Herbal Medicine Market Size, Share Global Analysis Report, 2022 – 2028

Industry Insights

[222+ Pages Report]  According to the report published by Facts & Factors, the global herbal medicine market size was worth around USD 166 billion in 2021 and is predicted to grow to around USD 348 billion by 2028 with a compound annual growth rate (CAGR) of roughly 11.2% between 2022 and 2028. The report analyzes the global herbal medicine market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the herbal medicine market.

Market Overview

Herbal medicines are healthcare-related products made from plants or botanicals used in the treatment of medical conditions, diseases, or to maintain healthy living. They have been in existence for centuries and are known for their healing capabilities. Some of the most common forms of herbal medicines include products like aloe vera which is widely used to treat psoriasis, burns, and osteoarthritis. They can be used in oral forms to treat constipation or gastritis. Another common herbal product is flax seed known for its cholesterol-controlling power and is a rich source of omega-3 fatty acids. Peppermint oil is globally used for digestive purposes like stomach problems, indigestion, nausea, and other bowel conditions. In the USA, the October 1994 Dietary Supplement Health Education Act does not mandate herbal medicine manufacturers to submit safety proof for the herbal products before being made available to the general public, however, the US Food & Drugs Administration department is required to monitor safety-related concerns once the product is available for selling purposes. As per the World Health Organization, more than 80% of the Asian population uses herbal medicines for their primary health. The use of these medicines is witnessed at a larger scale in patients suffering from chronic illnesses like diabetes, asthma, cancer, end-stage kidney disorders, and other medicinal issues. Herbal remedy use has a greater association with other external factors like age, ethnicity, gender, social, and education class. A lot of regions have their own regulatory bodies to administer if using herbal medicines can effectively provide better health. As per Cancer Research UK, there is no confirming evidence proving that herbal medicines can prevent, treat, or cure cancer. In many countries there are formal education and training institutes providing knowledge on understanding herbal medicines however, they lack uniformity within the country itself.

Key Insights

• As per the analysis shared by our research analyst, the global herbal medicine market is estimated to grow annually at a CAGR of around 11.2% over the forecast period (2022-2028).
•  In terms of revenue, the global herbal medicine market size was valued at around USD 166 billion in 2021 and is projected to reach USD 348 billion, by 2028. Due to a variety of driving factors, the market is predicted to rise at a significant rate.
• Based on form segmentation, tablets & capsules were predicted to show maximum market share in the year 2021
• Based on application segmentation, pharmaceuticals had the leading revenue-generating applications in 2021.
• On the basis of region, Europe was the leading revenue generator in 2021

Covid-19 Impact

The global market cap showed a positive response to the Covid-19 spread. This was majorly driven due to the lack of a concrete treatment plan for the virus during the initial phase and the majority of the population shifted towards herbal medicines in order to keep the immunity systems up. Since herbal medication does not have any significant side effects, more people were open to trying over-the-counter herbal medicines without prescription

Growth Drivers

• Rising trend toward self-medication to propel market growth

The global herbal medicine market is expected to benefit from the growing trend of self-medication amongst the general population. There is a significantly large and growing section of the population that is against the use of chemically manufactured medicines owing to the various side effects they bring along. Since herbal medicines have been in existence for many decades without possible unwanted implications, the global market is witnessing growing awareness about the benefits of the medicines and hence more people are inclined towards adopting herbal medicines for regular health issues like fever, cough, cold, headache, lower-degree burns, digestive issues, and other such concerns. Another factor helping herbal medicines gain popularity is that these medicines do not lead to addiction unlike other pharmaceutical and laboratory-generated medicines which have resulted in multiple deaths across the globe owing to overdose or addiction issues. As per the European Commission, more than 20,000 deaths are reported every year due to prescription drugs. The global market growth is projected to be augmented by the vast amount of data present on the internet related to herbal medicines coupled with increased availability of the same via online methods like e-commerce and social websites. Since more people have access to the data related to pros, cons, and other uses of herbal medicines, more people are expected to at least try organic medicines once in their lifetime.

Restraints

• Inaccurate labeling to restrict the market growth

As per official studies, at least one-third of herbal medicines tested lacked the herb mentioned on the label which is a case of inaccurate labeling. Many manufacturers may mention the name of the organic herb which is the main component of the medicine however, in reality, either the herb is not present at all or only a negligent percentage of the herb can be traced in the medicine. This may mislead the end consumer and may have severe side effects restricting the global market growth. Since herbal medicines are available without prescriptions at any pharmacy store, and there is a lack of sufficient governing bodies regulating their sales, this may have a negative impact on global market expansion unless better regulating systems are put in place.

Opportunities

• Increasing strategic entry of large-scale pharmaceutical companies to provide growth opportunities

Since herbal medicines are gaining favorable reactions from the general population, the global economy is witnessing a rising trend of higher interest from pharmaceutical giants making their way in the herbal medicine market by either strategically collaborating with domestically available producers or by starting their own range of herbal medicine with exhaustive advertising and marketing initiatives which may provide multiple growth opportunities for the global market.

Challenges

• Relatively less research on herbal medicine effectivity to challenge the market expansion

Even though herbal medicines have been used to effectively upgrade immunity levels and have been used for decades, there is still insufficient research or analysis or scientific data to determine exactly how efficient are herbal medicines in treating more serious issues like cancer, tumor, and heart diseases, diabetes, etc. The global market requires more clinical trials and scientifically backed data to increase the credibility of herbal medicines in the treatment of diseases.

Segmentation Analysis

• The global herbal medicine market is segmented based on form, application, and region.

Based on form, the global market segments are liquid & gel, tablets & capsules, and powder. The global market is led by the tablets & capsules segment with the highest revenue owing to their easy intake, compact form, and more prescribed medicines in tablet form. In general, capsulated medicines are preferred over their counterparts. For instance, Dolo broke all records in January 2022 by selling over 350 crores of tablets during covid-19. Echinacea is one of the most popular herbs used in organic medicines. As per studies, it lowers the risk of cold infection by 10 to 20 %.

Based on application, the global market is segmented into personal care & baby products, food & beverages, pharmaceutical, and nutraceutical. The global market is expected to generate the highest revenue from the pharmaceutical and nutraceutical market during the forecast period because of the rise in demand for herbal raw materials to manufacture herbal supplements that are being increasingly adopted by various users in their daily lives. Nutraceutical products like anti-aging herbal supplements are gaining momentum worldwide because of the benefits associated with using herbal products over chemically manufactured items. As per the American Botanical Council, users spent more than USD 11.26 billion on herbal supplements in 2020.

Recent Developments:

• In March 2022, the World Health Organization (WHO) established the Global Center for Traditional Medicine in India with an investment of USD 250 million from the Indian Government. With this, the organization aims to leverage the benefits of traditional medicine across the globe
• In March 2021, Lotus, a leading beauty brand in the Indian Market launched its herbal segment of beauty products. The new range of products is called Lotus Botanicals which is a clean beauty brand and is an essential part of the fast-growing e-commerce beauty business. The company aims to strike a balance between nature and consumer cosmetic demands.
• In November 2020, Kunnath Pharmaceuticals launched Viromune for Indian consumers. The company is a herbal product manufacturer and the newly launched product is an antiviral immunity booster medicine made of 17 potent herbs including benefits related to essential minerals and vitamins

Report Scope

Regional Analysis

• Europe to lead the market growth during the projection period

The global herbal medicine market is anticipated to generate the highest revenue from Europe owing to the increasing adoption of herbal medicines amongst the general population. The regional growth may also be driven by the rising research & development activities aided by the increased investments from government and private institutes in the herbal medicinal and other products segment. The rising number of patients suffering from chronic illness, which is one of the largest consumer segments of herbal medicines, may also assist in regional market expansion. Europe is also witnessing a change in mindset amongst the population towards healthy living and investing in developing better immunity systems resulting in higher consumption of herbs that enhance disease-fighting mechanisms like turmeric and other herbal supplements. North America is projected to be led by the USA in regional growth because of the increasing inclination of patients requiring medical help toward organic or herb-based medicines. Asia-Pacific is expected to grow at the highest CAGR during the forecast period because of the growing demand for clean beauty propelling beauty brand companies toward creating herbal or organic beauty products.

Competitive Analysis

• Bayer AG 
• Schaper & Brümmer 
• Venus Pharma GmbH 
• Himalaya Global Holdings Ltd 
• Arkopharma 
• Hishimo Pharmaceuticals 
• Arizona Natural Products 
• Blackmores 
• BEOVITA 
• Dasherb Corp. 
• ZeinPharma Germany GmbH 
• Dr. Willmar Schwabe India Pvt. Ltd.

The global herbal medicine market is segmented as follows:

By Form

• Liquid & Gels
• Tablets & Capsules
• Powder

By Application

• Personal Care & Baby Products
• Food & Beverages
• Pharmaceutical
• Nutraceutical

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic Countries
    • Denmark
    • Sweden
    • Norway
  • Benelux Union
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • 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