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The herbal market size is forecast to increase by USD 130.3 billion at a CAGR of 6.8% between 2023 and 2028. One of the key factors driving the market growth is the increase in the prevalence of liver and heart diseases. The main factor that is significantly contributing to the growth of the global market is the increasing frequency of liver and heart disease. Additionally, there is a growing preference of consumers towards natural alternatives to address these health concerns as they become more aware of the possible benefits of herbal medicines. For example, the increasing popularity of herbs such as Milk Thistle due to their liver-protective effects. In addition, the main advantage of Milk Thistle components is that they help to improve liver function and minimize damage caused by illnesses including fatty liver disease. Hence, such factors are positively impacting the market which in turn will drive the market growth during the forecast period.
The market encompasses a wide range of products, including antibiotic medicines derived from natural ingredients, in both developed and developing countries. The cosmetics industry and toiletries segment increasingly utilize natural ingredients for skincare, as consumer preferences shift towards more sustainable and health-conscious options. Synthetic ingredients continue to dominate, however, due to their consistent performance and cost-effectiveness. Regulations play a crucial role in the market, particularly in the pharmaceutical and nutraceutical segment and food & beverages industry. Ayurvedic medicine, medicinal plants, and traditional medicine hold significant potential, with numerous plant species under exploration for their therapeutic properties. E-commerce distribution channels, such as Amazon, have significantly impacted the market's accessibility and reach.
Additionally, probiotics, homeopathy, allopathic alternatives, generics, and acquisitions are other key areas of interest. Mail order pharmacies and hospital pharmacies serve as essential touchpoints for consumers seeking herbal remedies.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The over the counter segment is estimated to witness significant growth during the forecast period. The pharmaceutical sectors, including healthcare and the pharmaceutical & nutraceutical segment, have observed a significant expansion in the herbal medicine market over the past five years. In developed countries like the US, the Food and Drug Administration reported a 15% increase in over-the-counter herbal supplement sales in 2022. Meanwhile, developing countries such as India predicted a 25% increase in the over-the-counter herbal medicine market by 2021. This growth can be attributed to the perceived safety of herbal medicines, increased health consciousness, and a preference for self-care options. Major players in the herbal medicine market, such as Himalaya Herbal Healthcare have capitalized on this trend by offering a wide range of over-the-counter herbal goods.
Additionally, these products include medicinal plants used in traditional medicine systems like Ayurveda and homeopathy, as well as herbal functional foods, herbal dietary supplements, and herbal beauty products. The cosmetics industry and toiletries sector have also embraced the use of natural ingredients in herbal medicine, leading to the production of skincare and other personal care products. Regulations regarding the use of synthetic ingredients have become stricter, making herbal medicines an attractive alternative. In the pharmaceutical sector, herbal medicines have gained popularity as alternatives to antibiotic medicines due to concerns over antimicrobial resistance. Herbal pharmaceuticals, phytomedicine, and probiotics have emerged as key areas of focus in the industry.
In conclusion, acquisitions and partnerships have been common in the herbal medicine market, with major players expanding their product offerings through strategic alliances and acquisitions. E-commerce distribution channels, including Amazon, have played a significant role in the growth of the herbal medicine market, making it easier for consumers to access these products. Raw materials for herbal medicines are sourced from various plant species, and the market for these raw materials is expected to grow as demand for herbal medicines continues to rise. Mail order pharmacies and hospital pharmacies have also become important distribution channels for herbal medicines. Despite the growth of the herbal medicine market, challenges remain, including regulatory compliance and ensuring the quality and safety of herbal medicines. The market for herbal medicines is expected to continue expanding as consumers seek natural alternatives to synthetic medicines and as regulations evolve to support the growth of the industry.
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The over the counter segment accounted for USD 180.40 billion in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 45% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market in North America is experiencing substantial growth, driven by the rising preference for natural and holistic health solutions. This trend is evident in the increasing demand for plant-based products, including tablets and capsules segment and liquid & gel segment of herbal supplements. Examples of such supplements are echinacea and ginseng, which are popular for immune support. Additionally, the skincare sector is thriving, with vegetable oils, such as aloe vera and lavender, being incorporated into organic herbal products. Consumers are increasingly turning to herbal remedies as alternatives to synthetic drugs, particularly for antibiotic medicines. Traditional Chinese Medicine and nutritional supplements are also gaining popularity.
Moreover, home remedies using herbs are being rediscovered and embraced for their potential health benefits. The market encompasses a wide range of offerings, from herbal teas and beverages, such as chamomile and peppermint, to herbal skincare and vegetable oils. This shift towards natural alternatives is fueling the growth of the market in North America.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increase in prevalence of liver and heart diseases is the key driver of the market. The market is experiencing significant growth in the healthcare sector, particularly in developed and developing countries, as consumers seek natural alternatives to address health concerns such as liver and heart diseases. Herbal medicines, derived from natural ingredients, are gaining popularity due to potential benefits and a perceived shortage of conventional pharmaceutical medicines, including antibiotics. Herbs like Milk Thistle and Hawthorn Berry are in high demand due to their liver-protective and cardiovascular health benefits, respectively. Milk Thistle enhances liver function and minimizes damage caused by illnesses, while Hawthorn Berry improves heart health by increasing blood flow and decreasing blood pressure.
Moreover, the pharmaceutical and nutraceutical segment, food and beverages segment, and cosmetics industry are major contributors to the market. Herbal medicines are available in various forms, including powder, liquid and gel, tablets and capsules, and are used in Ayurvedic medicine, traditional medicine, and homeopathy. E-commerce distribution channels, such as Amazon, have facilitated the accessibility of herbal medicines, raw materials, probiotics, and other herbal products. Regulations and acquisitions in the herbal pharmaceuticals, herbal functional foods, herbal dietary supplements, and herbal beauty products industries continue to shape the market. Plant species and medicinal plants are the primary raw materials for herbal medicines.
In conclusion, the market also includes herbal pharmaceuticals, herbal functional foods, herbal dietary supplements, and herbal beauty products. Herbal medicine offers allopathic alternatives, generics, and capsules/tablets, making it a versatile and widely used form of medicine. Mail order pharmacies and hospital pharmacies are significant distribution channels for herbal medicines. Phytomedicine, an important area of research, is expected to contribute to the growth of the market. Antimicrobial resistance and the increasing demand for natural ingredients are also driving factors.
The rising awareness about advantages of natural remedies is the upcoming trend in the market. The market is witnessing a notable rise in demand for natural healthcare solutions, as consumers seek alternatives to synthetic drugs in both developed and developing countries. This shift is driven by a growing awareness of the benefits of herbal medicine, particularly in addressing inflammation and boosting immunity. Herbs such as turmeric, ginger, echinacea, and elderberry are gaining popularity due to their holistic advantages and fewer side effects. The healthcare sector, including pharmaceutical companies, is responding to this trend by integrating herbal medicine into their offerings. In developed countries, herbal remedies are increasingly used as allopathic alternatives or in combination with synthetic medicines.
Moreover, in developing countries, herbal medicine remains a primary source of healthcare, with medicinal plants playing a significant role in traditional medicine. The cosmetics industry and toiletries sector are also embracing natural ingredients, as consumers express a preference for herbal beauty products and herbal functional foods. Regulations regarding herbal medicines, herbal pharmaceuticals, and herbal functional foods are being established and enforced to ensure safety and efficacy. The pharmaceutical and nutraceutical segment, food and beverages segment, and e-commerce distribution channels, including Amazon, are key players in the market. Raw materials, such as plant species, are sourced from various regions, and acquisitions of herbal companies and their capsules/tablets are common strategies for market expansion.
Also, herbal medicine is also used in the form of probiotics, homeopathy, and phytomedicine. Antimicrobial resistance is a growing concern, leading to increased interest in herbal antimicrobial agents. Herbal medicine is available through various channels, including mail order pharmacies, hospital pharmacies, and herbal pharmacies. In conclusion, the market is poised for significant growth during the forecast period, as consumers seek natural solutions for their healthcare needs. The market encompasses a wide range of products, from herbal teas and powders to herbal functional foods and herbal beauty products. Regulations and acquisitions are shaping the market, as companies capitalize on the trend towards embracing nature-based solutions for general well-being.
The adverse climatic conditions affecting herbal plant production is a key challenge affecting the market growth. The market faces substantial challenges due to unfavorable climatic conditions, which negatively impact the production of medicinal plants used in healthcare and pharmaceutical sectors. Droughts, floods, and prolonged heat waves can impair the growth and quality of herbs, reducing their efficacy as medicines. For instance, ginseng and echinacea, which are commonly used in antibiotic medicines, may lose their potency in warmer temperatures. Excessive rainfall can lead to fungal diseases that devastate crops such as lavender and chamomile. Moreover, unpredictable weather patterns can disrupt harvesting schedules, causing supply chain disruptions and market instability. These issues not only decrease herbal yields but also affect the consistency and efficacy of herbal medicines, posing a threat to the sustainability and profitability of the industry.
Moreover, in developed and developing countries alike, the demand for natural ingredients in healthcare, pharmaceutical & nutraceutical segments, cosmetics industry, toiletries, and skincare continues to grow. Regulations governing the use of synthetic ingredients are increasingly stringent, making herbal medicines an attractive alternative. The pharmaceutical and nutraceutical segment, food & beverages segment, and e-commerce distribution channels, including Amazon, are significant markets for herbal medicines in the form of powders, liquids & gels, tablets & capsules, Ayurvedic medicine, and traditional medicine. Herbal medicines derived from plant species are used in various forms, including probiotics, homeopathy, allopathic alternatives, generics, and capsules/tablets. Mail order pharmacies and hospital pharmacies are essential distribution channels for these products.
In conclusion, hytomedicine, antimicrobial resistance, and herbal pharmaceuticals are key areas of research and development. Herbal functional foods, herbal dietary supplements, and herbal beauty products are also gaining popularity. Acquisitions and mergers in the industry are common as companies seek to expand their product offerings and reach new markets.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Archer Daniels Midland Co: The company offers herbal solutions that include phospholipids, vitamin E capsules, plant sterols, soy isoflavones, and flaxseed oil which can be used in a variety of nutritional supplements and in a variety of other applications such as nutrition bars, beverages, spreads, and dressings.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is a significant sector in the health and wellness industry, encompassing a wide range of medicinal plants and their derivatives. These natural remedies are sought after for their medicinal properties and potential health benefits. Herbal medicines are used to treat various conditions, including digestive issues, respiratory problems, skin disorders, and stress-related symptoms. The market for herbal medicines is growing, driven by increasing consumer awareness and preference for natural health solutions. Herbal medicines are available in various forms, such as teas, capsules, powders, and tinctures. The market for herbal medicines is diverse, with different regions specializing in specific herbs and preparations.
In conclusion, some common herbs used in herbal medicines include turmeric, ginger, echinacea, ginseng, and milk thistle. The market is segmented based on herb types, forms, and regions. The market for herbal medicines is expected to continue its growth trajectory due to the increasing demand for natural health solutions and the ongoing research into the potential health benefits of various herbs.
Market Scope |
|
Report Coverage |
Details |
Page number |
161 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.8% |
Market growth 2024-2028 |
USD 130.3 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.2 |
Regional analysis |
North America, Europe, Asia, and Rest of World (ROW) |
Performing market contribution |
North America at 45% |
Key countries |
US, Australia, Canada, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Archer Daniels Midland Co., Arizona Natural Products, Arkopharma Laboratories, Bellan Pharmaceuticals, Blackmores Ltd., Dabur India Ltd., Dasherb Corp., Dr. Willmar Schwabe India Pvt. Ltd., Gaia Herbs Inc., Glanbia plc, Greenstorm Foods Pty Ltd, Herbalife International of America Inc., Himalaya Global Holdings Ltd., Hishimo Pharmaceuticals Pvt. Ltd., KPC Products Inc., Patanjali Ayurved Ltd., Schaper and Brummer GmbH and Co. KG, SP Pharmaceuticals, Tsumura and Co., and ZeinPharma Germany GmbH |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Delivery
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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