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The Herbal Medicinal Products Market is in trends towards natural wellness remedies. Herbal medicinal products are herbal preparations made from plants or herbs including extracts, distillates and finely powdered herbal materials that are used to treat illnesses and maintain wellness. The demand for plant-based medicines has increased significantly owing to their advantages such as negligible side-effects, wide availability and growing preference for natural therapies. The Global Herbal Medicinal Products Market is estimated to be valued at US$ 199.07 Bn in 2024 and is expected to exhibit a CAGR of 7.7% over the forecast period 2023 to 2030.
Key Takeaways
Key players operating in the Herbal Medicinal Products market include Blackmores Limited, Sanofi-Aventis Healthcare PTY Ltd., Arkopharma SA, Nutraceutical Corporation, STADA Arzneimittel AG, Himalaya Global Holdings Ltd, Integria Healthcare, Boiron Group, Young Living Essential Oils, Mountain Rose Herbs. Key players are focusing on portfolio expansion through new product launches to capitalize on the growing demand in the market.
The growing demand can be attributed to factors such as rising health consciousness among consumers, increasing prevalence of lifestyle diseases and perceived compatibility of herbal medicines with the human body. According to estimates, the global herbal supplements market will reach $85 billion by 2024 registering a CAGR of 7.1% over the forecast period.
The herbal medicine industry is also witnessing substantial growth through global expansion. Favorable regulations and trade agreements have opened new opportunities in developing international markets. Europe dominates the global herbal medicines market while Asia Pacific is predicted to witness highest growth in the coming years driven by large patient pool, rising disposable incomes and growing acceptance of Ayurvedic and traditional Chinese medicines.
Market key trends
One of the major trends gaining traction in the herbal medicinal products market is customization and personalization. Consumers are increasingly demanding herbal remedies tailored to their specific health conditions and needs. Manufacturers are thus diversifying their offerings through customizable formulations, dosages and delivery formats. This personalization allows achieving precise outcomes with minimum side-effects.
Porter’s Analysis
Threat of new entrants: High capital requirements for R&D, manufacturing and distribution facilities pose as a barrier for new companies to enter the market. Bargaining power of buyers: Large buyers have significant influence on manufacturers due to the consolidated nature of the industry and their high-volume purchases. Bargaining power of suppliers: Herbal ingredients used in manufacturing herbal medicines have numerous substitutes which reduces suppliers’ bargaining power. Threat of new substitutes: Growing preference for alternative medicine and rising availability of substitute products increase the threat of new substitutes. Competitive rivalry: The market consists of few large players and many small regional players leading to high competitive rivalry.
Geographically, North America accounts for the largest share in the herbal medicinal products market in terms of value. This is attributed to increasing consumer preference for herbal medicines due to perceived health benefits. Asia Pacific is expected to witness the fastest growth during the forecast period owing to rising healthcare expenditure, expanding middle-class population and growing awareness about herbal products in countries like China, India and Japan.
The herbal medicinal products market in Latin America is concentrated in Brazil and Mexico. Favorable regulatory environment and rising adoption of Ayurveda and traditional Chinese medicine are fueling demand in the region. In Europe, countries such as Germany, France and Italy dominate the market as consumers prefer alternative therapies to prevent diseases. Meanwhile, increasing awareness about natural remedies is propelling market growth in the Middle East and Africa.
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- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
