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The herbal market size is estimated to grow at a CAGR of 6.5% between 2022 and 2027. The market size is forecast to increase by USD 117.37 billion. This herbal market report extensively covers market segmentation by delivery (over-the-counter and prescription), product (herbal supplements and remedies, herbal medicine, and herbal cosmetics), and geography (North America, Europe, Asia, and the Rest of the World (ROW)). It also includes an in-depth analysis of drivers, trends, and challenges. Our report examines historic data from 2017 to 2021, besides analyzing the current market scenario.
One of the key factors driving the herbal market growth is the increase in the prevalence of liver and heart diseases. The main factor that is significantly contributing to the growth of the global herbal market is the increasing frequency of liver and heart disease. Additionally, there is a growing preference of consumers towards natural alternatives to address these health concerns as they become more aware of the possible benefits of herbal medicines. For example, the increasing popularity of herbs such as Milk Thistle due to their liver-protective effects. In addition, the main advantage of Milk Thistle components is that they help to improve liver function and minimize damage caused by illnesses including fatty liver disease. Hence, such factors are positively impacting the market which in turn will drive the market growth during the forecast period.
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A key factor shaping the herbal market growth is the rising awareness about the advantages of natural remedies. There is a growing awareness regarding the benefits of natural therapies in the global herbal market. In addition, consumers are constantly seeking alternatives to synthetic drugs, which in turn will duel the demand for herbal remedies due to their perceived holistic benefits and fewer side effects. The transition is fuelled by the growing interest in wellness, sustainability, and traditional medicine.
Moreover, there is a rise in the popularity of herbs with anti-inflammatory effects, including turmeric and ginger. Some of the most popular immune-boosting herbs are echinacea and elderberry. Thus the increasing health consciousness among consumers is expected to positively impact the market which in turn will drive the market growth during the forecast period.
The availability of alternative treatment options is one of the key challenges hindering the herbal market growth. Even though traditional herbal medicines offer a broad range of possibilities, their success is constantly anecdotal and lacking scientific proof. Some of the key factors that influence the availability of herbal compounds include inconsistent growing practices, environmental conditions, and regional variances.
Moreover, some of the main herbals that face sourcing challenges include rare botanicals, such as Panax ginseng from certain locales, and Ayurvedic medicines, including Ashwagandha. Additionally. there are several restrictions imposed on different countries that create barriers to the global commerce of herbal items, further limiting alternatives. Hence, such factors are negatively impacting the market which in turn will hinder the market growth during the forecast period.
Increasing awareness of wellness and health fuels the herbal supplements and remedies segment which will increase the market growth. Factors such as the rise in customer preference for natural and holistic health treatments are significantly contributing to the growth of this segment. Some of the common herbal medications include echinacea for immune support and ginkgo biloba for cognitive development. Furthermore, several government initiatives and regulations have positively impacted the growth of this segment. Hence the growing awareness of wellness and health is expected to fuel the growth of this segment which, in turn, will drive the market growth during the forecast period.
The increasing shift towards a healthier lifestyle fuels the herbal medicine segment which will increase the market growth. There is a growing popularity in the herbal medicine segment over the years. In addition, there are several government initiatives that encourage the the use of herbal medicines, such as Indias Ayushman Bharat Yojana which has significantly contributed to the growth of this segment. Some of the popular herbal remedies include ginseng for vitality, echinacea for immunological support, and turmeric for anti-inflammatory effects. Therefore, the growing awareness of health benefits of this segment and the rising shift towards a healthier lifestyle is expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
The over-the-counter segment is estimated to witness significant growth during the forecast period. According to the Food and Drug Administration (FDA), there has been a 15% growth in over-the-counter herbal supplement sales in the US in 2022. Furthermore, the Ministry of AYUSH in India estimates a 25% increase in the over-the-counter herbal medicine market by 2021.
The over-the-counter segment was the largest segment and was valued at USD 171.28 billion in 2017.
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Some of the main factors that are fuelling the growth of this segment are the perceived safety of herbal medicines, increased health consciousness, and a preference for self-care options. The prominent market players in this segment include Himalaya Herbal Healthcare, Nature's Bounty, and BioGaia and these companies capitalize on this trend by selling a wide selection of over-the-counter herbal goods. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
The increased awareness of the therapeutic effects of herbs fuels the prescription segment which will increase the market growth. There is an increasing preference for natural alternatives as well as a growing awareness of the therapeutic effects of herbs is significantly fuelling the growth of the segment. For example, the FDA estimated a 20 to 25% increase in the use of herbal supplements in the US, headed by popular items such as St. Johns Wort for mood disorders and Echinacea for immune system support. Therefore, the increasing consumer demand for evidence-based herbal remedies, as well as healthcare practitioner's incorporation of herbal medicine into treatment procedures is fuelling the growth of this segment which in turn will drive the market growth during the forecast period.
North America is estimated to contribute 38% to the growth of the global market during the forecast period.
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Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. One of the main factors that are significantly contributing to the growth of the global herbal market in North America is the growing consumer desire for natural and holistic solutions in the region. Due to the rise in health consciousness among people, there is a growing demand for herbal items such as supplements, teas, and skincare. Some of the popular herbal segments of this trend include herbal supplements such as echinacea and ginseng for immune support, as well as herbal beverages such as chamomile and peppermint for relaxation and wellness. In addition, there is a significant growth in the herbal skincare market with products including components such as aloe vera and lavender. Hence, such factors are expected to drive the market growth in the region during the forecast period.
In 2020, during the COVID-19 pandemic, the growth of the global herbal market witnessed significant growth as consumer interest in herbal medicines and supplements claimed to promote immunity increased in North America. However, in 2021, the initiation of large-scale vaccination drives lifted the lockdown and travel restrictions, which led to the regaining focus on overall well-being. Such factors are expected to drive the market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The herbal market report also includes detailed analyses of the competitive landscape of the market and information about 20 market 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 market 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 herbal market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Herbal Market Scope |
|
Report Coverage |
Details |
Page number |
151 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.5% |
Market growth 2023-2027 |
USD 117.37 billion |
Market structure |
USD Fragmented |
YoY growth 2022-2023(%) |
5.82 |
Regional analysis |
North America, Europe, Asia, and Rest of World (ROW) |
Performing market contribution |
North America at 38% |
Key countries |
US, Canada, Australia, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Archer Daniels Midland Co., Arizona Natural Products, Arkopharma Laboratories, Austral Herbs, Bellan Pharmaceuticals, Blackmores Ltd., Dabur India Ltd., Dasherb Corp., Dr. Willmar Schwabe India Pvt. Ltd., Glanbia plc, Herbalife International of America Inc., Himalaya Global Holdings Ltd., Hishimo Pharmaceuticals Pvt. Ltd., KPC Products Inc., Patanjali Ayurved Ltd., Schaper and Brummer GmbH and Co. KG, SP Pharmaceuticals, Tsumura and Co., ZeinPharma Germany GmbH, and Gaia Herbs Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Delivery
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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