Herbal Medicinal Products Market Report

Herbal medicines are those that contain ingredients obtained from plants and natural sources. Herbal medicines are sold in the market as tablets, capsules, powder, teas and fresh and dried plants. Since these drugs are of natural origin, they do not have any negative or side effects on the body. The use of herbal medicinal products is safe and improves the health of the individual and the function of the organs. However, herbal medicinal products can also be harmful to the body if consumed incorrectly and excessively.

The number of adverse effects caused by the use of allopathic medicines is increasing rapidly, which is a major source of concern for the growing world population. This has increased the use of herbal medicinal in various industries including pharmaceuticals, supplements and others. A wide range of products are being released with herbal ingredients that provide medicinal properties. Consequently, from a commodity perspective, the global market for herbal medicinal products is generously driven by these commodities as well. The use of alternative antibiotic medicines, such as herbal products, has been increasing since the recent times. Herbal products are gaining popularity among patients and health professionals. According to the WHO, almost 10-15% of the population in developed countries regularly consumes herbal products in some form. The main reason for using herbal products is their better immunity than synthetic drugs. In developing countries such as China, Japan, India, Vietnam, South Africa and Bangladesh, herbal medicines are sometimes the only available and affordable treatment option. Consumers opt for these drugs primarily for coughs and colds, nervousness, gastrointestinal upset, and painful conditions such as joint pain, rheumatic diseases, and stiffness. This continued trend in the consumption of herbal supplements is expected to offer promising growth rate to the market in the forecasted period. 

The global herbal medical products are driven by the increasing focus on alternative medicine with a focus on reduced side effects on body. Expansion and product launches in emerging markets are key factors driving market growth. The shift from conventional to traditional medicine has boosted growth in the industry due to the growing awareness of cost-effective herbal medicines. Herbal remedies, including homeopathy and health supplements, are finding use as affordable and effective treatment options. The developing manufacturing sector in emerging economies is expected to fuel the growth of the market. Medicinal plants are an indispensable part of complementary or alternative medicine. Due to this, they occupy a significant part in various communities of lower income economies. Additionally, due to inadequate health facilities and low purchasing power, lower income economies are the primary markets for herbal medicines. Herbs were considered a vital source of medicinal and preventive properties for human beings and were used to extract important bioactive compounds. According to WHO, around 80% of the world's population is estimated to use traditional medicines, creating a favourable environment for growth.

Rapidly penetration of herbal medicinal products in E-commerce distribution channels have resulted in a dramatic increase in sales of herbal medicinal products in recent years. This change is attributed to investments in improving the online shopping experience through targeted marketing and quality online education. Online distributors provide live chat facilities to address specific customer requirements. Additionally, manufacturers and vendors offer free access to wellness tools to create a customized list of herbal remedies based on specific conditions and requirements. The aforementioned recent developments in e-commerce distribution channels is expected to pose an opportunity for manufacturers to expand the market capture. 

A key factor inhibiting growth is the lack of raw materials needed for the production of herbal medicines and the resulting increase in the cost of exported raw materials. Product substitution is a major factor restraining the growth of the market. Synthetic ingredients and probiotics are a few alternatives that have proven to be strong competitors to traditional herbal products. Availability of pseudo herbal products is a major challenge expected to restrain the market growth in the foreseen period.

Lack of regulations and policies coupled with government efforts to promote herbal medicinal products are expected to challenge the market in the forecasted period. Each country has different guidelines and regulations for importing and using herbal and natural products. According to the WHO, many countries lack the political will, legal framework, capacity to monitor product safety and practice, referral mechanisms between herbal and conventional practitioners, information systems, analysis of herbal ingredients and integration of herbal products into country eco-system. The suppliers and manufacturers of plant products face obstacles owing to aforementioned factors when trying to access various regions leading to hindrance in market growth in the foreseen period.

The report provides an in-depth analysis of the global herbal medicinal products market, including market size, and compound annual growth rate (CAGR) for the forecast period of 2023-2029, considering 2022 as the base year. The increasing demand for herbal products in personal & beauty care is driving the market and is expected to witness growth at a specific CAGR from 2023-2029.

The Global Herbal Medicinal Products Market consists of different market segments like By Form Type, By Product, By Distribution Channel, By Application, and geography. 

The Herbal Medicinal Products market on the basis of form include:  

Based on form, the capsule/tablet segment holds the largest share of the herbal medicine products market. Most herbal medicinal products are light, pliable and fibrous with a bulk density of less than 0.5 g/ml. These are difficult to compress as such in powder form and will require granulation or rolling with a binder and may often require a diluent. Granulation can increase disintegration time or reduce dissolution requiring a disintegrating agent. Hence most of manufacturers prefer to fill such powders into capsules/tablets with a minimum of excipients leading to capsules/tablets segment to capture the largest share in the forecasted period.

By product, herbal medicinal products market is consisting of 

Based on product type, the homeopathic medicines segment holds the largest share of the herbal medicine market. Homeopathy is considered to be one of the best in terms of safe and proper treatment as it has no side effects and after effects. Also, homeopathy is easy to treat and remove other underlying causes to adjust and be healthy. The duration of the course is shorted than that of other product types owing to inclusive of certain exercises and healing sessions, meditation and dosing of natural herbs to treat ailments, which may take short time as every natural remedy is available at one place in homeopathic medicines. 

By Distribution Channel, herbal medicinal products market is consisting of 

Based on Distribution Channel, Retail distribution channel is dominating segment over a forecast period. E-commerce distribution channel is fastest growing segment for herbal medicinal products market. The E-commerce sales led to a dramatic increase in sales of herbal medicinal products in recent years, this increases the demand for herbal products. This change is attributed to investments in improving online shopping through targeted marketing and quality online education. 

The Herbal Medicinal Products market on the basis of application include:  

Based on application, the pharmaceutical and nutraceutical segment holds the largest share of the herbal medicine market. This is attributed to the high demand for herbal raw materials from manufacturers of alternative medicine industry. Consumers are shifting their focus from synthetic to herbal medicines after knowing the long-term benefits of herbal products. Dietary supplements, such as plant-based protein powders and anti-aging products, are popular product categories in the pharmaceutical & nutraceutical industry. The growing demand for plant products from these sectors is expected to be sustainable in the long term. The aforementioned factor will aid the dominance of the pharmaceutical and nutraceutical segment in the global market during the forecast period. 

The Herbal Medicinal Products market is studied for the following region: 

For herbal medicinal products Market, North America holds the largest market share and is expected to maintain its dominance during the forecast period. The dominance is driven by higher health awareness in the region coupled with higher adoption of medicines with less side-effects. According to data in the 2020 journal of National Library of Medicine, herbal products are used by more than 20% of the total population use herbal medicinal products in the region. Also, rising living standards, health awareness and increasing disposable incomes are increasing the demand for effective treatments with minimal side effects. Additionally, the popularity and adoption of stress and anxiety-relieving treatments, including aromatherapy and ayurvedic panchakarma are expected to fuel the North America herbal medicinal products market growth in the forecasted period. 

Axiom MRC provides a 360-degree analysis of micro & macro-economic factors of the Herbal Medicinal Products market. The report studied an exclusive COVID-19 impact analysis. In addition, the report also studied a complete analysis of changes in the global herbal medicinal products market, expenditure, and economic and international policies on the supply and demand side. COVID-19 has had a positive impact on the Herbal Medicinal Products market. 

The COVID-19 pandemic is expected to positively impact growth. It has created ample opportunities for players due to the growing demand for herbal immunity boosters. Consumer behaviour associated with epidemiological stages and government responses to the pandemic results in escalation, accumulation, and early recovery. The pandemic has changed distribution channel operations and shifted traffic to e-commerce options during pandemic has further impacted the market growth positively.

The competitive landscape analysis of the Herbal Medicinal Products is majorly focused on expanding the global growth of herbal medicinal products market with new product innovation, business expansion, and the increasing presence of a range of manufacturers operating in herbal medicinal products market has led to the growing demand for the market.  

The key players studied in the market are 

RECENT DEVELOPMENT:

November 2020: Mountain Rose Herbs has acquired a company called phoenix industrial park in Eugene. The acquisition will provide the company an additional operational space with 205,000 square feet of campus to manufacture herbal medicine products.

April 2018: Bio-Botanica Inc. has partnered with a personal care products manufacturer named Genomitica Inc. The partnership will help the companies to manufacture herbal medical products for cosmetic & personal care segment.

September 2021: Blackmores has expanded its presence in Asia Pacific regions by launching its herbal medicinal products in India. The expansion is expected to capture the price-sensitive Asia Pacific regional market in the future.