Herbal Medicine Market Size, Share, Growth, and Industry Analysis, By Type (Powder and Tablets & Capsules), By Application (Pharmaceutical and Nutraceutical, Food and Beverages, Personal Care and Beauty Products), and Regional Insights and Forecast to 2033

HERBAL MEDICINE MARKET OVERVIEW

The global Herbal Medicine Market size was valued approximately USD 162.78 Billion in 2024 and will touch USD 292.29 Billion by 2033, growing at a compound annual growth rate (CAGR) of 6.72% from 2024 to 2033.

In the U.S., the herbal medicine market was valued at approximately $10.8 billion in 2024, with dietary supplements accounting for over 45% of sales. The market is expected to grow at a CAGR of 6.5%, driven by increasing consumer preference for natural remedies

Herbal medicines are naturally obtained from a plant's roots, stems, leaves, flowers, or seeds to improve health and treat illnesses. Some popular herbs include gingko, ginseng, ginger, turmeric, and chamomile. For years, local communities have used plant species as part of their culture and traditions to prepare medicines for human and animal diseases.

Key Findings

• Market Size and Growth: Global Herbal Medicine Market size was valued at USD 162.78 Billion in 2024, expected to reach USD 292.29 Billion by 2034, with a CAGR of 6.72% from 2024 to 2034.
• Key Market Driver: Rising consumer preference for natural products with 73% increase in demand and 65% of global population using herbal remedies.
• Major Market Restraint: Limited clinical evidence and standardization issues as 58% of products lack regulatory approval and 42% face quality inconsistencies.
• Emerging Trends: Growing use of e-commerce channels with 69% surge in online herbal product sales and 61% increase in digital health consultations.
• Regional Leadership: Asia Pacific leads with 48% market share, followed by Europe at 27%, driven by traditional usage and government support.
• Competitive Landscape: Top five players control 38% of the market, with 46% increase in product launches and 33% rise in strategic partnerships.
• Market Segmentation: Botanical supplements lead with 52% share, followed by capsules/tablets at 31% and topical applications at 17%.
• Recent Development: 54% of R&D investment went into plant-based drug innovation, with 47% rise in patents filed for herbal formulations

COVID-19 IMPACT

“Consumers pay more attention to the herbal medicine market”

Consumers' increased focus on preventative healthcare and products that promote immunity during the COVID-19 epidemic increased demand for herbal medicines. Because of the lockdowns and social distancing measures, consumers began purchasing more natural and organic products, like herbal medicines and Ayurvedic supplements. Additionally, growing awareness of botanicals' benefits in lowering stress and anxiety contributed to the market's growth during COVID-19.

LATEST TREND

”Heightened Consumption of Herbal Dietary Supplements to Promote Market Growth”

The use of alternative antibiotics and herbal medicines has increased within the last decade. Interest in these goods is growing among both patients and medical experts. Nearly 10–50% of people in affluent nations frequently utilize herbal medicine in one way or another, according to the WHO. The major reason for this is they offer better immunity than synthetic drugs. In poor nations like Bangladesh, South Africa, Vietnam, Japan, India, and China, herbal remedies might occasionally be the only readily available and reasonably priced kind of medical care. Patients most frequently use these medications to treat gastrointestinal issues, cough, colds, and painful illnesses such rheumatic disorders, joint pain, and stiffness. The market is anticipated to develop as a result of the continued trend of taking herbal supplements.

HERBAL MEDICINE MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Powder and Tablets & Capsules.

• Powder: Because of their many applications, herbal powders—finely crushed forms of medicinal plants—are well-liked. They are easily taken on their own or added to a variety of food and drink products.
• Tablets & Capsules: This segment includes herbal medicines formulated in easy-to-consume tablet or capsule form. Tablets and capsules dominate the market due to their convenience and the growing number of herbal products being integrated into the pharmaceutical industry. The preference for this form is driven by the ease of dosage and the increasing number of prescriptions for herbal supplements.

By Application

Based on application, the global market can be categorized into Pharmaceutical and Nutraceutical, Food and Beverages, Personal Care and Beauty Products.

• Pharmaceutical and Nutraceutical: Due to the growing demand for herbal raw materials from the alternative medicine industry and dietary supplement manufacturers, this category has the biggest revenue share.
• Food and Beverages: Herbs are increasingly being used in food and drink, and customers are becoming more interested in healthful cuisine. This market trend is also being used by marketers to create healthier food products.
• Personal Care and Beauty Products: During the forecast period, the cosmetics segment is expected to experience the fastest revenue growth rate. As customers become more conscious of their health and appearance, the demand for natural and organic products in the personal care and cosmetics sectors has surged.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

”Increasing Globalization and Consumer Demand to Boost the Market”

One of the key drivers of the global Herbal Medicine market growth is globalization and increasing consumer demand in urban areas. A worldwide respect for a variety of therapeutic approaches is reflected in the growing popularity of traditional medicines from various cultures outside of their countries of origin. Because herbal medicines are thought to be kinder and have fewer negative effects, people are turning to them as their taste for natural and holistic healthcare solutions grows. The demand for herbal medications has increased as a result of consumers seeking alternative and preventative healthcare choices due to growing knowledge of personal health and wellness.

Restraining Factor

”Strict Guidelines Related to Use of Herbal Ingredients as Raw Material in Cosmetic Industry to Restrain Market Growth”

There are different guidelines and regulations for importing and using herbal type of medicines in every country. According to the WHO, many countries lack the political will, legal framework, capacity to monitor the product's safety & use, referral mechanisms between herbal & conventional medical practitioners, information systems, analysis of herbal ingredients, and integration of herbal products into healthcare systems. Owing to the aforementioned reasons, herbal product suppliers and manufacturers face obstacles when trying to access different markets. They must also follow various legislations and accept different requirements and standards.

Opportunity

”High Demand for Natural Medicines from Developing Countries Offers Promising Opportunities for Market Growth”

Herbal medicines are a vital part of medical treatment in many developing countries. These products are used for almost all minor ailments. In developing and lower-income countries, visits to trained doctors or pharmacists are usually rare and reserved for life-threatening disorders. In developing countries, herbs used for medicinal purposes are unprocessed herbs, plants, or plant parts, dried, and used as whole or cut form. Herbs are also used to make teas (sometimes as capsules or pills) to aid internal healing and as salves and poultices to treat external injuries. As most developing economies have minimal regulations regarding the use of herbs as medicines, the industry size may expand at a robust pace in the coming years.

Challenge

”Regulatory Challenges and Quality Assurance”

The market for herbal medicines has many obstacles, one of which is the disparity in national regulatory regimes. Herbal remedies are included in more general categories such as "natural health products" with vitamins and minerals, while others categorize them independently. Its growth depends on the industry's continued homogeneity and quality control. Because they are considered food items by the FDA rather than pharmaceuticals, herbal supplements are not subject to the same testing, manufacturing, and labeling standards and regulations as pharmaceuticals. This makes it difficult to keep up consistency and confidence in the safety and quality of herbal goods.

HERBAL MEDICINE MARKET REGIONAL INSIGHTS

• North America

The increased health consciousness and demand for natural healthcare products among consumers in North America, particularly the US, is predicted to drive a steady expansion in the market for herbal medicines. This growth is due to the requirements of the Herbal Medicines Compendium and other related regulatory frameworks for herbal supplements. Consumers are also looking for natural alternatives as healthcare costs grow and they become more aware of the negative consequences of synthetic medications. The growing demand for dietary supplements and herbal teas, which coincide with the region's larger trend toward wellness and preventive healthcare, is also helping the sector.

• Europe

Approximately 33.98% of the income in 2023 came from herbal medicines, making Europe a major player in the global industry. The main causes of this region's rise include an aging population, an increase in the incidence of chronic illnesses, and a strong inclination for plant-based treatments. Customers in nations like Germany and the UK are driving the market as they become more conscious of the advantages of using herbal treatments. Additional factors supporting market expansion include the incorporation of herbal products into mainstream healthcare and a strong regulatory framework that guarantees quality and safety. Europe's long history of herbal treatment is reflected in the continued use of traditional herbal therapies.

• Asia

increased disposable incomes and increased knowledge of the advantages of herbal products are predicted to propel the herbal medicine market's quickest expansion in the Asia-Pacific region. Leading the way are nations like China and India, whose healthcare systems have a long history of utilizing herbal therapy. Additionally, the growth of e-commerce is expanding consumer access to herbal products, which is driving market expansion. In addition, the market is expanding due to the growing uptake of preventive healthcare practices and the desire for natural cures, making it a dynamic and quickly changing industry in the area.

KEY INDUSTRY PLAYERS

”Players maintain competitive advantage through innovation”

In the competitive landscape of the global market, several leading players for market dominance. A number of strategies are employed by significant companies such as Nordic Nutraceuticals, AYUSH Ayurvedic Pte Ltd, Sheng Chang Pharmaceutical Company, and Bionorica SE to maintain their competitive edge. These strategies involve continuously funding the creation of new goods, obtaining regulatory approvals, covering their discoveries with patents, and fostering alliances and collaborations in order to expand their market reach and enhance their product offers.

List of Top Herbal Medicine Companies

• Sheng Chang Pharmaceutical Company
• Nordic Nutraceuticals
• AYUSH Ayurvedic Pte Ltd.
• Herbal Hills
• Herb Pharm
• LKK Health Products Group Limited

KEY INDUSTRY DEVELOPMENTS

April 2024: Mitsui & Co., Ltd. announced that it will acquire 100% shares in Eu Yan Sang International Ltd, a Singapore-based company that manufactures and sells traditional Chinese medicines.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The growing consumer desire for natural and alternative healthcare solutions is driving the steady expansion of the herbal medication market. As more individuals become aware of the potential health benefits of herbs, particularly for improving immunity, chronic disorders, and overall wellness, the market for herbal products is expanding globally. The market is supported by the increasing demand for organic and plant-based treatments as well as the growing availability of herbal products through conventional retail and online channels. Future growth is expected to be driven by increasing consumer preference for natural medicines, expanding product lines, and additional research on the efficacy of herbal therapies.

Frequently Asked Questions