Herbal Medicinal Products Market Size, Share & Trends Analysis Report By Type (Traditional Chinese Medicines, Homeopathic Medicines, Aromatherapy Medicines, Ayurvedic Medicines, Others), By Function (General Wellness, Cardiovascular Health, Gut & Digestive Health, Cognitive Health, Others), By Formulations (Powder, Syrups, Ointments, Oils, Capsules & Tablets, Extracts, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Herbal Medicinal Products Market Size and Trend

The herbal medicinal products market size was valued at USD 105.70 billion in 2022 and is projected to reach a value of USD 194.33 billion by 2031, registering a CAGR of 7.0% during the forecast period 2023-2031. 

Medical products that only contain plants, plant parts, plant components, or mixtures of these, in raw or processed form, are known as herbal medicinal products, sometimes known as Phyto therapeutic products. Herbal products need authorization just like any other type of medication. This indicates that they can only be traded with the MEB's permission.

Medicinal plants are deemed valuable therapeutic compounds for treating and preventing various diseases and ailments. Traditional medication is the primary health solution in most developing and underdeveloped economies. According to Global Risk Insights, more than 80% of the African population relies on traditional medicine as a robust healthcare solution. The Demand for traditional medicines, namely Ayurveda and Traditional Chinese Medicine, is going upward in Europe. As per the data published by CBI, Europe, the inclination toward traditional Chinese medicine and Ayurveda is increasing in North America and Western Europe. Research in the field of herbaceous medicinal plants is increasing at a faster pace.

The ongoing research on herbal medicines focuses on analyzing the safety and interactions of active ingredients and investigating the efficacy of the compounds. There are very few shreds of evidence supporting the use of herbal medicines. However, with the growing potential of herbal products, market players are hiking investments to develop novel formulations. In May 2016, Australian natural health company, Blackmores Limited, acquired Global Therapeutics Pty Ltd., a Chinese herbal medicinal company, to develop and extend the product portfolio of traditional Chinese medicines.

Herbal Medicinal Products Market Growth Factors

Side effects of allopathic medicine

The number of side effects brought on by allopathic medicines is sharply rising, which is a significant reason for worry among the expanding global population. As a result, more businesses—including those in the pharmaceutical and supplement industries—are using herbal treatments. Numerous items are being extensively distributed that include medicinal-grade natural ingredients. As a result, from a commodity perspective, these commodities are also powerfully propelling the worldwide market for herbal medicines. The Demand for herbal medical goods has increased due to the rising prevalence of chronic diseases and growing public knowledge of the advantages of herbal remedies over allopathic ones.

The rise in demand for affordable medical conditions

The desire for affordable treatment for digestive issues, kidney problems, and the flu is predicted to grow throughout the review period. This will drive the market for herbal medicines to grow globally. Products made from herbs are anticipated to accelerate market expansion.

Market Restraining Factors

Strict regulation

The regulatory authority’s lack of focus and attention will slow the market's expansion. Additionally, a lack of knowledge about herbal therapeutics will restrain market expansion.

Each nation has its own set of rules and laws for the usage of herbal and natural goods abroad. The WHO claims that countries lack political will, a legal framework, the ability to monitor the safety of the product and their use, mechanisms for referring patients to herbal practitioners who do not practice conventional medicine, information systems, analysis of herbal ingredients, and integration of herbal products into health systems. Due to the factors above, suppliers and producers of herbal products have challenges while attempting to enter various product marketplaces. Manufacturers and suppliers must also adhere to various laws, satisfy various specifications, and accept various standards.

Market Opportunity

Aesthetic treatment

During the projected period, higher awareness of aesthetic procedures and enhanced favorable outcomes from aesthetic treatments may create new chances for the market expansion of herbal medicinal products.

Increasing demand for natural medicines

In many developing nations, herbal medications are essential to medical care. For practically all illnesses, natural remedies and herbal treatments are used. Visits to trained physicians or pharmacists who fill prescriptions are typically infrequent and are thought to be reserved for life-threatening illnesses in developing and lower-income countries. Herbs used for medicinal purposes in developing nations are whole cut, dried, unprocessed plants or plant parts. Herbs are made as salves and poultices for external usage, as well as teas (and occasionally pills or capsules) for internal consumption. Expanding the industry in developing nations is anticipated to be one of the driving forces for the business as most developed countries have less regulation related to the use of herbs as medicines.

Regional Analysis

Europe dominates the global market

Europe dominated the market and accounted for the highest share in the forecast period. This can be attributed to the growing popularity of herbal medicinal products in the Region; an increasing number of professionals are providing therapies related to traditional medicine. In 2017, as per estimates, consumers spent around EUR 100 million on complementary and alternative medicines (CAM) in Europe, as per the European Commission. Increasing funding by organizations is also helping CAM research to flourish in the Region. For instance, In the U.K., the National Health Service recently funded two acupuncture trials to treat chronic pain.

North America is growing at the highest CAGR in the forecast period. Herbal medicinal products are steadily gaining prominence, with many new products being introduced in the Region; the North American herbal remedies industry is worth USD 2 billion a year, as per Government of Canada Publications. Several research organizations have also realized the importance of traditional medicines and are working on unveiling further applications; some of the traditional medicine research institutions include the University of Maryland, Columbia University in New York, Harvard University in Massachusetts, and the Memorial Sloan-Kettering Cancer Center in New York. The increasing spending on healthy living has renewed global interest in traditional Asian medicines and created new consumer trends. For instance, Pipa Changjiang, a Chinese cold remedy, has become a hit during the flu season in New York.

Asia Pacific, Japan is growing at the highest CAGR of 8.4% due to the high number of Kampo – the traditional herbal medicine practitioners in Japan. Moreover, the increasing geriatric population is the key consumer base in the Region. In Japan, around 60–70% of allopathic doctors prescribe Kampo medicines to their patients, according to the WHO.

South America offers various lucrative opportunities for the market as it is home to seven of the world's 17 most biologically diverse countries – Brazil, Colombia, Ecuador, Costa Rica, Mexico, Peru, and Venezuela. Moreover, the popularity of traditional medicine practitioners in this region can be attributed to the fact that they make treatment affordable for the masses.

Herbal Medicinal Products Market Segmentation Analysis

By type

the market is sub-segmented into Traditional Chinese medicines and ayurvedic medicines, where Traditional Chinese medicines dominate the market. The traditional Chinese medicines (TCM) segment generates the highest revenue in the forecast period. Over the past few years, TCM has been aggressively promoted on the international platform to promulgate its global influence. It involves acupuncture, cupping, herbs, moxibustion, and others. Leading healthcare centers such as Mayo Clinic, Cleveland Clinic, and John Hopkins Medicine actively practice acupuncture and herbal treatments. Moreover, the WHO has been avidly supporting traditional medicines, and many organizations in the Western conventions, such as the U.S. National Institute of Health (NIH), have created research units for traditional medicine practices. TCM practitioners worldwide are set to be implemented by WHO member states in 2022.

Since more people are becoming aware of the adverse effects of allopathic therapy, ayurvedic medicine is expanding tremendously. A positive impact on market growth is also driven by the products' ease of availability and rising consumer awareness of their benefits. Additionally, increasing medical tourism is assisting in the market's expansion.

By formulations

The market is segmented into Powder, Capsules, Syrup, Ointments, and Oils, where capsule dominates the market. The forecast period is expected to see steady growth for capsules and tablets. Most herbal medications are created in tablet or capsule forms to avoid deterioration, extend shelf life, and improve bioavailability.

Herbal powders are made from various herbs and are believed to contain various vitamins that are good for the skin. These powders are used in soaps and cosmetics because of their advantages and because they safely and naturally give them color.

Syrups made from concentrated herbal teas and sugar or honey are known as herbal-infused syrups. In the past, herbal syrups were used to make bitter medicinal herbs more palatable and to extend their shelf life.

Topical products called salve or ointment are made by macerating herbs in vegetable oils for a predetermined amount of time at room temperature, under low heat infusion, or high heat decoction. Herbal oils also referred to as oil extracts, are derived from plants and herbs and have medicinal uses.

Recent Developments

1. In September 2022, Tsumura announced the signing of a letter of intent with Jianmin Pharmaceutical Group Co., Ltd. about forming a joint venture.
2. In September 2022, PINGAN TSUMURA TRADITIONAL CHINESE MEDICINE TECHNOLOGY CO., LTD. was announced by Tsumura.
3. In September 2022, the U.S. Patent and Trademark Office granted young living 17 Utility and Design Patents.