics and mood at doses as low as 14 to 28 mg daily. Mechanistically, saffron’s compounds, crocin and safranal, are believed to support a healthy inflammatory response while modulating stress, making saffron well-suited for combination with other calming ingredients.
Other botanicals, such as palmitoylethanolamide (PEA), target different mechanisms unrelated to HPA-axis regulation. For example, clinical studies on Levagen+, a PEA extract, found it reduced sleep onset latency and improved daytime alertness in participants with initial sleep difficulties.
Formulators are increasingly adopting a multi-ingredient approach that combines botanicals and supplements targeting diverse pathways—such as stress modulation and cognitive relaxation—rather than relying solely on sedatives. As Clardy noted, the industry is moving towards a broader understanding of what impacts sleep, emphasizing holistic solutions that can address the root causes of sleep disruption.
This evolving perspective is reflected in formulations that couple stress-relieving ingredients like ashwagandha and bacopa with others that promote relaxation and support circadian rhythms. The shift indicates an awareness that effective sleep aids should consider various contributors to sleep disturbances, particularly stress.