Market Overview:
Herbal medicinal products are medicines made from plants and plant extracts. They include herbs, herbal materials, herbal preparations, and finished herbal products. Common herbal medicinal products contain active ingredients from St. John's wort, echinacea, garlic, ginkgo biloba, saw palmetto, and others. They are available in capsule, tablet, powder and liquid forms and are used to treat diseases and symptoms related to the central nervous system, cardiovascular system, digestive tract and respiratory system.
Market Dynamics:
The increasing preference for Herbal Medicinal Products Market Share over conventional medicines due to lesser side effects is fueling the growth of the herbal medicinal products market. According to the National Health Interview Survey (NHIS) published in 2020, around 18.9% of American adults use herbal supplements. Additionally, the rising prevalence of lifestyle diseases such as diabetes, hypertension, and cardiovascular diseases is driving the demand for herbal remedies to combat these ailments. Herbal medicines like aloe vera, turmeric, ginkgo biloba are widely used to treat diabetes, reduce inflammation, and improve cardiovascular health. Further, growing popularity of Ayurveda and traditional Chinese medicines worldwide will continue augmenting market expansion over the forecast period.
SWOT Analysis
Strength:
- Herbal medicines have low cost of production and are affordable for customers. Many herbal medicines have antioxidants and other health-promoting properties. Herbal products are considered safer with fewer side effects than conventional medicines.
- Rising penetration of e-commerce has increased accessibility of herbal products. Customers can easily purchase products sitting at home leading to wider reach. E-commerce platforms provide various options for customers to choose from.
- India and China have rich biodiversity and ancient history of using medicinal plants which gives competitive advantage in herbal products manufacturing. Abundant raw material availability reduces production costs.
Weakness:
- Lack of strong regulations and quality standards in many countries allow substandard products to be sold. This erodes customer trust on herbal products.
- Herbal products have inconsistent quality due to variations in soil, climatic conditions and different plant parts used. Standardization and quality testing requirements are not stringent.
Opportunity:
- Growing global emphasis on preventive healthcare and wellness is driving the demand for herbal products. Customers prefer herbal remedies for minor ailments due to perceived natural attributes.
- Emerging markets like Africa, Latin America present new export opportunities for herbal products. Large population base and rapid economic growth in these regions will propel future demand.
Threats:
- Adulteration and misleading claims by some manufacturers degrade reputation and regulatory crackdowns can impact sales.
- Conventional pharmaceutical companies pose threat as they launch evidence-based herbal formulations targeting niche consumer segments.
Key Takeaways
The global herbal medicinal products market is expected to witness high growth, exhibiting a CAGR of 5.93% over the forecast period, due to increasing preference for plant-based natural remedies and wellness trends.
Market size:
- The global herbal medicinal products market size was valued at US$ 6,943.4 Mn in 2023 and is anticipated to reach US$ 12,183.3 Mn by 2030 at a CAGR of 5.93% during 2023-2030 period. Rapidly aging population driving demand for herbal healthcare solutions and innovations are key drivers of market growth.
Regional analysis:
- Asia Pacific dominates the global market with maximum demand concentrated in India and China. This region accounts for over 35% market share attributed to advanced herbal medicine manufacturing and rich biodiversity resulting in high availability of raw materials. North America and Europe are other major markets.
Key players:
- Key players operating in the herbal medicinal products market are Dabur, Himalaya Drug Company, Zandu Pharmaceuticals Works Ltd., Arjuna Natural Pvt Ltd, Ayurveda, The Himalaya Drug Company, and others.\
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