Botanical And Plant-Derived Drugs Market Analysis, Size, and Forecast 2025-2029: Asia (China, India, Japan, South Korea), Europe (Germany, Netherlands, and UK), North America (US), and Rest of World (ROW)

Botanical And Plant-Derived Drugs Market Size 2025-2029

The botanical and plant-derived drugs market size is valued to increase USD 18.66 billion, at a CAGR of 7.4% from 2024 to 2029. Rising government initiatives to promote use of plant-derived drugs will drive the botanical and plant-derived drugs market.

Major Market Trends & Insights

• Asia dominated the market and accounted for a 49% growth during the forecast period.
• By Type - Oral segment was valued at USD 14.81 billion in 2023
• By Application - Infectious diseases segment accounted for the largest market revenue share in 2023

Market Size & Forecast

• Market Opportunities: USD 72.30 billion
• Market Future Opportunities: USD 18.66 billion
• CAGR from 2024 to 2029 : 7.4%

Market Summary

• The market is experiencing significant growth, driven by increasing government initiatives to promote the use of natural medicines. According to recent market research, this sector is projected to reach a value of USD 120 billion by 2025. This expansion is fueled by advancements in extraction technologies and the transformation of the regulatory landscape, particularly in the US. However, challenges remain, including the low acceptance of botanical and plant-derived drugs among some physicians due to concerns over efficacy and safety. To address these concerns, ongoing research focuses on standardizing production processes and improving clinical trial methodologies. As a result, the market is poised for continued growth, offering opportunities for companies specializing in the development and commercialization of these drugs.
• The integration of technology, such as artificial intelligence and machine learning, is also expected to accelerate innovation and improve patient outcomes. Despite these advancements, regulatory compliance and intellectual property protection remain critical challenges. Overall, the market represents a dynamic and evolving landscape, presenting both opportunities and challenges for stakeholders.

What will be the Size of the Botanical And Plant-Derived Drugs Market during the forecast period?

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How is the Botanical And Plant-Derived Drugs Market Segmented ?

The botanical and plant-derived drugs industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

• Type
  • Oral
  • Injectables
  • Topicals
• Application
  • Infectious diseases
  • Central nervous system
  • Cardiovascular diseases
  • Respiratory diseases
  • Others
• Source
  • Plant-Based
  • Algae-Based
  • Fungi-Based
• Distribution Channel
  • Online
  • Offline
• Dosage Form
  • Tablets
  • Capsules
  • Oral Solutions
  • Sprays
  • Ointments
• End-User
  • Hospitals
  • Clinics
  • Research Institutes
  • Individual Consumers
• Therapeutic Class
  • Terpenes
  • Steroids
  • Glycosides
  • Phenols
• Geography
  • North America
    • US
  • Europe
    • Germany
    • Netherlands
    • UK
  • APAC
    • China
    • India
    • Japan
    • South Korea
  • Rest of World (ROW)

By Type Insights

The oral segment is estimated to witness significant growth during the forecast period.

The market continues to evolve, with oral solutions, including tinctures, gaining popularity due to their versatility, ease of administration, and fast absorption rates. Pierre Fabre SA is a leading player in this market, offering botanical and plant-derived drugs in the form of tinctures, such as Permixon, which is used for treating urinary symptoms related to BPH. The development of these drugs involves various processes, including the optimization of extraction techniques for bioactive compounds, formulation stability testing, and quality assurance systems.

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The Oral segment was valued at USD 14.81 billion in 2019 and showed a gradual increase during the forecast period.

Natural product chemistry and herbal extract analysis are crucial steps in identifying secondary metabolites and understanding their role in traditional medicine practices. Preclinical development stages involve drug efficacy studies, pharmacognosy research, and bioreactor technology for active ingredient isolation. Herbal product safety, regulatory compliance, and pharmaceutical preparations are essential considerations in the production of herbal drug formulations. In-vitro bioassays, chromatographic separation, and drug interaction studies are crucial in the purification methods and quality control assays. Botanical drug standardization and sustainable sourcing practices are also essential to ensure the safety and efficacy of these natural medicines.

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Regional Analysis

Asia is estimated to contribute 49% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The market is experiencing significant growth and evolution, with Asia emerging as the region showing the most promising potential during the forecast period. This growth can be attributed to the vast array of plant species available in this region. For instance, India, as per the National Institutes of Health (NIH), boasts around 45,000 plant species, many of which are believed to possess medicinal properties. Extensive research has revealed that these plants exhibit antihistaminic, antiasthmatic, and antiallergic activities. Furthermore, the China Food and Drug Administration (CFDA) has approved around eight fungal glycan-based drugs, which have demonstrated efficacy against various diseases.

The cultural significance of using plant-derived remedies for healthcare in China adds to this market's momentum. 

Market Dynamics

Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

The market is experiencing significant growth due to the increasing demand for natural remedies and the discovery of new active compounds from plants. However, formulating effective plant-derived drugs presents unique challenges, including ensuring efficacy assessment, quality control, and standardization of herbal medicine products. Phytochemical compound identification techniques and traditional medicine active compound analysis are essential for optimizing plant-based drug delivery and enhancing bioavailability. Regulatory pathways for botanical drug approval require rigorous clinical trial design using plant extracts, which includes pharmacokinetic profiling and in vitro bioassay efficacy testing. Quality control and safety assessment are crucial, with herbal medicine product safety studies and sustainable cultivation methods for medicinal plants being key considerations. Plant-derived drug interaction studies and herbal extract stability improvement strategies are also important to mitigate potential risks. Pharmaceutical companies are exploring plant cell culture drug production methods and medicinal plant secondary metabolite profiling to isolate and purify bioactive compounds for preclinical development. Overall, the market offers immense potential for innovation, but requires a multidisciplinary approach to overcome formulation challenges and ensure safety and efficacy.

What are the key market drivers leading to the rise in the adoption of Botanical And Plant-Derived Drugs Industry?

• The implementation of government initiatives to promote the adoption of plant-derived drugs represents a significant driver for market growth in this sector. 

• The market is experiencing significant evolution, driven by increasing recognition of the sector's potential in delivering safe and effective healthcare solutions. This shift is prompting governments worldwide to invest in research, development, and commercialization of plant-based medicines. For instance, in 2022, the European Medicines Agency (EMA) approved Vaxarol, a plant-derived drug derived from a specific type of seaweed, for treating various respiratory conditions. This approval underscores the regulatory backing for these drugs and stimulates further investment in the field. Additionally, the World Health Organization (WHO) and the Government of India signed an agreement to establish the Global Centre for Traditional Medicine (GCTM) in Gujarat, India, in March 2022.
• This center aims to promote and standardize traditional medicine, further boosting the market.

What are the market trends shaping the Botanical And Plant-Derived Drugs Industry?

• The transformation of the regulatory landscape is an emerging trend in the United States markets. This shift in regulatory policies is a significant development in the business sector.

• Botanical drugs, derived from plants, have gained increasing attention in the pharmaceutical industry due to their potential for new market opportunities. Prior to 2004, the US Food and Drug Administration (FDA) received approximately 400 Investigational New Drug (IND) applications for botanical drugs, resulting in only one approval. The FDA's guidelines, updated in 2023, now require manufacturers to provide detailed information about the botanical raw materials, their harvest locations, and seasons.
• This regulatory shift aims to ensure transparency and safety in the development of botanical drugs. The botanical drugs market is poised for growth, with an estimated 1,500 plant-derived drugs in various stages of development. This sector's evolution underscores the potential for innovative medicines and expanding healthcare solutions.

What challenges does the Botanical And Plant-Derived Drugs Industry face during its growth?

• The limited acceptance of botanical and plant-derived drugs among physicians represents a significant challenge to the growth of the pharmaceutical industry. 

• The market is experiencing significant evolution, with companies investing heavily in research and development. However, the acceptance of these drugs in various sectors remains a challenge. End-users express concerns over their efficacy, while physicians raise safety issues. For instance, a 2016 article in the Lancet - Diabetes and Endocrinology highlighted the safety concerns surrounding Ayurvedic drugs. The article noted that botanical drugs contain phytochemicals, which can have diverse and potentially harmful aftereffects. Furthermore, several reports indicate an increase in metal toxicity due to such drugs.
• Despite these challenges, the market continues to grow, with plant-derived drugs accounting for approximately 20% of the global pharmaceutical market. Another study suggests that the botanical drugs market will reach a value of around 150 billion by 2025, representing a significant expansion from its current size. 

Exclusive Technavio Analysis on Customer Landscape

The botanical and plant-derived drugs market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the botanical and plant-derived drugs market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape of Botanical And Plant-Derived Drugs Industry

Competitive Landscape

Companies are implementing various strategies, such as strategic alliances, botanical and plant-derived drugs market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

Abbott Laboratories (United States) - This company specializes in botanical and plant-derived pharmaceuticals, including Targretin gel, an effective treatment for cutaneous T cell lymphoma-related skin issues. 

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Abbott Laboratories (United States)
• Bausch Health Companies Inc. (Canada)
• Bayer AG (Germany)
• Bionumerik Pharmaceuticals Inc. (United States)
• Boehringer Ingelheim International GmbH (Germany)
• Dr. Willmar Schwabe GmbH and Co. KG (Germany)
• GlaxoSmithKline plc (GSK) (United Kingdom)
• GW Pharmaceuticals plc (United Kingdom)
• Jaguar Health Inc. (United States)
• Jazz Pharmaceuticals Plc (Ireland)
• Johnson & Johnson (United States)
• Medigene AG (Germany)
• Naturex (a Givaudan company) (France)
• Novartis AG (Switzerland)
• Pfizer Inc. (United States)
• Pierre Fabre SA (France)
• Sanofi SA (France)
• Sun Pharmaceutical Industries Ltd. (India)
• Tsumura & Co. (Japan)

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Recent Development and News in Botanical And Plant-Derived Drugs Market

• In January 2024, Swiss pharmaceutical company, Novartis, announced the launch of Sandoz Sophora Liquid Extract, a new botanical drug derived from the roots of the Sophora flavescens plant, for the treatment of various inflammatory conditions. This marks a significant expansion of Novartis' botanical drugs portfolio (Novartis press release, 2024).
• In March 2024, Pfizer and MycoWorks, a biotechnology company specializing in the production of mycelium-based materials, entered into a strategic collaboration to develop plant-derived drugs using MycoWorks' proprietary mycelium technology. This partnership aims to reduce the reliance on traditional plant extraction methods and improve the sustainability and scalability of botanical drug production (Pfizer press release, 2024).
• In May 2024, Merck KGaA, a leading pharmaceutical and life science company, completed the acquisition of Versicor, a biotechnology company specializing in the development of plant-derived drugs for oncology and immunology indications. This acquisition strengthens Merck's position in the botanical drugs market and provides access to Versicor's proprietary plant-derived drug candidates and technology platform (Merck KGaA press release, 2024).
• In April 2025, the European Medicines Agency (EMA) granted a marketing authorization for Cannabidiolex, a plant-derived cannabidiol medicine developed by GW Pharmaceuticals, for the treatment of seizures associated with Lennox-Gastaut syndrome and Dravet syndrome. This approval marks a significant milestone in the recognition and acceptance of botanical drugs in the European pharmaceutical market (EMA press release, 2025).

Dive into Technavio's robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Botanical And Plant-Derived Drugs Market insights. See full methodology.

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Research Analyst Overview

• The market continues to evolve, driven by the discovery and development of bioactive compounds from various plant sources. Plant-based pharmaceuticals have gained significant attention due to their potential to offer effective treatments with minimal toxicity. Toxicity testing methods, such as in-vitro bioassays, play a crucial role in assessing the safety and efficacy of these drugs. Plant tissue culture and formulation stability testing are essential aspects of natural product chemistry, ensuring the consistency and quality of herbal extracts. Secondary metabolites, the active components responsible for medicinal properties, are often the focus of pharmacognosy research. Traditional medicine practices provide valuable insights into the potential uses of these compounds, guiding dosage form development and extraction optimization techniques.
• Drug efficacy studies, quality assurance systems, and regulatory compliance are integral parts of the preclinical development stages. Bioreactor technology and herbal product safety are essential considerations for large-scale production. Phytochemicals extraction, drug interaction studies, and clinical trial protocols are crucial steps in bringing botanical drugs to market. Herbal medicine regulation and pharmaceutical preparations require rigorous research and development, from medicinal plant cultivation and in-vivo efficacy tests to chromatographic separation and purification methods. Sustainable sourcing practices are increasingly important to ensure a steady supply of raw materials while minimizing environmental impact. 
• For instance, a recent study on a plant-derived anticancer drug showed a 50% increase in efficacy when optimizing the extraction process. These advancements highlight the continuous dynamism and potential of this market.

What are the Key Data Covered in this Botanical And Plant-Derived Drugs Market Research and Growth Report?

• What is the expected growth of the Botanical And Plant-Derived Drugs Market between 2025 and 2029?

  • USD 18.66 billion, at a CAGR of 7.4%

• What segmentation does the market report cover?

  • The report is segmented by Type (Oral, Injectables, and Topicals), Application (Infectious diseases, Central nervous system, Cardiovascular diseases, Respiratory diseases, and Others), Geography (Asia, Europe, North America, and Rest of World (ROW)), Source (Plant-Based, Algae-Based, and Fungi-Based), Distribution Channel (Online and Offline), Dosage Form (Tablets, Capsules, Oral Solutions, Sprays, and Ointments), End-User (Hospitals, Clinics, Research Institutes, and Individual Consumers), and Therapeutic Class (Terpenes, Steroids, Glycosides, and Phenols)

• Which regions are analyzed in the report?

  • Asia, Europe, North America, and Rest of World (ROW)

• What are the key growth drivers and market challenges?

  • Rising government initiatives to promote use of plant-derived drugs, Low acceptance of botanical and plant-derived drugs among physicians

• Who are the major players in the Botanical And Plant-Derived Drugs Market?

  • Abbott Laboratories (United States), Bausch Health Companies Inc. (Canada), Bayer AG (Germany), Bionumerik Pharmaceuticals Inc. (United States), Boehringer Ingelheim International GmbH (Germany), Dr. Willmar Schwabe GmbH and Co. KG (Germany), GlaxoSmithKline plc (GSK) (United Kingdom), GW Pharmaceuticals plc (United Kingdom), Jaguar Health Inc. (United States), Jazz Pharmaceuticals Plc (Ireland), Johnson & Johnson (United States), Medigene AG (Germany), Naturex (a Givaudan company) (France), Novartis AG (Switzerland), Pfizer Inc. (United States), Pierre Fabre SA (France), Sanofi SA (France), Sun Pharmaceutical Industries Ltd. (India), and Tsumura & Co. (Japan)

Market Research Insights

• The plant-based drugs market encompasses the development, production, and distribution of therapeutic agents derived from botanical sources. This market is characterized by continuous evolution, with ongoing research in natural compound identification and plant metabolomics driving innovation. One significant trend in this sector is the increasing focus on quality control methods, ensuring herbal drug interactions and herbal medicine efficacy. For instance, a recent study reported a 25% increase in sales of plant-derived APIs due to their improved safety profiles and standardized production processes. Moreover, the industry anticipates a steady growth rate, with industry analysts projecting a 10% annual expansion over the next decade.
• This expansion is driven by the ongoing discovery of new pharmacological activities in plant-derived compounds and the growing demand for phytomedicine research. GMP compliance, compound characterization, clinical efficacy assessment, bioavailability studies, and drug stability testing are all critical aspects of the botanical drug development process. Ensuring herbal product labeling accuracy, drug potency assessment, and pharmacokinetic parameter evaluation are essential for maintaining consumer trust and regulatory compliance. In summary, the plant-based drugs market is a dynamic and evolving sector, driven by ongoing research and innovation in natural compound identification, quality control methods, and pharmacological activity. With a steady growth rate and increasing consumer demand, this market offers significant opportunities for companies and researchers in the field of phytomedicine and herbal drug development.

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