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Herbal Medicine Market Size, Share & Industry Analysis, By Form (Powder, Liquid & Gel, and Tablets & Capsules), By Application (Pharmaceutical & Nutraceutical, Food & Beverages, and Personal Care & Beauty Products), and Regional Forecast, 2024-2032

Region : Global | Format: PDF | Report ID: FBI106320

 

KEY MARKET INSIGHTS

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The global herbal medicine market size was valued at USD 216.40 billion in 2023 and is projected to grow from USD 233.08 billion in 2024 to USD 437 billion by 2032, exhibiting a CAGR of 8.17% during the forecast period.


Herbal medicines are naturally obtained from a plant's roots, stems, leaves, flowers, or seeds to improve health and treat illnesses. Some popular herbs include gingko, ginseng, ginger, turmeric, and chamomile. For years, local communities have used plant species as part of their culture and traditions to prepare medicines for human and animal diseases.


Changes in lifestyle significantly impact consumer health, causing a major shift in their medical needs. As individuals consume more processed food, they suffer from health complications, such as stress, obesity, and other serious ailments, such as cardiovascular problems. Therefore, consumers nowadays prefer herbal medicines over conventional ones to maintain or improve their health. According to the World Health Organization (WHO), around 80% of the world's population consults traditional health practitioners for plant-based medicines, as they believe that products labeled as 'natural' are safe to consume and do not have any side effects on their health.


The COVID-19 disease was declared a global pandemic by the WHO in March 2020. The pandemic had a major impact on healthcare and pharmaceutical sectors. On a global level, the effect of medicine shortage varied in retail and hospital medicine sales. According to the DARU Journal of Pharmaceutical Sciences, from January 2020, there was a 100-700% increase in medicine usage in hospitals for COVID-19 including sedatives, respiratory treatments, and pain treatments.


Herbal Medicine Market Trends


Heightened Consumption of Herbal Dietary Supplements to Promote Market Growth


The use of alternative antibiotic medicines, such as herbal medicine has increased over the last decade. These products are gaining popularity among patients as well as healthcare professionals. According to the WHO, almost 10-50% of the population in developed countries uses herbal type of medicine regularly in some form. The major reason for this is they offer better immunity than synthetic drugs. In developing countries, such as China, Japan, India, Vietnam, South Africa, and Bangladesh herbal medicines are sometimes the only affordable and available treatment option. Consumers primarily opt for these medicines for cough, cold, gastrointestinal disorders, and painful conditions, such as joint pain, rheumatic diseases, and stiffness. This ongoing trend of consuming herbal supplements is expected to offer growth opportunities for the market.


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Herbal Medicine Market Growth Factors


Increasing Demand for Herbal Ingredients in Cosmetic Industry to Drive Market Growth


The cosmetics industry offers promising prospects for exporters of natural ingredients from developing countries looking to expand into developed nations. There is a rising demand for natural ingredients within the cosmetics sector, driven by consumer’s increased awareness of natural cosmetic products and the efforts of cosmetics companies to integrate natural herbal alternatives instead of synthetic ingredients. This rising demand for natural ingredients in toiletries and cosmetics is estimated to persist in the foreseeable future. Cosmetic manufacturers are actively substituting synthetic chemicals with natural components to align with consumer preferences and the shift towards sustainable sourcing of raw materials. The strong demand for beauty products, personal care, and toiletries that do not contain harmful chemicals is expected to drive the herbal medicine market growth.


Moreover, robust demand for natural ingredients is expected to provide lucrative business opportunities for suppliers in developing countries. Skincare is the most popular product category, with a wide range of products using natural ingredients. The commonly used herbal ingredients are vegetable oils that have functional properties and are beneficial for the body and face. Various plant-based extracts are used for their functional properties. For instance, essential oils are mainly used as fragrances. These factors are expected to drive market development.


High Demand for Natural Medicines from Developing Countries Offers Promising Opportunities for Market Growth


Herbal medicines are a vital part of medical treatment in many developing countries. These products are used for almost all minor ailments. In developing and lower-income countries, visits to trained doctors or pharmacists are usually rare and reserved for life-threatening disorders. In developing countries, herbs used for medicinal purposes are unprocessed herbs, plants, or plant parts, dried, and used as whole or cut form. Herbs are also used to make teas (sometimes as capsules or pills) to aid internal healing and as salves and poultices to treat external injuries. As most developing economies have minimal regulations regarding the use of herbs as medicines, the industry size may expand at a robust pace in the coming years.


RESTRAINING FACTORS


Strict Guidelines Related to Use of Herbal Ingredients as Raw Material in Cosmetic Industry to Restrain Market Growth


There are different guidelines and regulations for importing and using herbal type of medicines in every country. According to the WHO, many countries lack the political will, legal framework, capacity to monitor the product's safety & use, referral mechanisms between herbal & conventional medical practitioners, information systems, analysis of herbal ingredients, and integration of herbal products into healthcare systems. Owing to the aforementioned reasons, herbal product suppliers and manufacturers face obstacles when trying to access different markets. They must also follow various legislations and accept different requirements and standards.


Similarly, for the same products, pharmaceutical companies have to develop different dossiers to present them to various national authorities. International communication between the scientific community and regulators is necessary to develop appropriate regulatory environments for conventional and herbal medicines. This factor may prove to be a major restraining factor for the growth of the global industry.


Herbal Medicine Market Segmentation Analysis


By Application Analysis


Pharmaceutical & Nutraceutical Segment to Hold Major Market Share Owing to Increasing Demand for Herbal Raw Materials


By application, the market is divided into pharmaceutical & Nutraceutical, food & beverages, and personal care & beauty products. The pharmaceutical & nutraceutical segment is estimated to hold the largest herbal medicine market share. This is attributed to the high demand for herbal ingredients from dietary supplement manufacturers. Consumers are shifting their preference from synthetic or chemical based medicines to herbal-based medicines considering their impact on the health in the long term. Herbal protein powders and anti-aging products are popular product categories in the dietary supplement and nutraceutical industry. This factor will boost the dominance of the pharmaceutical & nutraceutical segment in the global market during the forecast period.


The personal care & beauty products segment holds the second largest market share. The growth is attributed to the high demand for herbal raw materials in the cosmetic industry and their long-term benefits. As awareness about the prolonged benefits of these products increases, the sales volume of herbal cosmetic products will also rise. Herbal cosmetics are produced by using diverse natural components to formulate the base in which one or more herbal elements are used to cure skin conditions. Cosmetics made from natural herbal ingredients are free from harmful synthetic chemicals and safe to use. Demand for herbal cosmetics is growing with increasing awareness among consumers of all age groups of the significance of using natural products to improve skin and body health. Major applications of herbal ingredients in the cosmetics industry can be found in products intended for acne control, anti-wrinkle, and sun protection. Herbal cosmetics improve the functioning and texture of the skin by advancing collagen growth by eliminating damaging effects of free radicals, thereby preserving the keratin structure and enhancing the skin.


The food & beverage industry is comparatively new and adapting itself to the usage of this product. Key food manufacturers are entering the market with herb-blended drinks, juices, and milk products to give customers alternatives for conventional drinks. With innovative product launches in the coming years, this segment is expected to record the highest CAGR during the forecast period.  


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By Form Analysis


Tablets & Capsules Segment to Hold Major Share Owing to Their Wide Availability in Pharmaceutical Industry


Based on form, the market is segmented into powder, liquid & gel, and tablets & capsules. The tablets & capsules segment holds the leading market share. Several herbal medicines are available in the form of capsules and tablets in the market. Also, an increasing number of prescriptions are mentioning the consumption of herbal products. With an increasing number of herbal products in the pharmaceutical industry, this segment is expected to remain dominant in the global market during the forecast period.


REGIONAL INSIGHTS


Europe Herbal Medicine Market Size, 2023 (USD Billion)

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Europe boasts the world's largest cosmetics market, and it presents promising opportunities for newcomers from developing countries. The personal care and beauty product segment is witnessing a growing demand for natural ingredients, a trend expected to persist. Europe is anticipated to make a significant contribution to future market growth by catering to this demand. Turmeric is gaining popularity in the European health products market, recognized for its antioxidant and anti-inflammatory properties. It is utilized as a supplement and in medical products to enhance immune, digestive systems, and overall health. While most of the turmeric imported into the EU originates from India, other source countries include Sri Lanka, Madagascar, Peru, and Thailand. The growing lifespan of the region’s population acts as a major driver for turmeric's demand, and the region's rising health consciousness is propelling regional growth. Additionally, the popularity of ethnic cuisine in Europe further establishes turmeric as a favored spice.


In North America, particularly in the U.S., there is growing consumer awareness about health and a shift in attitudes toward natural care products due to a strong environmental consciousness. This shift is attributed to concerns about the potential harmful effects of alternative medicines on individuals' health. This transformation has led to a significant impact on the U.S. market.


Asia and Latin America cosmetics market are experiencing substantial growth. As internet usage continues to rise, consumers are becoming increasingly informed about the long-term advantages of herbal products and are showing a strong interest in their usage. Furthermore, the growing disposable income in developing nations, including India, China, Brazil, China, India, and Southeast Asia, has played a crucial role in maintaining the market's ongoing expansion.


South Africa, the UAE, Qatar, Saudi Arabia, Kenya, and Nigeria are some of the developing countries in the Middle East & Africa region and come in the list of major developing economies in the world. As the financial stability of families in these countries is increasing, they might spend more on cosmetic products. This factor is expected to play a vital role in the region’s market growth.


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List of Key Companies in Herbal Medicine Market


Key Players are Adopting Innovative Product Packaging Designs to Attract New Consumers and Increase Product Sales


The major companies operating in the market are Cultivator Natural Products Pvt. Ltd., ZeinPharma Germany GmbH, Herbalife Nutrition, Blackmores Limited, and others. The companies are working on expanding their presence in untapped markets by collaborating with local distributors of a particular region. Some companies are also focusing on launching new products to attract more customers from a particular region or country.


LIST OF KEY COMPANIES PROFILED:



KEY INDUSTRY DEVELOPMENTS:



  • June 2023: Traditional Medicinals, one of the leading botanical wellness companies operating in North America, launched its newest product in Canada, Organic Lemon Ginger tea. The newly launched refreshing 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 either hot or cold.

  • January 2023 – Handard, an Indian traditional medicine manufacturer, diversified its product offerings. The new offerings include face washes, shampoos, and oral hygiene products.

  • January 2022 Blackmores Ltd., an Australia-based natural health & dietary supplements firm, partnered with B2B e-commerce platform Udaan to distribute its multivitamin products in India. As part of the partnership, the products will be available at independent pharmacies in India through Udaan.

  • December 2021: Simply Herbal, one of the prominent players in the Indian healthcare supplement industry, launched a new range of products under the brand name, Divya Himalayan. The newly launched brand will produce products that are based purely on organic ingredients.

  • March 2021 – Lotus, one of India's beauty companies, launched the Lotus Botanicals brand. Through this e-commerce brand, consumers could order Lotus Botanicals' range of haircare and skin products.


REPORT COVERAGE


An Infographic Representation of Herbal Medicine Market

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The market research report provides a detailed market analysis and focuses on key aspects, such as leading companies, types, and leading product forms. Besides this, the report offers insights into the market segmentation and herbal medicine industry trends, while highlighting key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the market's growth in recent years.


REPORT SCOPE & SEGMENTATION

















































ATTRIBUTE



DETAILS



Study Period



2019-2032



Base Year



2023



Estimated Year



2024



Forecast Period



2024-2032



Historical Period



2019-2022



Unit



Value (USD Billion)



Growth Rate



CAGR of 8.17% from 2024 to 2032



Segmentation



By Application



  • Pharmaceutical & Nutraceutical

  • Food & Beverages

  • Personal Care & Beauty Products



By Form



  • Powder

  • Liquid & Gel

  • Tablets & Capsules



By Geography



  • North America (By Application, Form, and Country)

    • U.S. (By Application)

    • Canada (By Application)

    • Mexico (By Application)



  • Europe (By Application, Form, and Country)

    • France (By Application)

    • Spain (By Application)

    • U.K. (By Application)

    • Italy (By Application)

    • Germany (By Application)

    • Rest of Europe (By Application)



  • Asia Pacific (By Application, Form, and Country)

    • China (By Application)

    • India (By Application)

    • Japan (By Application)

    • South Korea (By Application)

    • Australia (By Application)

    • Rest of Asia Pacific (By Application)



  • South America (By Application, Form, and Country)

    • Argentina (By Application)

    • Brazil (By Application)

    • Rest of South America (By Application)



  • Middle East and Africa (By Application, Form, and Country)

    • UAE (By Application)

    • South Africa (By Application)

    • Rest of Middle East & Africa (By Application)






 




Frequently Asked Questions

Fortune Business Insights says that the market was valued at USD 216.40 billion in 2023 and is projected to reach USD 437 billion by 2032.

In 2023, the European market value stood at USD 96.98 billion.

Recording a CAGR of 8.17%, the market will exhibit steady growth during the forecast period of 2024-2032.

The pharmaceutical & nutraceutical segment is expected to be the leading application segment in this market during the forecast period.

Increasing demand for herbal ingredients in the cosmetics industry and high need for natural medicines in developing countries are the key market drivers.

Herbalife Nutrition Ltd., Nutraceutical Corporation, and Patanjali Ayurved Limited are the major players in the market.

Europe dominated the market share in 2023.

The increasing popularity of herbal medicines in the nutraceutical industry, mainly in dietary supplements, is expected to drive the product adoption globally.

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