The global botanical drug market size was valued at USD 163.32 million in 2022 and is valued at USD 178.23 million in 2023. It is expected to be valued at USD 3,431.32 million in 2031. The market is expected to grow at a CAGR of 39.2% during the forecast period (2022–2030).
Botanical drugs are used to diagnose, cure, treat, or prevent any kind of disease in humans. The use of botanical drugs is growing in society as people prefer the use of herbal medicines over chemically infused ones. Botanical drugs consist more of natural products and natural substances, which can prevent any harmful side effects on the patient’s body. A large number of research and development projects are being made in the study, processing, and production of botanical drugs.
The development and research of botanical drugs are approved by global regulatory authorities. A significant development in the product will improve the efficiency and performance of the product and drug while also reducing the frequency of the occurrence of any defects. The market of the botanical drug is already quite well known and used as it consists of loyal users, but with sufficient support from the government, vendors, and investment, the potential market could grow tremendously. The global botanical drugs market is segmented based on type, form, application, and region.
|Market Size||USD 3221 million by 2030|
|Fastest Growing Market||North America|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
The life expectancy of people is increasing, leading to an increased geriatric population size. According to the World Health Organization report, the population of people aged 60 years and above will cross the mark of 2 billion globally by the year 2050. By the same year, China alone is expected to have a population of 120 million people who would be aged above 80 years. This tremendous growth in the expectancy of the population will mean an increase in the prevalence of chronic diseases such as cancer, diabetes, etc.
The presence of chronic diseases can also be witnessed in the younger age group, which is also expected to rise by huge numbers. This will lead to more demand for botanical drugs and medicines, owing to their effectiveness and accuracy. This will make the global botanical drugs market grow during the forecast period.
Sometimes, patients suffering from serious chronic diseases or pain cannot manage to get through with the conventional treatment approaches as it gets more painful for them to bear. Therefore with the doctor's recommendations, they switch to botanical drugs to relieve the pain of the patients. There is also a high amount of expense associated with the production and making of conventional chemical-infused drugs, which is another reason for the increased preference for botanical drug, which is less costly.
The advancement in technology and study in the field of botanical drugs, it favors the increased demand for botanical products in the market. Hence, the increased need to treat patients more effectively and product development in the market will propel the demand for botanical drugs.
There are strict regulations imposed in countries like the U.S. and Europe, which prevent the growth of the global botanical drug market growth. Due to the presence of such an inflexible regulatory framework, it becomes difficult to provide sufficient incentives for the development process of the botanical drug. Because of the insufficient spending on development and production, the botanical drugs fail to clear the clinical trial, it lack safety and potency, and thereof restraining the success of the drugs. These regulatory and legal obligations and rules vary from country to country, making it difficult for The Global Botanical Drugs Market to grow and prosper.
The presence of favorable regulatory scenarios in some prominent countries like India, Australia, and South Korea has created a growth opportunity for The Global Botanical Drugs Market. The governments of various developed and developing countries have undertaken initiatives to promote and support the development of natural drugs, which has increased the availability of the same in different healthcare systems globally. Countries like Australia, South Korea, Nigeria, and India, have constantly been promoting the utilization of natural resources and substances for the treatment and curing of chronic diseases. The World Health Organization also advocates the usage of botanical drugs by investing largely in its research and developments.
These endeavors by the government and global regulatory bodies to reinforce the usage of botanica products create more growth opportunities for the global botanical drugs market.
The market for the botanical drug is segmented into North America, Europe, Asia-Pacific, and the Middle East and Africa, as per region.
Europe is expected to dominate the market during the forecast period. The revenue expectancy of Europe is USD 1,124.23 million at a CAGR of 38.2% by 2031.
Most of the research and developments taking place in Europe are focused on the cancer therapeutic potential of botanical drugs. Furthermore, the region also has a high number of cancer cases. It was stated by the WHO that Europe accounts for a quarter of the cancer cases across the globe. The region witnesses around 3.7 million new cancer patients annually. This gives rise to the demand for botanica drugs to look for a potential cure for such chronic diseases.
Apart from that, the European market shifted towards the adoption of traditional plant and herbal-based medicines and medicinal approaches, investing hugely in research and development of botanical drugs and medicines. This results in market growth projectile.
Next to Europe is North America, which is expected to have a share of USD 914 million at a CAGR of 39%. The region is extensively focused on the research development and discovery of various potential attributes of botanical drugs. The region's government also takes initiatives to promote botanical products. The presence of organizations like ABDA, whose primary focus is on building strategies to increase and build more public awareness about botanical drugs, adds to the growing scope of the global botanical drug market in the region.
The organization of ABDA also groups up with other research institutes and pharma companies to establish high standards for botanical drugs and their medical usage. The region consists of some of the most promising markets for botanical drugs like the United States. However, the US FDA received more than 800 submissions of botanical investigational new drug applications. Such constant research and development by the region bolsters the market for the botanical drug.
The global botanical drugs market share is segmented based on type, form, and application. Based on type, it is segmented as stem/bark, leaf, and others.
The product of botanical medicines is made using different parts of a plant, like its leaves, stem or bark, flowers, roots, seeds, etc. These are used for the diagnosis and treatment of the patient or consumer. Among the segments done by type, the leaf segment is valued at USD 1,725.21 million at a CAGR of 38.2% during the forecast period, whereas the stem and bark segment has a valuation of USD 1025 million at a CAGR of 40% during the same forecast period.
Segmentation by form is as tablets, ointment, spray, oral solution, and others. The oral solution is expected to have the maximum revenue share of USD 856 million at a CAGR of 38%, the liquid is one of the oldest means for treatment, and it is preferred extensively, especially among elderly people and children owing to the ease of using it.
Next to oral solutions, the tablets segment is anticipated to have around USD 814 million revenue share at a CAGR of 39%. Tablets are among the widely preferred dosage type. Tablets are generally easy to produce, pack and distribute. It is quick and effective. Tablets also offer accuracy, uniformity in dosage, and stability in the physical and chemical formula. Hence, the production of tablets is generally higher.
As per application, the segmentation is done as pharmaceutical, dermatology, and others. Pharmaceutical has the highest market revenue share, which is anticipated to grow at a CAGR of 39.2%, reaching a value of USD 2,188.23 million over the forecast period. Botanical drugs have the potential to offer therapeutic measures for some chronic diseases. Chronic degenerative disorders are increasing across the globe, like diabetes, asthma, cancer, cardiac disease, etc. these diseases cumulatively account for more than 70% of global mortality. And most of them are still incurable. Therefore pharmaceutical companies and researchers have shifted their focus on the development of botanical drug products that can provide treatment options in an effective manner. Hence, this leads to an increase in pharmaceutical involvement in the global botanical drug market analysis.
Dermatology is expected to have a share of USD 664.23 million at a CAGR of 39.2% during the forecast period. Research activities have shown potential in botanical drugs in addressing dermatological issues. A research article revealed a study for the assessment of the efficacy of botanical moisturizers for usage in redness, infection, inflammation, hyperplasia, etc. which proved to be significantly effective. This could push the demand for botanical drugs in dermatology use.