Herbal Medicinal Products Market Size, Share, Analysis, Trends, Growth, Forecasts, 2032

Herbal Medicinal Products Industry Prospective:

The global herbal medicinal products market size was worth around USD 198 billion in 2023 and is predicted to grow to around USD 382 billion by 2032 with a compound annual growth rate (CAGR) of roughly 7.6% between 2024 and 2032.

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Herbal Medicinal Products Market: Overview

Products that include active chemicals obtained from plants, such as leaves, roots, flowers, seeds, bark, or other portions, are known as herbal medicinal products, or HMPs. These goods are used to maintain health and well-being or to prevent, diagnose, treat, or reduce ailments.

As HMPs rely on naturally occurring plant materials, frequently with little processing, they differ from manufactured medications and traditional pharmaceuticals. The herbal medicinal products market is being driven by various components including rising consumer preference for natural and organic products, growing popularity of preventive healthcare, shift towards alternative medicines, increased demand for functional foods and beverages, rising health awareness, increasing government initiatives and others.

Key Insights

• As per the analysis shared by our research analyst, the global herbal medicinal products market is estimated to grow annually at a CAGR of around 7.6% over the forecast period (2024-2032).
• In terms of revenue, the global herbal medicinal products market size was valued at around USD 198 billion in 2023 and is projected to reach USD 382 billion by 2032.
• The rising awareness regarding the health benefits of herbal products is expected to drive the herbal medicinal products market over the forecast period.
• Based on the product type, the Chinese Medicines segment is expected to dominate the herbal medicinal products market over the forecast period.
• Based on the form, the capsules/tablets segment is expected to dominate the market over the forecast period.
• Based on the distribution channel, the hospital pharmacies segment is expected to dominate the market during the analysis period.
• Based on region, North America is expected to dominate the market during the forecast period.

Herbal Medicinal Products Market: Growth Drivers

Shift towards herbal dietary supplements drives market growth

Herbal dietary supplements are becoming more common due to their health advantages, which is greatly driving market expansion. Natural and organic products are more sought after as rates of obesity and heart disease rise since they increase market revenue. Changing food habits has adverse effects on health. Growing awareness of their health and well-being is driving individuals also to be more inclined to incorporate herbal dietary supplements into their everyday routines. Herbal tea, protein powders, plant-based beverages, and medicinal plants are routinely used goods for several health concerns, including weight loss, knee and back pain, cancer treatment, immune support, and gastrointestinal diseases.

Some major medical concerns are obesity and overweight. The knowledge of the weight loss benefits associated with herbal food supplements such as turmeric, ginger, fenugreek, and cinnamon is driving the market for herbal dietary products. According to the World Obesity Federation, 51% of individuals globally battle overweight and obesity. The growing obesity is hence driving the expansion of the herbal medicinal products market.

Herbal Medicinal Products Market: Restraints

Stringent regulations hinder market growth

The herbal medicinal products market's growth will be slowed by the regulatory body's lack of focus and attention. Furthermore, a lack of awareness regarding herbal remedies would limit market growth. The use of herbal and natural products overseas is governed by laws and regulations specific to each country.

According to the WHO, nations lack information systems, political will, a legal framework, the capacity to oversee the product's safety and use, methods for directing patients to herbal practitioners who do not practice conventional medicine, analysis of herbal ingredients, and the ability to integrate herbal products into health systems. The aforementioned considerations make it difficult for producers and providers of herbal goods to reach different product marketplaces. Additionally, suppliers and manufacturers have to accept several standards, meet several requirements, and abide by several laws.

Herbal Medicinal Products Market: Opportunities

Side effects of allopathic medicines offer a lucrative opportunity for market growth

One major cause for concern among the growing global population is the fast increase in adverse effects caused by allopathic drugs. As a result, more companies are employing herbal remedies, including those in the supplement and pharmaceutical sectors. Many products that include natural components of therapeutic quality are widely available.

Therefore, from the standpoint of commodities, these commodities are also significantly driving the global market for herbal medicines. Since chronic ailments are becoming more common and people are becoming more aware of the benefits of herbal therapies over allopathic ones, there is a greater demand for herbal medicinal products.

Herbal Medicinal Products Market: Challenges

Lack of consumer education poses a major challenge to market expansion

Due to a lack of knowledge, many consumers may misuse herbal products, take the wrong quantities, or have adverse health effects. Furthermore, prospective users who are unsure of their options may be deterred by the absence of easily understandable information regarding the advantages and drawbacks of herbal remedies. Therefore, the lack of consumer education might be posing a major challenge for the herbal medicinal products market.

Herbal Medicinal Products Market: Report Scope

Herbal Medicinal Products Market: Segmentation

The global herbal medicinal products industry is segmented based on product type, form, distribution channel and region.

Based on the product type, the global herbal medicinal products market is segmented into ayurvedic, homeopathic medicines, Chinese Medicines and aromatherapy product. The Chinese Medicines segment is expected to dominate the herbal medicinal products market over the forecast period. TCM has been actively marketed on the international stage in recent years to spread its impact around the world. It includes moxibustion, herbs, cupping, and acupuncture. Prominent medical facilities like Johns Hopkins Medicine, the Cleveland Clinic, and the Mayo Clinic regularly use herbal remedies and acupuncture.

Additionally, the WHO has been a strong advocate for traditional medicines, and other Western convention organizations, including the National Institutes of Health (NIH) in the United States, have established research sections dedicated to traditional medicine techniques. WHO member nations plan to implement TCM practitioners globally in 2022.

Based on the form, the global herbal medicinal products industry is bifurcated into capsules/tablets, powder, syrups, oil and ointment and others. The capsules/tablets segment is expected to dominate the market over the forecast period. Tablets and capsules are convenient for consumers with hectic schedules because they are portable and easy to take. Compared to more conventional herbal medicines like teas or tinctures, they offer a more discreet alternative.

Based on the distribution channel, the global herbal medicinal products industry is bifurcated into hospital pharmacies, retail pharmacies, mail order pharmacies and e-commerce. The hospital pharmacies segment is expected to dominate the market during the analysis period. Herbal medications are being promoted by hospitals as preventative measures, particularly for long-term ailments including diabetes, heart disease, and arthritis. In post-pandemic healthcare, preventive measures such as herbal supplements for immunity are becoming more and more popular.

Regional Analysis

North America dominates the market over the projected period

North America is expected to dominate the herbal medicinal products market during the forecast period. Growing consumer knowledge of natural medicines, a desire for preventative healthcare, and a growing demand for organic products are some of the factors propelling the growth of the regional market. The market is growing as a result of major companies expanding their product offerings, concentrating on research and development for new formulations, and incorporating herbal supplements into traditional healthcare.

However, the Asia Pacific is anticipated to grow at a faster rate over the projected period. The market expansion is attributed to rapid urbanization and the increasing prevalence of obesity. Moreover, the increasing awareness regarding the benefits of herbal medicinal products is another important factor for the market development in the Asia Pacific region.

Herbal Medicinal Products Market: Competitive Analysis

The global herbal medicinal products market is dominated by players like:

• Blackmores Limited
• Sanofi-Aventis Healthcare PTY Ltd.
• Arkopharma SA
• Nutraceutical Corporation
• STADA Arzneimittel AG
• Himalaya Global Holdings Ltd.
• Integria Healthcare
• Boiron Group
• Young Living Essential Oils
• Mountain Rose Herbs

The global herbal medicinal products market is segmented as follows:

By Product Type

• Ayurvedic
• Homeopathic Medicines
• Chinese Medicines
• Aromatherapy Product

By Form

• Capsules/Tablets
• Powder
• Syrups
• Oil and Ointment
• Others

By Distribution Channel

• Hospital Pharmacies
• Retail Pharmacies
• Mail Order Pharmacies
• e-Commerce

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa