Herbal Medicine Market

Global Herbal Medicine Market Size

The size of the global herbal medicine market was worth USD 201 billion in 2023. The global market is anticipated to grow at a CAGR of 7.22% from 2024 to 2032 and be worth USD 375.60 billion by 2032 from USD 215.4 billion in 2024. 

The plant-based products used to treat diseases or to maintain health are known as herbal products or phytomedicines. Most of the prescribed and over-the-counter drugs are made from plant products, which consist of purified ingredients and are regulated by the FDA. The herbal supplements and medicines are available in various forms, such as dried, chopped, powdered, capsule, or liquid. Herbal medicines are taken as pills, powders, or liquid extracts, brewed as tea, or added to bath water, and in a few cases, used on the skin as gels, lotions, or creams. The FDA considers herbal supplements as food products, not medicines. So, they are not subject to the same testing, manufacturing, and labeling standards and regulations as medicines. The global herbal medicine market has witnessed prominent growth in the past years and is projected to increase during the forecast period. According to WHO data, in 2023, more than 80% of the world's population in over 170 of WHO's 194 member states currently use some form of traditional medicine, such as herbal medicine, yoga, Ayurveda, acupuncture acupressure, and indigenous therapies.

MARKET DRIVERS

Rising Awareness and Widespread Availability of Herbal Medicine Products

The growing support and funding for the research and development of herbal medicine and the widespread availability of herbal medicine products are driving the growth of the global market. Many health-conscious people are turning to natural remedies to cure their diseases as the prevalence of liver and heart disorders rises, and R&D activities related to the growth of newer varieties of more effective herbal medicine are expanding. The demand for herbal medicines among ordinary people is expected to be essential to the market's growth rate. These products' low cost and high consumer demand primarily support global market growth. Furthermore, herbal medicines are most often used to treat stomach problems, so this part of the herbal drug market, by indication, would gain the most popularity. The abovementioned factors are expected to drive the growth of the global herbal medicine market.

Rising Demand for Herbal Ingredients in the Cosmetic Industry

The rising shift of consumers towards organic and natural products is enhancing the manufacturers' focus on developing herbal medicinal ingredients to gain consumer traction. Most market players are replacing synthetic materials with herbal ingredients with medicinal properties in treating acne and other skin conditions, accelerating the market growth. The increasing demand for herbal supplements among antibiotic alternatives fuels the expansion rate. Countries in the Asia Pacific region, like India and China, have used herbal medicine since the ancient period due to their high efficacy and minimal adverse reactions. According to WHO, almost 10 to 50% of the people in developed countries use herbal medicines regularly for some medical conditions. The increasing consumption of herbal dietary supplements enhances immunity, and herbal medicines are widely preferred in treating gastrointestinal problems, boosting market revenue growth. In most developing nations, herbal medicines are considerably affordable treatment options, accelerating the regional market revenue.

The rising health concerns among people and enlarging awareness regarding the adverse effects of synthetic medical supplements are making people shift towards natural and herbal therapies, which prompts the expansion of the market. Well-trained professionals and knowledgeable pharmacists are scarce in low-income regions where the availability of herbal medicine becomes the choice for many people seeking medicinal support. These scenarios positively impact the expansion of the herbal medicines market. Various plant-based extracts are used in different skincare products to improve skin texture by treating skin concerns. Most people are adopting herbal teas in their daily routine due to their medicinal benefits in enhancing their health conditions. All these advantages are expected to propel the market growth opportunities during the forecast period.  

MARKET RESTRAINTS

High Costs

Herbal drug manufacturing is expensive, so the cost of herbal drugs on the market is high, contributing to the sluggish development of the herbal drug market. In addition, herbal medications often take much longer to cure than allopathic remedies, which has slowed the expansion of the herbal medicine market. Lack of research and standardization of herbal medicines, a poor legal and regulatory framework that leads to patent issues, and poorly manufactured herbal products further inhibit the growth rate of the herbal medicine market.

Strict Regulations

The presence of a stringent regulatory framework, as each country has its own rules and regulations, makes it challenging for manufacturers to expand their market revenue. According to WHO, several countries lack political will, a legal framework, the capacity to monitor product safety and practice referral between herbal and conventional medical practitioners, herbal ingredient analysis, and herbal product suppliers into the health systems. Some herbal medicines do not suit a few people, which may cause allergies or some skin rashes, stomach aches, and muscle pains among people which may limit the market expansion. Another major factor hampering the growth of the herbal medicine market is the external quality problems, including contamination, adulteration, and misidentification. These problems may cause serious harm to the patients.

REPORT COVERAGE

SEGMENTAL ANALYSIS

By Type Insights

The herbal pharmaceuticals segment dominated the market in 2023, and the domination of the segment is expected to continue throughout the forecast period owing to the rise in people's awareness of the need to adopt herbal drugs, as there are no side effects. Herbal medicine practitioners from these pharmaceuticals use the disinfectant properties of herbs to inhibit the growth of pathogenic microbes, thus stopping the spread of infectious diseases. Further, they provide a calming effect on the body along with the prevention and treatment of disease, unlike harmful, ineffective drugs that cause exacerbation of the disease.

The herbal beauty products segment is anticipated to command a considerable share of the worldwide market during the forecast period owing to their increasing customer adoption, user safety, and greater effectiveness than chemical products. Being natural, they are compatible with all skin types, free from all harmful toxic synthetic chemicals, and save the user from side effects such as rashes or itching. In addition, they are hypoallergenic, don't require animal testing, are prepared by Ayurvedic experts, are readily available at low cost, have a wide range of skincare and hair care products, and are free from parabens which are added as a preservative. Thus, the herbal products used for these purposes are expected to drive market growth.

By Source Insights

The leaves segment held the largest share of the market in 2023 and is estimated to grow at a promising CAGR during the forecast period, owing to their uses in drug preparations. Leaf extract has most of the crude drug present in it. This presence of an active ingredient in the leaf makes it more resourceful. Lemongrass leaves and fenugreek help lower cholesterol levels and help prevent and control heart disease, cancer, and diabetes. Reducing blood clot formation saves the person from many heart-related diseases.

By Form Insights

The extracts segment accounted for the largest share in 2023 and continues to hold first place throughout the forecast period. As extracts are crude plant derivatives, these play an essential role in various herbal and pharmaceutical drug manufacturing processes. In addition, plant crude extracts are more critical in producing pharmaceutical drugs and will also act as active pharmaceutical agents.

The herbal powders sector is anticipated to hold a significant market share due to its various benefits in improving skin and hair, which worries most people. In addition, Ayurvedic powders help cure all beauty problems, being very nutritious, through uprooting internal and external causes.

REGIONAL ANALYSIS

Europe has significant market growth for herbal medicines. Europe will remain in first place for herbal medicine in the market. Homegrown medicinal plants are more holistic and are encouraged in European countries. The region of Europe is anticipated to hold the largest herbal market share across the world due to the demand for natural ingredients used in beauty and personal care products, the presence of prominent opportunities for new entrants from developing countries, and the popularity of ethnic cuisine in the region making turmeric a popular spice and in a health product market. Moreover, increased health awareness among the European population, strong demand for natural ingredients, and people's attitude towards natural skin care products are further helping the market grow. Hence, the usage rate of herbal medicines is higher in this region.

The Asia Pacific is liable to expect significant market growth due to its developments and advancements in the healthcare industry. Another crucial factor for market drive in the Asia Pacific region is homegrown medication development, which utilizes natural medication over time. The region of Asia-Pacific is expected to show a high growth rate due to the realization of long-term benefits associated with herbal products and the spread of a robust green wave across the region. The growing awareness among people regarding the benefits of herbal medicine over allopathic medicines and the presence of limited side effects are propelling regional market growth. The presence of strong influence from the ancient period in countries like China, India, and Japan is fueling the market growth.   

The North American region, especially the United States, held a considerable share of the global market and is estimated to have steady growth during the forecast period. The shifting consumer preferences towards natural care products due to rising environmental consciousness is augmenting the herbal medicine market in the North American region. The rising awareness regarding the adverse solid effects of alternative medicine therapies is enhancing the adoption of herbal medicines in the region.

Due to the rising demand for natural and organic products in various industries, the Latin American herbal medicine market is expected to broaden in the coming years. The expanding cosmetic and healthcare industry is creating opportunities for the regional market. The rising disposable incomes of people in countries like Brazil and Mexico encourage consumers to invest in better and safer medicinal products, leading to market growth.

The market in the Middle East and Africa region is foreseen to grow steadily due to the financial stability of families in the countries that fall under these regions, such as South Africa, the United Arab Emirates, Qatar, Saudi Arabia, Kenya, and Nigeria. Also, due to a lack of awareness in these countries, market growth is at least expected to increase in the forecast period.

KEY MARKET PARTICIPANTS

MATSUMURA & CO., Dr. Willmar Schwabe India Pvt. Ltd., Blackmores Limited, NATURE'S ANSWER, Arkopharma, Arizona Natural Products, Bio-Botanica Inc., Herbal Africa, Sidomuncul, and Nature Herbs are some of the major companies operating in the global herbal medicine market.

RECENT HAPPENINGS IN THE MARKET

• In June 2023, Traditional Medicinals, one of the leading botanical wellness companies in North America, announced the launch of its newest product in Canada: Organic Lemon Ginger Tea. The newly launched blend is a combination of organic herbal ingredients, including lemon peel, ginger, hibiscus, and lemongrass. The herbal tea offers a zesty, sweet, and slightly spicy taste and can be consumed in either hot or cold form.
• In January 2023, Handard, an Indian traditional medicine manufacturer, diversified its product offerings. The new offerings include face washes, shampoos, and oral hygiene products.  

MARKET SEGMENTATION

This research report on the global herbal medicine market has been segmented and sub-segmented based on type, source, form, and region.

By Type

• Herbal Functional Foods
• Herbal Dietary Supplements
• Herbal Beauty Products
• Herbal Pharmaceuticals

By Source

• Roots and barks
• Fruits
• Whole plants
• Leaves
• Others

By Form

• Tablets
• Capsules
• Extracts
• Syrups
• Powders
• Others

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• The Middle East and Africa