The global herbal medicine market was valued at USD 233.08 billion in 2024 and is projected to grow from USD 251.25 billion in 2025 to approximately USD 437 billion by 2032, exhibiting a CAGR of 8.23% during the forecast period (2025–2032). Europe led the market in 2024, accounting for a 44.55% share. In the United States, the sector is anticipated to experience notable expansion, reaching around USD 37.90 billion by 2032, fueled by growing health consciousness and a strong consumer inclination toward natural and eco-friendly products.
Herbal medicines are derived from different plant components—such as roots, leaves, stems, flowers, and seeds—and are widely utilized to enhance wellness and manage health conditions. Popular examples include ginseng, ginkgo biloba, turmeric, chamomile, and ginger. For centuries, traditional healing systems across the world have relied on plant-based remedies for both human and veterinary healthcare.
Modern consumers are increasingly turning toward alternative therapies due to lifestyle-related disorders such as stress, obesity, and cardiovascular diseases. The global preference for herbal medicine has surged as these products are perceived as safer, sustainable, and having minimal side effects compared to synthetic pharmaceuticals. According to the World Health Organization (WHO), nearly 80% of the world’s population uses traditional medicine, much of which is based on plant-derived ingredients.
The COVID-19 pandemic, declared in March 2020, disrupted global healthcare supply chains and impacted the availability of both conventional and herbal medicines. Research published in the DARU Journal of Pharmaceutical Sciences reported that hospitals experienced a 100%–700% increase in the use of drugs such as sedatives, analgesics, and respiratory medications during the early phase of the outbreak.
Information Source: https://www.fortunebusinessinsights.com/herbal-medicine-market-106320
Market Segmentation
The pharmaceutical and nutraceutical sectors are pivotal in driving the growth of the herbal medicine market, as demand rises for botanical raw materials in supplements and alternative therapies. Tablets and capsules continue to dominate the market due to their ease of use, standardized dosage, and extensive availability across pharmacies and retail channels.
Geographically, the market is divided into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.
Report Highlights
This report provides:
- A detailed assessment of market segmentation and investment prospects
- Insights into regional market performance and trends
- An overview of strategic initiatives such as partnerships, product launches, and mergers & acquisitions
- An analysis of COVID-19’s impact on global herbal medicine supply and demand
Market Drivers and Challenges
Rising Preference for Natural Ingredients in Cosmetics
The cosmetics and personal care industry is increasingly adopting plant-based and herbal components, creating new growth opportunities for extract producers and suppliers. With consumers moving away from synthetic additives, herbal ingredients in skincare and haircare formulations are expected to gain significant traction over the coming years.
Regional Insights
Europe continues to hold the largest market share, supported by a strong cosmetics industry and growing adoption of natural ingredients in beauty and wellness products.
In North America, particularly the U.S., demand for organic and herbal healthcare solutions is rising consistently, driven by lifestyle changes and increasing awareness of product safety.
Asia Pacific and Latin America are witnessing rapid growth as expanding cosmetics industries, higher disposable incomes, and improved internet accessibility promote consumer education and product adoption.
Competitive Landscape
The herbal medicine market is moderately fragmented, with leading companies focusing on product innovation, diversification, and strategic collaborations to strengthen their foothold. Frequent new product launches and mergers & acquisitions are helping brands expand their global presence and cater to evolving consumer needs.
Key Market Players
- Cultivator Natural Products Pvt. Ltd. (India)
- 21ST Century HealthCare, Inc. (U.S.)
- Herbalife Nutrition (U.S.)
- ZeinPharma Germany GmbH (Germany)
- Blackmores Limited (Australia)
- Himalaya Global Holdings Ltd. (India)
- Nutraceutical Corporation (U.S.)
- Emami Limited (India)
- Nature’s Answer, LLC (U.S.)
- Patanjali Ayurved Limited (India)
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Recent Industry Development
March 2021 – Lotus Herbals, a prominent Indian beauty brand, launched Lotus Botanicals, a new line of skincare and haircare products made with herbal ingredients. The range is available through both the company’s dedicated e-commerce platform and leading third-party online retailers.
