Market Overview:

The global herbal medicine market size was valued at USD 165.66 billion in 2022 to USD 386.19 billion by 2030, showing a CAGR of 11.16% during the forecast periods.

Herbal Medicine is a type of dietary supplement that is extracted from various plant parts including leaves, bark, seeds, oil, berries, and roots. Herbal medicines have been used to treat various diseases since antiquity. These medications are available in a variety of dosage forms through the use of novel, cutting-edge techniques. The market is segmented into Herbal Pharmaceuticals, Herbal Functional Foods, Herbal Dietary Supplements, and Herbal Beauty Products, based on category.

There is limited scientific evidence regarding the safety and efficacy of plants used in 21st-century herbalism, which generally lacks purity and dosage standards. Herbal Medicine typically encompasses fungi and bee products, in addition to minerals, shells, and certain animal parts. Herbal Medicine is also known as phytotherapy and phytomedicine.

COVID-19 Impact:

The COVID-19 pandemic had big effect on health and pharmaceutical sectors, both short term and long term effect. There are also negative short-term and long-term effects on research and development (R&D) and manufacturing, as well as delays in projects that are unrelated to core supply chain/data management operations.

According to the DARU journal of Pharmaceutical Sciences, there were around 100% to 300% increases in medicines which are used in hospitals during pandemic including sedatives, respiratory treatments.

Market Dynamics:

Latest Trends:

Herbal supplements are being used more often.

Herbal products are becoming more and more used by both patients and doctors. WHO says that between 10% -50% of people in developed countries regularly use herbal products. The main reason to use herbal products is that they help the body to fight against the disease better than synthetic drugs. In the developing countries like China, Japan, India, Vietnam, South Africa, and Bangladesh, herbal medicines are sometimes the only affordable and available treatment option. People choose these medicines for coughs, colds, nervousness, stomach problems etc. This ongoing trend of using herbal supplements is expected to show growth opportunities in the market.

Driving Factors: 

• Growing Need of Natural Ingredients in Cosmetic Industry

The cosmetic industry provides good opportunities to exporters to use natural ingredients from developing countries to expand their business in developed region. The demand for natural ingredients from cosmetic industry is increasing day by day. The main factors driving this demand are growing consumer awareness about natural cosmetics and growing focus among cosmetics companies to provide natural herbal alternatives to synthetic ingredients. Synthetic chemicals are being replaced with natural ingredients in cosmetics. This is mostly to adhere customer need and to move toward raw materials that are better for the environment. Customer demand for personal care, beauty products and toiletries which do not contain any chemicals.

It is expected that the demand for natural ingredients would create opportunities for suppliers in developing nations. Vegetable oil, which has practical qualities and is beneficial for the body and face, is one of the often used natural herbal substances. Essential oils and other plant-based extracts are utilised as perfumes. Herbal remedies have a significant role in healthcare in many poor nations. Minor medical issues are treated with herbal and natural medicines. Visits to professional doctors are typically uncommon and only recommended for diseases that pose a serious threat to life in developing and low-income countries. Herbs are made as salves for topical application and as teas (capsules or pills) for internal use.

• High Demand for Natural Medicine in Developing Nations

In many developing nations, herbal medicines are a vital component of medical care. Herbal remedies and natural remedies are utilized for nearly all minor ailments. In developing and low-income nations, visits to trained physicians or pharmacists are typically rare and reserved for life-threatening conditions. In developing nations, herbs used for medicinal purposes are dried, unprocessed herbs, plants, or plant parts that are used whole or in pieces. Herbs are prepared internally as teas (occasionally as pills or capsules) and externally as salves and poultices. As most developing nations have minimal regulation regarding the use of herbs as medicines, the growth of the industry in developing nations is anticipated to be one of the business's driving forces.

• Increased Awareness of the Negative Effects of Allopathy

The growing awareness of the negative effects of allopathic medicines and the benefits of herbal medicinal products has increased the demand for these products. An additional factor influencing market expansion is the expanding population, which is accompanied by a rise in the incidence of chronic diseases. Demand for naturally prepared medicines based on Ayurvedic and Unani principles will drive market expansion.

Restraining Factors:

• Strict Guidelines Related to Use of Herbal Medicines as Raw Material in Cosmetic Industry

There are different guidelines and regulations for import of herbal and natural products and their use in every country. According to WHO, the ability to monitor the safety of the products and how they are used, referral mechanisms between herbal and conventional medical practitioners, information systems, analysis of herbal ingredients, and integration of herbal products into health systems. Because of the above mentioned reason, it is difficult for companies that sell or make herbal products to get into different product markets. Manufacturers or suppliers must also follow different laws and regulations and accept different standards and requirements.

For the import and usage of herbal and natural products, various rules and restrictions apply in every nation. The ability to keep a watch on product safety and usage, referral mechanisms between herbal and conventional medical practitioners, information systems, analysis of herbal constituents, and incorporation of herbal goods into health systems are all mentioned by the WHO. The mentioned factor makes it challenging for businesses who sell or manufacture herbal goods to enter various product markets. Also, suppliers and manufacturers must obey several rules and laws as well as adhere to certain specifications.

Opportunities:

• Herbal Remedies are an Integral Part of Medical Care

In numerous developing nations, herbal remedies are an integral part of medical care. Herbal and natural remedies are used to treat the vast majority of minor health issues. In developing and low-income countries, trained physicians and pharmacists are rarely seen, and when they are, it is typically only for life-threatening illnesses. In these countries, medicinal herbs are dried, unprocessed herbs, plants, or plant parts that are used whole or chopped. Herbs can be made into teas (or occasionally pills or capsules), topical salves and poultices. Given that most developing nations have few regulations governing how herbs may be used as medicines, the expansion of the industry in these nations is likely to be one of the factors driving the business.

Key Vendors:

Patanjali Ayurveda is India’s major player in herbal medicines industry. The majority of its product is made from naturally sourced herbal raw material. Patanjali’s sales volume grew by 7% in October-March 2018 and 22% in April-September 2017.

• Cultivator Natural Products Pvt.Ltd. (India)

With over 30 years of effort, Cultivator Natural Products Pvt. Ltd. has earned the trust and confidence of consumers. It is one of the largest exporters of organic botanical products (both B2B and B2C) to a rapidly expanding international clientele. They provide meticulously curated 100% organic natural products manufactured in state-of-the-art 275,000-square-foot processing facilities and raw materials sourced from 3,000 acres of cultivation land.

• 21ST Century HealthCare, Inc. (U.S.)

Over the past three decades, 21st Century HealthCare, Inc., one of the largest international manufacturers of dietary supplements, has produced high-quality nutritional products. All nutritional products for humans and animals in the twenty-first century are manufactured and packaged in accordance with current Good Manufacturing Practices (cGMP) to ensure absolute integrity, freshness, and label efficacy. The 21st Century Quality Management System is certified in accordance with UL Process Retail Certification and Management System Certification, and 21st Century is a founding member of the National Animal Supplement Council (NASC) for its high-quality pet products.

• Herbalife Nutrition (U.S.)

Herbalife is a leading nutrition company with more than 40 years of experience and a mission to nourish the potential in everyone, create meaningful economic opportunities and improve global nutrition. Herbalife is recognized globally as the no.1 brand in active and lifestyle nutrition.

• ZeinPharma Germany GmbH (Germany)

On the health care market, ZeinPharma Germany is recognized as an authentic pharmacist brand for high-quality nutritional supplements. Highest level of pharmacological expertise under one roof ensures constant national and international expansion. The company produce exclusively in its own facilities in Germany and have been consistently opening up new target markets with innovative products containing a wide variety of natural nutrients since 1999.

• Blackmore’s Limited (Australia)

Since 1932, the Blackmores Group (ASX: BKL) has championed innovative natural health solutions to promote global and daily wellness. Blackmores, consistently voted No.1 health brand in Australia. Blackmores Group is committed to integrating sustainability throughout business and giving back to the communities in which they operate.

• Himalaya Global Holdings Ltd. (India)

Himalaya has positioned itself as a brand concerned not only with enhancing people's lives but also with protecting the environment. Himalaya's "head-to-toe" product line seeks to provide a comprehensive remedy for common ailments. Himalaya has effectively harnessed the science of Ayurveda through cutting-edge research to establish itself as a safe, gentle, and reliable brand.

• Nutraceuticals Corporation (U.S.)

Better Being's subsidiary, Nutraceutical, is an integrated manufacturer, marketer, distributor, and retailer of branded nutritional supplements and other natural products distributed primarily through domestic health and natural food stores. Nutraceutical markets and distributes branded nutritional supplements and other natural products to health and natural product wholesalers and retailers on a global scale. The core business strategy of Nutraceutical is to acquire, integrate, and operate natural products industry businesses that manufacture, market, and distribute branded nutritional supplements.

• Emami Limited (India)

Emami Limited, founded in 1974, is the flagship company of the Emami Group and one of India's leading FMCG corporations operating in the beauty and healthcare sectors. The company's enviable portfolio of over 300 Ayurvedic formulation-based products includes many well-known brand names, such as BoroPlus, Navratna, Fair and Attractive, Zandu balm, Mentho Plus balm, Fast Relief, and Kesh King.

• Nature's Answer, LLC. (U.S.)

Nature's Answer produces the finest liquid and herbal extracts available today. This company, based in Hauppauge, New York, formulates and bottles their extract at the same facility, to guarantee quality. In business since 1972, Nature's Answer combines the best herbal extracts, vitamins and minerals in accordance with the latest research to create proven formulas for everything from immunity to energy and oral health. Nature's Answer also offers a line of Sambucus products for immune system support and fighting off the common cold or flu.

Strategic Development:

• November 2020 - Kunnath Pharmaceuticals, a manufacturer of herbal products from India, launched antiviral immunity booster capsules across India under the brand name 'Viromune'. With this launch, the company plans to achieve sales of USD 266 million over the next three years.
• March 2021 – Lotus, one of India's popular beauty companies, launches the Lotus Botanicals brand. This e-commerce brand allows consumers to order skin and hair care products from Lotus Botanicals only through Lotus Botanicals and other third-party e-commerce channels.

Market Segmentation:

The market is segmented on the basis of source, application, form, category and region.

By Source:

Traditional drugs are made from things like flowers, leaves, stalks, roots, cloves, fruit, and so on. For example, Chamomile (the flower) is used in the U.S. as a sedative and anxiety reliever to help people relax and calm down, while in Europe it is used to reduce swelling and pain and to help wounds heal. The leaf, stem, and root of echinacea can be used to treat and stop the flu, cold, and infections. Cloves and the root of garlic are used to lower blood pressure and cholesterol. Milk thistle is a fruit that helps the liver and lowers cholesterol. It also slows the growth of cancer cells. The flower and leaf of Saint John's wort are used to treat depression.

Several common drugs are mostly made from plants, such as quinine, which comes from the bark of the cinchona tree, morphine, which comes from the opium poppy, digoxin, which comes from foxglove, and aspirin, which comes from the bark of the willow tree. Plant-based medicines will continue to get better, and people in the industry are already testing herbs on a large scale to see how they work as medicines. This will help the growth rate of the industry in the near future.

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

By Application:

By use, the pharmaceutical and nutraceutical segment has the largest market share for herbal medicines. This is because the industries that make dietary supplements and alternative medicines need a lot of herbal raw materials. After learning about the long-term benefits of herbal products, people are moving away from synthetic medicines and toward herbal ones. In the nutraceuticals industry, popular product categories include herbal protein powders and products that help you look younger. Long-term, these industries are likely to keep increasing their need for herbal products. The segment for personal care and beauty products has the second largest share of the market. Herbal raw materials are becoming more popular in the cosmetics industry because they are good for hair, face, and skin in the long run.

• Pharmaceutical & Nutraceutical
• Food & Beverages
• Personal Care & Beauty Products
• Others

By Form:

Based on their shape, tablets and capsules have the largest market share. There are many capsules and tablets of these kinds of medicines on the market. Also, herbal capsules and tablets are being written into more and more prescriptions.

The liquid and gel segment holds the second-largest market share based on form. Liquid and gel products are used in the pharmaceutical, nutraceutical, and food and beverage industries. With beverages including turmeric and herbs, several businesses are entering the liquid market. In addition, a variety of herbal syrups are available for the treatment of colds and coughs. Protein powders are usually the type of products that are available in powder form in the nutraceuticals market.

• Powder
• Liquid & Gel
• Tablets & Capsules
• Others

By Category:

In 2019, herbal pharmaceuticals made up a big chunk of the market for herbal medicines. During the forecast period, the segment size is expected to grow because more people are getting older and consumers are becoming more aware of their needs. The size of the herbal medicine market will also grow because of things like new products from suppliers, few or no side effects, and the FDA's implementation of Current Good Manufacturing Practices (CGMP) for dietary supplements.

Over the next few years, the market for herbal beauty products is also expected to grow strongly. Some of the things that are helping the overall beauty product market grow are the rise in demand for beauty products, the rise in disposable income, and the easy availability of a wide range of products. This trend is also driving up the demand for herbal beauty products.

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

Regional Insights:

The market for cosmetics in Europe is the largest in the world, and new companies from developing countries are likely to find good opportunities there. Personal care and beauty products that use natural ingredients are becoming more popular at the same time, and this trend is likely to continue. Based on this demand from European countries, it is expected that Europe will make a big contribution to the growth of the market in the future. In the market for health products in Europe, turmeric is becoming more and more popular. It is known to have antioxidant and anti-inflammatory properties, so it is used as a supplement and in medical products to improve the immune and digestive systems and overall health. Most of the turmeric that comes into the EU comes from India, but Thailand, Madagascar, Peru, and Sri Lanka are also sources.

People in North America, especially in the U.S., are becoming more health-conscious, and a strong “green wave" is changing the way people feel about nature-care products. This is because people think that alternative medicines are bad for their health. This has helped the product become popular in the U.S.

Asia and Latin America are also seeing big growth in their cosmetics markets. With more people using the internet, people are learning about the long-term benefits of natural and herbal products and want to use them. The growth of these markets is also supported by the fact that people in developing countries like India, China, Brazil, and Southeast Asian countries are getting more money to spend. South Africa, the UAE, Qatar, Saudi Arabia, Kenya, and Nigeria are all developing countries in the Middle East and Africa and have some of the world's most important emerging economies.

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• France
• Italy
• Spain
• UK
• Nordic Countries
• Denmark
• Finland
• Iceland
• Sweden
• Norway
• Benelux Union
• Belgium
• The Netherlands
• Luxembourg
• Rest of Europe
• Asia-Pacific
• Japan
• China
• India
• Australia
• South Korea
• Southeast Asia
• Indonesia
• Thailand
• Malaysia
• Singapore
• Rest of Southeast Asia
• Rest of Asia-Pacific
• The Middle East & Africa
• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest of the Middle East & Africa
• Latin America
• Brazil
• Argentina
• Rest of Latin America

Scope of Report:

Conclusion:

• The market dynamics and upcoming market trends for herbal medicines are carefully examined in this report.
• Detailed analysis is carried out by developing market projections for significant market segments.
• In order to comprehend the competitive environment globally, this study that assesses the competitive landscape and value chain is taken into consideration.
• A detailed examination of the variables influencing and limiting market expansion is given.
• This research offers a quantitative analysis of the existing market and projections that help to define the opportunities currently present in the market.
• A detailed assessment of every region is given, revealing the opportunities that are most prominent there.