Herbal Medicine Market Size

Herbal Medicine Market Growth Projections and Opportunities

Herbs are plants or parts of plants that people use for their scent, flavor, or therapeutic properties. Herbal medicines, which fall under the category of dietary supplements, come in various forms like tablets, capsules, powders, teas, extracts, and even fresh or dried plants. People turn to herbal medicines to maintain and enhance their health. Interestingly, many traditional medications have their roots in plants, and some of the most effective drugs are derived from them. For instance, aspirin comes from willow bark, digoxin from foxglove, quinine from cinchona bark, and morphine from the opium poppy. Ongoing efforts in the pharmaceutical industry involve extensive screening of herbs to develop new drugs.
The global demand for natural medicines, increased research funding for herbal medicines, and their diverse applications have contributed to the recent growth of the global herbal medicine market. Despite this growth, challenges such as side effects, allergic reactions, and a lack of standardization may hinder further expansion in the future.

As of now, the global herbal medicine market is expanding rapidly and is expected to reach USD 129,689.3 million by 2023, up from USD 92,381.1 million in 2017, with a Compound Annual Growth Rate (CAGR) of 5.88% between 2018 and 2023. In 2017, Europe led the market with a 43.70% share, followed by Asia-Pacific and the Americas with shares of 35.2% and 16.2%, respectively.

The market is categorized based on various factors such as category, type of medicinal plants, form, source, and distribution channel.

Under the category classification, the global herbal medicine market consists of herbal pharmaceuticals, herbal functional foods, herbal beauty products, and herbal dietary supplements. In 2017, herbal pharmaceuticals dominated the market, holding a substantial 54.9% share with a value of USD 50,756.9 million. This segment is projected to grow at a CAGR of 6.30% during the forecast period. The herbal functional foods segment, accounting for 16.8% of the market in 2017 with a value of USD 15,559.8 million, is expected to register a CAGR of 6.20%. Herbal beauty products, representing 15.5% of the market at USD 14,314.9 million in 2017, are projected to grow at a CAGR of 6.09%. Lastly, the herbal dietary supplements segment, with a 12.7% market share and a value of USD 11,729.6 million in 2017, is expected to grow at a CAGR of 3.15%.

In summary, the global herbal medicine market is experiencing significant growth due to the increasing preference for natural remedies, extensive research investments, and the diverse applications of herbal medicines. While the market is flourishing, concerns such as side effects and a lack of standardization need to be addressed to ensure sustained and responsible growth in the future.