Herbal Medicine Industry Size, Share, Growth Forecast Through 2032

Popular botanicals such as ginkgo, ginseng, turmeric, chamomile, and ginger are extensively used for treating a wide range of health conditions in both humans and animals. These plant-based formulations have served as vital components of traditional medicinal practices across multiple cultures for centuries.

The increasing prevalence of lifestyle-related diseases—including obesity, cardiovascular issues, and stress-induced disorders—driven by poor diet and sedentary habits, is accelerating demand for natural, plant-derived treatments. According to the World Health Organization (WHO), approximately 80% of the world’s population relies on herbal or traditional remedies, primarily due to their perceived safety and minimal side effects compared to synthetic pharmaceuticals.

Information Source: https://www.fortunebusinessinsights.com/herbal-medicine-market-106320

Impact of COVID-19

The COVID-19 pandemic, declared by the WHO in March 2020, disrupted pharmaceutical and healthcare supply chains globally. Shortages of key medicines and logistical challenges placed immense strain on hospitals and pharmacies. A study published in the DARU Journal of Pharmaceutical Sciences found that between January and mid-2020, hospital demand for drugs such as sedatives, analgesics, and respiratory treatments increased by 100–700%. This shortage encouraged both consumers and healthcare providers to seek natural and dependable alternatives, driving significant growth in herbal medicine adoption during the crisis.

Market Segmentation

The herbal medicine industry benefits from strong integration with the pharmaceutical and nutraceutical sectors, which are increasingly incorporating botanical ingredients into dietary supplements and alternative therapies.

• By Product Form: Tablets and capsules represent the largest market segment, favored for their convenience, accurate dosing, and wide retail accessibility.

• By Region: The market is categorized into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

Report Highlights

• Detailed market segmentation and analysis of investment opportunities

• In-depth regional insights and identification of emerging trends

• Evaluation of mergers, acquisitions, partnerships, and product innovations

• Assessment of COVID-19’s impact on supply chains and consumer behavior

Market Drivers & Challenges

1. Growing Use of Natural Ingredients in Cosmetics

The cosmetics and personal care industries are witnessing an increasing shift toward botanical-based formulations. With consumers moving away from chemical-laden products, the demand for natural skincare and haircare solutions is rising rapidly—creating new opportunities for global suppliers of herbal ingredients.

2. Shift Toward Clean-Label and Eco-Friendly Products

Rising awareness about the health risks of synthetic chemicals and their environmental footprint has led consumers to favor organic, plant-based, and sustainably sourced herbal formulations. Manufacturers are adapting by developing traceable and eco-certified herbal product lines.

Regional Insights

Europe: Europe remains the largest regional market, supported by a strong cosmetics industry and increasing use of herbal components in wellness, personal care, and healthcare applications.

North America: The region, particularly the U.S., is showing robust growth due to heightened awareness of product safety, growing interest in organic therapies, and a focus on preventive healthcare.

Asia Pacific & Latin America: These regions are emerging as high-potential markets, driven by rising incomes, expanding cosmetic industries, and greater digital access that helps consumers understand the benefits of herbal products.

Competitive Landscape

The global herbal medicine industry is moderately fragmented, with leading companies emphasizing product innovation, portfolio expansion, and strategic collaborations to reinforce their market presence. Many players are actively pursuing new product launches and M&A strategies to strengthen global outreach and cater to evolving consumer needs.

Key Companies Profiled:

• 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 and personal care company, unveiled Lotus Botanicals, a new line of skincare and haircare products formulated with natural herbal ingredients. These products are available through the company’s official website and leading e-commerce marketplaces.