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The herbal market size is forecast to increase by USD 145.3 billion at a CAGR of 7.1% between 2024 and 2029.
Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The market exhibits dynamic trends, with plant genetics playing a pivotal role in product innovation. Marketing campaigns highlight the benefits of herbal products, ranging from herbal baths and functional beverages to herbal compresses and infusions. Water management and weed control are crucial aspects of herbal farming, ensuring optimal growing conditions. Food safety and consumer safety are paramount, with labeling requirements strictly enforced. Customer segmentation is essential for effective brand building, as processing facilities cater to various market niches. Pricing strategies and public relations are key components of successful sales channels.
Soil analysis and harvesting equipment are vital for maintaining herbal product quality. Pest control and seed propagation are ongoing concerns for herbal farmers. Distribution networks must adapt to meet the diverse demands of the market, with an increasing focus on sustainability and transparency. E-commerce and mail order pharmacies, have gained prominence in recent years, making herbal products more accessible to consumers worldwide.
The herbal 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.
The Over the counter segment is estimated to witness significant growth during the forecast period. In 2024, the over-the-counter (OTC) herbal supplement market experienced continued growth, fueled by increasing consumer preference for natural wellness solutions. The FDA and industry reports indicated a steady rise in retail sales, with popular ingredients such as turmeric and psyllium continuing to garner strong demand due to their perceived benefits for inflammation reduction, digestive health, and cardiovascular support. Consumers sought out OTC herbal products for preventative care and everyday wellness, favoring brands that prioritized transparency, traditional knowledge, and plant-based formulations. Companies like Himalaya, Herbalife, and Patanjali responded to this trend by expanding their product lines and distribution channels, focusing on formulations that boosted immunity, alleviated stress, and promoted metabolic health.
Herbal extracts, infusion methods, and traditional Chinese medicine gained traction as consumers explored various methods for harnessing the therapeutic properties of plants. Fair trade practices and organic farming ensured the ethical sourcing of raw materials, while packaging materials and brewing temperatures ensured product efficacy and shelf life. Pain relief, stress reduction, and sleep improvement were among the key health benefits driving demand for herbal remedies, which also found applications in functional foods, dietary supplements, cosmetics ingredients, and medicinal applications. Extraction methods, such as liquid extracts and tinctures, and drying techniques, like sun-drying and freeze-drying, were crucial in preserving the therapeutic properties of herbs.
Sustainable harvesting practices and medicinal applications further broadened the market's scope, with herbal tinctures, herbal teas, and essential oils offering versatile solutions for various health concerns. Inflammation reduction, immune system support, and natural pain relief were some of the primary therapeutic properties that attracted consumers to herbal remedies.
The Over the counter segment was valued at USD 190.40 billion in 2019 and showed a gradual increase during the forecast period.
North America is estimated to contribute 46% 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.
In the North American market of 2024, the herbal sector experiences significant growth, fueled by consumers' growing preference for natural wellness and plant-based alternatives. Herbal products, valued for their potential health benefits and alignment with sustainability and clean-label trends, are increasingly popular. Herbal supplements, such as ashwagandha, turmeric, and elderberry, are sought after for their adaptogenic and immune-supporting properties. Herbal teas and infusions, including hibiscus, lemongrass, and rooibos, are favored for their calming and digestive benefits. The skincare and personal care sector also witnesses a rise in demand for botanical ingredients, like calendula, witch hazel, and green tea, which are known for their gentle, nature-derived formulations.
Fair trade practices are increasingly important to consumers, ensuring herbal extracts are sourced ethically and sustainably. Traditional medicinal applications continue to influence modern herbal remedies, with traditional Chinese medicine gaining popularity. Quality control measures, including organic farming and sustainable harvesting, are essential to maintain the therapeutic properties of herbal ingredients. In the realm of functional foods, herbal ingredients are incorporated into various products, such as weight management supplements and dietary supplements, to enhance their nutritional value. Herbal tinctures and liquid extracts are popular for their quick absorption and high potency. Drying techniques and brewing temperatures are crucial factors in preserving the herbal ingredients' therapeutic properties and ensuring consistent shelf life.
Pain relief and stress reduction are common reasons consumers turn to herbal remedies. Essential oils, derived from various plant sources, are used for their aromatic and therapeutic properties. Inflammation reduction is another area where herbal ingredients, such as ginger and turmeric, show promise. Herbal infusions and tinctures are used for smoking cessation, offering a natural alternative to traditional methods. The market's evolution is marked by a focus on natural, plant-based solutions for various health concerns. The market's trends reflect a growing awareness of the therapeutic properties of herbal ingredients and consumers' desire for sustainable, ethical, and clean-label alternatives.
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 herbal 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 herbal 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
Companies are implementing various strategies, such as strategic alliances, herbal market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.
Archer Daniels Midland Co. - This company specializes in herbal offerings, providing phospholipids, vitamin E capsules, plant sterols, soy isoflavones, and flaxseed oil for diverse nutritional supplements and applications, including nutrition bars, beverages, spreads, and dressings.
The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
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.
The market continues to evolve, with dynamic market activities unfolding across various sectors. Herbal remedies, once relegated to the realm of traditional medicine, have gained mainstream recognition as effective alternatives for various health concerns. From digestive health to stress reduction and pain relief, herbal extracts find applications in diverse areas. Quality control and organic farming practices are paramount in ensuring herbal products' therapeutic properties and natural benefits. Inflammation reduction is a key area of focus, with natural remedies gaining popularity for their potential to alleviate chronic conditions. Shelf life, brewing temperatures, and drying techniques are essential considerations in the production of herbal teas and tinctures.
Essential oils and functional foods are also integral components of the market, offering health benefits and adding value to various industries. Fair trade practices and sustainable harvesting methods are increasingly important in the market, reflecting growing consumer awareness and demand for ethical sourcing. Medicinal applications of herbs extend beyond traditional uses, with ongoing research revealing new therapeutic properties. Extraction methods, such as liquid extracts and infusion methods, continue to evolve, ensuring optimal potency and bioavailability. Steeping times and packaging materials are crucial factors in maintaining the quality and efficacy of herbal products. The market's continuous dynamism is further reflected in its expanding reach, with herbal ingredients finding applications in cosmetics, dietary supplements, and smoking cessation products. The market's evolving patterns underscore its potential for innovation and growth.
Dive into Technavio’s robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Herbal Market insights. See full methodology.
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Market Scope |
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Report Coverage |
Details |
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Page number |
222 |
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Base year |
2024 |
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Historic period |
2019-2023 |
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Forecast period |
2025-2029 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 7.1% |
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Market growth 2025-2029 |
USD 145.3 billion |
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Market structure |
Fragmented |
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YoY growth 2024-2025(%) |
6.5 |
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Key countries |
US, Australia, Canada, Germany, UK, France, Brazil, Italy, Japan, and India |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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1 Executive Summary
2 Technavio Analysis
3 Market Landscape
4 Market Sizing
5 Historic Market Size
6 Qualitative Analysis
7 Five Forces Analysis
8 Market Segmentation by Delivery
9 Market Segmentation by Product
10 Market Segmentation by Type
11 Customer Landscape
12 Geographic Landscape
13 Drivers, Challenges, and Opportunity/Restraints
14 Competitive Landscape
15 Competitive Analysis
16 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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